Over the past two weeks, I have talked about Amazon and Tesla dominating their markets through digital transformation. Over the past decade, these companies have developed into big name brands, and I think that has a whole lot to do with change. Until Amazon and Tesla came along, business models and consumer goods did not see a whole lot of change because it was not needed. There was no need for one company to outdo the other because competition was simple, but that changed real fast. Technologies such as Amazon Go, and autonomous driving, have forced other companies to compete and create their own technologies, or go out of business trying. Through improved products and services, Amazon and Tesla have been able to dominate their markets, and now, two more companies are trying to replicate their success through brand new modes of transportation.
In the future, it is probable that Hyperloop One, and The Boring Company, will compete for the top transportation service. In short, the Hyperloop One is a very fast train that will be able to reach speeds of 670 mph (much faster than the Amtrak!). If the Hyperloop One is able to reach this speed, then serious disruption would occur. Overtime, the speed of the Hyperloop One would make airports less useful. The amount of flights needed daily would decrease along with the workers needed at an airport. It would be much faster to transport a person or package by Hyperloop One than by flight. In addition to airports being disrupted, the Amtrak would quickly go off the tracks too. The only use Amtrak will have is for medium distances, distances public transportation (short) and/or Hyperloop One (long) will not travel. The Hyperloop will not take planes out of the sky, but it will at least derail the Amtrak. If not, The Boring Company will.
The Boring Company is Elon Musk’s latest project with a goal to transport cars through tunnels at high speeds at least 130 mph. It is not too much different from the Hyperloop One, it is just a more personal way of traveling. Rather than board a Hyperloop One with hundreds of other people, you can board the Boring Company with a few others in the comfort of your own vehicle. Even though both of these modes of transportation sound luxurious and fast, they both will come at the cost of other services and companies. If the Hyperloop One does not hurt Amtrak, then the Boring Company definitely will. The Boring Company is direct competition with Amtrak, they both will travel the same distances at the similar speeds. In addition, The Boring Company will have wait times instead of scheduled departures. Instead of having to worry about missing the Amtrak, with the Boring Company, you can travel whenever you please. The Boring Company should certainly draw in some business.
Clearly these companies share disruptive qualities and both of them will shift the economy. Going into the future, it is important to pick up on the trends that coincide with digital transformation: quickness, adaptation, and innovation. These are two prime examples of products that have been digitally transformed for efficiency. The Hyperloop One is a faster train, and the Boring Company is a building block to cars. Digital transformation of some products and services just go to show that nothing stays the same forever. Life is always changing and all about catching onto the trends. As technology continues to improve, it is important to improve with it.