THE INTERNET OF CARS
Connected cars, communicating with each other and with the larger world, will not only reduce accidents and ease traffic. They will have powerful effects beyond the auto industry. Insurers, for example, will have new ways to monitor driver behavior, reward good drivers and distribute costs to bad ones. And ride-sharing companies can better connect idle cars with the customers that need them.
Ride sharing may be a mixed blessing for the auto industry. The majority of vehicles worldwide are used only to commute or for short trips during the day, leaving them idle 95% of the time. If drivers decide to forgo ownership and access cars only when they need them, car sales may be hurt.
Connected cars—especially self-driving ones—could also change the way people use their drive time. In a 2013 survey, more than 50% of respondents said they would prefer to listen to music, talk on the phone, watch videos or browse the Internet while traveling by car.