Beverly Hills plans to use self-driving cars for public transportation - but there's a catch (GOOG, GOOGL, TSLA)

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California was the first U.S. state to propose self-driving car regulations, which stipulate that a fully autonomous car must have a driver behind the wheel at all times within the state.

Now, the city of Beverly Hills is doing what it can to get self-driving cars on the road.

The area's city council voted earlier this month to create self-driving cars for public transportation, according to The Verge. These vehicles will offer on-demand transportation throughout the city when riders summon them with their smartphones.

This is part of a greater public transportation initiative for Beverly Hills, which will soon receive a subway line extension. The mayor of the city said the self-driving cars would provide a way for the population to get from the subway to their end locations.

The city council intends to contact Tesla, Google, and other companies that are currently working on fully autonomous and self-driving cars in order to foster partnerships. From here, the council would develop a whitepaper on self-driving cars and public transportation, followed by field tests.

Beverly Hills is not the first guest at this party, though, as the Greenwich section of London previously announced plans to test self-driving cars to transport passengers.

Self-driving cars are a natural progression in the on-demand transportation market, which includes companies such as Uber and Lyft. The first taste of these vehicles for the majority of consumers would likely occur through public transportation programs such as those in Greenwich and Beverly Hills. But California's regulations mean that a driver would have to be behind the wheel no matter what.

There are still numerous hurdles to overcome in getting self-driving cars on the road, but this market is also rife with potential. And more companies are entering this space to tap into that potential.

John Greenough, senior research analyst for BI Intelligence, Business Insider's premium research service, has compiled a detailed report on self-driving cars that examines the major strides automakers and tech companies have made to overcome the barriers currently preventing fully autonomous cars from hitting the market. Further, the report examines global survey results showing where fully autonomous cars are highly desired.

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Here are some key takeaways from the report:

• Three barriers have been preventing fully autonomous cars from hitting the road: 1) high technological component prices; 2) varying degrees of consumer trust in the technology; and 3) relatively nonexistent regulations. However, in the past six months, there have been many advances in overcoming these barriers.
• Technology has been improving as new market entrants find innovative ways to expand on existing fully autonomous car technology. As a result, the price of the components required for fully autonomous cars has been dropping.
• Consumer trust in fully autonomous vehicle technology has increased in the past two years.
• California became the first US state to propose regulations. California's regulations stipulate that a fully autonomous car must have a driver behind the wheel at all times, discouraging Google's and Uber's idea of a driverless taxi system.

In full, the report:

• Examines consumer trust in fully autonomous vehicles
• Identifies technological advancements that have been made in the industry
• Analyzes the cost of fully autonomous technology and identifies how cost is being reduced
• Explains the current regulations surrounding fully autonomous cars

To get your copy of this invaluable guide, choose one of these options:

1. Subscribe to an ALL-ACCESS Membership with BI Intelligence and gain immediate access to this report AND over 100 other expertly researched deep-dive reports, subscriptions to all of our daily newsletters, and much more. >> START A MEMBERSHIP
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The choice is yours. But however you decide to acquire this report, you’ve given yourself a powerful advantage in your understanding of the emerging world of self-driving cars.