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AUTONOMOUS VEHICLE FEATURE NEWS

Study Finds Autonomous Vehicles Open Up Economic Opportunities

By Ken Briodagh July 22, 2020

According to a recently released study, autonomous vehicles (AVs) hold significant potential to open up wider economic opportunities currently beyond the reach of many low-income households due to inadequate transportation. The report, “Fostering Economic Opportunity through Autonomous Vehicle Technology,” by SAFE, reportedly concludes that on-demand, point-to-point AV transit can cut financial stress by providing reliable, affordable and efficient transportation that is a crucial factor in determining the upward social mobility of low-income households.

Although the post-pandemic priority for transit agencies is to get current transportation systems back up to speed, AV trials are still necessary to incorporate low-cost, autonomous transit into the future transportation mix as soon as possible—at per-mile costs far lower than today’s transportation options. As a result, low-income communities would be able to access opportunities that are out of reach due to enduring gaps in current systems, particularly outside of traditional business hours.

“The biggest factor in upward economic mobility is actual mobility, and for many Americans, today’s transportation system simply isn’t an affordable or efficient option,” said Robbie Diamond, President and CEO, SAFE. “It is important that the immediate focus be on getting America up and running again, but today’s AV pilots will become tomorrow’s automated, integrated transportation system that serves everyone equally and effectively, regardless of location or time of day.”

SAFE’s report notes:

  • The most conservative cost-per-mile estimate for an autonomous, shared and electric car in 2030 is 50 cents. In contrast, the cost per mile for buses today is $1.31.
  • More than 75 million households—almost two-thirds of U.S. households—live in neighborhoods with housing and transportation costs above 45 percent of typical household income, a level that forces many families to make difficult choices and which is also hard to sustain over time.
  • For every 1 percent reduction in the cost of transportation with a fixed housing cost, approximately 750,000 households enter affordability.
  • AV transportation could reduce household costs by as much as $5,600 per household, or $3,800 per American. SAFE found that reducing average transportation costs by $5,000 per year in urbanized neighborhoods brings more than 25 million households within the 45 percent threshold.
  • Employment growth areas in our modern economy—such as job opportunities in e-commerce—remain accessible only by car. For instance, SAFE found that Amazon’s 60 largest U.S. fulfillment centers and facilities are inaccessible to those who work there, unless commuting by personal vehicle, which makes it hard for people to benefit from these new economic opportunities.
  • Transportation is a typical household’s second-largest expense, behind housing, and low- and middle-income populations find the lower housing costs when they move to suburbs and exurbs are often offset by the higher amount they spend on transportation. As their housing costs decrease, their transportation costs can increase by as much as five times, as measured by a share of income.
  • The necessity of owning a car to access jobs forces millions of low-income Americans to make difficult choices to keep a personal vehicle. Seven million Americans are at least three months behind on car payments, and many that do make car payments often do so instead of paying rent or mortgages.

Check out the full report here.


Ken Briodagh is a storyteller, writer and editor with about two decades of experience under his belt. He is in love with technology and if he had his druthers would beta test everything from shoe phones to flying cars.

Edited by Ken Briodagh

Editorial Director

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