Out with the Old: Changes in Transportation
In the early 1900s, cars became the new standard for transportation. When this happened, horse-drawn carriage companies didn’t start making cars to keep up with trends. Instead, they faded away.
New technologies, services and products can do one of two things to the business models they disrupt. They can force an industry to adapt … or they can destroy it altogether. In today’s economy, we’re experiencing the second of the two options: The new ways are doing away with the old ones.
In my lifetime, there’s never been such a shift in the economy. Energy, finance and consumer goods are all seeing major changes … and many technologies, services and products are bringing about the end for those that came before them.
Many seem to think that those trapped in the old ways will magically find a way to transition to the new ways … They won’t. Certain technologies will simply change the way we live, whether we like it or not.
The transportation industry, for example, is set for another major change.
Youth of Today Will Drive Entire Industries
I recently read a Wall Street Journal article entitled, “Driving? The Kids Are So Over It.” This article blew my mind.
Kids used to look forward to getting a driver’s license at 16 … This is no longer the case. We’re living in a world where Uber and Lyft are common ways to get around, especially for millennials … and we’re looking into a future of self-driving cars.
For Tesla, the news of this trend is no big deal. They plan to make all of their cars into automated vehicles. For other big name car makers, this could be make or break.
The big three of transportation will no longer be Ford, General Motors and Chrysler — it’ll be Tesla, Uber and Lyft. And that’s where you want your investments. In the short term, there’ll be volatility. But in the long term, old car companies are going away … and these new ones will be here to stay.
Editor, Profits Unlimited