How is TCO defined when referring to autonomous commercial vehicles?
TCO is based on the incremental operating margin of the ACV compared to the conventional trucking operation.
Referring to ACT Research’s Driving Autonomation study, the TCO is based on the incremental operating margin of the ACV compared to the conventional trucking operation. These factors range from straightforward to complex and are outlined in detail in the report.
Driver wages and benefits
Depreciation and trade cycles
Trailer utilization (for hub-to-hub only)
Additional first/last mile costs (for hub-to-hub only)
Transfer hub costs (for hub-to-hub only)
To properly account for the difference in these factors between private and for-hire fleets, we have included a private and for-hire model for each of the Class 8 tractor applications.