Google May Be Making a Big Move to Take on Uber

22 Dec 2015 | Author: | No comments yet »

Google Intends To Create An Alphabet Self-Driving Car Spin-Off Business.

Bloomberg Business is reporting today that Google’s long-running self-driving car project will spin out as its own company under Google parent Alphabet next year.Google Inc. plans to make its self-driving cars unit, which will offer rides for hire, a stand-alone business under the Alphabet Inc. corporate umbrella next year, a person briefed on the company’s strategy said.

The US internet giant is said to believe the UK could take a lead in developing laws for the vehicles, which are being tested in California and are expected to become publicly available by 2020.Google has let slip that it intends to create an Alphabet spin-off business that uses its driverless car technology – and it may end up being a big competitor for car services like Uber and Lyft. Google’s autonomous vehicles have logged more than 1 million miles (1.6 million kilometers) on public roads, mostly around San Francisco and Austin, Texas, making these cities logical places for launching a service, said the person, who asked not to be identified because the plans are private. The cars are fitted with laser sensor technology which can spot pedestrians and other traffic, and have been tested on more than one million miles of public roads over the last three years. The fleets — which would include a range of large and small vehicles — could be deployed first in confined areas like college campuses, military bases or corporate office parks, the person said.

The suggestion that Google’s autonomous cars would be used for hailing rides isn’t a new one, but this is the first time that a plan appears to be coming together to actually make it happen. The race to develop a self-driving vehicle fleet has intensified since February when Bloomberg reported that Google was developing a rival to Uber Technologies Inc., most likely in conjunction with its driverless-car project. The Government has enthusiastically put millions of pounds towards driverless car research amid hopes the vehicles will cut commuting time, accidents and congestion on the roads. Uber is pursuing its own autonomous capabilities, while automakers are deploying semi-autonomous technologies while experimenting with so-called shared mobility.

Google has praised Britain’s approach to how driverless cars should be governed and insured, while the Government wants to encourage the technology in the UK and insists it will change the law. Elevating Google’s self-driving car program to a self-sustained Alphabet company might help put some distance between two initiatives that have been viewed by some as a conflict of interest. (Uber has its own self-driving research projects underway, independent of Google, and CEO Travis Kalanick has said that he’d like to use Teslas; Elon Musk has done little to smack down suggestions of an eventual partnership.) Campus-wide ride-hailing would also be a way for Google’s cars to get millions of additional miles under their belt and start to learn about consumers’ preferences and concerns when being picked up by an adorable little driverless car. Minutes from meetings released under the Freedom of Information Act show Sarah Hunter from the firm’s experimental division Google X said the company is ‘very positive’ about the UK’s approach. Google’s research facility Google X swooped up John Krafcik, the former president of TrueCar Inc., an auto-shopping site, as the new Google X CEO for its cars project department. Meanwhile Michael Hurwitz, head of technology for the DfT, has ‘emphasised our desire to work with Google to ensure the UK stays ahead’, according to us report.

When asked about the development of a business that will most likely be a looming rival for companies like Lyft, Uber, and standard taxi services, Google spokeswoman Gina Scigliano refused to comment. While polls show a third of U.S. consumers are interested in buying self-driving cars, the rest are skittish because they’re worried about losing control, said Thilo Koslowski, vice president and automotive practice leader at Gartner Inc. “These potential ride-for-hire services could allow consumers to experience the technology and embrace it in a bigger way,” he said. “That would help not just Google but the entire industry.” In August, the Mountain View, California-based company reorganized itself into a conglomerate called Alphabet. The company said it plans to spin out several of its advanced-technology units into stand-alone companies within the Alphabet portfolio, including its robotics division, its health-care company Verily, the Google Ventures and Google Capital investment firms, Google Inc., the search-engine company, and Nest, which produces intelligent smoke alarms and thermostats.

The front of the vehicle has a soft foam-like material where a traditional bumper would be and a more flexible windscreen, in an attempt to be safer for pedestrians. A combination of radar, lasers and cameras sitting on top of the roof give the car a 360-degree ‘view’, with sensors linked to computer software able to ‘see’ and identify people, cars, road signs and markings and traffic lights. Uber has recruited dozens of autonomous-vehicle researchers from Carnegie Mellon University’s robotics program and in June hired Brian McClendon, Google’s former vice president of engineering, to run Uber’s Advanced Technologies Center. Google executives have said they’re interested in self-driving cars primarily to reduce traffic accidents, which claim about 33,000 lives in the U.S. each year.

Besides offering its own ride-for-hire service, Google probably will to try to capitalize on self-driving research in two other ways, said Mark Boyadjis, an analyst at IHS Automotive. First, the company may pump the same ads into self-driving cars that appear on Google’s search engine, and second, it may be able to profit through licensing arrangements that let traditional automakers participate in its ride-sharing and other self-driving services, he said. It’s also testing a ride-hailing service called Go Ride on its Dearborn, Michigan, campus, using customized Ford Transit vans with individual seats and Wi-Fi.

At the same time, automakers are bringing more pieces of self-driving technology to market while insisting that the driver is responsible for the vehicle’s operation and may need to take control of the steering wheel in challenging situations. Tesla Motors Inc. in October rolled out its Autopilot suite that can drive on well-tended highways and change lanes safely without the driver taking the wheel.

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