The Influence of Autonomous Vehicles on Insurers and Ride-Hailing Services


  • Carlos Eduardo Alfonzo Warrington College of Business



autonomous vehicles, insurance, ride-hailing


Autonomous vehicles have captured the public’s imagination for what they could do to change the way people move from one place to another. Relative newcomers to the auto industry, such as Tesla, Alphabet, and Uber, have been developing software seeking to power fully autonomous vehicles. The implication is that there would be no need for a driver. Driverless vehicles pose a number of issues and opportunities for transportation companies and their affiliate industries such as car insurance companies. Traditional automakers such as Ford and BMW are partnering with both other automakers and technology companies in order to engage synergies and achieve complete automation before their competitors. With this competition underway, there are sectors in the economy whose current business models would be disrupted by autonomous vehicles. One of these is the car insurance industry, which depends on sharing risk with policy holders. This paper delves into the topic of how insurance companies would be affected by a change in this risk-sharing relationship with policy holders. Furthermore, this paper also examines the current status of the ride-hailing industry and how the main service providers are aiming to benefit from autonomous driving technology.






Social & Behavioral Sciences, Business, Education