# The Inevitable Rise of Self-Driving Cars: A Look into the Future
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Chapter 1: The Connection Between Automation and Delivery
Self-driving vehicles are poised to transform the landscape of long-haul delivery, drawing unexpected parallels with automatic flour mills and fast-food giants like McDonald’s. At first glance, these industries appear unrelated, but they all share a core principle: maximizing output while minimizing labor costs. Just as automated flour mills and McDonald's have dominated their sectors, self-driving trucks are on track to become a key player in logistics.
> In 1785, Oliver Evans revolutionized flour milling. Previously, flour was produced manually: farmers would harvest wheat, transport it to local mills, and have it ground into flour. The profession of milling was commonplace, which explains the prevalence of the surname "Miller" to this day. However, Evans, from Wilmington, Delaware, developed an automatic mill that could operate without human intervention.
As Evans refined his technology, these automatic mills began to outproduce traditional ones, leading to rapid adoption across the United States. Today, industrial bakeries are filled with sophisticated machinery, and the role of human millers has vanished.
There are two primary reasons for the rise of automatic flour mills:
- Increased production capacity due to innovative engineering.
- Reduced labor costs, as these mills require minimal human oversight.
Although the initial investment was higher because of advanced machinery, the long-term savings were substantial. Factors like Evans' connections and the opening of the Erie Canal also facilitated the spread of this innovation. Ultimately, the combination of low labor costs and high output allowed mill owners to lower prices while simultaneously increasing profits. This model quickly gained traction in the 1800s, becoming a staple across America.
Section 1.1: The Fast Food Revolution
Driving through America today reveals a landscape dotted with fast-food chains at every turn. This phenomenon is no coincidence; since the 1950s, the fast-food industry has focused on catering to drivers looking for quick, convenient meals.
To meet the demand for speedy service, fast-food restaurants gravitated toward menu items that could be prepared quickly and easily. Elaborate dishes were out of the question. Instead, the industry embraced items like hamburgers and fried chicken, which could be produced in large quantities.
The efficiency of fast food allows for high output—many hamburgers can be made in a single hour—while also keeping labor costs low. This means that staff can be drawn from a wider pool of less experienced workers, allowing for reduced wages. The result is a massive global industry valued at $570 billion, eclipsing the entire GDP of Sweden.
McDonald’s epitomized this model, streamlining operations to achieve maximum efficiency. The McDonald brothers cut their menu down to a few core items, simplifying preparation. Richard “Dick” McDonald introduced the Speedee System, which mechanized the kitchen like a factory assembly line. Each task was assigned to a specific worker, further increasing speed and volume. As a result, McDonald’s achieved lower labor costs and higher output, leading to greater profits and lower prices for consumers.
Subsection 1.1.1: The Economic Principle
The underlying economic principle is simple: when a product is in demand, achieving lower labor costs and higher production volumes leads to lower prices and increased profits, resulting in widespread popularity.
Given this framework, it’s clear that self-driving vehicles are set to dominate the long-distance delivery sector. There is already a strong demand for efficient transportation of goods, particularly in commercial delivery, moving vans, and mail services.
While self-driving technology is still developing, advancements will inevitably reduce labor costs. As the technology progresses, the need for a human driver—and the associated salary—will vanish.
Will volume increase? Absolutely. In long-haul deliveries, for instance, human drivers must take breaks to rest. A self-driving vehicle, however, can operate continuously, allowing for more deliveries over time. While the increase may not be dramatic, any boost in efficiency is significant.
Chapter 2: The Future of Automation
The shift toward self-driving vehicles is one of the final stages in automating everyday purchases. Consider the process of acquiring a loaf of bread, which involves several steps:
- Wheat cultivation
- Milling into flour
- Baking into bread
- Delivery to stores
- Purchasing the bread
In recent centuries, most of these steps have become automated. While we still have farmers, modern machinery enables farms to feed millions efficiently. The labor-intensive process of milling has been replaced, thanks to Evans’ invention. Companies can now produce millions of loaves in automated factories. Yet, the final step of delivery remains reliant on human drivers—at least for now.
The potential for widespread self-driving vehicles has understandably raised concerns. New technologies can have both positive and negative impacts. The automatic flour mill increased efficiency but displaced many mill workers. Fast food has become popular but has contributed to health issues. Whether self-driving cars will ultimately benefit society remains to be seen, but their inevitability is clear.
This video discusses the integration of humans and self-driving cars, examining whether both can coexist on our roads.
Here, we explore the advantages and disadvantages of self-driving vehicles, focusing on the future of Tesla and the implications for the automotive industry.