Ford is developing a broad transportation service platform to take advantage of what it says is a $332 billion business opportunity for autonomous vehicles.
Why it matters: Amid all the hype about autonomous vehicles, little attention is paid to the business case for driverless cars. Ford’s plan is to keep its AVs running nearly round-the-clock by catering to both ride-hailing consumers and business customers.
The big picture: Ford says the total addressable market for autonomous vehicles is $332 billion by 2026, citing data from Frost & Sullivan and Morgan Stanley.
- $202 billion will be ride-hailing in urban areas
- $130 billion will be “last-mile” goods delivery for retailers like Wal-Mart and small businesses like dry cleaners and florists.
What’s happening: Ford is building its business strategy city-by-city, starting with Miami, where it has been testing a fleet of autonomous vehicles with various partners since February. Every city has unique transportation needs, which is why it's important to collaborate with city officials, Ford says. Next up: Washington, D.C., starting in 2019.
