Your mention of Zipcar in the context of Netflix is an astute point. Zipcar has a very nice and well-developed infrastructure that would be nearly ideal for the transition. The question is whether or not Zipcar is thinking that far ahead, and I do not know the answer.
Many people do not know that even though Netflix has only been streaming video for a few years, they were very actively building their business around that transition over a decade ago, pretty much from their inception. They built out all of the elements required to take advantage of that transition long before it was technologically viable. Even though their DVD by mail business was highly successful, it was in many ways seen merely as a strategic waypoint. I think Zipcar might be well-advised to take a similar view of their business model, being prepared to strategically cannibalize it when the market is ready for driverless cars.
Yeah Hastings was fond of saying ‘That’s why we called it NETflix not DVDs-by-mail’.. although I think even in the late 90s there were some weak attempts at video on demand over the web so the vision wasn’t nearly as advanced as I think it would be in Zipcar’s case. One of the major problems in the analogy is that the capital investment to replace cars is so ridiculously enormous it’s difficult to imagine one company capturing a large chunk of it.
The precise details of how driverless cars come to be used will be fascinating. Urban or rural first? taxi replacement or owned first? Will there be restricted areas? Who are the major players? Does it kill existing mass transit (I think so)? What will be the dominant fueling model? What will NYC do with the subway (make it a high speed expressway for the cars perhaps)? Will webvan make a comeback (snicker)?
Your mention of Zipcar in the context of Netflix is an astute point. Zipcar has a very nice and well-developed infrastructure that would be nearly ideal for the transition. The question is whether or not Zipcar is thinking that far ahead, and I do not know the answer.
Many people do not know that even though Netflix has only been streaming video for a few years, they were very actively building their business around that transition over a decade ago, pretty much from their inception. They built out all of the elements required to take advantage of that transition long before it was technologically viable. Even though their DVD by mail business was highly successful, it was in many ways seen merely as a strategic waypoint. I think Zipcar might be well-advised to take a similar view of their business model, being prepared to strategically cannibalize it when the market is ready for driverless cars.
Yeah Hastings was fond of saying ‘That’s why we called it NETflix not DVDs-by-mail’.. although I think even in the late 90s there were some weak attempts at video on demand over the web so the vision wasn’t nearly as advanced as I think it would be in Zipcar’s case. One of the major problems in the analogy is that the capital investment to replace cars is so ridiculously enormous it’s difficult to imagine one company capturing a large chunk of it.
The precise details of how driverless cars come to be used will be fascinating. Urban or rural first? taxi replacement or owned first? Will there be restricted areas? Who are the major players? Does it kill existing mass transit (I think so)? What will be the dominant fueling model? What will NYC do with the subway (make it a high speed expressway for the cars perhaps)? Will webvan make a comeback (snicker)?