The autonomous driving sector is once again ablaze with competition,as Baidu's LuoBo Fast Run and Tesla's Robotaxi encounter each other on a narrow path,quietly setting the stage for a contest over the future of transportation.
In the market for autonomous taxi services,a silent war is brewing without any smoke of battle.
On the evening of October 8th,insiders revealed to journalists that Baidu's LuoBo Fast Run would make some moves around the time of Tesla's Robotaxi launch.This news was like a thunderbolt out of the blue,instantly igniting the passion in the autonomous driving field.Subsequently,on October 9th,more news about LuoBo Fast Run was gradually exposed,including heavy-hitting content such as "LuoBo Fast Run is actively planning a global layout" and "plans to launch autonomous taxi services in Hong Kong."
These series of actions undoubtedly drew people's attention to Tesla's official showcase of the Robotaxi on October 10th (US time).Tesla's demonstration event was set at the Warner Bros.Studios in Los Angeles.The design of this Robotaxi completely abandons traditional steering wheels and pedals,relying on a fully autonomous driving system (FSD) to operate,indicating a significant change in future commuting methods.Musk has high hopes for this event,even calling it an event that "will go down in history."
This is not the first appearance of Tesla's Robotaxi.Originally planned to be released on August 8th,it was postponed on July 16th due to reasons,and it was not until September 26th that the official release date was finally confirmed for October 10th.
So,is the "time coincidence" between Baidu's LuoBo Fast Run and Tesla's Robotaxi a mere coincidence or a covert battle?From the perspective of market entry,autonomous driving companies such as Pony.ai and WeRide have already laid out in overseas markets,while Baidu focuses more on operating Robotaxi domestically.On the business level,Robotaxi has not yet reached the commercial explosion period,and the timing of going overseas is not the key to winning or losing.Therefore,the concentrated exposure of this new progress in Robotaxi is more like a collective demonstration of market confidence,rather than a signal of intense competition.
On the business level,Baidu's LuoBo Fast Run has been moving quickly.On October 9th,related plans were gradually exposed,showing that Baidu is actively launching autonomous driving mobility services globally and has conducted in-depth communications with several international companies.Although these messages have not yet been officially confirmed by Baidu,industry insiders generally believe that it is only a matter of time before LuoBo Fast Run goes global.
On the technical level,Baidu is not to be outdone.It is reported that Baidu is about to release the Apollo Autonomous Driving Open Platform 10.0,which will be equipped with Baidu's latest autonomous driving large model ADFM.According to Baidu,the Apollo Open Platform 10.0 has greatly improved the success rate of obstacle detection and the safety of extreme weather scenarios,and is good at solving the adaptability problems of autonomous driving scenarios.This technological breakthrough undoubtedly adds more confidence to Baidu's competition in the field of autonomous driving.
Facing a strong opponent like Tesla,can Baidu really handle it calmly?Tesla's technical strength in the field of autonomous driving is obvious to all,and the release of its Robotaxi will undoubtedly have a profound impact on the market.For Baidu,how to maintain its own advantages in the competition with Tesla will be a huge challenge.
Of course,from the perspective of market size,the competition between Baidu and Tesla may have just begun.According to Frost & Sullivan's forecast,
by 2030,Robotaxi will be widely adopted worldwide,with the Chinese and global Robotaxi market sizes reaching 488.8 billion yuan and 834.9 billion yuan,respectively.Such a huge market size undoubtedly provides a broad development space for autonomous driving companies such as Baidu and Tesla.The vastness of the market size does not imply an easy competition.On the contrary,with the entry of more players,the competition in the autonomous taxi market will become increasingly fierce.For Baidu and Tesla,how to stand out in this competition will depend on their technological strength,market layout,and strategic vision.
Baidu's autonomous driving service,Apollo Go,makes its overseas debut,causing another stir in the global technology scene!The autonomous driving field is welcoming new competition,with a head-to-head contest between Baidu and Tesla imminent overseas.
Apollo Go,a name that exudes a sense of technology,is actually the overseas version of Baidu's successful operation of the "Luobo Fast Run" in China.Both are under Baidu's umbrella,together forming Baidu's dual-wheel drive in the field of autonomous driving.Domestically,Luobo Fast Run has been operating on a regular basis in cities such as Beijing,Shanghai,Guangzhou,Shenzhen,Chongqing,Wuhan,Chengdu,Changsha,Hefei,Yangquan,and Wuzhen,and has launched fully unmanned autonomous driving operations in Wuhan,Chongqing,Beijing,Shenzhen,and other places.This series of layouts and achievements have accumulated valuable experience and technological strength for Baidu,and also laid a solid foundation for Apollo Go's overseas expedition.
As the world's largest autonomous driving mobility service provider,Baidu has achieved remarkable results in the field of autonomous driving.As of September 30,2023,the total number of orders for Luobo Fast Run has exceeded 4.1 million,a figure that fully proves Baidu's market influence and user recognition in the field of autonomous driving.Among them,in the third quarter of 2023,Luobo Fast Run provided 821,000 rides,a year-on-year increase of 73%,a growth rate that is even more eye-catching.The achievement of these results is inseparable from Baidu's continuous investment and innovation in autonomous driving technology,as well as Baidu's precise grasp and satisfaction of market demand.
However,Baidu's choice to enter the overseas market at this time is not without reason.In recent years,China's technology sector has made significant progress and is now able to compete head-on with international giants overseas.Baidu is a clear example,proving with practical actions that Chinese companies are no longer synonymous with low-end manufacturing in the international market.On the contrary,Chinese companies have the strength to compete with international giants in terms of technological innovation,product quality,and service experience.
So,how will the overseas competition between Baidu's Apollo Go and Tesla's Robotaxi develop?
In the wave of autonomous driving,Baidu has already laid out its plans,launching an open platform in 2013 to jointly release autonomous passenger cars with car companies,which was its early B2B (business-to-business) layout.For ordinary users,they experience Baidu's autonomous driving technology more through the B2C (consumer) Robotaxi application - Luobo Fast Run.
When asked about plans to launch an autonomous taxi service in Hong Kong,Baidu-related personnel did not give a positive response.However,looking at Baidu's layout,the main destinations for its autonomous driving overseas are still economically developed areas,such as Europe,the Middle East,Australia,Singapore,and other places.These areas are not only economically powerful and have a higher acceptance of autonomous driving services,but also have high labor costs,and autonomous driving technology is expected to replace manual labor and dangerous operations in public transportation,mines,ports,and other industries in these areas.
Compared with Baidu,Pony.ai and WeRide are more active in the overseas expansion of autonomous driving.Pony.ai has explored autonomous driving technology and application landing in the United States,South Korea,Luxembourg,Saudi Arabia,and the United Arab Emirates,while WeRide's Robotaxi has been operating publicly in Abu Dhabi,and Robobus (autonomous minibus) is operating in Singapore and Abu Dhabi.The choices of these companies undoubtedly confirm the strong demand for autonomous driving services in economically developed areas.
So,is the first-mover advantage of Robotaxi going overseas important?The answer is yes.Although going overseas will face certain obstacles and expansion costs,for companies,the market and returns are greater.Now is a good time for autonomous driving to go overseas,and Chinese companies' autonomous driving levels and capabilities are among the world's forefront.Occupying the overseas market as soon as possible is undoubtedly a wise move.Looking at the Compound Annual Growth Rate (CAGR) of market size,Frost & Sullivan's forecast data indicates that the CAGR for China and the global Robotaxi market from 2024 to 2030 are 248% and 239%,respectively,while the CAGR from 2030 to 2035 is 27.4% and 31%,respectively.In the long term,the potential of the global market is significantly greater than that of the domestic market.This is why domestic autonomous driving companies are eager to seek broader overseas markets.
Baidu's investment in the field of autonomous driving has exceeded ten years,forming a certain competitive barrier.In the second quarter of 2024,Baidu's total revenue reached 33.9 billion yuan,with core revenue at 26.7 billion yuan and core operating profit at 5.6 billion yuan,a year-on-year increase of 23%.In the second quarter,Baidu provided approximately 899,000 Robotaxi rides,a year-on-year increase of 26%.These figures undoubtedly prove Baidu's strength and market recognition in the field of autonomous driving.
However,challenges also objectively exist.Autonomous driving going overseas requires quickly becoming familiar with and understanding the culture and policies of the destination country and region,and as much as possible,ensuring that the product meets local needs without making significant adjustments and changes to technology and products.However,with the rapid improvement of the generalization ability of L4 autonomous driving technology,this challenge is gradually decreasing.
In the field of autonomous driving,Baidu,Pony.ai,and WeRide have different business implementation paths from Tesla,and their core businesses rarely intersect.Faced with the entry of the new peer Tesla,how should companies like Baidu respond?Should they applaud and welcome or rub their hands and prepare for competition?
Zhang Xiang,Secretary-General of the International Intelligent Transportation Technology Association,said that Tesla's entry into Robotaxi will stimulate domestic and foreign autonomous driving companies to improve technology,which is a good thing for the industry.Wang Ke,a senior analyst at Analysys,believes that Tesla's entry will generate a certain level of competition,but it is also a recognition of the entire industry.
At the same time,Baidu's RoboTaxi also took the opportunity to announce plans to test and deploy unmanned taxi services in Hong Kong,Singapore,and the Middle East.Relying on its unique "single vehicle intelligence + vehicle-road collaboration" strategy,Baidu aims to solve the "long-tail problem" of unmanned driving in complex urban environments.As the first company to apply the autonomous driving large model (ADFM),RoboTaxi is committed to providing a driving experience ten times safer than human drivers.
In this competition around Robotaxi,it is not only Baidu and Tesla that are competing,but also Waymo,a subsidiary of Alphabet,which is emerging in the fierce competition.Now,Waymo has officially opened its unmanned taxi service to the public in Austin,Texas,and has reached a cooperation with Hyundai Motor to further expand its unmanned fleet.
Kathy Wood in the investment field has made an optimistic prediction about the potential opportunities in the Robotaxi market,saying that the market opportunity can reach as high as four trillion US dollars,with a gross margin as high as 80%.This is undoubtedly a new wealth battle for new energy vehicle companies.
Faced with the influx of investment and technology trends,Tesla and RoboTaxi will inevitably have a more intuitive competition in the future.The strategic differences and market positioning of the two will once again spark heated discussions.If Tesla successfully launches FSD,how will it affect the expanding RoboTaxi?And can Baidu stand firm in front of Tesla and become a strong competitor?
This competition is not only about technological breakthroughs and business model innovations but also a change of the times.How will unmanned driving shape the blueprint for future travel?In the upcoming era of Robotaxi,we look forward to it.
