{"id":17025,"date":"2016-11-18T16:43:07","date_gmt":"2016-11-18T21:43:07","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/lytx-l%c9%aat%c9%aaks-n-1-a-company-saving-lives-on-the-road-digitally-of-course\/"},"modified":"2016-11-18T16:43:07","modified_gmt":"2016-11-18T21:43:07","slug":"lytx-l%c9%aat%c9%aaks-n-1-a-company-saving-lives-on-the-road-digitally","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/lytx-l%c9%aat%c9%aaks-n-1-a-company-saving-lives-on-the-road-digitally\/","title":{"rendered":"Lytx \/l\u026at\u026aks\/ n. 1. a company saving lives on the road, digitally"},"content":{"rendered":"

\"red-truck-cutout\"<\/a>Trucking is among the largest occupations in the U.S. There are ~1.7 million heavy truck drivers domestically. Including drivers of light trucks and buses, this number rises above 3.4 million people. [1] That\u2019s astounding! Truck driving touches 2.5% of those employed in the country \u2013 and their families \u2013 not to mention the many people who drive along trucks on the highway or walk in front of trucks at cross-walks.<\/p>\n

Yet, stats from NHTSA indicate that, in 2014, there were 3,903 people killed and ~111,000 people injured in crashes involving large trucks. [2] In 2015, there were 4,067 fatalities in large truck accidents; this was an increase of over 4%. Across all highway traffic, the rate<\/em> of fatalities per vehicle-mile-traveled also increased! [3] Truck driving is one of the largest occupations \u2013 and it\u2019s becoming less safe for everyone.<\/p>\n

In addition to human costs, there are financial costs. A DoT study estimated that the average cost of a truck accident was over $91,000. [4]<\/p>\n

How can we fix this?<\/p>\n

\n

\"dcam\"<\/a>While myriad companies are working on the autonomous future of trucking (Daimler, WABCO, and Otto\/Uber, etc.), a company in San Diego is using the increasing digitization of trucks to solve these safety problems right now. [5-7] It\u2019s called Lytx (as in ana-\u201clytics\u201d).<\/p>\n

Lytx operates on the premise that digital technology and analytics can make trucking safer and more efficient \u2013 getting shipped goods where they need to go while every trucker, highway user, and pedestrian goes home to their families.<\/p>\n

Lytx\u2019s core solution, called DriveCam, is a cellular-enabled video recorder installed near a rear-view mirror in a truck. The video is \u201ctwo-way\u201d meaning that it has cameras that face both out<\/em> (i.e., onto the road) and in<\/em> (i.e., into the cab of the truck). If embedded sensors detect a risky driving event \u2013 say, hard braking, sudden acceleration, swerving, or excessive speed \u2013 the device captures video. [8] Then the recording is uploaded to a central database where it is scored by Lytx\u2019s algorithms to determine the riskiness of the event. In the unfortunate event of an accident, DriveCam provides a record of what happened \u2013 potentially exonerating a trucker who could have otherwise lost their job.<\/p>\n

However, no driver \u2013 nor Lytx \u2013 wants an accident in the first place! To this end, Lytx has created a more comprehensive service called ActiveVision (see below). ActiveVision links DriveCam with a truck\u2019s Engine Control Module and third-party advanced driver assistance systems (so called, ADAS). [9] With more information from sensors throughout the truck, Lytx\u2019s analytical engines have a more complete picture of how a driver operates in different situations<\/em>. Hard breaking or swerving can, in fact, be good<\/em> driving depending on the situation. Conversely, other behaviors \u2013 such as rolling stops or driving too close to a lane barrier \u2013 can be dangerous, but accelerometers alone might not capture them.<\/p>\n

\"traffic\"<\/a>Lytx uses this holistic information to provide immediate in-vehicle alerts (when immediate action is required) and post-drive, video-based coaching. Information from a variety of sources is married with human follow-up to ensure learning and increased safety, going forward.<\/p>\n

Lytx has also developed a machine learning algorithm, called AutoTune, which operates in the background of ActiveVision. AutoTune uses each mile driven by a truck to enhance ActiveVision\u2019s recognition of potentially dangerous driving and minimize the likelihood of false alerts.<\/p>\n

Does it work? Yes. The Virginia Tech Transportation Institute estimated that if DriveCam, alone, had been installed on all heavy trucks in the U.S. from 2010 through 2012, it could have saved 801 lives per year and avoided over 39,000 injuries per year. [10] And, this is arguably conservative in that it excludes many different types of accidents.<\/p>\n

While concerns about \u201cBig Brother\u201d are a potential threat to Lytx, as Swift Transportation\u2019s (one of the nation\u2019s largest freight trucking companies) President and COO said, \u201cwe are not watching the driver; we are watching out for the driver.\u201d [11] Lytx\u2019s product is about driver safety and driver security.<\/p>\n

\n

Going forward, Lytx should advance their mission in at least three ways:<\/p>\n

First, Management needs to continue educating drivers on the benefits of these systems. Although the product may seem \u201ccreepy,\u201d the truck drivers that do their job \u201cthe right way\u201d (and don\u2019t text and drive!) should want the opportunity to protect themselves from career-ending lawsuits.<\/p>\n

Second, Lytx must continue to be \u201cpart of the ecosystem\u201d and integrate with new ADAS technologies. AutoTune\u2019s machine learning gets better with more contextual information about a driver\u2019s behavior.<\/p>\n

Finally, Management must have a technology roadmap that negotiates an increasingly boring<\/em> driver experience. As trucks become more autonomous, drivers will need stimulation to stay \u201con-call\u201d in the event they need to take control. Gamification could help here.<\/p>\n

In February, Chicago-based PE firm GTCR acquired Lytx (reportedly for \u201cmore than $500 million!\u201d). [12] They clearly see a lot of potential. I do too. What do you think?<\/p>\n

(794 words)<\/p>\n

\u00a0<\/span><\/span><\/p>\n

https:\/\/www.youtube.com\/watch?v=pvmOfKSAD38<\/a><\/p>\n

 <\/p>\n

\n

[1] Bureau of Labor Statistics, United States Department of Labor, “Occupational Employment Statistics (May 2015),” http:\/\/www.bls.gov\/oes\/, accessed November 2016.<\/p>\n

[2] National Highway Traffic Safety Administration, U.S. Department of Transportation, “Traffic Safety Facts: 2014 Data,” https:\/\/crashstats.nhtsa.dot.gov\/Api\/Public\/ViewPublication\/812279, accessed November 2016.<\/p>\n

[3] National Highway Traffic Safety Administration, U.S. Department of Transportation, “2015 Motor Vehicle Crashes: Overview,” https:\/\/crashstats.nhtsa.dot.gov\/Api\/Public\/ViewPublication\/812318, accessed November 2016.<\/p>\n

[4] Federal Motor Carrier Safety Administration, U.S. Department of Transportation, “Unit Costs of Medium and Heavy Truck Crashes, March 2007,” http:\/\/ntl.bts.gov\/lib\/32000\/32500\/32538\/07-034_RP_TruckCosts2007.pdf, accessed November 2016.<\/p>\n

[5] “Driving Autonomously Through Nevada,” press release, on\u00a0Daimler AG website,\u00a0https:\/\/www.daimler.com\/innovation\/autonomous-driving\/freightliner-inspiration-truck.html, accessed November 18,\u00a02016.<\/p>\n

[6] “WABCO Reports Further Major Steps Toward Autonomous Driving for Commercial Vehicles; Collaborates With Peloton to Advance Innovative Truck Platooning Solution; Set to Form a Joint Venture for Active Steering,” press release, on WABCO website, http:\/\/www.wabco-auto.com\/media\/media-center\/press-releases\/press-releases-single-view\/news-article\/wabco-reports-further-major-steps-toward-autonomous-driving-for-commercial-vehicles-collaborates-wi\/, accessed November 2016.<\/p>\n

[7] Alex Davies, “Uber’s Self-Driving Truck Makes First Delivery: 50,000 Beers,” Wired,\u00a0October 25, 2016, https:\/\/www.wired.com\/2016\/10\/ubers-self-driving-truck-makes-first-delivery-50000-beers\/, accessed November 2016.<\/p>\n

[8] “The DriveCam Program FAQ,” press release, on Lytx website,\u00a0http:\/\/info.drivecam.com\/rs\/lytx\/images\/Lytx%20ARI%20The%20DriveCam%20Program%20FAQs%200514_0337_5.21.pdf, accessed November 2016.<\/p>\n

[9] “Lytx Launches ActiveVision Service, a Revolutionary New System to Tackle the $175B Problem of Distracted and Drowsy Driving,” press release, October 13, 2015, on Lytx website, https:\/\/www.lytx.com\/en-us\/news-events\/press-release\/lytx-launches-activevision-service-a-revolutiona, accessed November 2016.<\/p>\n

[10] Susan Soccolich and Jeffrey S. Hickman, “Potential Reduction in Large Truck and Bus Traffic Fatalities and Injuries Using Lytx’s DriveCam Program,”\u00a0Virginia Tech Transportation Institute, May 2014, https:\/\/www.lytx.com\/getattachment\/5215bbe9-771a-4996-8d33-de7dd611881f\/Lytx-VirginiaTech-Study-LivesSaved.pdf?lang=en-us, accessed November 2016.<\/p>\n

[11] David Z. Morris, “There’s pressure in the industry to monitor truck drivers\u2014and drivers aren\u2019t happy,” Fortune, May 26, 2015, http:\/\/fortune.com\/2015\/05\/26\/driver-facing-truck-cameras\/, accessed November 2016.<\/p>\n

[12] Seth Clevenger, “Lytx to Be Sold to Private Equity Firm GTCR for $500 Million,” Transport Times, February 18, 2016, http:\/\/www.ttnews.com\/articles\/basetemplate.aspx?storyid=40940, accessed November 2016.<\/p>\n","protected":false},"excerpt":{"rendered":"

Trucking is one of the largest occupations in the United States. And it is becoming less safe. Lytx is working to fix this. 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