Remember “Total Recall,” the iconic 1990 film starring Arnold Schwarzenegger, where robo-taxis zipped through futuristic streets as Schwarzenegger’s character fought his enemies?

Self-driving cars, known as robo-taxis, are gaining substantial popularity
in a vast metropolis of over 11 million people in central China’s Wuhan at competitive prices.

Despite the challenges these vehicles face steering through urban streets, Wuhan aspires to become the world’s first driverless city.

“You’ll never have to buy a car,” a passenger inside one of these white robo-taxi sedans declared in a video that has gained over 80 million views on the Chinese social media platform Weibo since last week.

Apollo Go, a Chinese tech giant Baidu unit, operates the Wuhan fleet of 500 vehicles. According to a company release in May, these robot taxis serve an area covering nearly half of Wuhan’s population.

So, what is attracting the crowd?

One major attraction is the low cost, with base fares starting at just 4 yuan (55 cents), compared to 18 yuan ($2.48) for a human-driven taxi, as per the state media Global Times report on Wednesday.

While the service was launched in 2022, it has gained significant traction in the first half of the year since then, and the company aims to double its fleet to 1,000 cars by the end of 2024.

Wuhan currently has about 17,000 regular cabs, according to the city’s transport bureau.

However, the rapid adoption of driverless taxis has unsettled China’s gig economy workforce, which has faced stagnant wages due to economic deflation, tight coronavirus restrictions, and a real estate crisis.

“With the Chinese economy struggling, people are more fearful of losing their jobs, and this is a reminder of how that could happen,” Tu Le, managing director of Sino Auto Insights, stated, adding that significant job losses could still be a few years away.

On Monday, the National Bureau of Statistics reported that the country’s GDP grew by just 4.7% from April to June, slower than the expected 5.1%.

There have also been complaints from Wuhan residents about traffic jams, as driverless cars sometimes fail to respond to traffic lights. Earlier this month, a robotaxi ran a red light and crashed into a pedestrian, according to state-run paper People’s Daily.

The Question Of ‘Stealing’ Livelihoods
The backlash against Apollo Go’s service, particularly its alleged predatory pricing tactics, became the second most trending topic on the Chinese microblogging site Weibo last week, with over 75 million users participating in the discussion.

“Disrupting the market is the least of their worries. They will steal your rice bowl,” one user commented, referring to the threat to people’s livelihoods.

“Driving schools, road inspectors, and taxis are all going to shut down,” another user lamented.

An Apollo Go spokesperson refuted these claims, stating that discounts and subsidies from local governments are commonly used during the initial launch period to encourage people to try the service. The spokesperson emphasized that the “extremely low” pricing was a temporary strategy.

Autonomous taxis operate on a relatively small scale in several cities worldwide, primarily in the United States and China, with the United Arab Emirates also inviting companies to conduct driverless vehicle trials.

Several US companies, including Waymo, a subsidiary of Google’s parent company Alphabet, and GM subsidiary Cruise, are developing autonomous ride-sharing services but have recently faced setbacks.

Cruise’s permit to test fully autonomous vehicles in California was suspended in October 2023 following a series of collisions, including one that caused serious injuries to a woman; the company is now under investigation by the Department of Justice.

Waymo recently had to issue a recall after two of its cars collided with the same tow truck within minutes of each other.

Despite concerns over the safety and reliability of driverless cars casting a shadow over the industry in the US, Tesla CEO Elon Musk remains undeterred, with the electric vehicle giant planning to unveil its robotaxi in the coming months.

Robo-Taxis Conquering the Roads

China, already home to the world’s largest car market, is on the cusp of becoming a leading hub for automated vehicles, according to a 2023 report by consulting firm McKinsey.

The report forecasts that the sector could generate between $300 billion and $400 billion in revenue by 2035, bolstered by Beijing’s support for expanding pilot programs.

Several major Chinese cities, including Wuhan and Shenzhen, have granted commercial licenses for companies to test driverless services. Automakers and ride-hailing platforms are also heavily investing in their autonomous fleets.

Last week, Shanghai’s Pudong New Area began issuing licenses to driverless car operators, including Apollo Go and Alibaba-backed AutoX.

California-based startup Pony.ai, which is supported by Toyota and Saudi Arabia, was also approved for driverless vehicle tests in the city.

In June, Beijing officials announced they were “soliciting public opinion” on regulations for autonomous vehicles used in buses, taxis, and car rental services.

Earlier this month, the Beijing Municipal Bureau of Economy and Information Technology released draft guidelines requiring autonomous vehicles to have drivers or safety officers onboard or to be capable of remote interception and potential traffic violations by these vehicles should be addressed according to local laws.

In Shenzhen, Apollo Go was granted a license in February to conduct a trial in the Bao’an district, allowing the company to charge for rides, and more such trials are anticipated across the country.

From Sci-Fiction To Reality

In the United States, California is home to several key players in the robo-taxi industry, including Waymo and Cruise.

Likewise, Waymo operates a significant part of its autonomous vehicle fleet in Arizona, especially in the Phoenix metropolitan area.

In Texas, companies like Cruise and Waymo are expanding their testing and operations.

In China, Wuhan, Shenzhen, Shanghai and Beijing are spearheading the robot-taxis revolution.

In Wuhan, Apollo Go, a Baidu subsidiary, runs a fleet of robo-taxis.

In Shenzhen, companies like Apollo Go and AutoX are actively testing and operating driverless taxis.

Shanghai recently began issuing licenses to robo-taxi operators, including Apollo Go and AutoX and in Beijing, authorities are developing regulations for autonomous vehicles and considering public input on their use.

United Arab Emirates
Dubai is actively promoting, developing, and testing autonomous vehicles through various pilot programs.

Brands Running or Promoting Robo-Taxis

Waymo, a subsidiary of Alphabet Inc. (Google’s parent company), is a leading player in the robo-taxi industry.
It operates primarily in Arizona and California, likely expanding into other states.

Cruise, a subsidiary of General Motors, is primarily focused on developing and testing autonomous vehicles in California, with plans for broader deployment.

Apollo Go is operated by Baidu, one of China’s leading technology companies and operates in Wuhan, Shenzhen, Shanghai, and other Chinese cities.

AutoX, backed by Alibaba, is actively developing and testing autonomous taxis in China’s Shenzhen and Shanghai.

Pony.ai, a California-based startup with backing from Toyota and Saudi Arabia, is expanding its autonomous vehicle operations in China’s Beijing, Shanghai.

Tesla, led by CEO Elon Musk, is working towards launching its own autonomous ride-hailing service in the near future at various locations worldwide.

The Last Bit, These are the countries and brands that are at the forefront of the autonomous vehicle revolution, driving innovations and setting benchmarks for the future of transportation.

How soon and how seamlessly they bring in robo-taxis and if the challenges outlined will be ironed out, we will know soon’ meanwhile, coming to India, perhaps we are still a long road away to seeing robo-taxis operating in our cities, thanks to infrastructure woes, crazy traffic and zoomers!!!