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FUTURE OF AUTONOMOUS TAXIS


By Amer Hasan, CEO of minicabit minicabit.com


addressing issues during journeys, such as responding to breakdowns.


Every week seems to bring news of AI (Artificial Intelligence) making rapid advances and reshaping our daily lives. One area that’s long been in focus is autonomous, or ‘self-driving,’ cars. Research has shown that 88% of road accidents are caused by human error, suggesting that a tech-driven future could see electric cars transporting passengers more safely without the need for a driver... in theory.


A significant milestone was reached for the UK when the Automated Vehicles (AV) Act became law last month, after receiving Royal Assent. This framework legislation will be fleshed out through additional laws, with consultations starting this year and regulations expected to be finalised in 2025 and 2026. According to the Department for Transport, this Act could unlock an industry worth up to £42 billion and create 38,000 jobs by 2035.


As the CEO of minicabit, the UK’s largest cab aggregator with over 1,000 operators on our platform, I thought I’d highlight some key points for cab operators and their drivers.


Firstly, the AV Act sets out the standards that car manufacturers must meet to sell partially or fully self- driving vehicles in Britain. Vehicles must pass tests conducted by an independent body. Selling a car as self-driving without meeting these standards would be a criminal offence, ensuring consumers are not misled by driver assistance features masquerading as full autonomy.


Under the AV Act, the owner of an ‘authorised automated vehicle’ won’t be responsible for the car’s actions in self-drive mode. Instead, liability will likely fall on the car’s ‘authorised self-driving entity’ such as the car manufacturer and/or its software developers if something goes wrong.


However, AVs carrying passengers will need a licensed operator with a permit from the Department for Transport to ensure safe operation. These operators will handle tasks like ensuring the vehicle is insured and


10


So that’s the legal bit, who could be the key players? In the UK, trials have already taken place with British companies Wayve and Oxa trialling their self-driving cars in London and Oxford. But it seems they’re (currently) not planning to be regular cab operators of these cars. A better clue may lie in the USA – with Apple pulling out of the race, for now, to build an electric and autonomous, car, that leaves Google-owned Waymo and General Motors-owned Cruise. Both have been running autonomous taxis in a few cities – however, Cruise encountered a major mishap last year where its previous management were


alleged to have


attempted covering up one of their AV taxis dragging along for several metres a pedestrian who had been knocked into its path, prompting a nationwide suspension of its services. I expect these players will progress their rollout, albeit much more cautiously and gradually than before. Over time, it’s expected these operators would retail their autonomous fleets through ride hailing apps such as Uber, perhaps their entry point into the UK market.


One dark horse to throw its hat into the ring (if that’s possible) is Tesla. Its maverick CEO, Elon Musk, has long touted how customers only utilise their cars a small percentage of the time – hence, he envisions his customers enabling their Tesla vehicle to be rented out in its idle hours (like spare rooms on Airbnb) as an autonomous vehicle ferrying other passengers around, earning income for their owners. That throws up lots of questions about licensing and maintenance which he may (or likely not) address when he reveals his ‘robotaxi’ plans in early August.


Speaking of throwing up, that’s just one of the many passenger issues inside these autonomous vehicles that operators will need to manage. It’s why I believe Britain’s cab operators will have a role to play in an autonomous taxi future, given their expertise in maintaining vehicles in between passenger trips and utilising them across local, airport transfer and out of town bookings.


And finally, given self-driving cabs will continually be challenged by complex road, traffic, weather and pedestrian environments, I expect many customers will still prefer the assurance of a human cab driver for years to come!


JUNE 2024 PHTM


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