The field of self-driving cars is changing fast, especially with the U.S. DOT recently releasing AV guidelines. DOT Secretary Sean Duffy at a recent National Governors Association meeting changes to the Automated Vehicle Exemption Program (AVEP). These changes will increase the likelihood that domestic or imported vehicles may find exemptions for Advanced Driver Assistance Systems (ADAS). This comes at a time when major companies, including Tesla and Waymo, are testing the waters of autonomous technology amidst fluctuating profits and strategic shifts.
To date, any vehicles equipped with Level 2 or above ADAS face a requirement to report crashes. These reports should be filed within five days whenever the crash lacks non-fatalities or vulnerable roadway customers. Under the new executive order, it changes these reporting requirements, specifically when a vehicle is towed following an accident. Duffy underscored the importance of efficient data collection, explaining how past requirements turned out to be quite cumbersome.
“What we want to do is be able to get good data, but if there’s a scraping of paint off of an autonomous vehicle, the reporting requirements became very laborious and challenging, and it slowed the process down.” – DOT Secretary Sean Duffy
Changes to the Automated Vehicle Exemption Program
Showing the AVEP process some love, changes have been made to clarify confusing language and make the process of applying for vehicle exemptions more streamlined. These changes are intended to make the modification process more efficient and promote innovation at the same time that they protect safety. The program’s flexibility is key as manufacturers work to innovate and adapt in the rapidly changing world of autonomous vehicle technology.
Prior to now, any vehicle outfitted with Level 2 or higher advanced driver-assistance systems was held to a high standard of reporting requirements after a crash. These requirements served to gather a vital set of data regarding autonomous operations. Over time, they were needlessly creating administrative burdens for manufacturers and had the potential to slow down innovation.
The new rules attempt to address these burdens by bringing some clarity on what should even be considered reportable under this statute. This is intended to incentivize manufacturers to invest in technology advancements instead of getting mired down in burdensome red tape.
Tesla’s Testing and Financial Challenges
Even as the regulatory environment changes, Tesla is not looking back in its pursuit of autonomy. The company recently started pilot-testing its driverless ride-hailing service — with company employees, for now — in Austin and the Bay Area. This move is part and parcel of Tesla’s determined march to dominate the AV sector.
Yet, Tesla now has some major financial headwinds with profits down a jaw-dropping 71% year-over-year and automotive revenues still sinking. The company’s challenges illustrate the difficult reality of scaling autonomous technology under financial duress.
Tesla’s continuing developments with their full self-driving technology are still being followed very closely by industry insiders and competitors. The firm needs to smartly navigate around these fiscal obstacles. While doing so, it must continue to maintain its technological advantage to be poised for success in the future.
Waymo and Industry Collaborations
Alphabet CEO Sundar Pichai’s remarks during a recent earnings call have sparked discussions surrounding Waymo’s future. Pichai hinted at “future optionality around personal ownership,” suggesting that the company might explore new avenues for its self-driving technology.
Waymo has a history of suggesting that it would license its self-driving tech to other car manufacturers. This strategic shift makes Waymo the first company with AVs at scale. In addition to ARGO AI, this new partnership with other vehicle manufacturers would more quickly speed the adoption of the driverless technology across many other different vehicle platforms.
Industry players such as Rivian are clearly excited to use artificial intelligence in new ways. This increasing interest underscores the deep need for new software leadership on the part of the automaker. Aidan Gomez, co-founder and CEO of Cohere, recently joined Rivian’s board, a clear sign of a strategic shift to utilizing AI solutions.
Broader Industry Landscape
Apart from changes specific to the AV industry, a few other big trends are happening within the larger automotive and tech industries. Additionally, Delta SkyMiles members can now earn miles by using Uber services and ordering food through Uber Eats. This shift reflects a larger trend towards the merging of transportation and delivery sectors.
Uber’s regulatory astroturfing doesn’t seem to be working as the company now faces a lawsuit from the Federal Trade Commission. The allegations arise from unlawful charges associated with its Uber One subscription service. This legal challenge further complicates Uber’s ongoing efforts to hammer out its highly controversial business model even as it faces widening regulatory scrutiny.
DoorDash last week announced its plans to acquire southwest rival Deliveroo for $3.6 billion. This significant move demonstrates the cutthroat competition between food delivery companies and how they are jockeying for position to accelerate their success.
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