Robotaxi operator Pony.ai has started testing rides with human staff between Beijing suburbs and high-speed train stations.
CNBC Evelyn Cheng
BEIJING – In three years, the Chinese capital, Beijing, has taken rapid steps to bring robotaxis closer to the city center.
This month, the city began allowing robotaxis tests with human staff inside to run a 40-minute route between high-speed rail stations and suburban areas to the south.
The route between Beijing South Railway Station and the suburb of Yizhuang will open robotaxi service in the next week or two, Ning Zhang, vice president at Pony.ai and head of the Beijing research and development center, told CNBC in an exclusive interview on Friday. He cited the pending government permission.
By the end of this year or early next year, Zhang expects the train station route to be driverless, with no human staff inside.
The latest route marks a significant expansion of robotaxi operations from the outskirts of Beijing to the city center. The capital is laid out by a large road, nicknamed the “ring”, in a concentric circle around the city center.
The suburb of Yizhuang is outside the fifth ring road. Beijing South Railway Station is on the third ring road.
Zhang said there was a perception that Beijing would not allow robotaxis to pass through the fifth ring road.
“Right now, we’re breaking that boundary,” he said.
“This is a big step forward, and because Beijing is willing to take such a great step, it will be a good example, a show for all of China,” he said.
In November 2021, the city of Beijing will allow robotaxi operators Pony.ai and Baidu’s Apollo Go to collect fares for public rides in Yizhuang, the first step to eliminate driver fees.
Less than two years later, Beijing authorities allowed robotaxi companies to remove human staff from some public-facing cars and still charge fares. Users can call a taxi using the designated application.
Beijing authorities in late February expanded the operational area for robotaxis provided to the public to Daxing International Airport, which is close to Yizhuang. In addition to Pony.ai and Baidu, AutoX and WeRide received operating permits, according to a government release.
By the end of this year, Zhang expects the city to allow robotaxi operations around Beijing Capital International Airport in the north. Subsequent expansion is set to cover four other city railway stations, he said.
As for Pony.ai, they expect more than 50 driverless taxis to be operating in Beijing by the end of this year.
In the next two years, he expects Beijing will allow robotaxis to run between the sixth and fourth ring roads regardless of the city district. That would require Pony.ai to be ready by the end of 2025 for a robotaxi fleet with a scale of 1,000 vehicles, he said, noting that the startup is working on it. Toyota for mass production of cars.
Once there are 500 to 1,000 robotaxis in a city, Zhang said the operation can break even. With scale, he expects business growth “to accelerate exponentially in recent years.”
It also depends on the pace of regulatory support. In three to five years, Zhang expects Beijing to allow robotaxis throughout the city.
Robotaxis in the US
Global interest in robotaxis has increased, with Alphabet’s Waymo expanding operations on the West Coast.
In April, Elon Musk announced that Tesla will open robotaxi on August 8.
When asked about Musk’s plans, Zhang said that Pony.ai hopes that Tesla’s involvement in the industry can help “reshape” transportation. But in his opinion, he says Tesla’s Full Self Driving technology is better for assisted driving than driverless systems.
As for other Chinese robotaxi operators, Zhang doesn’t expect fierce competition in the next few years while the fledgling industry is still in the process of gaining traction.
Baidu said Apollo Go operated about 826,000 rides in the first quarter, up from 660,000 rides in the year-ago period. As of April 19, cumulative rides have surpassed 6 million.
During Baidu’s most recent earnings call, CEO Robin Li said the company expects its robotaxi business to narrow its losses for the rest of the year, according to a FactSet transcript. He added that Baidu’s latest robotaxi vehicle costs less than $30,000 when batteries are not included.
The Beijing city government in May 2024 began allowing robotaxis tests to high-speed train stations in the southern part of the city.
CNBC Evelyn Cheng
