Nandini Roy Choudhury, writer
Brief news
- Baidu’s Apollo Go robotaxi journeys are experiencing slower growth compared to previous quarters.
- The number of robotaxi journeys increased by 26% year-on-year in the first half of the year, with a monthly average of 287,500 rides.
- Baidu’s CEO stated that the robotaxis now operate autonomously in most areas of Wuhan, leading to cost savings.
Detailed news
BEIJING— It has been reported that the Apollo Go robotaxi journeys of Chinese technology company Baidu are experiencing a weaker rate of growth than in previous quarters.
According to CNBC calculations, the number of robotaxi journeys operated publicly increased by 26% year-on-year in the first half of the year to a monthly average of 287,500 rides, as indicated by the figures released by Baidu on Thursday.
This is a significant decrease from the 184% year-over-year growth reported in the first half of 2023, which resulted in a monthly average of 229,000 journeys.
Some of the vehicles are not entirely autonomous and still necessitate a safety driver.
Baidu is one of the primary operators of public-facing robotaxis in China. Regulators in certain areas of Beijing and cities such as Wuhan, which is Apollo Go’s largest operating region, have permitted the companies to collect fares.
Baidu announced on Thursday that Apollo Go has operated a total of 7 million journeys as of July 28. This represents an increase from the six million reported on April 19. The company achieved its first million-dollar milestone in July 2022, which was two years ago.
According to a FactSet transcript, Baidu CEO Robin Li stated on an earnings call Thursday that the Apollo Go robotaxis now operate entirely autonomously in nearly all areas of Wuhan, without the presence of a safety staff.
“This has a substantial effect on costs,” he stated.
The Wuhan robotaxis experienced a significant increase in interest in early July, coinciding with a rapid increase in the number of individuals transitioning to ride-hailing positions. This development has prompted apprehension regarding the potential impact of automation on employment.
Li stated that Apollo Go’s market share in the Wuhan ride-hailing market is only approximately 1%. “The process of scaling will be gradual and may require several years.”
Without reiterating his longer-term objectives, he described the local fleet as approximately 400 robotaxis.
Baidu had previously stated that it had over 500 robotaxis in operation in Wuhan and intended to increase this number to 1,000 by the end of the year.
Just a small portion of the ride-hailing industry
As of July 28, CNBC’s calculations indicated that the company had conducted approximately 336,000 Apollo Go journeys in China during the previous month. This is approximately 23% higher than the monthly average for the third quarter of 2023.
The growth rate of robotaxi journeys is still greater than that of ride-hailing, despite the fact that it is exceeding 20%, albeit on a significantly smaller scale.
Didi reported earlier this week that the aggregate transaction value in China increased by 8.7% year-over-year in the three months ending June 30. Nevertheless, its average daily transactions surpassed the previous benchmark of 33 million.
“Our market share in the entire ride-hailing service market is extremely small, despite these milestones,” Baidu’s Li stated. “Reaching a significant market share in China or elsewhere will require a significant amount of time.”
Source : CNBC News
