Current average cost of a new car - $47,000. Let's assume some down payment, so the cost is $30,000.
Loan over 60 months - $500/mo car payment
Let's assume the standard 12,000 miles per year milage
Gas average cost per gallon - $3.80
Average fuel economy - 35 miles per gallon
Total gallons used per month - 29 - $110/mo
Average cost of car insurance - $104/mo
Total cost per month to own and drive a car - $714
This does not include maintenance and wear & tear
The average cost for Uber per mile varies widely between $1 and $2/mile. Let's take the middle - $1.50. Uber would cost about $1500 per month to do all the person's driving.
To keep it simple, lets assume the above cost structure reflects Uber drivers vehicle with the exception that Uber driving 3x the amount above. With that and some wear and tear, car costs would be ~ $1000 / month for around 3000 miles.
Let's say, out of 3000 miles driven 2500 miles would be billed at $1.5 / mile average. This yields $3750. Assuming Uber driver earns ~ 60% of it: $2250. After car costs, the driver would net $1250.
With Waymo, lets say the driven miles is 12k/m and billed 10k/m. Wrongly assuming the ICE car, car costs would go to ~ $2000 / month. Also, sensor suite is far from being free. Assuming $0.75 / mile pricing, gross revenue would be $7500 / car / mile. Deduct direct car costs of $2000 and some car services like daily wash and inspection,
Waymo could still see up to $5000 gross margins per car per month with pricing that is 50% below Uber.
Many assumptions above are very inaccurate, but this napkin calculation should still demonstrate that robotaxi business could be insanely profitable even and push human drivers from any market overnight. This is due to two fundamental reasons:
- No compensation for drivers
- Utilization rate can be very high for cars driven by robots
In practice every robotaxi company will want to drive electric to keep maintenance and energy costs low. So some additional adjustments should be done.