Has Andrew Yang been so right about automation is slowly taking over more jobs, especially for the trucking industry? Well, check out CNBC video right after the break to see how customer focus of retailers like Amazon has driven more people into developing self-driving trucks!
Lyft has filed S-1 for IPO on March 18th of this year (2019). Since Lyft isn’t yet a public company, we can’t really know the true numbers of Lyft’s finance. Nevertheless, leaked information tells us that although Lyft revenues are increasing tremendously it is also losing a lot of money on operational and R&D costs. Leaked information may not be accurate at all, but if the information is accurate Lyft may have to struggle a lot before it can become a profitable company.
According to the information we have Lyft is operating at a loss of $911 million net loss in 2018. Net loss is very important because a net loss tells us that Lyft isn’t a profitable company yet. It seems Lyft’s revenues are not able to cover the operating and R&D costs. The general definition of a net loss is that a total of expenses is bigger than a total of revenues.
Nevertheless, Lyft seems to boost its revenues very fast! In 2016, Lyft’s revenues were totaled at $343 million, but if the information is correct in 2018 Lyft’s revenues are totaled at $2.2 billion. If one looks at this closer, it seems Lyft has a chance of making it if the revenues are going to continue to go through this positive, exploding trajectory for some time to come.
Lyft is considering to invest more in R&D in regards to rolling out a self-driving fleet. If Lyft can get behind a self-driving fleet enormously and get the technology to work for real, then I think Lyft has a big chance to cut costs tremendously. If revenues continue to pick up, eating away Uber’s market share, and cut costing measures are going to be effective — Lyft could very well become a profitable company.
Lyft and Uber are competing for the same market, and both of these companies are driving Taxis out of business. Since Lyft and Uber are able to do this to Taxis, we can tell that companies like Amazon, Google, and even the car rentals and car dealerships themselves could get into the same act as Lyft and Uber when self-driving becomes a reality. This could be a very crowded market, and if my intuition is accurate it could mean Lyft and Uber may have a very tough market to operate in as time goes on. So the profits/revenues Lyft is having now could very well dwindle in the future!
Self-driving will change how people commute in the future. Car dealerships can jump into the act of allowing people to hail for self-driving cars. Perhaps, people of the future will not buy cars as much since they can just hail for a self-driving car? Google and other big tech companies can also create apps to allow the sharing of self-driving cars like how we have bike-sharing now. This could mean companies like Google don’t have to own a fleet of self-driving cars to be in the business of self-driving car-hailing. It’s like people to people self-dealing business but using a futuristic app of a huge tech giant where the tech giant gets to keep a small portion of the profit.
In summary and in truth, I’m not very sure if Lyft could be a good investment or not. Leaked info tells us that the company got a good chance of becoming profitable since the revenues keep on exploding to the positive territory — but the company has to be able to keep the operating and R&D costs down eventually! Nevertheless, the market which Lyft is operating in is possibly getting very crowded because of the self-driving car technology. If by the time the market gets so crowded and yet Lyft isn’t becoming profitable, then Lyft could find itself in a world of hurt! Personally, if I ever want to invest in Lyft, I won’t make it as one of my long term investments! If I ever invest in Lyft, I may have to watch out for the actions of other companies in the car-hailing market very closely. I may also have to watch out for new players that could enter the car-hailing market because new players could dilute the profitability of car-hailing market.
A few days ago, a taxi man engaged me in a conversation. He asked if I was ubering someone because he saw me was waiting near his spot. I told him I was not and was only waiting for a friend. The conversation carried on to the point in which he confessed Uber has taken away too many customers from him. He told me once he was making something like thousands of dollars in a week, but now this is pretty much gone.
I didn’t want to make him feel worse, and so I kept my mouth shut about automation. Basically, China is heading this way. More self-driving buses are now out and about in Shenzhen, China. Check out the video on this right after the break.
I think even whoever relies on Uber for driving customers around will eventually lose out to self-driving Uber cars. In fact, I can even imagine up some self-driving car services such as self-driving taxi cabs will be able to mimic a human touch by installing smart, sexy robots that can pretend to drive but could carry on a real conversation with the human customers.
I think the future is all about automation. I think this trend will speed up fast. I think people will lose jobs to automation for sure.
China’s leading truck manufacturing, FAW Jiefang, just finished testing three self-driving trucks on the highway. Basically, this is a sign that in the future we will see fleets of self-driving delivery trucks, taxi cabs, and rental cars everywhere, and people who use these vehicles will not need a middleman human factor to be in the way. For an example, owners of businesses can deliver products between warehouses and to customers through self-driving delivery trucks. Of course, the owners of these companies can also stuff robotic laborers inside self-driving delivery trucks to carry stuff back and forth between the trucks and the premise that the products need to go to or to be picked up from. The self-driving rental car factor will also be interesting. Imagine you never have to own a car again, but you get to rent the nicest cars in town at the cheapest cost and on the top of this you don’t even have to drive the car itself (duh! self-driving man). You can just enjoy your ride in style and let the self-driving supercar takes you around town. Imagine, when such a car gets into an accident, you don’t even have to worry about the insurance cost, because you’re not the one who is doing the actual driving. Anyhow, sorry for the rant as my imagination took over. Back to the main topic, check out the video right after the break to see Chinese self-driving trucks in action.
In the past, the rise of industrialization produced new jobs and discarded the old ones. With industrialization came new technologies and so forth, thus new civilizations evolved and destroyed the old ones. People became more urbanized eventually, and the old ways were mostly discarded. Factories sprang into the existence and assembly lines produced things en masse. Jobs were abundant for the industrialization was young and healthy. Industrialization was one of the main catalysts in which out-of-date jobs disappeared en masse.
We don’t really have to know the details of how industrialization of the past could build a civilization of today, because what we’re seeing are real. Furthermore, China has reinforced the notion of industrialization miracle by using this phenomenon so effectively in which industrialization plus urbanization has brought at least 600 million Chinese people out of poverty. China is now harboring the largest middle class that the world has ever known.
For India, she is looking at China with bewilderment, because she too has a huge population which will surpass China’s 1.3 billion head count, and yet her industrialization isn’t yet fully developed. The problem is that something is lurking in time in which even industrialization will soon become the thing of the past. By then even industrialization will not be able to help India to catch up with China.
What is lurking in time which will eclipse industrialization? In my opinion, it’s automation. It’s so simple to see why automation will turn industrialization into nothing more but a tale of history. As of now, we know industrialization as the catalyst for the rise of modern humans, because it has produced untold amount of jobs and products and in turn pushing human population into new height. Very soon though, automation will put so many people out of menial and even creative jobs, because so many things will be able to be automated with great efficiency.
Efficiency is the key to a future, because automation will be so efficient in which even more products will be able to be produced. Unfortunately, people will not be a part of this new enlightenment, because the production will become automation. Automation does not need human inputs. I surmise in the early stage of automation, some human inputs will be needed. When the efficiency of automation becomes fully transpired, human inputs will merely be needed.
Imagine how this future will unfold. Let’s be simple and take a look at things that are closer to home. Automation will put truck drivers, taxi drivers, pilots, construction workers, manufacturing workers, programmers, engineers, and even musicians out of job. It’s simple to see self-driving car technology will be able to replace jobs that require human drivers. It’s simple to see self-flying plane technology will be able to replace jobs that require pilots. It’s simple to see the construction process of any building in the future will become evermore automated such as 3D printing machine technology for construction process, thus less construction workers will be needed. It’s simple to see manufacturing workers will be replaced by machines, because machines don’t demand wages. Artificial intelligence will be able to replace programmers, engineers, and musician, because the smarter artificial intelligence gets the less human inputs are needed in these jobs.
I bet China and elsewhere in the world are looking toward this automation trend, because these places are already being industrialized. The next logical step for them is to go automation for even more efficient future. Unfortunate for India, if she isn’t industrialized fast enough, she may have to face a future in which the world is going full speed ahead for automation. In the automation world, companies don’t need cheap labor jobs, but these companies can purchase cheap machines to build products. India will find herself to be vulnerable in such a future for sure. Besides India, I think anywhere in the world will see automation as a challenge, because automation means less jobs for everybody.
You can argue automation will also create new jobs, but we have to remember that the number of jobs that automation needs won’t be able to replace untold amount of jobs the world needs. For an example, a manufacturer plant’s automation may require one or two skill engineers to reprogram the automation process, but thousands of employees will be fired for machines are the only answer for automation. This whole automation thing reminds me of “The Matrix” very much. The movie “The Matrix” first came out for entertainment, but we may never know it might just be so prophetic in the future.
In summary, automation will give India and China so much pain, because the population sizes of these two countries are so huge. Huge population means more jobs are needed, but automation will replace so many jobs that huge population may have to cry for mercy. China will fare better than India if automation is to speed up, because China has the surplus of money, infrastructure, and so on to help her population cope with automation. India will not fare very well in the automation world, because she is still trying to industrialize her way out of poverty. In a world where machines replace humans, I think India won’t be able to fully industrialize. Check out the video right after the break to find more on why India could be in so much pain when automation comes knocking.
In China, they’re testing out self-driving buses. Check out the video right after the break. Enjoy!!!