On the other hand I am glad somebody is pouring money into fundamental research. The government has limited funds. Many big companies that formally had big R&D cutback during downsizings.
1. Enable more people to use your service 2. Create devices that can gather more data
The thing is, a ton of device types can fit into one of these schemes. Phones for example, both let people use your service, as well as gather a ton of data. As we increase the technology in phones, they may even be mapping the environment.
Likewise, these self-driving cars are able to exploit much of Google's current offerings, as well as contribute mapping of a near limitless amount of roads/etc.
If Google can pull far ahead in the technology they can become the self-driving service. Even if they don't create the cars but instead lease the technology to normal makers, Google now has constantly updating maps, traffic patterns, routes, building changes, etcetc.
Sure, Google made a car, but i don't think they car in the slightest about the car itself. They need to push to improve the technology and legislation as fast as they are able - everything else, people and car manufactures, will catchup eventually.
At the same token it is because they have these vast troves of data and some of the best machine learning scientists in the word, they are suited to do this type of research.
Another thing to think about is that if we are not distracted by the commute we will spend more time using Google services.
Let's say they invest...I dunno $300m in developing this technology (completely made-up number)
- The average commute time in the U.S. is ~30 minutes...or 1 hour per day. I don't know what it is globally, but for fun we'll assume it's the same for everybody on the planet.
- Google made $66billion in 2014 (or about $9.43 per person on the planet, assuming 7billion people)
- Assume most people are awake 16 hours during a day.
- However, if people are stuck driving for 1 hour out of those 16, that's only 15 hours they can build revenue for google.
- This means google is generating about $.63 per available waking hour per person.
- 1 more available hour is $.63*7billion = a possible "new" market of $4.4billion/year assuming every person
This would pay back the R&D costs handsomely + tons of profit in the first year if google can get everybody to switch all at once.
Even if it takes a decade or two to switch humanity to self-driving cars, it would still pay for itself quickly.
I tip my hat to Google, for attempting to stay ahead of the curve.
http://adage.com/article/digital/google-profit-misses-estima...
> Google hasn't posted an annual increase in the average cost-per-click since the third quarter of 2011. It hasn't posted a quarterly boost since the second quarter of that year. Both streaks remain intact.
Their per-click margins aren't going up and there is a limit to what they can do in that situation to grow net revenue.
So they are looking for new growth markets since the margins on their core business aren't really going to change substantially with new investment.
http://en.wikipedia.org/wiki/Google_driverless_car
Throwing small amounts of money at things like driverless cars is something they can control and will likely give them the first mover advantage in a new market. They take over and become the "Microsoft of Driverless Cars" and they've got a huuuuuuuuuuuge new profit center.
If not, they blew through a bit of cash. They have plenty of cash.
Google Now - In car edition: "Since we have plenty of time before your appointment, press 'accept' to stop at the showroom for those soft-furnishings you searched yesterday, and receive a credit towards this ride".