How automated taxis are causing a stir among ride-hailing drivers in China

Currently, at least 19 cities across China are testing robotaxis and robobuses, with seven cities allowing trials without human-driver monitors

China's rapidly growing ride-hailing industry, which employs 7 million drivers, is facing a significant threat from the rise of artificial intelligence and robotaxis, according to a Reuters report.

Drivers in Wuhan have come up with a nickname for Apollo Go automated vehicles. They call them "stupid radishes" due to their tendency to cause traffic jams.

Unlike the United States, where self-driving technology approvals are often suspended following accidents, China is aggressively promoting these innovations. Currently, at least 19 cities across the country are testing robotaxis and robobuses, with seven cities allowing trials without human-driver monitors. Major players in this industry include Apollo Go, Pony.ai, WeRide, AutoX, and SAIC Motor.

Expansion of robotaxis in China

Apollo Go, a subsidiary of the technology giant Baidu, aims to deploy 1,000 robotaxis in Wuhan by the end of the year and plans to expand to 100 cities by 2030. Pony.ai, backed by Japan's Toyota Motor, currently operates 300 robotaxis and intends to increase this number to 1,000 by 2026.

WeRide is known for its diverse autonomous vehicle offerings, including taxis, vans, buses, and street sweepers. AutoX, backed by Alibaba Group, operates in major cities such as Beijing and Shanghai. Meanwhile, SAIC Motor has been running robotaxis since 2021. Despite these rapid advancements in transportation, safety concerns persist.

However, profitability remains a challenge. According to Haitong International Securities estimates, Apollo Go loses nearly $11,000 per car annually in Wuhan, though a lower-cost model could potentially yield a profit of nearly $16,000 per vehicle per year. In contrast, traditional ride-hailing cars generate about $15,000 annually, shared between the driver and the platform.

Nevertheless, the Chinese government continues to support the growth of robotaxi fleets to bolster economic goals, spurred by President Xi Jinping's call for "new productive forces."

China’s drivers feeling the heat of automation

The rise of robotaxis poses a significant threat to ride-hailing drivers, a sector that has grown from 4.4 million drivers two years ago to 7 million today. This industry has served as a vital employment option during economic slowdowns. The potential job losses due to the proliferation of robotaxis have sparked discussions and concerns, as evidenced by the popularity of social media hashtags like "Are driverless cars stealing taxi drivers' livelihoods?"

The impact of automation is also evident in China's driving schools. For instance, according to a Fortune report, the Eastern Pioneer Driving School has reduced its number of instructors by more than half since 2019, replacing them with teachers who remotely monitor students using computer instruction tools. These tools assess students' driving performance and provide real-time analysis of tasks like parallel parking.

US’ cautious approach to robotaxis

In the United States, Alphabet's Waymo operates over 1,000 uncrewed robotaxis in cities like San Francisco, Los Angeles, and Phoenix. Cruise, backed by General Motors, resumed testing in April after a hiatus following an accident last year.

Despite these developments, US regulators remain cautious, contrasting sharply with China's more aggressive approach. Some Chinese firms have attempted to test autonomous vehicles in the US, but potential bans on vehicles with China-developed systems may hinder these efforts.

(With inputs from Reuters)