For much of the last few years, autonomous robotaxis were simply presumed to be a technological problem whose economics would be easily competitive. Now, with human-driven ridehailing still struggling to turn a profit, more and more companies are realizing that the robotaxi business won't necessarily be an easy one. Perhaps the best view of the robotaxi's economic challenge comes from Ashley Nunes, a Harvard researcher whose study of autonomous taxi economics in San Francisco revealed that the massive margins once anticipated will be tough to deliver on, and that maximizing utilization will be the key to a viable business. Nunes joins the show to explain his research, explore the underlying assumptions and discuss the business case challenges ahead for autonomous ride hailing.

The paper discussed in this episode can be found here: https://psyarxiv.com/6e94h