Baidu Pushes Forward with Fully Autonomous Robotaxi Services
BEIJING — Baidu, a leading name in the tech space, has announced a significant milestone in autonomous transportation by offering robotaxi rides that do not require human staff on board. This aligns with a broader trend in which Chinese robotaxi companies are moving faster on international expansion compared to U.S. firms like Waymo and Tesla. Industry experts believe that autonomous driving is now approaching a crucial turning point.
Robin Li, CEO of Baidu, expressed optimism during an earnings call, as reported by a FactSet transcript. He noted, "I think robotaxi has reached a tipping point, both here in China and in the U.S." Li pointed to the extensive public exposure and positive word-of-mouth reviews that could accelerate regulatory approvals.
Recent advancements in technology have led to increased enthusiasm within the industry. Companies such as Nvidia and Xpeng have voiced similar sentiments. Xpeng plans to launch robotaxis in Guangzhou next year, participating in a rapidly growing market that Goldman Sachs estimates could surpass $25 billion by 2030.
Global Expansion and Profitability
To capitalize on this growth potential, Chinese robotaxi firms are aggressively pursuing overseas markets, aiming for profitability instead of just expanding market share. In the past year and a half, companies like Baidu and WeRide have partnered with Uber to introduce robotaxi services in specific regions, beginning in the Middle East. According to Counterpoint Senior Analyst Murtuza Ali, these collaborations are essential for ensuring profitability and operational efficiency.
Baidu’s Apollo Go unit achieved per-vehicle profitability in Wuhan last year, thanks to a massive deployment of over 1,000 vehicles. This success demonstrates the viability of robotaxi operations even in regions with lower taxi fares than major Chinese cities. Baidu's Halton Niu emphasized that achieving profitability in one city paves the way for success in others worldwide. The company has also developed cost-effective electric robotaxis, bypassing the need for third-party manufacturing.
Comparisons with U.S. Competitors
In terms of fleet size and market readiness, Chinese companies are ahead. Pony.ai has plans to introduce a fully autonomous robotaxi service in Dubai by 2026 and aims for further expansions in Europe and Singapore. Meanwhile, both Pony.ai and WeRide report fleet growth projections in the Middle East.
Fleet size is becoming a key competitive factor. Pony.ai targets 1,000 robotaxis in the Middle East by 2028, while WeRide aims for a similar fleet size by the end of the next year. Apollo Go operates about 100 robotaxis in Abu Dhabi and Dubai, with plans to double its fleet soon. As the global race for autonomous transport intensifies, the advantages of scale in both fleet size and technological capabilities are becoming more apparent.