UAE consumers are ready to hit the roads with self-driving cars
Boston Consulting Group revealed UAE consumers are willing to pay a premium for self-driving cars
A report by the Boston Consulting Group (BCG) has found that 79% of consumers in the UAE are open to driving a self-driving car and are willing to pay more.
The results gathered align with His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai, as he announced earlier this year that 25% of car journeys in Dubai should be driverless by 2030.
The study, "Self-Driving Vehicles, Robo-Taxis, and the Urban Mobility Revolution", in collaboration with the World Economic Forum, discovered that a total of 72% consumers would pay a premium of $5,000 or more. This is driven by an economic logic that balances the incremental cost against potential cost savings in other areas, such as lower parking fees, fuel savings, and even lower housing costs if it becomes more convenient to live farther from the more expensive city core.
Furthermore, 44% of UAE respondents said self-driving vehicles (SDVs) should be produced by traditional car manufacturers.
Nikolaus Lang, a BCG senior partner and report co-author, said: "There is a compelling case to be made for SDVs in cities. Ride-shared, electric robo-taxis can substantially transform and improve urban transportation and, by direct extension, livability, by providing more people with easier access to mobility, making streets safer, and freeing up space no longer needed for parking. The major players-industry, consumers, and policymakers-are excited and engaged."
BCG's analysis revealed that the potential popularity of self-driving vehicles could bring a number of significant advantages to those living in urban areas. Research indicates that that widespread urban adoption of SDVs and "robo-taxis" could result in a 60% drop in the number of cars on city streets, an 80% or greater decrease in tailpipe emissions, and 90% fewer road accidents.
On a global level, some 58% of consumers in cities around the world are open to trying out SDVs. Willingness is highest among younger consumers: 63% of those aged 29 or younger are willing to ride in a fully self-driving car, compared with 46% of consumers aged 51 or older.