A. Case Study - Urban Mobility at a Tipping Point: How Autonomous Vehicles change the industry? Source A: Adapted from a report published by Mckinsey & Company Exhibit B Not owning a car is already convenient and cost-effective under certain circumstances. Annual cost of mobility in San Francisco Bay area, $ thousand per year 13,000 12,000 11,000 10,000 Finance 9,000 new car ($30,000) 8,000 7,000 Best use of 6,000 multimodal options 5,000 Buy used car 4,000 $15,000 10,000 miles 10,000 miles 5,000 miles 5,000 miles 30% time premium 0% time premium 30% time premium 0% time premium Multimodal cost, -9 38 -49 -24 % difference compared with new car Multimodal cost, 15 75 -31 % difference compared with used car Multimodal refers to all the different methods people can use to get from point A to point B, apart from using a privately owned car. The time premium is calculated as total annual travel time using multimodal options compared with time spent traveling in a privately owned car. A 30% time premium, then, means travelers are willing to spend 30% more time than they would driving their own car. A 0% premium means they are not willing to spend any additional time. Source: Mckinsey analysis Statement Al: 'For travellers who cover the San Francisco Bay Area regional average of about $10,000 miles a year by car, switching to the best available combination of transportation, with no sacrifice of time (i.e. 0% time premium), would cost them about 38 percent more than financing a new car and 75 percent more than the cost of running a used car."