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Nissan and Renault to Introduce Autonomous Ride-Sharing and Ride-Hailing Services

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【Summary】It’s not enough for automakers to just offer a driverless vehicle these days, as Nissan and Renault plan to get ahead of the pack with ride-hailing and ride-sharing services.

Original Vineeth Joel Patel    Jul 01, 2017 10:00 AM PT
Nissan and Renault to Introduce Autonomous Ride-Sharing and Ride-Hailing Services

It's not enough for an automaker to just have an autonomous car anymore. Automakers and technology companies are working towards an autonomous future, which will include hundreds of thousands of self-driving cars and not just ones that are available for purchase. 

Numerous companies and automakers, like Lyft, Uber, and Juno are working on self-driving ride-sharing services that will ferry individuals around without a human driver behind the wheel of the car. Automakers like Volvo are also getting into the segment, as they plan to have a backup plan to address the reduction of private car ownership. 

Nissan and Renault Join The Frenzy

The latest automaker to join the frenzy is Nissan, which will receive a helping hand from its partner Renault, reports Automotive News. Ogi Redzic, head of Renault-Nissan's Connected Vehicles and Mobility Services division, stated that the two automakers would begin providing autonomous services with its electric vehicles "certainly within 10 years," but it's unlikely to see any progress before 2020. 

"We think that the big opportunity for us is in automation, electric vehicles and ride-sharing and hailing together," said Redzic in an interview with the outlet. The system for its vehicles, as Automotive News points out, will come from a collaboration between Japanese game software maker DeNA and Transdev, the French public transport operator who has also partnered with Delphi for an on-demand shuttle service

Renault-Nissan joins a small group of automakers that are using their self-driving technology to bring mobility services to the masses. Google's Alphabet and Uber are two companies leading the way in the "pay-per-ride" market that's threatening the traditional method of owning a vehicle, reports Automotive News. And it's easy to see why. 

Why Are Ride-Sharing and Ride-Hailing Popular?

The outlet cites Goldman Sachs, who claimed that the ride-hailing market would grow eight times in size by 2030. According to Goldman Sachs' estimation, by that time, the ride-hailing market would be five times larger than the taxi market, states Automotive News. Needless to say, that's a ripe market that's ready to be picked. 

Redzic told Auto News that both Renault and Nissan were testing autonomous vehicles that would run on pre-mapped courses with set pick-up and drop-off locations. 

Renault-Nissan aren't the only automakers looking into turning their autonomous vehicles into machines that can be used for ride-hailing services. Auto News reports that BMW has been testing driverless vehicles for this purpose for some time now, and so has Uber. 

Automotive News claims that American technology companies are entering the segment, as well, with nuTonomoy and Lyft, which is mostly owned by General Motors, announced plans to expand driverless tests to Boston earlier this year. 

With traditional drivers struggling to accept autonomous features in their cars, driverless ride-sharing and ride-hailing services may become more popular than self-driving vehicles that are sold to the masses. 

via: Automotive News

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