Baidu's Robotaxi Rides Grow Slower

Baidu has announced a 26% year-on-year increase in robotaxi rides for the first half of 2024, reaching a monthly average of 287,500 rides. This growth, while impressive, marks a significant decline from the 184% surge seen in the same period last year, when the monthly average stood at 229,000 rides. The company’s Apollo Go service has now cumulatively completed 7 million rides as of late July, indicating a steady, albeit slower, expansion in the autonomous vehicle sector. During an earnings call, Baidu CEO Robin Li highlighted that Apollo Go robotaxis in Wuhan are now operating fully autonomously without safety staff, which he noted significantly reduces operational costs. Despite this advancement, Apollo Go holds only about 1% of the ride-hailing market share in Wuhan. Baidu has plans to increase its fleet from 500 to 1,000 robotaxis by the end of the year, aiming to enhance its presence in the competitive ride-hailing landscape. In July, Baidu reported approximately 336,000 Apollo Go rides in China, reflecting the ongoing growth of the robotaxi service. While the increase in rides is outpacing traditional ride-hailing services, the overall scale remains relatively small. The company also noted a record average of 33 million daily transactions, underscoring the potential for future growth in the sector. Despite the positive trajectory, Li cautioned that it may take years for Baidu to achieve a significant market share in China and beyond, emphasizing the long-term nature of the robotaxi market's development.