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Baidu to deploy 1,000 budget robotaxis on Chinese roads as it seeks ways to monetise autonomous driving technology

  • Baidu’s fifth generation Apollo Moon has a per-vehicle cost of under 500,000 yuan (US$77,665), compared to 1 to 2 million yuan per vehicle previously
  • In May, the search giant launched China’s first paid robotaxi service in Beijing’s Shougang Industrial Park

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Moon the fifth generation of Apollo robotaxi, developed by Baidu Apollo, the Chinese search engine Baidu’s autonomous driving unit. Photo: Handout

Baidu plans to deploy a fleet of 1,000 budget robotaxis over the next three years, cutting the per-unit cost of the vehicles by two thirds, as it explores ways to make money from its significant investment in autonomous driving.

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The search giant’s autonomous driving unit Apollo announced on Thursday a partnership with ArcFox, the luxury electric vehicle brand of BAIC Group, to bring Baidu’s fifth generation Apollo Moon robotaxis to Chinese roads.

“The launch of Apollo Moon is an important breakthrough signifying the powerful linkage between China’s leading autonomous driving technology and the most advanced smart vehicle platform,” said Zhenyu Li, senior corporate vice-president of Baidu and general manager of its Intelligent Driving Group (IDG).

Apollo, first announced in 2013, is a key element of Baidu’s future plans. The company said it has 2,900 patents for intelligent driving and 244 relevant road testing licenses in China, accumulating more than 12 million km of test mileage.

Despite its technical achievements, the Apollo business has been haemorrhaging cash for the past seven years as monetising self-driving technology has proven to be a difficult task.
Baidu launched pilot robotaxi services in Changsha, capital of Hunan province, with a fleet of 45 autonomous cars, in 2019. Photo: Handout
Baidu launched pilot robotaxi services in Changsha, capital of Hunan province, with a fleet of 45 autonomous cars, in 2019. Photo: Handout

Commercial prospects for robotaxi services remain uncertain in the near term due to the immaturity of the technology, the absence of legislation to clearly define responsibility in case of a self-driving accident, and persistently high costs associated with the complex self-driving systems.

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