The market for driverless cars will head towards monopoly

THE race to bring driverless cars to market is fierce and crowded. All the leading carmakers are in the field: on May 31st SoftBank’s Vision Fund said that it would invest $2.25bn in the autonomous vehicle (AV) arm of General Motors. So are tech upstarts, from Uber to Tesla to Waymo, Alphabet’s self-drive division and the leader in driverless technology, which recently announced plans to add 62,000 minivans to the fleet of cars that will make up its autonomous ride-hailing service. Intense competition has both benefits and costs, but will probably prove short-lived. Thanks to powerful economies of scale, the roads may soon be ruled by no more than a handful of firms.
The advantages of scale begin with data.