The Economics

The key to understanding the cost improvements of TaaS vehicles is understanding vehicle degradation which affects both maintenance costs and vehicle lifetime (in miles). The main causes of vehicle degradation are all vastly reduced in an Autonomous Electric Vehicle (A-EV) due to:

- Reduced Friction - 20 moving parts in an EV compared to 2,000 moving parts in a gasoline vehicle leads to far less friction and means there is less that can go wrong. EVs are essentially batteries on wheels.

- Reduced heat and vibration - the simplicity of the powertrain dramatically reduces heat and vibration in A-EVs, which reduces wear and tear on the vehicle.

- Reduced time-based degradation - under the TaaS model, cars no longer sit idle for 96% of the time (as they do in private ownership), but are instead in operation 10 times more, covering 100,000 miles per year instead of 10,000. This reduces degradation like corrosion or partial battery degradation (driven by car lifetime in YEARS).