Ford Motor Company (F)

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Ford Lines Up On This Side As Industry Splits On Robotaxi Services
By: Investor's Business Daily | April 16, 2018

Ford Motor (F) reportedly plans to operate its own self-driving-car network on a large scale by 2021 to transport people and goods.

Rather than sell its technology to a ride-hailing operator, the No. 2 U.S. carmaker will operate a network of custom-built autonomous vehicles itself, Jim Farley, Ford's global markets president, told the Financial Times in an interview in London.

That would align Ford's plans with those of General Motors (GM) and Renault-Nissan (NSANY), which plan to run their own self-driving fleets, vs. the likes of Volvo and Tata Motors' (TTM) Jaguar Land Rover, which plan to sell driverless vehicles to ride-sharing companies such as Uber and Alphabet (GOOGL)-owned Waymo, the Times noted.

GM plans a large-scale launch of its robotaxis next year, while Nissan plans to launch its service, called Easy Ride, in the early 2020s.

"The key message from Ford is we're not looking just to start then (in 2021)," Farley said. "We're setting up the Miami business model now so that we can scale then."

Ford's service also will have key difference with GM, the Times noted. It will use a new vehicle powered by hybrid technology and also will carry people and cargo interchangeably, suggesting a larger vehicle such as a Transit van. GM will use a version of its Chevrolet Bolt EV hatchback.

"One of the most important parts of the test is the business model itself," Farley said, to establish how revenue is split, how much consumers will pay for a self-driving delivery, and at what price the service is useful to customers such as logistics or delivery companies. Ford also plans to open its network to local small businesses to transport goods, taking on rivalry local courier services.

Ford announced in 2016 it would launch a so-called robotaxi service by 2021; last year it bought Argo AI, an artificial-intelligence firm, for $1 billion to take on General Motors and Waymo in developing self-driving cars. And Ford in February declared it was "headed to Florida to test and prove out our business model" by using self-driving technology for pizza deliveries in a pact with Domino's Pizza (DPZ).

Shares of Ford were up 0.7% at 11.36 on the stock market today. GM rose 1%, after closing above its 50-day moving average last week. Nissan advanced 0.8%, testing the 50-day line, while Alphabet gained 0.6% but remains stuck below the 50-day marker of institutional support. Domino's punched up 1.6%, putting it back near a 236.10 flat-base buy point after a prior attempt fizzled.

Ford said last month it would continue its self-driving-car testing in Miami after Tesla (TSLA) and Uber self-driving fatalities shook the industry in March. The automaker has two self-driving cars operating on Miami-Dade county roads, according to the Miami Herald.

Tech and auto companies say autonomous vehicles improve safety and reduce fatalities by eliminating the potential for human error.

Uber announced new safety measures over the weekend, including a "panic button" to connect passengers with emergency dispatchers, NBC News reported.

https://www.investors.com/news/ford-operates-robotaxi-service-achieve-scale-2021/?src=A00220&yptr=yahoo

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