Some fundamental things about American life have changed over the last four-and-a-half years, and a new type of worker has emerged.
One created by twin forces that have forced people into opting for a major change in their lives.
I’m talking about the rise of the “super commuter.”
In 2019, before the Covid pandemic, the U.S. Census Bureau reported that the average one-way commute was 27.6 minutes, or about 55 minutes round-trip.
But during the Covid pandemic, when remote work became far more common, many big cities where jobs were more plentiful saw significant population declines. Here is a sampling of the population changes caused by Covid, according to the Brookings Institution:
- San Francisco: -6.3%
- New York City: -3.5%
- San Jose, Calif.: -2.7%
- Chicago: -1.7%
Many workers fled to neighboring exurbs, or sometimes moved to another state.
Eventually, the pandemic ended, and folks considered moving back to the cities. But the sky-high inflation of the era only made the cities more expensive.
With the new rate cutting cycle started by the Federal Reserve, many Americans might assume we have the inflation problem beat.
But, of course, that depends on where you live.
A study by WalletHub shows that many Americans are still neck deep in the problem of higher prices for … well, everything.
WalletHub compared 23 major Metropolitan Statistical Areas across two key metrics related to the Consumer Price Index (CPI), which measures inflation. They compared the CPI for the latest month for which data is available to two months prior and one year prior to get a snapshot of how inflation has changed in the short- and long-term.
For example, the Dallas-Ft. Worth area experienced a 4.1% inflation rate compared to year ago. New York City has seen an annual inflation rate of 3.7%. Chicago, Detroit, San Diego and Washington DC have annual inflation rates above 3.5%.
Now that many businesses want people to return to the office, many commuters are finding that they prefer their new locations or simply can’t afford their original city.
That’s why “super commuters” are now more common. The term super commuter refers to anyone who works in a major metropolitan area but lives far outside that area.
My commute to the InvestorPlace offices is 60 minutes one-way at best, and more than 90 minutes on a bad traffic day. That means I spend between two-to-three hours a day, or 10-to-15 hours a week, driving to and from work.
Research from Stanford University released earlier this year finds that distances between work and home are stretching longer and longer. As Americans opt for more flexibility on where they live, 40-plus-mile commutes are increasing.
And the share of workers traveling 75 miles or more is up one-third since the start of the pandemic, the study notes.
With that background, I want you to imagine … what if that time was productive or maybe even enjoyable?
Why commuting could change forever
Next Wednesday, Elon Musk and Tesla will hold its “We, Robot” event where the company is expected to reveal its first dedicated robotaxi. This is being heralded as a “game changer” for the future of autonomous cars.
As a reminder, an autonomous car is a vehicle capable of sensing its environment and operating without human involvement.
Not only is a human passenger not required to take control of the vehicle at any time, but a human passenger isn’t even required to be in the vehicle. Autonomous cars can go anywhere a traditional car goes and do everything that an experienced human driver does.
The “We, Robot” event is expected to be a watershed moment for Tesla wherein the company introduces its first dedicated robotaxi, tentatively called the “Cybercab.” Tesla is expected to demonstrate the groundbreaking advancements in Full Self-Driving software and artificial intelligence as the company helps build a future where human drivers are not required.
When this vision comes to fruition, it is going send ripples throughout the automotive, technology, and investment sectors.
Why this trend now
If you’re skeptical about autonomous cars, I understand. We’ve heard about these for years, and never really seen them take off in a widespread fashion.
But the technology has turned a corner… and the number of these vehicles on the road is expanding faster than you probably imagine.
Senior Analyst Luke Lango explains how common these rides are becoming – because he recently took one!
About a month ago, I flew home from a work trip into Phoenix Sky Harbor International Airport. It was late. My wife and kids were asleep. So, I fetched a ride from a ride-hailing app. The car arrived. It took me to my home in the suburbs. Dropped me off.
It was a typical ride-hailing experience.
Except for one critical detail…
There was no driver.
The car that picked me up from the airport, drove me through Phoenix, and dropped me off at my house had no driver.
It was a fully autonomous vehicle operated by Waymo.
Waymo is the self-driving unit at Alphabet Inc. (GOOG). It’s been working on developing autonomous vehicle technology for over a decade now. For the past few years, it’s been quietly testing its technology through autonomous ride-hailing in Phoenix and a few other American cities. Folks in those areas can hail an autonomous Waymo and have it drive them from place to place. I bet many of you live nearby one of them and can try this yourself
That’s what I did for my trip from Phoenix Sky Harbor International to my house.
And you can check out my video report during that trip right here.
But it isn’t just Waymo, and it isn’t just in Phoenix …here is Luke again:
Aurora Innovation (AUR), an autonomous trucking company, has partnered with several major firms like Paccar, Volvo, and Uber Freight to develop fully self-driving trucks.
Another startup – KodiakRobotics – is also focused on making autonomous big rigs.
Both are preparing to launch fully autonomous trucks on public roads in Texas later this year (without safety drivers). That means that in just a few months, Texans could see a self-driving 18-wheeler hauling goods from city to city. Aurora also plans to launch autonomous trucks in the Phoenix area soon as well.
Meanwhile, in China, Baidu (BIDU) has launched an autonomous ride-hailing service called Apollo Go. It appears to be just as big as Waymo, completing nearly 100,000 rides per week.
And next week, Elon Musk – the world’s richest man – is set to unveil his own autonomous vehicle platform, dubbed the Tesla Robotaxi, in what some are calling the firm’s biggest reveal in years.
Join Luke this coming Monday at 10 AM EST for a deeper dive into this enormous economic transition.
Luke will be detailing all the recent groundbreaking developments in the autonomous vehicle industry, offering a sneak peek at robotaxis and how they’re going to transform transportation, and explaining how to invest in this shift.
Speaking for myself, I’d love another 10 to 15 hours a week to spend reading, watching a podcast, catching up on my favorite shows, or doing just about anything else other than sitting in traffic.
As self-driving cars become more common, super commuters, and even just regular commuters, will find they have more choices for their time, and a higher quality of life.
Enjoy your weekend
Luis Hernandez
Editor in Chief, InvestorPlace
