For several years now, there has been talk of self-driving cars that would allow passengers to sit back and relax as they reach their destination. This has now become a reality, as many companies have been testing self-driving cars in California for the past 6 months. However, the DMV of California has proposed a new law that would require these cars to be drivable by a licensed driver in case of system failure. In addition to this requirement, the proposed law would require makers to only lease the cars to customers rather than sell the vehicles. Google seems to be the only company that is testing a prototype car that has no steering wheel or pedals, which they would have to change if this law is enacted. In addition to Google testing these cars in San Francisco, they’ve also tested them in Austin, TX, despite the fact that it is not yet legal to not have a driver behind the wheel.

It is said that Google does not wish to sell these cars, but rather have people sign up for a service that allows them to ride in the Google self-driving car. This prototype is reported to be a part of a plan that would bring serious competition to Uber. Uber has had many driver related issues such as accidents and criminal activities. Unlike Uber, if Google is successful with this service, they would not have to worry about background checking a driver, paying the driver, or dealing with driver error such as accidents. A self-driving car prevents human error and would save a company a lot of money in liabilities and labor expenses. Not to mention, many people would prefer getting into a car without a driver instead of a car with a driver they do not know who could possibly have a criminal record.

As you could imagine, Uber is not too happy about this potential competition. But they are not the only ones. While California may be in the process of putting more limitations on self-driving cars, insurance companies and police departments’ profits could be affected immensely. No human error means no accidents, so why would someone pay for a service that they would not need on their particular car? Since these cars are programmed to abide by all laws and safety precautions, that means that there will be less speeding. Less speeding means less speeding tickets for police officers to give, which for some departments pull in a large amount of money.

While these concerns are very relevant, most companies considering the automated driver idea are thinking like Google. They would like to have an automated service that would primarily be in cities, similar to what Uber does but without the driver. We will have to keep on watching to see what moves these companies make, and what laws are enacted because of them.