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Amazon wants to take advantage of the self-driving revolution

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(BI Intelligence)

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Amazon is exploring how to best leverage self-driving vehicles to improve its operations. The Wall Street Journal reported that Amazon has had a team studying which applications of the technology can do the most to enhance efficiency and lower long-term costs. Amazon declined to comment on the story, according to the Journal.

The team hasn't yet decided on the best approach. It's worth noting that the firm isn't looking to develop its own fleet of self-driving vehicles, but might be seeking to implement the technology in other ways, potentially relying on a partner. We've identified three strong potential use cases:

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  • Autonomous long-haul trucks for logistics: Limits on the amount of time truck drivers can spend behind the wheel can be a big challenge for e-commerce companies contending with increased package volume and customer expectations that delivery will be as fast and as cheap as possible. Removing the need for a driver could increase the time these trucks can drive. That could result in customers that are happier and more engaged, which in turn could grow sales and increase loyalty to Amazon and its various services.

  • Self-driving vehicles for last-mile deliveries: Last-mile deliveries make up more than half of total delivery costs, according to Honeywell. Amazon has been making plans to use drones to try to cut costs and speed up delivery times, but regulatory barriers in the US — the Federal Aviation Administration currently prohibits commercial drone deliveries that go beyond the line of site of the operator — are likely to remain in place for now. While they face regulatory challenges of their own, self-driving vehicles could be part of the last-mile equation, cutting costs and boosting efficiency.

  • Autonomous forklifts and trucks in fulfillment centers: Amazon has about 70 fulfillment centers in the US. Most of these warehouses have robots to move pallets and other heavy goods around, working in conjunction with humans to get goods off shelves and into delivery trucks. Adding self-driving forklifts and trucks inside fulfillment centers to work with robots could further reduce Amazon's reliance on human labor to run these facilities. That could make them more efficient, help get products to consumers faster, and free up millions of dollars in long-term labor costs.

The self-driving car is no longer a futuristic fantasy. Consumers can already buy vehicles that, within a few years time, will get software updates enabling them to hit the road without the need for a driver.

This autonomous revolution will upend the automotive sector and disrupt huge swaths of the economy, while radically improving energy efficiency and changing the way people approach transport around the world.

Automakers and tech companies are racing to develop the technology that will power self-driving cars in the coming years. That tech is advancing, but leaves observers with a bigger question: will consumers trust driverless car tech, and will they want to use autonomous cars?

Peter Newman, research analyst for BI Intelligence, Business Insider's premium research service, has compiled a detailed report on self-driving cars that analyzes the market, and forecasts vehicle shipments and market penetration. It also profiles the players expected to take on a prominent role in the autonomous future, examines the barriers to autonomous car development and adoption, and reviews developments in technology, regulation, and consumer sentiment. Finally, it analyzes the impact the introduction of autonomy will have on various industries and transport trends.

Here are some of the key takeaways from the report:

  • Self-driving cars are coming; there will be fully autonomous cars on the roads in the US in 2018, and adoption will just take off from there.

  • The technology is developing swiftly to allow fully self-driving vehicles, while the regulatory environment is adapting to the anticipated changes that this new technology will bring.

  • We conducted a survey asking our exclusive BI Insiders panel about their thoughts on self-driving cars, the future of the automotive industry, and the impact autonomous vehicles will have on their purchasing habits moving forward. The results provide a picture of consumer sentiment at the precipice of the autonomous era.

In full, the report:

  • Sizes the current and future self-driving car market, forecasting shipments and projecting installed base.

  • Explains the current state of technology, regulation, and consumer perception.

  • Analyzes how the development of autonomous cars will impact employment and the economy.

Interested in getting the full report? Here are two ways to access it:

  1. Subscribe to an All-Access pass to BI Intelligence and gain immediate access to this report and over 100 other expertly researched reports. As an added bonus, you'll also gain access to all future reports and daily newsletters to ensure you stay ahead of the curve and benefit personally and professionally. >> START A MEMBERSHIP

  2. Purchase & download the full report from our research store. >> BUY THE REPORT



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