Baidu’s robotaxi unit expects to show worthwhile subsequent yr

SHANGHAI — Chinese language tech firm Baidu stated Wednesday its Apollo Go robotaxi arm expects to show worthwhile subsequent yr.

The projection comes as Elon Musk has emphasised his plans to build up Tesla’s robotaxi efforts amid a decline in income. 

Baidu is likely one of the main gamers in China’s nascent robotaxi market and acquired permission from a Beijing metropolis district to start charging fares in November 2021.

Whereas many of the vehicles nonetheless have a human employees employee inside for security, the identical Beijing district officially let Baidu and start-up Pony.ai cost fares for robotaxi rides with no employees within the automobile in September 2023. 

Apollo Go operated about 839,000 rides within the final three months of 2023, based on Baidu’s newest earnings report. The corporate is because of launch quarterly outcomes Thursday.

About 45% of the orders within the fourth quarter in Wuhan have been absolutely driverless, up from 40% the prior quarter, the corporate stated.

Along with rising utilization and decreasing labor prices per experience, Baidu is making the vehicles cheaper.

Baidu on Wednesday introduced Apollo’s sixth era robotaxi will value round 200,000 yuan ($28,169) — or lower than half that of the prior era, the corporate stated.

This yr, Baidu plans to deploy 1,000 of these sixth era robotaxis within the metropolis of Wuhan, the place the corporate already operates numerous automobiles with none human employees inside.

“With lowering prices and rising orders, Apollo Go’s unit economics (UE) is nearing break-even, anticipated to attain steadiness within the fourth quarter of 2024 and switch worthwhile by 2025,” Baidu stated in a press launch.

Rival robotaxi operator Pony.ai is preparing for a listing outside mainland China, based on the China Securities Regulatory Fee web site in late April.

Others within the auto business stay extra skeptical about absolutely driverless vehicles, which require broad regulatory approval with a view to function.

Xpeng Vice Chairman Brian Gu informed reporters final month he did not count on robotaxis to be an actual enterprise for not less than 5 years.