Baidu's Apollo Go is making significant strides towards establishing itself as the world's first profitable robotaxi service. The initiative has already expanded its operations into more than ten cities across China and will soon initiate testing in Hong Kong, specifically in the vicinity of the airport, later this year.
The key to achieving profitability lies in scaling up commercial use, allowing Baidu to spread out its operational and research and development costs. The more markets Baidu can enter, the more effectively it can work towards reaching its financial goals.
In its Hong Kong debut, Apollo Go will implement a cautious approach, initially operating with safety drivers who possess a minimum of ten years of driving experience. The service will be limited to off-peak hours to ensure safety and smooth operations during the initial rollout. This measured move follows Baidu's successful implementation of a fully driverless robotaxi service in Wuhan, which commenced on June 19. Industry experts anticipate that, given this precedent, Baidu will swiftly push for similar offerings in Hong Kong.
Baidu's commitment to advancing in the self-driving vehicle arena began back in 2013, making it one of the first companies to enter this sector, alongside Google, which has since transitioned to operating as Waymo. Both companies have faced challenges as they endeavour to master the technology while reducing costs, a process Baidu has seen significant progress with recently.
On May 15, Baidu announced the unveiling of its sixth-generation robotaxi, priced at 200,000 yuan (approximately $27,600), representing a substantial 60 percent reduction in costs compared to the previous model. This drastic drop in manufacturing expenses is crucial for Baidu's long-term profitability strategies. The company has plans to integrate 1,000 sixth-generation robotaxis into its Apollo Go fleet by the end of 2024, starting with operations in Wuhan, located in Hubei province.
Apollo Go currently provides around one million robotaxi rides per quarter and has completed over eight million rides since its inception. The rapid increase in service usage indicates a significant upward trend for Baidu as it moves toward scaling its operations. Analysts project that 2025 may prove to be a pivotal year for the robotaxi market, with Baidu's Apollo Go service likely leading the charge, although Waymo is also making notable advancements in the field.
Source: Noah Wire Services