A recent report has revealed that the widespread adoption of autonomous cars and taxis could lead to a revolutionary transformation of cities.
Widespread urban adoption of self-driving vehicles (SDVs) and “robo-taxis,” or self-driving taxis, could result in a 60% drop in the number of cars on city streets, an 80% or greater decrease in tailpipe emissions, and 90% fewer road accidents, according to a new report by The Boston Consulting Group (BCG) prepared in collaboration with the World Economic Forum.
Self-Driving Vehicles, Robo-Taxis, and the Urban Mobility Revolution, released today, builds on earlier research by BCG and the World Economic Forum, including a survey of more than 5,500 consumers in ten countries—the largest global survey on SDVs to date. The report examines four potential scenarios for SDVs in an urban context and describes the possible impact of each one. While broad consumer adoption of SDVs—to which BCG’s research shows there are few barriers—would by itself lead to significant disruption, the real revolution in urban mobility will come with widespread adoption of robo-taxis.
“There is a compelling case to be made for SDVs in cities,” said Nikolaus Lang, a BCG senior partner and report coauthor. “Ride-shared, electric robo-taxis can substantially transform and improve urban transportation and, by direct extension, livability, by providing more people with easier access to mobility, making streets safer, and freeing up space no longer needed for parking. The major players—industry, consumers, and policymakers—are excited and engaged.”
Some 58% of consumers in cities around the world are open to trying out SDVs. Willingness is highest among younger consumers: 63% of those aged 29 or younger are willing to ride in a fully self-driving car, compared with 46% of consumers aged 51 or older.
Acceptance of SDVs is highest in emerging markets. In India, for example, willingness is 85%, while consumers in Japan and the Netherlands are most reluctant (36% and 41%, respectively). Consumers cite the convenience of parking assistance and an increase in productivity while traveling as the top two reasons for interest in SDVs. When asked who should produce SDVs, almost 50% of respondents look to traditional-car manufacturers. Trust in automakers is highest in France, Germany, and Japan; it is weaker in India, the US, and China, where tech companies have high visibility.
Although few consumers have even seen an SDV, their expectations for how SDVs will differ from traditional cars are quite specific. More than 35% expect SDVs to be hybrid vehicles, and another 29% anticipate that they will be electric.
Many consumers are willing to pay a premium of $5,000 or more for a fully self-driving car. In France, India, and Japan, every second consumer is ready to pay more for an SDV. This willingness to pay extra is driven by an economic logic that balances the incremental cost against potential cost savings in other areas, such as lower parking fees, fuel savings, and even lower housing costs if it becomes more convenient to live farther from the more expensive city core.
The research also involved in-depth interviews with 25 urban policymakers in 12 cities. Some 60% of these policymakers expect that by 2025, at least one city will have banned traditional-car ownership, partly as a result of robo-taxi fleets. Another 24% believe that this will happen by 2030. In terms of operating robo-taxi fleets, policymakers clearly see the private sector in the lead and envision a multiplayer setup rather than a monopolistic structure. Numerous trials involving SDVs are already underway in cities as diverse as Singapore, London, and Gothenburg. Gothenburg is currently planning to launch a pilot of 100 SDVs on its ring road in 2017.
In addition to conducting research with consumers and city policymakers, BCG and the World Economic Forum developed four comprehensive scenarios—based on autonomous technology, ride sharing, and electrification—for the city of the future. Here are the scenarios, in order of potential impact:
The Premium Car That Drives Itself. SDVs complement the existing mobility landscape as high-end offerings. This results in a small reduction (about 1%) in the number of vehicles on the streets through limited sharing of self-driving vehicles and fewer accidents—a drop of almost 20%—because SDVs, without human error as a risk factor, are much safer.
SDVs Rule the Streets. In this scenario, SDVs replace most traditional cars but are still primarily privately owned. One in ten SDVs is shared by multiple individuals, and the total number of cars in the city falls by 8%. The number of accidents drops by 55%, and there is a 5% increase in freed-up parking space.
Robo-Taxis Take Over. Robo-taxis are the primary mobility option in the city. The biggest change is a nearly 50% decrease in the number of cars as consumers abandon privately owned vehicles for shared robo-taxis. There are almost 90% fewer accidents, and nearly 40% of parking space is freed up.
The Ridesharing Revolution. Shared robo-taxis are the main mobility mode. Every self-driving taxi now averages 2 passengers instead of the 1.2 assumed to be the average occupancy previously. Ridesharing frees up more parking space (54%) and further lowers the number of cars needed to provide the same level of mobility to the population (59%). Accidents decrease by 87%.
“No single scenario will play out exactly as described, but our analysis makes it clear that the potential benefits for society are huge if SDVs are combined with ride sharing and electrification,” said Michael Rüßmann, a BCG senior partner and report coauthor. “A power train shift from internal-combustion to electric engines is essential if cities want to cut tailpipe emissions, and ride sharing in urban areas is required to reduce the number of vehicles that are on the streets at any given time. Autonomous capabilities are the key to big improvements in road safety. These three factors—ride sharing, autonomous driving, and electrification—reinforce each other to facilitate fast adoption.”
TikTok looks for SA talent
The fast-rising short-video platform has launched a #PickMe campaign to discover local stars.
TikTok, which claims to be the world’s leading destination for short-form videos, launches its first PickMe campaign, an effort to discover creative talents and provide a stage to express themselves in South Africa. Starting March 1, TikTok kicked off a month-long search through participants’ 15-second videos under hashtag #PickMe.
TikTok says it is committed to investing in South Africa and discovering the local talents. The PickMe campaign is supported by its local partners like Huawei, MTV Base and Digify Africa.
Local stars, including comedian and singer Lasizwe and singer Nadia Jaftha, have joined the campaign and called for users to show their talents on TikTok.
There are 5 categories of video shooting in the campaign, namely dance, acting, comedy, singing and cosmetics. Participants need to shoot a 15-second video using TikTok using #PickMe and tag @tiktok_africa to participate in the challenge. The finalists will be selected based on their video performance. The most popular and talented participants will have the chance to win prizes like Huawei Mate 20 Pro smartphones, a day at MTV Base, and a once-off-presenter opportunity and attendance at an intensive video production workshop delivered by Digify Africa.
“TikTok has definitely evolved into something that everyone loves and uses. It’s given creators a space to create more unique content and also help the creator gain a whole new kind of fan base, ” says Preven Reddy, Imbewu The Seed TV-star and Megazone radio host who is also a TikTok user.
Says TikTok video creator Mihlali Nxanga: “As a young South African working towards being in the entertainment industry, TikTok has given me the platform to grow my following tremendously. Within 6 months, my fan base has grown by a whopping 90 000, and not only from South Africa, but the whole world. For me, TikTok is not just a content platform, it is a global community.”
The campaign will wrap up on March 31. The list of the finalist will be announced in the app and on official Instagram @tiktok_southafrica. For more information, please visit the TikTok app.
Rugby fan experience transformed by digital platform
The South African Rugby Federation has embraced digitalisation as a key enabler of its strategic aspirations. It has worked with Accenture to transform fan engagement for Springbok supporters with the launch of a digital fan platform.
“Digital technology and social media have transformed how modern fans watch, support and engage with their favourite teams,” says SA Rugby CEO Jurie Roux. “To maintain our relevance amid this new market dynamic, and grow our fan base, we’ve acknowledged the vital need to digitally transform our organisation.”
Wayne Hull, managing director for Accenture Digital in Africa, says: “SA Rugby’s ambition to pivot to a more fan-centric strategy requires digital design, content, platforms and insights because modern consumers, including loyal Springbok supporters, engage predominantly via mobile digital channels and expect hyper-personalised experiences.”
Accenture Digital’s development process started with quantitative and qualitative research, which informed the user experience (UX) design guidelines and content strategy for the digital fan engagement platform.
“To know what fans want, we needed to understand the fans themselves,” says Hull. “The Accenture Digital team mined the research data and identified multiple fan ‘personas’, which all have different content consumption, platform functionality and engagement preferences.”
The platform development team focused on three critical elements to meet these requirements – the customer experience (CX), the engagement engine and cloud-based deployment.
“To deliver a memorable and engaging CX, Accenture Digital leveraged leading digital experience software,” says Hull. “The result is a fully integrated and responsive platform that creates seamless, personalised digital fan experiences across SA Rugby’s content, commerce and digital marketing initiatives in a manner that makes fans feel recognised and connected to the players and the game.”
The new platform will serve as the first point of call for any rugby fan who wants to get their data fix with exclusive statistics, analytics and insights. The platform’s content style will include more visual elements – videos and images – with more concise articles that are easier to digest, in accordance with evolving content consumption preferences on mobile screens. This will complement long-form thought leadership and insight pieces.
In addition, fans will enjoy exclusive access to player-related content, such as behind-the-scenes footage and game and training performance stats. SA Rugby will also benefit from the ability to track comments and mentions via the Sitecore analytics platform Accenture Digital implemented, to respond and engage in the conversations Springbok fans are having on social media about the game, the teams or the players.
To do this, SA Rugby required a consolidated view of the customer. However, data resided in disparate sites across ticketing providers and SA Rugby’s e-commerce and online magazine databases. This information will be consolidated into the CRM system, with multiple integration points available to leverage this data.
The CRM system’s functionality will help to reveal insights such as fan communication preferences and their likes and dislikes, which will place hyper-relevance at the core of SA Rugby’s fan experience and engagement strategy.
The final element in the platform development was cloud deployment, which allows fans to access the platform from any device that has an internet connection. The platform is hosted within the Microsoft Azure environment, which is stable, secure and fully redundant. It gives SA Rugby the flexibility to manage the platform themselves, with the option to integrate or scale additional functionality down the line.
Based on the outcome, Hull believes that Accenture Digital has successfully reimagined, built and delivered a world-class, modern and mobile-friendly digital fan platform that creates a fun, immersive and engaging experience for fans.
“It’s a major step towards helping SA Rugby realise its ambition to become a fan-centric, forward-looking and nimble organisation, and we look forward to building and developing the platform further with the team as their digital fan engagement requirements evolve,” says Hull