The Success of Convenience: A Look at Expedia and the Self-Driving Revolution
In 1994, a game-changing idea was pitched to Bill Gates by Microsoft Corp. (MSFT) product manager Rich Barton: move travel booking online. This idea led to the birth of Expedia Group Inc. (EXPE) in 1996, which became a standalone company in 1999. Expedia’s one-stop-shop approach for travelers made it more popular than the airline and hotel companies it served. Today, online aggregators like Expedia dominate the travel industry, surpassing the market value of the top hotel and airline companies combined.
The Power of Convenience
- People value convenience when making travel arrangements
- Online aggregators like Expedia offer the best options across all vendors
- Airlines have struggled to compete with the convenience of online aggregators
The Self-Driving Revolution
On October 10, Tesla Inc. (TSLA) is expected to announce plans to offer autonomous driving ride-hailing services, joining Waymo and Cruise in this market. This shift could reduce net car demand by 15% by 2035, forcing automakers to adapt to the self-driving trend or risk losing out. Tesla’s entry into the market poses a threat to traditional automakers, pushing them to invest in similar technologies.
The Future of Autonomous Vehicles
- Self-driving vehicles could revolutionize transportation and reduce car demand
- Automakers like GM are rushing to develop self-driving vehicles
- Companies like Uber could benefit from self-driving technologies as a marketplace for services
The Even Bigger AV Bet
Uber’s move into autonomous driving is not without challenges. The company must navigate complex deals with vendors and transition from human-based drivers to autonomous ones. InvestorPlace Senior Analyst Luke Lango has identified a company with significant potential in this space, presenting an opportunity for investors to capitalize on the evolving landscape of autonomous vehicles.
Conclusion
The shift towards autonomous vehicles and online aggregators like Expedia represents a significant transformation in the travel and transportation industries. Companies that adapt to these changes stand to benefit, while those that fail to innovate risk falling behind. Investors should stay informed about developments in autonomous driving technology and consider opportunities presented by emerging companies in this space.