Baidu reports a decline in the growth rate of robotaxi rides.

• The number of publicly operated robotaxi rides increased by 26% year-on-year in the first half of the year, as per CNBC calculations.
• The year-on-year growth rate in the first half of 2023 was 184%, but it has since decreased sharply.
• Despite the growth rate of robotaxi rides being smaller than that of ride-hailing, it is still growing faster.

Beijing-based tech company reports slower growth in Apollo Go robotaxi rides compared to previous quarters.

The number of publicly operated robotaxi rides increased by 26% year-on-year in the first half of the year, with an average of 287,500 rides per month, as per CNBC calculations.

The monthly average of rides decreased significantly from the year-on-year growth rate of 184% in the first half of 2023, which was 229,000 rides.

Not all cars are fully autonomous and some still require a safety driver.

In China, Baidu is a significant operator of public-facing robotaxis, and regulators in certain areas, including Beijing and Wuhan, have permitted companies to charge fares.

As of July 28, Apollo Go has operated 7 million rides, an increase of 1 million from its April 19 count. The company achieved the 1 million mark two years ago in July 2022.

Baidu's Apollo Go robotaxis are now fully autonomous in nearly all parts of Wuhan, with no safety staff on board, as stated by Baidu CEO Robin Li during an earnings call on Thursday, according to a FactSet transcript.

"This has a significant impact on costs," he said.

The surge of interest in Wuhan robotaxis in early July coincided with a rapid rise in people turning to ride-hailing jobs, raising concerns about the impact of automation on employment.

Li stated that scaling Apollo Go's market share in Wuhan would be a gradual process and could take many years.

He stated that the local fleet comprises approximately 400 robotaxis, without elaborating on long-term objectives.

Baidu initially stated that it had over 500 robotaxis operating in Wuhan and aimed to increase that number to 1,000 by the year's end.

A tiny fraction of ride-hailing

In July 2023, the company recorded 336,000 Apollo Go rides in China, which is 23% above the monthly average in the third quarter of 2023.

Despite the growth rate of robotaxi rides being smaller than that of ride-hailing, it is still growing faster.

Earlier this week, Didi announced that China's gross transaction value increased by 8.7% year-on-year in the three months ending June 30. Additionally, the company's average daily transactions reached a new record of 33 million.

"Despite achieving milestones, Baidu's Li acknowledged that our market share in the ride-hailing service industry is still small. It will take a long time for us to attain a significant market share in China or other regions."