Wuhan, a city in central China, is becoming a leader in smart-car technology, particularly in the field of driverless taxis. Baidu Inc., a Chinese tech company, has already deployed over 500 electric robotaxis in Wuhan and plans to deploy an additional 1,000 by the end of the year. This puts Baidu in competition with companies like Alphabet Inc.’s Waymo and Tesla Inc. President Xi Jinping’s focus on high-tech industries aligns with Wuhan’s development of driverless taxis. However, there are concerns about the impact on jobs and the economy, as some residents complain about traffic jams and cautious driving behavior. Economists and taxi companies also worry about the pricing scheme and financial viability of the driverless taxi service. Despite these concerns, the Wuhan government has been supportive of Baidu’s driverless technology, creating a more relaxed regulatory environment which allows for testing and deployment. The US, with companies like Waymo and General Motors, has an early lead in driverless technology but China aims to catch up by prioritizing and supporting the development of driverless cars.
| Signal | Change | 10y horizon | Driving force |
|---|---|---|---|
| Wuhan embraces driverless taxis | From traditional human-driven taxis to driverless taxis | Driverless taxis become more common in Wuhan and other cities | Chinese government’s push for high-tech industries |
| Concerns over job loss and economic impact | Balancing technological breakthroughs and labor market conditions | Government regulation and policies to protect jobs and manage economic impact | Public pressure and economic considerations |
| Baidu’s robotaxis cause traffic jams and complaints | Traffic congestion and dissatisfaction with cautious driving | Improved AI technology leads to smoother and more efficient traffic flow | Continuous innovation and improvement of driverless technology |
| Pricing gap between robotaxis and traditional taxis | Commercial viability of current pricing scheme | More balanced pricing to reduce financial losses and maintain competitiveness | Market competition and consumer demand |
| Beijing’s strategic priority on driverless car development | Strategic focus on driverless car technology | China catching up to the US in driverless technology | Government commitment to technological advancement |
| Tesla faces delays and potential competition | Delayed robotaxi unveiling and potential competition from Chinese firms | Tesla faces challenges in the robotaxi market | Need for further development and competitive edge |
| Limited reach and testing phase of Baidu’s service | Limited availability and testing phase of Baidu’s robotaxis | Expansion of Baidu’s service and wider availability of robotaxi technology | Continuous testing and improvement of driverless technology |