Transportation Sector Driving Into Headwinds?
Uber built its business on the back of its self-employed drivers, but is this a business model that is doomed? The company can blame advancing technology for that, especially with the advent of self-driving vehicles.
Obviously, a vehicle that can drive itself has to worry Uber brass in terms of profitability obstacles even if the technology is years away from full implementation on public roads. Nonetheless, the worry is real, especially if self-driving technology makes its way into the logistics side of the transportation sector.
In fact, it already is doing just that. Per a Thomas Insights article, ” autonomous vehicle makers are paying more attention to the trucking industry, as trucks typically travel on highways or fixed routes that make automation relatively easy. Automation is also being turned to as a potential solution to the much-discussed driver shortage.”
For more market trends, visit ETF Trends.