Ex-Bank of England Economist Foresees Lyft, Uber Price Reduction due to Autonomous Cars

Autopilot

Photo by: Mark Warner via Flickr

 

Autonomous cars may slash the price of ride-sharing services, such as Lyft and Uber, by 40-50 percent. This is according to British multinational oil and gas company BP’s chief economist Spencer Dale.

Dale, who previously sat on the Monetary Policy Committee on the Bank of England, said that the rapid development of self-driving cars and electric vehicles will create a positive and major impact on the ride-sharing services. He said that since fully autonomous cars may initially be expensive for normal individuals to purchase, it may be purchased by commercial firms offering mobile services.

During the International Petroleum Week conference that was held in London, Dale said, “We estimate that could reduce the cost of that type of service by around 40 percent or 50 percent,” referring to the significant fall of mobility services cost. As a result, they also expect that there will be a huge surge in the kilometers traveled by driverless mobility-service vehicles in 2030.

The economist discussed the autonomous vehicles as a part of their Energy Outlook report this 2018. He also predicted that 15 percent of all cars to be seen on the road will be electric by 2040. 

The Energy Outlook report also touched on the impact of said development on oil demand.