Our innovation is that of logistics and fleet management of Tesla branded vehicles being used as Taxis or rideshare vehicles. We are first offering this as a service to Uber, as often people don’t like or want to deal with drivers. A driverless autonomous vehicle is a significant advantage to this industry as it removes the cost of human resources. This offers one more option in Uber’s portfolio to make them more profitable by having Tesla offer them an Artificial Intelligence based fleet management service, which can self-dispatch, pickup and dropoff individuals as needed, recharge the fleet automatically, and only requires minor maintenance for cleaning and washing the vehicle.

1. An autonomous EV fleet
management solution, for an
evolving world.
Applied Project
CIS 593 -Team 7

2. Industry/Company Analysis
Tesla
Prime innovator in the “energy” industry.
Has sold 4 different types of vehicles (Model S,X,3,Roadster)
Presently most valuable car maker in the world (market cap) 52.91B (04/04/17)
Emerging into solar, lithium, and freight industries.
CEO is Elon Musk
Uber
Started out as UberCab by CEO Garrett Camp.

4. Goals and Objectives
Obtain fleet management agreement with Uber - a ridesharing company
Stepping stone to further growth after proven success through rollout
Increase Uber’s performance through Electric Vehicle use, and low cost energy procurement
through Solar energy and Supercharging stations
Big Data analytics provides information on:
Travel times
Average Fare per ride
Average speed per route
Reduction in vehicular accidents and malicious driving such as drinking and driving or road rage

5. MIT Study: Traffic Reduction in NYC

6. Alternatives Considered
Potential alternatives in selecting a competitor to Uber such as Lyft
Could also begin a new competitor in the marketplace, owned as a subsidiary to Tesla
Partner with Yelp/UrbanSpoon/OpenTable to create an all-encompassing
experience
Partner with sporting events or sporting teams to advertise on vehicles or
transport attendees to/from events
Fleet for private organizations such as Progressive, Dodge Phelps, US Armed
Forces, Meals on Wheels, or CPS.

7. Reason for Selecting
Tesla is at the nexus of many technologies which can be combined into various
products.
Able to impact the energy market as a whole, creating fresh competition with emerging vehicular
technologies, upsetting the status-quo.
Cars function as IoT devices, can manipulate their use or change their programming in real time
Easy to convert a Taxicab to sports events transportation depending on surge demand
Personalized mass transit is the future, people loathe public transit
China is already converting their taxi fleets to EV use as a pollution reduction initiative

8. Risk Mitigation/Sustaining Innovation
Risks: Vehicle accident/insurance loss, cannot generate cars fast enough
(Supply vs Demand imbalance), Customer lack of acceptance
Sustaining innovation: Frequent software patching/updates and testing, hiring
great employees, advertising campaigns, safety audits, government
approvals, financial transparency, Training(Lean/Six Sigma/TPM), Continuous
process improvement of production supply chain.

9. AS - IS and TO - BE Process

10. Transformation
Functional areas affected
Research & Development Unit:
Tesla has to form a new development team to involve in this new API for the customers end and the provider end to have a
seamless communication between each other.
Infrastructure Unit:
Tesla should have infrastructural changes for the autonomous fleets from uber to be accommodated in its maintenance
centers and automatic charging points.
Insurance & Claims Unit:
Tesla should make a clear deal with the taxi service providers for the type of insurance it opts for and also regarding claim
related queries.

11. Transformation
Synergies created
A perfect driving pattern is maintained by these autonomous vehicles that creates a better care for the customers and
also reduces the cost due to any accident to the government
A better transportation model will be created to drive back people who will not be able to drive vehicles on their own due
to various reasons.

12. Transformation
Impact on Operations
Availability:
Technical error or network issues can cause unavailability of cars in the app
Acceptability:
The level of acceptance from the consumers to this whole driverless transportation

13. Software Architecture
Software Architecture

14. Customer Value

15. Rollout Timeline & Milestones

16. Measures of Success

17. Financial Analysis
Main assumptions for our calculations:
1. Vehicle drives about 30,000 miles/year
2. Replace fleet every 5 years ( lease agreement)
3. Tesla covers the vehicle insurance fees
4. Uber will buy into our solution
5. Market acceptance

18. Savings to Uber
500 vehicles : ~$11 Million in savings per year

20. P, M,O Scenarios
Variations in: Parking lot space (lease per car per year), vehicle production costs,
Lease price
GO !

21. Questions?