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Originally Posted by Street Pharmacist
Think about it this way.
Ownership - paying for a car used maybe 20% at most, plus upkeep and fuel on a scale of 1
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Which based on a new vehicle is somewhere in the range of 50c/km in Canada driving 24K km/year.
http://www.caa.ca/wp-content/uploads...h_2013_web.pdf
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Service - no taxi wage plus scale makes this option way cheaper than ownership almost no matter how you look at it.
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Human costs are only about half of a taxi fare:
http://ottawa.ca/calendar/ottawa/cit...iCostIndex.pdf
Halve a typical taxi rate and that's still 85c/km. That doesn't include the cost of self-driving equipment, which remains unknown.
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The reason car ownership rates increase with cost reduction is convenience. When scaled, automated transportation services will be almost as convenient
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It unlikely because if the fleet size is scaled for fast response during peak times it would be mostly idle and under-utilized for the rest of the day.