Stories by Raphael Gindrat

Expert Voices

AVs could change the economics of parking garages

Side view of a parking garage in Chicago from October 1967.
A parking garage in Chicago, October 1967. Photo: John Bulmer/Getty Images

The looming deployment of AVs could render parking garages obsolete, which has created a conundrum for developers — whether to invest in parking garages that can be converted for other uses or stop building them entirely.

The big picture: While the need for parking is acute in cities today, parking structures are typically financed with a 30-year payback and some believe that AVs will reduce or eliminate the need for parking as soon as 2030.

Expert Voices

Automakers envision a business model for AVs: selling miles, not cars

A blue car sitting atop a pile of money
Illustration: Sarah Grillo/Axios

If AVs eventually dominate the car industry, automakers could start charging for miles travelled instead of vehicles sold — potentially a much bigger revenue opportunity.

The big picture: Automakers and tech companies are investing in AV technology because it offers, among many things, a new revenue stream if people shift from owning vehicles to buying access to transportation.

Expert Voices

Solving the efficiency riddles of microtransit

Illustration of roads in the shape of a penrose triangle
Illustration: Rebecca Zisser/Axios

Companies like Bridj, Ford and Sweden's Kutsuplus have shut down their microtransit shuttle services, in part because optimizing the trips has proven both difficult and costly.

The big picture: In theory, moving more people with fewer vehicles is a good business model. But microtransit requires companies to purchase and maintain vehicles and to pay drivers for the duration of their shift, not just when they are carrying paying passengers.