Forget overzealous regulators; according to Ryan Avent, “the biggest obstacle to widespread use of driverless vehicles – over the next decade or two at any rate – may be the effects of rapid technological progress in other parts of the economy”:
As a recent special report explains, technological change over the last generation has wiped out many middle-skill jobs, pushing millions of workers into competition for low-wage work. That glut has contributed to stagnant wages for most workers, and low pay has in turn reduced the incentive to firms to deploy labour-saving technology. … [C]heap labour could pose a formidable threat to the driverless car. The cost of the sensors and processors needed to pilot an autonomous vehicle is falling and is likely to fall much more as production ramps up. Yet the technology is still pricey, especially compared with a human, which, after all, is a rather efficient package of sensory and information-processing equipment. At low wages, a smartphone-enabled human driver is formidable competition for a driverless vehicle.