In China, you can travel nearly 10km by driverless taxi for only about 12-13 thousand VND.
Self-driving cars, commonly referred to as robotaxis, are gaining popularity in Wuhan – a sprawling metropolis with over 11 million residents in central China. The city government aims to make Wuhan the first driverless city in the world, even though vehicles often struggle with road navigation.
“You will never have to buy a car,” a passenger stated in a video that garnered over 80 million views on the social media platform Weibo.
The fleet of 500 vehicles currently operating in the city belongs to Apollo Go, a subsidiary of the Chinese tech giant Baidu. According to a press release from May, the company serves an area encompassing nearly 50% of Wuhan’s population.
With its technological advantages and existing platform, Baidu hopes this new initiative will contribute significantly to the development of smart transportation and autonomous vehicles in Beijing, while also helping the city become a leading global hub for artificial intelligence (AI) innovation. Users simply need to access the Baidu Maps mobile app or the Apollo website, book a driverless taxi, and within minutes, the smart vehicle arrives.
Notably, the key lies in the pricing. The basic fare starts at a low 4 yuan (14 thousand VND), according to Global Times.
The service launched in 2022 and began attracting attention in the first half of the year. The company aims to double its fleet to 1,000 vehicles by the end of 2024. According to the city’s transportation department, Wuhan currently has about 17,000 active taxis.
However, the rapid adoption of driverless taxis is inadvertently disrupting the workforce within the sharing economy, which is already facing wage crises.
“With China’s economy struggling, the people may fear job loss much more,” Tu Le, CEO of Sino Auto Insights, told CNN in an email interview. Any significant job losses could occur in the coming years.
Recently, the National Bureau of Statistics reported that China’s gross domestic product only grew by 4.7% in Q2, much slower than the expected 5.1%. Residents of Wuhan have also complained about traffic congestion as driverless vehicles do not respond well to traffic signals. Earlier this month, a robotaxi ran a red light and collided with a pedestrian.
China aims to make Wuhan the world’s first driverless city.
The story has become a hot topic of discussion. Over 75 million people have shared similar concerns.
“Undercutting the market is nothing. They will steal your livelihood,” one user wrote, referring to the potential impact on employment.
“Driving schools, road inspectors, and taxi services will all close,” another user commented.
According to sources, discounts from the company and subsidies from local governments are often used during the initial launch phase to attract users with “extremely low” prices. The minimum fare of 4 yuan may therefore be just a temporary strategy.
Self-driving taxis are currently operating on a relatively small scale in a few cities worldwide, mainly in the U.S. and China. Meanwhile, the United Arab Emirates has welcomed companies from around the globe to test driverless vehicles.
Some American companies, including Waymo, a subsidiary of Alphabet, and Cruise, a subsidiary of GM, are researching self-driving ride-sharing services but have recently encountered some setbacks. Cruise’s testing license in California was suspended in October 2023 following a series of serious collisions. Waymo also had to issue a recall after two of its vehicles collided with a trailer.
According to a 2023 report by consulting firm McKinsey, China, the world’s largest automotive market, could someday become the leading market for autonomous vehicles. The report predicts that this sector could generate revenue between $300 and $400 billion by 2035, partly due to support from Beijing in launching various pilot programs.
The governments of several major Chinese cities, including Wuhan and Shenzhen, have issued commercial licenses to companies testing driverless services. Automotive manufacturers and ride-hailing platforms are also investing in autonomous fleets.
Last week, authorities in Shanghai’s Pudong New Area began issuing licenses to driverless vehicle operators, including Apollo Go and Auto X, backed by Alibaba. The California-based startup Pony.ai, supported by Toyota and Saudi Arabia, has also received approval for testing.
Officials in Beijing mentioned in June that they are “gathering public opinions” on regulations related to the use of autonomous vehicles for buses, taxis, and rental services. A draft was released earlier this month, stating that autonomous vehicles must have a driver, safety staff onboard, or the ability to be remotely disabled to ensure safety. Any traffic violations must be handled according to local laws and regulations.
It is reported that in the southern city of Shenzhen, Apollo Go received a license in February to conduct tests in the Bao’an District. More such trials are expected to take place nationwide.
According to analysts, the progress made by Chinese companies and regulators in Beijing poses new challenges to the West. Raymond Tsang, an automotive technology expert at Bain, stated: “It’s hard to measure, but if you look at the readiness to deploy and the availability of technology, China is probably less than 2 years behind. The momentum to close the gap is significant.”
China began developing commercial driverless vehicles in 2013, about 5 years after the U.S. However, as of September last year, autonomous vehicles in China had traveled a total of 70 million kilometers, equal to that of the U.S., according to data from Bain.
