The better pooling effects of subscription or on-demand fleets mitigate this problem in most scenarios, but it doesn't mitigate it during peak times. Peak vehicle utilization will be what drives total vehicle fleet size.
As it turns out, coordinating rides is pretty difficult, even with sophisticated software doing a lot of the work for you. Maybe if either of those companies had huge market shares, then maybe the problem gets easier. I'm not counting on it.
Labour costs are a significant part of any such operation, where I live at least.
Many, many people already do this on public transport. What we're talking about is general door-to-door public transport.
Car-pooling is awkward to arrange, particularly for short joined parts of the journey (e.g. picking someone up part way and dropping them off a little later), and it's extremely hard to arrange anything that overlaps such that the first passenger needs to get out before the last passenger (currently would involve handing over the keys to your car).
Total fantasy. Virtually nobody uses public transport. 5% of commuters use public transport. Relative to the car-pooling, who sees double the volume of users as public transport, 10%.
The question is: if that changes, what might people choose to do? The example of large cities like NYC at least teaches us that the American preference for solo car travel is not fixed.
[0] http://ns.umich.edu/new/releases/21923-hitchin-a-ride-fewer-...
http://www.ons.gov.uk/ons/rel/census/2011-census-analysis/di...
http://www.ons.gov.uk/ons/rel/census/2011-census-analysis/di...
These are not insignificant figures.
If you say "people don't want to do X" when millions of people in my country already do a more extreme form of X, then I think you're wrong.
This will be much smoother if you just open an app like Uber and it tells you the next pickup time for where you want to head.
Those people might use a vehicle subscription, because the cost of private rides would still be lower than the costs of private vehicle ownership (depreciation, maintenance, insurance). Many people would pay for the privilege of a private ride (like they do with Uber/Lyft now).
If car subscriptions services succeed and are nearly ubiquitous, the personal-freedom symbolism of car ownership will degrade.
Then, if people want to own a car as a status symbol, they will probably be better served by a more expensive one anyway, the same way people buy other status symbols (rose-gold iPhones, etc). Ironically, most of those status-symbol cars will still have an autonomous mode.
Some people pay more to use a first-class compartment.
Shared-car design could also be drastically different. I don't want to share a Honda Accord with random people, but I wouldn't mind sharing a road-train that had private compartments for each set of passengers...
car: high flexibility, high cost
public transport: low flexibility (last mile, connections, fixed time schedule), lower cost
self-driving vans: medium flexibility, possibly low cost.
10x is admittedly bullish. I expect 4 to 7x within 20 years, i.e. 3 to 4 product cycles. But 10x is more reasonable than it seems at face value.
Let's use Manhattan to illustrate. Another HN user (wadenick) kindly provided [1] some references I'd like to point to. Car ownership across the United States stands at 81% of households [2]. In Manhattan it's 23% [3]. Manhattan has roughly fewer than 1/3 the number of cars as the rest of America. This is partly why there are only 39 gas stations in Manhattan (down from 60 in 2004) [4]. Repair shops, too, are fewer and further in between. Many are owned by taxi operators for their fleets' use only.
Uber pays 75% of its earnings to its drivers. How much cheaper could a driverless be? 50% less? How would that tilt our 23% figure? All it takes is half of Manhattan's car-owning households to switch for Manhattan to hit a 7-fold reduction in car ownership from present-day America.
Everywhere isn't Manhattan. Density matters. Less-dense locales will need to accept some combination of higher wait times, higher prices or lower rates of fleet reduction. That said, the scaling economics are nearly identical. Fleets will be cheaper than individually-owned self-driving cars because they can more efficiently use their down time. This, in turn, makes individually car ownership more expensive (by degrading retail-servicing infrastructure and supply chains). That, in turn, makes fleet usage more desirable and so on.
The degree to which this happens may vary. But at its lower bound, I'd posit 4x and at its higher bound over 10. Given that income and urban dwelling are correlated, and continue to increase in their correlation, that bodes badly for the edge-case rural families demanding high degrees of simultaneity at a price even remotely approaching what it costs to maintain a small garage of cars today.
[1] https://news.ycombinator.com/item?id=10837732
[2] http://web.archive.org/web/20140209114811/http://data.worldb...
[3] http://www.nycedc.com/blog-entry/new-yorkers-and-cars
[4] http://www.wnyc.org/story/say-goodbye-manhattans-gas-station...
Remember that from that 75% is supposed to be things like insurance policies and such, and I suspect that currently drivers aren't bothering to properly insure their cars (using it for a business rather than personal use). In a driverless car case, someone is going to have to pay for that insurance, whether the manufacturer, operator or rider, that cost is going to come from someplace, and will probably be significant. I'm not sure that you could achieve 50% savings, and maybe not even 25%.
"All it takes is half of Manhattan's car-owning households to switch for Manhattan to hit a 7-fold reduction in car ownership from present-day America." But what does that prove? Manhattan isn't a great barometer of anything. Even if they did drop to 14% or so, that's not really moving the needle much either way, is it?
The fleet provider (e.g. Uber) would surely self-insure. Insurance for self driving cars will be extraordinarily cheap (at least an order of magnitude less than driver based insurance).
For 10x, you would absolutely have to do something to address peak time behavior. For example, if Mom, Dad, and Junior all have to be somewhere at the same time, you are still gonna need 3 vehicles. In aggregate, total fleet demand will be dictated by the marginal demand at the peak of rush hours.
EDIT: to add, I would still predict a massive move of car ownership toward corporations, and their primary domicile to large parking lots in outer suburbs, only to awake during rush hours. These cars will have a much lower return on investment, but probably enough to justify their costs.