Yes so if taxi's are profitable, and they are, that means the cost of hiring is taxi is well in excess of the cost to maintain it. Even though drivers get the shaft with a low salary, if one didn't have to shell out the cost of a taxi medallion, the return on investment would be nothing to sneeze at. Far from your position of not being economic.
The technology is mostly software, the radar costs (one of the more expensive components) are already dropping significantly. The hardware is not expensive. Electric vehicles cost less to maintain with fewer moving parts, your argument of technology always increasing maintenance costs just doesn't hold water.
That is what the companies like uber are working on at this very moment! Some company (like uber) will take care of these details, in return for taking a healthy share of your profits (20-30% or something). These issues are hardly rocket science, taxi fleets deal with all of the above, and do fine.
Naturally for commercial use the car is on the road longer, but premiums will still be proportionate/indexed to risk. Insurance companies cannot defy gravity and set premiums on a whim. I don't think you realize just how low the accident rate is likely to go in a scenario where there is widespread adoption. If the accident rate is slashed 20 fold (under 5% of current), entirely plausible, do you think all the insurance companies will keep rates the same and make out like bandits, or do you think premiums will drop?
Registration may be higher, but it's a stretch to suppose that would make it uneconomic.
If you're going to own the car either way, it's hardly a problem if it only 'works' during peak periods, and sits idle for the rest of the time. The alternative is to sit idle for the entire time you don't use it (as it does now).
So an insurer will charge me more if I have airbags and ABS brakes, than an older car that doesn't have these? These are not the reasons for increasing premiums. GPS tracker technology, helping with theft, may result in reduced premiums. It all boils down to the insurers bottom line. I doubt airbags and ABS result in a significantly lowered risk of vehicle damage.
