The autonomous vehicle (AV) industry is gaining momentum, with existing automakers and high-profile startups pushing experimental vehicles on public roads and testing their technologies to improve self-driving capabilities. In a commercial context, the mid-mile trucking sector may become one of the early adopters of this technology as trucks can experience less traffic when transporting freight across interstates and interstates.
While this could mean fleets in the mid-mileage segment can significantly reduce operating costs, it could also lead to the departure of truck drivers.
“Although the technology must be improved, if a truck can operate without a human operator, it could theoretically operate 24 hours a day, with the only stopping period being for fuel,” said Justin King, senior vice president of product and trucking innovation at Comdata North America: “There will be no hour-of-service requirements, and it’s much safer.” “There will be tremendous cost savings, making this technology huge for the trucking industry.”
When self-driving technology becomes commercially viable, it will also impact fleet insurance rates, as self-driving vehicles are expected to be safer on the road than human-driven vehicles. An Accenture report indicates that auto insurance premiums could fall by about $25 billion by 2035 – equivalent to 12.5% of the total market.
Although autonomous vehicles will separate out into a dedicated insurance sector, it is estimated that the annual insurance revenue loss due to autonomous vehicles will exceed the gains of the new sector.
While discussing the impact of autonomous vehicles, it is also important to consider the denial of the human element in trucking and the economic and regulatory challenges that can accrue to this technology. For governments, regulating self-driving technology is difficult. Although it promises safer roads and a radical reduction in logistical costs, it may displace millions of truck drivers, a dilemma that the authorities face difficulty in resolving.
“Although there will be regulatory headwinds for autonomous vehicles, I think this will happen in phases. We are now in the testing phase, where there are obviously several prototypes of autonomous trucks made by various companies that are being tested on roads.” “But they come with operators in the cab to take over when the car isn’t doing something right or is stuck in a situation,” King said.
However, the spacecraft is learning with every mile it travels, whether in real life or simulation. King believes that autonomous vehicles will be able to drive on their own without intervention by the next decade.
For Comdata, the disruption caused by autonomous vehicles from a refueling perspective is an interesting one. “The question is how can we enable a fuel transaction when the car is driverless? Today, trucks stop at a gas station and are fueled by someone, and there is also a physical plastic card. But with autonomous vehicles, we need to think about contactless payment and on-the-go payment.” Site basis.
Technology related to contactless payments has also boomed. Last year, German lender Commerzbank announced a collaborative effort with Daimler Trucks to develop a blockchain-based payment solution that automates machine-to-machine (M2M) transactions. If proven successful, this technology could bridge the gap between manual refueling and fuel cards, allowing the machines to interact seamlessly without any hassle.
“We think the future is disrupting what we see in the industry today. It’s not just transportation companies and fuel card companies that are facing change. For example, how will truck stops adapt to self-driving vehicles? We won’t need that many truck stops,” King said. “Trucks are in an autonomous world, which could completely change convenience and service models.”
As technology disrupts practices, the industry must follow suit and adapt to change. King asserted that industry stakeholders ignore the inevitable and don’t look to change operations until the disruption hits them.
“Everything is happening so fast, and the future will be electric and autonomous. It is time for the industry to think about its future more aggressively than it is at the moment.
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