Market Sectors and Segments

TuSimple

TuSimple Founder Xiaodi Hou chose the market segment long-distance trucks in the market sector driverless cars because it is economical.

• The US trucking market is worth around 700 billion dollars. Therefore, even a small amount company operating in this field would be very profitable due to the amount of cargo that needs to be trucked. The drivers for these trucks are expensive, so it is economical for companies to replace them with driverless trucks.
• Self-driving trucks will allow for the mass-layoff of truck drivers, which will save companies a lot of money. According to alltrucking.com, there are 3.5 million truck drivers in the US, so driving trucks would be very economical for some.
• Self-driving trucks made by TuSimple will be able to cut fuel costs by 15% per year. This will save a lot of money for trucking companies in the long-run, so it is very economical.

TuSimple Founder Xiaodi Hou chose the market segment long-distance trucks in the market sector driverless cars because self driving trucks fulfill a need in the market.

• There is a shortage of truck drivers according to the American Trucking Association. The organization say that 60000 more truckers are needed every year. In order to fulfill this need, companies would probably choose self-driving trucks in order to meet demand.
• Trucking is a very competitive market. Every truck crash is money lost by the company. TuSimple's algorithms will allow for speed regulation and lane position optimization, which will ultimately help companies a lot. This fulfills a need in the market for durable and reliable trucks that can always make their destination.
• Incredibly long-haul trucking is still very difficult in the trucking market because drivers are humans who require food and sleep. Self-driving trucks do not require these and can continue to drive through day and night, which means that cargo will arrive at their destinations earlier. There is a need in the market for faster cargo shipment.

TuSimple Founder Xiaodi Hou chose the market segment long-distance trucks in the market sector driverless cars because creating self-driving trucks is the simplest autonomous technology to create and implement.

• Navigating interstates is far easier than navigating crowded small city streets.
• TuSimple would not have to worry as much about loss of life as they will be focusing on long haul travel on highways rather than on streets. The loss of life in Uber's autonomous program stalled their progress.
• Highways are easily mapped as well, which allows for easy implementation of self-driving technology because there is no worry of the trucks getting confused because of confusing city infrastructures.

Nikola Motor

Nikola Motor Co. chose the market segment fleet operators of long haul trucking distributors (like Budweiser and U.S. Xpress) for developing hydrogen fuel vehicles because the development of hydrogen fuel vehicles for trucking will make a great impact on the environment.

• More than 90% of all cargo in the US is transported via big rigs that all emit a lot of greenhouse gases that hurt the environment.
• Big rigs have terrible fuel efficiency(around 4-8 mpg), which is nothing compared to the fuel efficiency of cars. The development of hydrogen technology with these vehicles that have such bad fuel efficiency will help the environment a great deal.
• As big rigs require a lot of fuel, a large amount of hydrogen fuel must be produced in order to fulfill their needs. Since the founder was influenced by his time in Brazil(a country with many problems regarding clean water), Nikola Motor entered the market sector in order to inadvertently produce a lot of clean water to donate to stricken areas. The trucking industry would use the most fuel, and as such create the most clean water from the production of hydrogen fuel.

Nikola Motor Co. chose the market segment fleet operators of long haul trucking distributors (like Budweiser and U.S. Xpress) for developing hydrogen fuel vehicles because there is a need in the market for new types of long-haul trucking.

• The EU has already passed laws that will ban diesel trucks by 2030, so there is a great need for new types of trucks that are not diesel but still have the same functionality.
• California is predicted to ban diesel trucks as well, meaning that there are many major markets where new types of trucks are needed. Hydrogen fuel vehicles could fulfill this need very well.
• Many people dislike the fumes from diesel trucks; therefore new trucks will be needed as popular culture begins to voice dislike regarding diesel trucks. Hydrogen trucks are the answer to this and that is why Nikola Motors entered into this market sector and segment.

Nikola Motor Co. chose the market segment fleet operators of long haul trucking distributors (like Budweiser and U.S. Xpress) for developing hydrogen fuel vehicles because hydrogen fuel trucks will allow trucking companies to save/earn a lot of money.

• As prices fluctuate constantly due to conflicts around the world in oil-rich nations, diesel is an unreliable fuel. Since this hydrogen fuel would be made in the US, its price will be relatively steady and allow for companies to save money as they are not dependent on oil sources in other volatile countries.
• Truck cabs that run with hydrogen are lighter than cabs with diesel engines, so it will take less energy comparatively for hydrogen than diesel cabs. Therefore, companies would save money as the truck would be lighter and require less fuel to carry the load.
• Nikola motor entered into this market sector and segment because there would be great demand in the market because their product would help raise the social profile for a lot of companies who may need it. For example, if Buddweiser had an advertisement about how they were saving the world one truck at a time, more people would buy their beer.