Digital leaps in areas like AI and autonomous technology are fundamentally changing the way goods and people move around the world. Startups are the lynchpin of this transformation, pinpointing areas of need that can be tackled by cutting-edge digital solutions, including digital freight services, warehouse robotics, AI for supply chain management, delivery robotics, and autonomous driving software. That's ultimately forcing incumbents to evolve or see their core businesses erode. Monitoring these startups thus offers unique insight into the development of the transportation and logistics industries at large, and how incumbents are defending their turf.

In a series of five notes, Business Insider Intelligence looks at the top startups disrupting transportation and logistics. In the first note, we discussed the leading startups in digital freight and offered an assessment of their value and impact on the sector. In the second note, we examined the startups spearheading the rise of warehouse robotics. In the third note, we explored the leading startups offering AI software to enhance the routing of shipments and speed up delivery times, and the fourth note looked at the robotics startups automating last-mile delivery. Finally, in this fifth note, we analyze the startups developing autonomous driving software and how they’re helping big automotive and tech companies in the race to put a self-driving car on the road.

Self-Driving Car Software: Enabling The Shift To Autonomy In The Automotive Space

Self-driving technologies are undoubtedly the future of the automotive industry. A 2017 survey of 80 auto industry executives conducted by advisory firm Foley & Lardner LLP found that 23% expect semi- and fully-autonomous cars to account for at least 20% of their company's sales by 2025. And Business Insider Intelligence expects that nearly one in seven vehicles shipped in 2023 will have at least some self-driving features. We also project that self-driving cars used for Uber-like mobility services will account for 16% of the total miles driven in the US in 2023.

However, developing autonomous driving technologies is incredibly expensive and time-consuming, and often requires a massive transformation of companies' existing business structures. General Motors (GM) raised $2.25 billion from Japanese telco SoftBank earlier this year to advance its self-driving efforts, while Ford plans to invest $4 billion in self-driving [...]