Name – Bhomik Kankaria

Roll No – PGP39469

How does Google justify the role out of driver less car as a part of its business?

Google's justifies for Driverless Car Development in following ways -

1. Strategic Alignment

o Extends Google's mission of making information "universally accessible and useful"

o Leverages core competencies in software, data analytics, and mapping technologies

o Aligns with Google's culture of pursuing ambitious "moonshot" projects

2. Market Opportunity

o Global car market expected to grow, especially in emerging markets

o Potential for new revenue streams:

1. Licensing self-driving software to auto manufacturers

2. Offering ride-sharing/taxi services using autonomous fleets

3. Monetizing data generated by vehicles

o First-mover advantage in a potentially transformative technology

3. Technological Leadership

o Builds on Google's expertise in artificial intelligence and robotics

o Enhances Google's mapping and navigation capabilities

o Positions Google competitively against tech rivals entering the automotive space

4. Social Impact

o Improved road safety (addressing 32,000+ annual U.S. car crash fatalities)

o Increased mobility for elderly and disabled individuals

o Potential reduction in traffic congestion and environmental benefits

5. Synergies with Core Business

o Frees up time for passengers to engage with Google's other products/services

o Generates valuable data to enhance Google's existing offerings

 o Potential integration with other Google services (e.g., Calendar, Maps)

6. Progress and Investment

o Significant investment: "millions of dollars" in the project

o Over 700,000 miles of testing logged by 2014

o Prediction of consumer availability by 2017 (Sergey Brin)

7. Market Readiness

o 57% of global survey respondents expressed trust in driverless cars

o Gradual introduction of autonomous features in new vehicles by major automakers

Challenges:
 High development costs ($150,000 per vehicle in 2014)
 Lack of automotive manufacturing experience
 Regulatory and legal barriers
 Consumer adoption concerns
 Competition from established automakers

Conclusion:
While driverless cars represent a departure from Google's core business, the company views it as a
strategic investment that leverages its strengths to enter a massive market with transformative
potential. The project aligns with Google's innovative culture and could generate valuable data to
enhance its other products and services. Despite significant challenges, Google's substantial progress
and the potential market opportunity justify the continued investment in this technology.