Shares of tech companies rose on bets Silicon Valley will benefit from its move into cars.
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Analysts at Goldman Sachs predicted that new software and automotive technology will transform people's conception of the car itself. "The assumption that we need to own the vehicle in which we travel is dissolving," said the Goldman Sachs analysts.
Ride-hailing services such as Uber and Lyft are among the companies benefiting from these trends. San Francisco, the birthplace of ride-hailing, sees four times as much revenue pass through these businesses as through conventional taxi companies. "Rapid growth has already occurred (circa 120% year-over-year in 2016 from $16 billion in 2015). Our ride-hailing market estimate of $285 billion (with bear and bull scenarios of $177 billion and $492 billion, respectively) is derived by thinking about how big the ride-hailing opportunity could be relative to today's local taxi markets," the Goldman Sachs analysts wrote.
-By Rob Curran, email@example.com
(END) Dow Jones Newswires
May 24, 2017 17:21 ET (21:21 GMT)