Uber to roll out thousands of robo-cabs from China’s Baidu • The Register

Rideshare OG Uber has announced a plan to roll out “thousands” of robo-taxis from Chinese tech giant Baidu.

The two companies on Tuesday announced “a multi-year strategic partnership” to introduce the robo-cars outside the USA and China, starting later this year in unspecified countries across “Asia and the Middle East”.

By The Register’s reckoning that means around 64 countries are in play but given Baidu’s Apollo robo-cars already operate in Abu Dhabi and Dubai, it seems likely those cities will be first cab off the rank.

We also suggest that service won’t start in Singapore, Malaysia, Cambodia, Indonesia, Myanmar, the Philippines, Thailand, or Vietnam – as the dominant rideshare operator in those countries is Grab, which beat Uber at its own game and caused the American rideshare company exit the local market – save as an investor in Grab.

Wherever the service commences, Uber users may see an option to ride in a robo-cab or opt for a human driver.

Baidu’s “Apollo” model autonomous cabs already operate in eleven Chinese cities, albeit within geo-fences that restrict their operation to certain areas. The first Apollo hit the road in 2021, and city governments across China have since gradually allowed the cars to operate in their jurisdictions.

Few nations in Asia and the Middle East have done likewise, so The Register suggests this new partnership won’t make an immediate impact on the region’s cab services.

Remember, too, that earlier this year Uber CEO Dara Khosrowshahiwarned that the economics of robo-taxis don’t add up because the autonomous vehicles are more expensive to acquire and operate compared to conventional cars.

Khosrowshahi predicted that robo-cab operators will acquire enough autonomous cars to satisfy baseline demand and rely on humans to satisfy daily and seasonal demand spikes.

The CEO’s remarks also assumed robo-cabs cost $200,000 apiece. Baidu claims it can make its Apollo vehicles for just $37,000, so maybe this alliance will spark wider adoption of autonomous taxis.

The partnership is undoubtedly a win for Baidu, which will see its cars and tech reach other nations even as American rivals like Tesla struggles to get a handful of robo-cabs on the road and Waymo remains confined to five US cities. ®