Technology has taken big strides in recent years. One of those strides is the emergence of driverless vehicle. The possibilities of this kind of technology are endless. For example, it will help prevent accidents on the road and will allow people to rest during long trips without stopping the vehicle. Many companies, like Uber, are now experimenting with it hoping that it will pay off in the future. This can help the trucking industry immensely and one of the world’s biggest tech giants is getting into the game.
Intel announced in March that it has bought Mobileye for $15.3 billion. Mobileye is an Israeli autonomous driving technology company that produces a system for trucks that can help truckers prevent accidents. Its system can sense as well as warn the driver of any hazards around the truck and can put on the brakes to prevent a crash if needed. The system can reduce the number of all collisions by 60 percent and forward collisions by 90 percent. With this acquisition, Intel hope to take advantage of a market that could be worth up to $70 billion by 2030.
Mobileye systems are already being used in many semi-trucks. Holland and Penn Motor Express, both owned by YRC Worldwide, have Mobileye systems in their trucking fleets. Holland put Mobileye’s 560 Advanced Driver Assistance System into 4,000 of its trucks and Penn Motor Express’s 750-truck fleet is fitted with Mobileye technology. Mitsubishi Fuso also has plans to put Mobileye 6 Series Collision Avoidance Systems into its 2017 Fuso FE and FG series trucks.
Now Intel is taking a big gamble on this deal. It forked out $15.3 billion for Mobileye, a company that only made $358.2 million in 2016. Driverless technology also seems to be better fitted to passenger vehicles than to semi-trucks, but the demands of the trucking industry, including fuel efficiency and long hours on the road, could make the risk worthwhile. How Intel will do in the trucking industry is yet to be seen.
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