For Aurora Innovation's self-driving technology, should we prioritize expanding to new vehicle types or deepening capabilities on existing platforms?

Introduction

The trade-off we're examining today is whether Aurora Innovation should prioritize expanding its self-driving technology to new vehicle types or deepen capabilities on existing platforms. This decision is crucial for Aurora's growth strategy and market positioning in the competitive autonomous vehicle industry. I'll analyze this trade-off by considering market dynamics, technical feasibility, resource allocation, and potential impact on Aurora's business objectives.

Step 1

Clarifying Questions (3 minutes)

• Context: I'm thinking Aurora has already established a foothold in certain vehicle types. Could you clarify which vehicle platforms Aurora's technology is currently deployed on?

Why it matters: Helps understand the starting point and potential expansion areas. Expected answer: Currently on trucks and passenger vehicles. Impact on approach: Influences the complexity of expansion vs. deepening capabilities.

• Business Context: Based on Aurora's business model, I assume expanding to new vehicle types could open up new revenue streams. How does our current revenue model work, and how might it change with expansion?

Why it matters: Aligns the decision with financial goals and business strategy. Expected answer: Per-mile licensing model for current vehicles, potential for new pricing structures with expansion. Impact on approach: Affects the financial analysis of expansion vs. deepening capabilities.

• User Impact: Considering the end-users of self-driving technology, I'm curious about the demand across different vehicle types. What user segments are we currently serving, and which new segments might we target with expansion?

Why it matters: Ensures the decision is grounded in user needs and market demand. Expected answer: Currently serving logistics companies and ride-sharing services, potential to expand to public transportation or specialized vehicles. Impact on approach: Influences the prioritization of expansion vs. deepening based on market opportunity.

• Technical: Given the complexity of self-driving technology, I'm wondering about the technical challenges of expansion vs. deepening. What are the main technical hurdles for each option?

Why it matters: Assesses feasibility and resource requirements for each path. Expected answer: Expansion requires adapting to new vehicle dynamics, while deepening involves refining algorithms for edge cases. Impact on approach: Helps weigh the technical risks and opportunities of each option.

• Resource: Considering the resource-intensive nature of self-driving technology development, I'm curious about our current team structure and capacity. How are our engineering resources currently allocated between different vehicle types and capability development?

Why it matters: Determines the feasibility of pursuing either option given current resources. Expected answer: Resources split between current vehicle types and core technology development. Impact on approach: Influences the timeline and resource allocation strategy for the chosen path.