The growing case for robotaxis in Australian Cities

‘Reimagining mobility for the greater good’

The autonomous vehicle revolution is upon us, and with it comes a seismic shift in how we view and manage transport networks. Historically, governments have largely provided roads as a community service, with little thought to their commercial value. But this is changing rapidly. 

Companies like Google, Tesla, and Amazon are pouring billions into autonomous vehicle development, chasing what could be a unique commercial commodity: the value of daily journeys. Consider Sydney, where 13 million car trips occur each weekday. If each journey is valued at $25, the total annual figure is $113 billion—just for Sydney. Expand this across Australia, and the numbers rival our largest export industries. Globally, the potential is unprecedented. 

Figure 1: Transport for NSW data: average daily volume and mode travel for Sydney-siders. 

The appeal of this market lies in replacing private cars with fleets of autonomous vehicles, creating a privately-owned public transport system. For tech giants, this is the ultimate prize. Yet, the public still largely views autonomous vehicles as personal enhancements to existing cars, not the harbinger of a mobility paradigm shift.

Governments must grapple with these realities. Roads, once subsidized community assets, could soon transition to commercial platforms that drive revenue for private enterprises. Governments will need to rethink their role, transitioning from operators to regulators and ensuring equity, safety and fair use of public assets.

A road user charging system is essential, particularly as autonomous fleets become prevalent. Yet, current trends—such as subsidized transport and free road access—run counter to this need.

As robotaxi business models evolve, the opportunity to create a safer, more efficient transport system is immense. But seizing it will require willing cooperation between governments and innovators.

CCAT will continue to facilitate information sharing across industry and government, support policymakers in understanding the emerging value chain and encourage collaboration to ensure innovation meets community needs.

The autonomous revolution isn’t a threat—it’s a chance to reimagine mobility for the greater good. Now is the time to embrace mobility as a business and guide it towards delivering exceptional public outcomes.

Author: Ian Webb, CCAT Board Chair

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