Chinese tech giant Baidu has found itself at the center of a social media storm this week over its rapidly expanding robotaxi service, which is fueling concerns over road safety and job prospects.

The company was granted permission to operate fully autonomous taxis in the central metropolis of Wuhan in 2022, and it has since rolled out hundreds of its Apollo Go robotaxis in the city.

The self-driving taxis have become popular — with Baidu offering super cheap rides to win customers — and the company is eyeing expansion into other Chinese megacities as local governments rush to issue policies in support of the new technology.

But the robotaxi revolution is also causing some public concerns in China, with the issue blowing up on social media after an Apollo Go vehicle ran into a pedestrian in Wuhan last Sunday.

Footage of the incident spread online has sparked a wide debate about the issues created by robotaxis — especially the threat the technology poses to ride-hailing and taxi drivers.

Authorities in Wuhan have felt the need to respond to the “rumors” about problems caused by robotaxis. The city’s transportation bureau told domestic media that the local taxi industry is “relatively stable” and that Apollo Go only operates 400 robotaxis in the city, rather than 1,000 as many have claimed online.

Driving into trouble

Baidu’s autonomous driving business has deep roots in Wuhan. The city of 13 million people has long been an auto powerhouse in China, home to manufacturing facilities for brands including Honda, Renault, and General Motors. And it decided early that it wanted to become a leader in self-driving vehicles.

In 2019, Baidu was among the first companies to obtain a business license for operating autonomous vehicles in Wuhan. Then, in 2022, it was granted a license to operate its vehicles on public roads without a safety driver.

Baidu’s robotaxis have since expanded their reach across the city, covering an area of more than 3,000 square kilometers, according to the company. In downtown Wuhan, Apollo Go is now a highly visible presence.

The currently 400 Apollo Go robotaxis have quickly gained a large customer base by undercutting their rivals on price. In Wuhan, a 10-kilometer ride in a typical ride-hailing vehicle reportedly costs between 18 yuan and 30 yuan ($2.50-$4). A ride in an Apollo Go, by contrast, costs as little as 4 yuan to 16 yuan.

But the robotaxis’ growing popularity has also sparked backlash. Wuhan residents have been complaining for months that Apollo Go cars cause traffic jams by driving slowly and stopping unexpectedly. Viral clips on social media show long lines of cars forming behind an Apollo Go vehicle that is blocking the road.

In the meantime, with robotaxis now competing directly with the city’s ride-hailing platforms and taxi companies for orders, local drivers are already feeling the impact of the technology.

China’s ride-hailing drivers were already struggling before the rise of robotaxis due to an influx of workers into the gig economy. In May, local authorities in Wuhan warned that the ride-hailing industry was becoming oversaturated.

Now, drivers are also losing business to robtaxis that offer even cheaper fares. In an article that was widely reported by domestic media, local authorities in Wuhan said that ride-hailing drivers in the city receive 13.2 orders per day on average, whereas Baidu’s robotaxis fulfill up to 20 orders per day.

But new job opportunities might come with the rising robotaxi services. China Newsweek quoted an analyst saying that although considered automatic, operations of robotaxis require a lot of manual work, such as client support, repairing, cleaning and charging among others.

Flash point

At first, these debates were mainly local to Wuhan. But when an Apollo Go vehicle hit a pedestrian in the city on Sunday, the issue suddenly burst into the national consciousness.

Video clips showing a pedestrian lying on the road next to an Apollo Go robotaxi began trending within hours. A Baidu spokesperson told domestic media that the accident was a “mild” collision that had occurred because the pedestrian had been jaywalking.

The incident has sparked a much wider debate about the rapid rollout of robotaxis in China, with netizens divided over the pros and cons. Though many have expressed concern over job prospects and potential safety issues, others have highlighted that Apollo Go rides are cheap and convenient.

It’s unclear whether the controversy will affect China’s plans for autonomous driving. Beijing recently issued a draft guideline that would allow self-driving vehicles to be used in the public transportation and ride-hailing industries. Cities including Changsha and Jinan have announced plans to conduct robotaxi testing schemes.

The incident also comes at a crucial moment for Baidu, which has set a goal of making its Apollo Go business profitable in Wuhan by 2025. The company estimates that its latest robotaxis cost only 200,000 yuan to produce, 60% less than its previous generation vehicle.

So far, the publicity appears to be providing an unexpected boost to Baidu’s stock price. The company’s shares achieved their largest daily gain in over a year on Wednesday, and are still up for the week as of Friday afternoon.

Contributions: Zhou Zhijian.

(Header image: A Baidu Apollo Go robotaxi on a street of Wuhan, Hubei province, July 11, 2024. VCG)