Will Self-Driving Taxis Help the Poor?
Self-driving taxis will offer many conveniences, but how can the industry make sure there aren't too many challenges that prevent poor people from reaping the benefits? Brad Templeton explores this issue.
While I’m very excited about the coming robocar world, there are still many unsolved problems. One I’ve been thinking about, particularly with my recent continued thinking on transit, is how to provide robotaxi service to the poor, which is to say people without much money and without credit and reputations.
In particular, we want to avoid situations where taxi fleet operators create major barriers to riding by the poor in the form of higher fees, special burdens, or simply not accepting the poor as customers. If you look at services like Uber today, they don’t let you ride unless you have a credit card, though in some cases prepaid debit cards will work.
Today a taxi (or a bus or Uber style vehicle) has a person in it, primarily to drive, but they perform another role - they constrain the behavior of the rider or riders. They reduce the probability that somebody might trash the vehicle or harass or be violent to another passenger.
Of course, such things happen quite rarely, but that won’t stop operators from asking, “What do we do when it does happen? How can we stop it or get the person who does it to pay for any damage?” And further they will say, “I need a way to know that in the rare event something goes wrong, you can and will pay for it.” They do this in many similar situations. The problem is not that the poor will be judged dangerous or risky. The problem is that they will be judged less accountable for things that might go wrong. Rich people will throw up in the back of cars or damage them as much as the poor, perhaps more; the difference is there is a way to make them pay for it. So while I use the word poor here, I really mean “those it is hard to hold accountable” because there is a strong connection.
As I have outlined in one of my examinations of privacy a taxi can contain a camera with a physical shutter that is open only between riders. It can do a “before and after” photograph, mostly to spot if you left items behind, but also to spot if you’ve damaged or soiled the vehicle. Then the owner can have the vehicle go for cleaning, and send you the bill.
But they can only send you the bill if they know who you are and have a way to bill you. For the middle class and above, that’s no problem. This is the way things like Uber work - everybody is registered and has a credit card on file. This is not so easy for the poor. Many don’t have credit cards, and more to the point, they can’t show the resources to fix the damage they might do to a car, nor may they have whatever type of reputation is needed so fleet operators will trust them. The actions of a few damn the many.
The middle class don’t even need credit cards. Those of us wishing to retain our privacy could post a bond through a privacy protecting intermediary. The robotaxi company would know me only as “PrivacyProxy 12323423” and I would have an independent relationship with PrivacyProxy Inc. which would accept responsibility for any damage I do to the car, and bill me for it or take money from my bond if I’m truly anonymous.
Options for the poor
Without the proxy, robotaxi operators will want some sort of direct accountability from passengers for any problems they might cause. Even for the middle class, it mostly means being identified, so if damage is found, you can be tracked down and made to pay. The middle class have ability to pay, and credit. The poor don’t, at least many of them don’t.
People with some level of identity (an address, a job) have ways to be accountable. If the damage rises to the level where refusing to fix it is a crime at some level, fear of the justice system might work, but it’s unlikely the police are going to knock on somebody’s door for throwing up in a car.
In the future, I expect just about everybody of all income levels will have smartphones, and plans (though prepaid plans are more common at lower income levels.) One could volunteer to be accountable via the phone plan, losing your phone number if you aren’t. Indeed, it’s going to be hard to summon a car without a phone, though it will also be possible using internet terminals, kiosks and borrowing the phones of others.
More expensive rides
A likely solution, seen already in the car rental industry, is to charge extra for insurance for those who can’t prove accountability another way. Car rental company insurance is grossly overpriced, and I never buy it because I have personal insurance and credit cards to cover such issues. Those who don’t often have to pay this higher price.
Brad Templeton on Self-Driving Cars
It’s still a sad reality to imagine the poor having to pay more for rides than for the rich.
An option to mitigate this might be cars aimed at carrying those who are higher risk. These cars might be a bit more able to withstand wear and tear. Their interiors might be more like bus interiors, easily cleaned and harder to damage, rather than luxury leather which will probably be only for the wealthier. To get one, you might have to wait longer. While a middle-class customer ordering a cheap car might be sent a luxury car because that’s what’s spare at the time, it is less likely an untrusted and poor customer would get that.
Before we go do far, I predict the cost of robotaxi rides will get well below $1/mile, heading down to 30 cents/mile. Even with a 30% surcharge, that’s still cheaper than what we have today, in fact it’s cheaper than a bus ticket in many towns, certainly cheaper than an unsubsidized bus ticket which tends to run $5-$6. Still my hope for robotaxi service is that it makes good transportation more available to everybody, and having it cost more for the poor is a defect.
In addition, as long as damage levels remain low, as a comment points out, perhaps the added cost on every ride would be small enough that you don’t need worry about this for poor or rich. (Though having no cost to doing so does mean more spilled food, drink and sadly, vomit.)
Over time, fortunately, poor riders could develop reputations for treating vehicles well. Build enough reputation and you might have access to the same fleet and prices that the middle class do, or at least much cheaper insurance. Cause a problem and you might lose the reputation. It would be possible to build such a reputation anonymously, though I suspect most people and companies would prefer to tie it to identity, erasing privacy. Anonymous reputations in particular can be sold or stolen which presents an issue. One option is to tie the reputation to a photo, but not a name. When you get in the car, it would confirm you match the photo, but would not immediately know your name. (In the future, though, police and database companies will be able to turn the photo into a name easily enough.)