Chinese companies are expanding globally, and fast. Their biggest commercial competitors are in the US.
Waymo, Alphabet’s robotaxi business, remains the commercial leader, operating paid driverless services in several US cities. Amazon-owned Zoox and Tesla are expanding more cautiously, while Uber has abandoned the development of its own autonomous vehicles, which had been marred by a fatal accident in 2018.
Uber, and its ride-hailing rival Lyft, are now partnering with Chinese firms.
That gives them automatic “access to millions of customers that they wouldn’t have if they created their own app,” says Tu Le, founder of consultancy Sino Auto Insights.
“Through these partnerships, they’re able to commercialise and broaden their scope.”
Although Chinese companies are able to manufacture cheaply, Waymo has spent years building expertise in customer service and the app technology.
“Having experienced Waymo and the WeRides and the Ponys… I would have to say the user experience for Waymo is much better than all the other competitors. I feel like Waymo is really becoming a standard mode of transportation for California,” says Tu Le.
Perceptions also differ across markets.
In the US, unions have warned robotaxis could displace taxi, delivery and freight drivers.
China’s policymakers present automation as a remedy for its shrinking workforce but government censorship of dissenting voices makes it difficult to gauge opinions in the wider population.
President Xi Jinping has promoted AI and robotics as part of China’s drive to develop “new quality productive forces” – that will create jobs and boost economic growth.
And so there are incentives and impetus for companies to invest in the technology and expand.
One of the industry’s arguments is that autonomous vehicles could improve mobility for people who cannot easily drive themselves.
“If we can bring the cost down for a robotaxi ride so that it’s as cheap – or maybe even cheaper – than hailing an Uber with a normal driver, then it really helps broaden mobility,” Le says. “Elderly folks, folks that are disabled – these robotaxis really allow them a lot more ability to travel.”
Image source, Getty Images
But there are still many concerns around safety.
Earlier this year, Baidu’s Apollo Go service suffered a software malfunction that left about 100 robotaxis stranded in Wuhan.
Some passengers reported being unable to leave vehicles because the doors had automatically locked.
Services were suspended for several weeks although Baidu has said it remains on track to launch in the UK later this year.
But the episode highlighted how failures can quickly undermine public confidence.
Similar issues have emerged elsewhere. GM shut down its robotaxi division Cruise to “refocus autonomous driving development on personal vehicles”.
California regulators had suspended its permit following a 2023 crash in which one of its robotaxis dragged a pedestrian several metres after she had been struck by another vehicle.
That is one reason some analysts say robotaxis will be harder to export than electric vehicles.
Operating robotaxis is more difficult than traditional carmaking, or even ride-hailing platforms, as it faces issues like complicated regulatory approvals, detailed mapping, local operating teams and public trust.
This is something even homegrown brands have struggled with in the US.
They may also face growing geopolitical barriers. Unlike EVs, robotaxis generate a great deal of mapping, camera and location data. That makes them particularly vulnerable to national security concerns in overseas markets.
Despite the challenges of rolling out the technology, WeRide says regulators are becoming receptive to autonomous driving.
“We see very positive attitudes and very good policies and regulations coming out from governments both here in China and in some other international markets,” Zhang says.
For Chan, however, robotaxis represent something much bigger than a new mode of transport.
“China is trying to create this sort of high-tech economy that’s digitally connected, that’s AI-powered, and that builds on its existing strengths today in batteries, EVs, motors and other related technology.”
Additional reporting by Jaltson Akkanath Chummar
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