Las Vegas Strip Gets a Brand New Technology
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Las Vegas has quietly become a hotbed for innovation. Some of that has been driven by the major casino operators -- Caesars Entertainment (CZR) , MGM Resorts International (MGM) , Resorts World Las Vegas, and Wynn Resorts (WYNN) -- trying to outdo each other to win over customers.
Some innovations are ostentatious and hard to miss, like the MSG (MSGE) Sphere being built at the Venetian. That first-of-its-kind concert venue looks as if it dropped to Earth from a technologically advanced civilization, and it has raised the bar for performance venues.
Many innovations, however, aren't as obvious. Caesars, for example, uses an artificial intelligence text-based concierge that's surprisingly effective. "Ivy," as it goes by, can answer questions, help with mundane tasks like getting clean towels delivered, or advance your issue to a human where needed.
Innovations big and small are happening up, down, and under the Las Vegas Strip. Elon Musk's Boring Co. has been building a network of tunnels under the city that will eventually use driverless Tesla (TSLA) electric vehicles to ferry people all over the city.
That's a revolutionary idea -- but now a rival has emerged.
Musk Goes Low, Lyft Goes High?
Musk's Boring Co. has a bold plan for more than 50 stations connecting the Las Vegas Strip to the airport, the Convention Center, Allegiant Stadium, and Fremont Street using driverless Teslas.
Currently, only a small portion of that network has been built -- a section connecting the two halves of the Las Vegas Convention Center (and one connecting Resorts World Las Vegas to that same location.
For Musk and Boring Co., it's all about taking traffic off the city's busy streets and bringing it underground.
"During typical peak hours, driving from the Las Vegas Convention Center to Mandalay Bay, for example, can take up to 30 minutes. The same trip on Vegas Loop will take approximately 3 minutes," the company says on its website.
If Musk's plan is fully built, it'll effectively give Las Vegas a modern subway, helping alleviate road congestion. It will not, however, stop tourists from using ride-share and taxi cabs.
Now, ride-share company Lyft (LYFT) has brought a solution to Sin City that may ultimately help it solve another problem: a shortage of taxi and ride-share drivers.
Lyft Brings Driverless Cars (Sort of) to Las Vegas
Labor in Las Vegas has been in short supply since the pandemic hit. Some people left the city and others found work outside the service-industry jobs that fuel the Las Vegas economy. At times, that has made the wait for a cab, or a ride-share from Uber (UBER) and Lyft, longer than usual.
Lyft plans to fix that by partnering with Motional to bring Motional's "Ioniq-5-based robotaxi, an autonomous vehicle designed for fully driverless ride-hail operation, to the Lyft network in Las Vegas," the ride-share company shared in a news release.
The Ioniq 5 is Hyundai's (HYMTF) prominent EV. Motional is the Boston joint venture between Hyundai and automotive-technology specialist Aptiv. (APTV)
"Launching Motional’s all-electric Ioniq 5 on Lyft’s network in Las Vegas represents tremendous progress in our vision to make an electric, autonomous, and shared future a reality for people everywhere," said Lyft CEO Logan Green.
It's Self-Driving Lyfts, But...
There is, however, a pretty big catch.
"Each vehicle arrives with not one but two backup drivers standing by to take control of the car should anything go wrong" Casino.org's Corey Levitan reported.
Lyft has promised a truly driverless system at some point in 2023, but current laws and the state of driverless technology make the backups necessary.
Motional and Lyft have quietly been testing driverless vehicles in Las Vegas since 2018. In the news release, Lyft explained how the system works.
"This means riders are able to easily control their ride without assistance from a driver. The enhanced experience includes unlocking the doors through the Lyft app and starting the ride or contacting customer support from the new in-car Lyft AV app, an intuitive in-ride display tailored to autonomous ride-sharing," the company said.
Lyft and Boring Co. are not working together. But if Musk's plan takes vehicles off Las Vegas's streets, the new program makes the experience better for any that remain.
Ride sharing and taxis will continue to cost significantly more than using Boring Co's subway-like system, so it's easy to see how the two options will work well together. .
