There’s some good news for robotaxi operators: People who have ridden in robotaxis really like them.
According to a new study by automotive research firm J.D. Power, robotaxi passengers rated the experience an 8.53 out of 10, with the leading contributor of the experience being “vehicle technology.”
J.D. Power also found that “consumer confidence” when riding in a robotaxi — defined as a fully automated, self-driving vehicle — was 56% higher among those who have ridden in one (76%), compared to those who have not (20%). J.D. Power noted that non-riders in cities with robotaxis also saw higher consumer confidence than the average non-rider, at 34%.
J.D. Power researchers said these are indications that “experience continues to be a main driver of trust and acceptance.”
“The robotaxi segment is still anyone’s game, given that most people are not familiar with robotaxi brands and haven’t formed a clear associative imagery,” said Kathleen Rizk, senior director of user experience benchmarking and technology at J.D. Power, in the report. “Industry leaders like Cruise and Waymo, along with lesser-known companies such as Zoox, May Mobility, and Motional, need to look beyond their deployment markets and find ways to educate and build trust with all consumers.”
J.D. Power conducted its Robotaxi Experience Study — now in its second year, based on responses from 3,773 respondents comprising 773 consumers living in cities with robotaxi services (Dallas, Las Vegas, Los Angeles, Phoenix, and San Francisco), as well as a national sample of 3,000 consumers.
The low sample size is indicative of the state of the robotaxi market, which is small but growing. Alphabet’s Waymo expanded its offerings to Austin and Atlanta recently via its partnership with Uber.
Cruise, operated by GM, restarted its service in May of this year in Phoenix and Dallas with supervised rides and also signed a deal with Uber to have its vehicles summoned on Uber’s app. Zoox, owned by Amazon, is currently testing its robotaxis and said its service will be available soon for public riders in Las Vegas.
And then there’s Tesla. The EV giant is holding its robotaxi event, dubbed “We, Robot,” on Thursday night, where the company is expected to reveal a fully autonomous cybercab EV that will be the basis for its robotaxi. Tesla is also expected to unveil a software service that would enable current Tesla EVs with full self-driving to be added to a robotaxi fleet for ridesharing.
Tesla CEO Elon Musk has basically said Tesla is a bet on autonomous driving, AI, and robotics. With the portion of the general public who ride in robotaxis seemingly accepting of them, at least according to J.D. Power, the valuation for Tesla’s robotaxi ambitions could be validated.
Musk has said the robotaxi business could be a $5 trillion market. While that sounds ambitious, analysts at RBC Capital say it could still be worth a robust $1.7 trillion globally by 2040.
What’s more, RBC sees the margins as much higher than the typical 5% to 10% seen in the automotive sector, making it that much more of an attractive business for a Tesla that sees itself as more than just an automaker.
Pras Subramanian is a reporter for Yahoo Finance. You can follow him on Twitter and on Instagram.
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