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Yes, they still would in places like Manhattan and Tokyo, but you're right that they wouldn't be necessary in many other high but still not super high density places.

Even assuming 4 people to a sedan, the space needed for the engine and the safe following distance makes the density very low compared to a bus/train that is long and can have people standing packed in.

4 people to a sedan only gives you a factor of 4 improvement, which is just not enough for places like Manhattan or Tokyo. They would still need to build a dozen down from like 50.



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