Fast forward to the year 2028. Humankind has made huge progress in the field of artificial intelligence. In particular, autonomous self-driving vehicle technology has matured and has proven to be safe. Singapore, one of the first few cities to test-bed the technology, has been keeping pace.
Lion City Autonomous Taxi (LCAT) Company has just won a Government tender to provide the first autonomous taxi service in Singapore. Its CEO, Mr Alan Mas, is visibly excited. Successes in this small city state can easily be replicated in the other regional cities in South East Asia. It has the first-mover advantage!
Under the terms of the tender, LCAT has to put at least 400 taxis on the road. And these must comprise a basket of 3 car models from Tesla, a smart electric vehicle manufacturer. Specifically, Tesla Models A, B and C costing $150,000, $180,000 and $250,000 each respectively are required. At least 20% of the total fleet size must be Model C cars. A minimum of 30% must be Model B. The rest can be the cheaper Model A. This is to ensure that there is some variety of services that will cater to the needs of the commuting public. In tendering for the project, LCAT has set aside a maximum budget of $80 million to invest in the fleet of Tesla autonomous taxis.
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