Has COVID-19 Accelerated the Adoption of Self-Driving Taxis in China?

Before the pandemic, I would not think twice about getting into a taxi. I know that taxis are not the cleanest place on earth, but this has never stop me from entering one before. However, I do not feel safe using a taxi right now because I don’t want to be in a closed vehicle with someone who may have the virus. But what is the alternative? Driverless, self-sanitizing taxis?

I am a young person with an old-school mind, I have always preferred things that are analog over digital, so a self-driving taxi never seemed like something that I would feel comfortable with.

However, the pandemic has changed my mind on this matter – and I suspect I am not the only one who has experienced this shift in mindset due to COVID-19. Over the past year, China has seen a burst in interest in the robo-taxi industry, as consumers seek transportation options with minimal human interaction.

Unfortunately, the driverless technology was not ready in time for the pandemic, but it is likely that consumers will retain this mindset long after the pandemic is over which will accelerate adoption rates once the technology is ready. Which will be soon, as there have been great advances in robo-driving technology this year and we are beginning to see these vehicles available for public use.

Other Players

WeRide is not the only Chinese company to successfully launch self-driving taxis, others like AutoX, Baidu Apollo and DiDi Chuxing have also has launched similar services.

AutoX is the first Chinese startup to obtain self-driving permit in the state of California and has a pilot delivery service with partner grocery stores and restaurants in San Jose. Baidu Apollo has a fully autonomous minibus service that has been offered to the public.

There are many more Chinese companies working on similar technology and some of them are backed by companies with very deep pockets like Alibaba and Baidu.

How Are These Companies Attracting the Interest of Consumers?

Many of these companies are still testing out their technologies in limited regions and have not fully begun to promote their services to the general public. However, once they are ready, in order to alleviate consumers’ concerns about the safety of self-driving taxis, these companies will need to share content to educate consumers about the technology and the experience.

WeRide has already begun to do that, sharing a video on its WeChat Official Account where it interviewed passengers about their experiences riding in a self-driving taxi and whether or not they would do it again. The video included passengers of all ages, including an elderly couple and families with children, demonstrating that this technology is safe and everyone is able to use it.

WeRide also has other videos on its WeChat Channels page, including one showing the view from the taxi as it drives itself.

WeRide also recently published a report with feedback from passengers in Guangzhou over the past year.  Check out the report here (in Chinese).

To my surprise I have not yet to see any of the top influencers livestreaming about the robotaxis, as I feel like livestreaming while the taxi is operating this would be an excellent way to peak viewers’ curiosity and make them want to give it a try.

Chinese Technology More Advanced To Conquer Traffic Conditions

It is important to note that it is highly likely that WeRide and other Chinese player’s capabilities are more advanced than self-driving car companies in the West. Why’s that?

Well anyone who has been to China would know that there is a huge difference in the traffic conditions between China and the US, for example. Here in the US, except for major cities, there is far less traffic. What’s more, traffic behaviors are a lot more predictable: cars tend to stay within their lane most of time and there is less chance of a bicycle or a scooter swerving out in front of a car.

In contrast, in a busy city like Guangzhou, driving is complicated even for a human driver! Therefore, to launch self-driving taxis at this scale in China is greater challenge, meaning the technology is likely more advanced.

Taxi Companies the Real Benefactors of the Self-Driving Movement

While avoiding human interaction is a reason why consumers may be interested in taking a robotaxi, the real driver behind the push towards robotaxis are the cost savings for transportation companies. Self-driving taxis can run tirelessly day and night picking up passengers without a complaint, plus taxi companies do not need to deal with employee benefits, insurance for the driver, paid sick leaves and most importantly they no longer need to pay the driver.  

This will dramatically increase efficiency and profitability overtime; more trips can be completed means more revenue, so it is clearly beneficial to the taxi companies. On the other hand, a significant number of drivers will be out of work, so one can only hope this evolution happens over time not overnight so that drivers can have a transition period to reskill or find new work.

Robo Taxis Are an Inevitable Part of Our Future – and China May be First

Despite safety concerns, robotaxis are the future. The pandemic has impacted many aspects of our lives, transportation being one of them. Prior to COVID-19, things were working well and people were reluctant to change, however, I think the pandemic has dramatically accelerated the need of self-driving transportation. Now obviously there are people getting in and out of the taxi all day long, so there are still chances to catch the virus, but it would be easy to install self cleaning mechanisms and it still clearly reduces human interaction.

Before, robotaxis were mainly a cool factor driven business, people were curious and wanted to ride them because it seems like all the science fiction movies that we grew up with have finally became reality. But now people may turn to them for safety reasons. Somewhat ironic when people have always been concerned about the safety of self-driving vehicles.

Even as the vaccine is being administered, and it seems like we can see the light at the end of the tunnel,  the pandemic has definitely put a question mark on our established systems, we can’t go back to what we were doing before, for fear of what happens when the next pandemic erupts.

At this stage, its unlikely that these robotaxi businesses are turning a profit, but it is clear that the demand is there. The future of AI mobility is clear.