Covid has created super commuters… But self-driving cars can turn that into a plus

Some fundamental things about American life have changed in the past four and a half years, and a new kind of worker has emerged.

One created by twin forces that forced people to opt for a major change in their lives.

I’m talking about the rise of the “super commuter”.

In 2019, before the Covid pandemic, the US Census Bureau reported that the average one-way commute was 27.6 minutes, or about 55 minutes round trip.

But during the Covid pandemic, when remote work became much more common, many large cities where jobs were more plentiful saw significant population declines. Here’s a sample of the population changes caused by Covid, according to the Brookings Institution:

• San Francisco: -6.3%
• New York City: -3.5%
• San Jose, California: -2.7%
• Chicago: -1.7%

Many workers fled to neighboring exurbs or sometimes moved to another state.

Eventually, the pandemic ended, and people thought about moving back to the cities. But the skyrocketing inflation of the era made cities more expensive.

With the new rate cut cycle started by the Federal Reserve, many Americans may assume that the problem of inflation is defeated.

But of course that depends on where you live.

A study by WalletHub shows that many Americans are still deep in the problem of higher prices for… well, everything.

WalletHub compared 23 major metropolitan statistical areas in two key metrics related to the Consumer Price Index (CPI), which measures inflation. They compared CPI for the last month for which data is available two months ahead and one year ahead to get a snapshot of how inflation has changed over the short and long term.

For example, the Dallas-Ft. Worth area saw an inflation rate of 4.1% over last year. New York City had an annual inflation rate of 3.7%. Chicago, Detroit, San Diego and Washington DC have annual inflation rates above 3.5%.

Now that many companies want people back in the office, many commuters are finding they prefer the new locations or simply can’t afford the original city.

That’s why “super commuters” are now more common. The term super commuter refers to anyone who works in a major metropolitan area but lives far outside that area.

My commute to the InvestorPlace offices is 60 minutes at best and more like 90 minutes on a bad traffic day. That means I spend two to three hours a day, or 10 to 15 hours a week, driving to and from work.

Research from Stanford University, published earlier this year, shows that the distances between work and home are getting longer. As Americans opt for more flexibility in where they live, the 40+ mile commute is on the rise.

And the share of workers traveling 75 miles or more has increased by a third since the start of the pandemic, the study notes.

With this background, I want you to imagine… what if that time was productive or maybe even enjoyable?

Why the shuttle could change forever

Next Wednesday, Elon Musk and Tesla will hold the “We, Robot” event, where the company is expected to unveil its first dedicated robotaxi. This is being heralded as a “game changer” for the future of self-driving cars.

As a reminder, an autonomous car is a vehicle capable of sensing its environment and operating without human involvement.

Not only is a human passenger not required to take control of the vehicle at any time, but a human passenger does not even have to be in the vehicle. Self-driving cars can go anywhere a traditional car goes and do everything an experienced human driver can do.

The “We, Robot” event is expected to be a watershed moment for Tesla, with the company unveiling its first dedicated robotaxi, tentatively named “Cybercab.” Tesla is expected to demonstrate groundbreaking advances in the field Complete self-driving and artificial intelligence software because the company is helping to build a future where human drivers are not needed.

When this vision comes to fruition, it will make waves across the automotive, technology and investment sectors.

Why this trend now

If you’re skeptical about self-driving cars, I understand. I’ve heard about these for years and never seen them take off in a widespread way.

But technology has turned a corner…and the number of these vehicles on the road is expanding faster than you probably imagine.

Senior analyst Luke Lango explains how common these runs are becoming – because he recently took one!

About a month ago, I flew home from a business trip at Phoenix Sky Harbor International Airport. It was late. My wife and children were sleeping. So, I got a ride from a ride app. The car arrived. He took me to my house in the suburbs. He left me.

It was a typical travel experience.

Except for one critical detail…

There was no driver.

The car that picked me up from the airport, drove me through Phoenix, and dropped me off at my house had no driver.

It was a fully autonomous vehicle operated by Waymo.

Waymo is the autonomous unit at Alphabet Inc. (Google). It has been working on the development of autonomous vehicle technology for over a decade. For the past few years, it has been quietly testing its technology with self-driving cars in Phoenix and several other US cities. People in those areas can hail an autonomous Waymo and drive it from place to place. I bet many of you live near one of them and can try this yourself

This is what I did for my trip from Phoenix Sky Harbor International to my home.

And you can Check out my video report from that trip right here.

But it’s not just Waymo, and it’s not just in Phoenix…here’s Luke again:

Aurora Innovation (GOLD), an autonomous transportation company, has partnered with several major firms such as Paccar, Volvo and Uber Freight to develop fully autonomous trucks.

Another startup – KodiakRobotics – is also focused on making large autonomous platforms.

Both are preparing to launch fully autonomous trucks on public roads in Texas later this year (no safety drivers). That means in just a few months, Texans could see a self-driving 18-wheeler hauling goods from city to city. Aurora also plans to roll out self-driving trucks soon in the Phoenix area as well.

Meanwhile, in China, Baidu (BIDU) launched an autonomous transportation service called Apollo Go. It appears to be as big as Waymo, completing nearly 100,000 rides per week.

And next week, Elon Musk – the world’s richest man – is set to unveil his own self-driving vehicle platform, called Tesla Robotaxisin what some are calling the company’s biggest reveal in years.

Join Luke next Monday at 10am EST for a deeper dive into this enormous economic transition.

Luke will detail all the recent ones innovative developments in the autonomous vehicle industryproviding insight into robotics and how they will transform transport and explaining how to invest in this change.

Speaking for myself, I’d love to spend another 10 to 15 hours a week reading, watching a podcast, catching up on my favorite shows, or doing pretty much anything other than sitting in traffic.

As self-driving cars become more commonplace, super commuters and even just regular commuters will find they have more options for their time and a better quality of life.

Enjoy your weekend

Luis Hernandez

Editor-in-Chief, InvestorPlace