Baidu and Chinese Robotaxi Companies Surge Ahead in Global Expansion

BEIJING — Baidu, a prominent player in the tech industry, announced on Monday its ability to offer robotaxi rides without human staff onboard. This advancement marks a significant chapter for Chinese robotaxi companies, who are expanding internationally at a brisker pace compared to U.S. rivals like Waymo and Tesla. The momentum comes as industry leaders recognize an approaching inflection point in autonomous driving technology.

Baidu CEO Robin Li expressed optimism during an earnings call on Tuesday, citing the growing familiarity and positive feedback from driverless ride experiences as catalysts that might expedite regulatory approvals. Robin's remarks align with the recently expressed optimism from Nvidia CEO Jensen Huang and Xpeng Co-President Brian Gu, who has adjusted his previously cautious outlook due to swift technological progress. Xpeng plans to initiate robotaxi services in Guangzhou next year.

The global robotaxi market exhibits immense growth potential, with Goldman Sachs projecting a value exceeding $25 billion by 2030. In pursuit of this opportunity, Chinese firms are executing aggressive overseas expansion. Companies such as Baidu, Pony.ai, and WeRide have forged partnerships with Uber, facilitating robotaxi bookings via the ride-hailing app in select regions, beginning with the Middle East. Counterpoint Senior Analyst Murtuza Ali highlights these collaborations as essential for the streamlined operations and accelerated profitability of robotaxi businesses.

Halton Niu, General Manager for Apollo Go's overseas business, elaborated on Baidu's profitability achievements, explaining that since late last year, Apollo Go has reached per-vehicle profitability in Wuhan, benefiting from a substantial fleet operation. Baidu's strategy includes developing cost-efficient, electrically-powered robotaxi vehicles independently, reducing manufacturing expenses significantly. Niu emphasizes that scalability is vital for profitability, suggesting that wider geographical coverage is crucial.

Meanwhile, Pony.ai has obtained a testing permit in Dubai and aims to launch a fully autonomous commercial robotaxi business there by 2026, with plans for further expansion into Europe and Singapore. Companies like Waymo, Baidu, WeRide, and Pony.ai are at the forefront due to their significant fleet sizes, which, according to Yuqian Ding, head of China Autos Research at HSBC, positions them favorably for profitability pursuits.

Fleet expansion continues as a key competitive factor, with Pony.ai and WeRide targeting fleet expansions to 1,000 robotaxis in the Middle East. Apollo Go currently operates about 100 robotaxis in Abu Dhabi and Dubai, with intentions to double its fleet shortly. Niu recognizes Apollo Go's substantial early advantage due to its larger operational scale.