TOPSHOT – Photo taken on Aug. 1, 2024 shows a general view of the driver’s seat and control of the robotaxi driverless autonomous vehicle developed as part of technology giant Baidu’s Apollo Go self-driving project, in Wuhan, in central China’s Hubei province. While walking past office buildings and shopping malls, driverless taxis are slowly spreading across China’s cities, prompting a sense of vigilance and wonder. (Photo by Pedro PARDO / AFP) / For use: CHINA-TECHNOLOGY-AUTOMOTIVE, FOCUS by Jing Xuan TENG (Photo by PEDRO PARDO/AFP via Getty Images)
Pedro Pardo Afp | Getty Images
China’s robotaxi push has sparked job security fears among drivers, but experts say the technology has created new jobs.
On Tuesday, China issued 16,000 test licenses for autonomous vehicles and opened 32,000 kilometers of public test roads. In June, the government also bailed out nine domestic automakers, including BYD and Nio, to begin conditionally testing self-driving technology on certain public roads. Elon Musk wants to get regulatory approval for Tesla’s Full-Self Driving technology later this year.
But all these actions have caused many Chinese social media users to say that autonomous driving is “calling the rice bowl” of drivers, or not working.
In the long term, autonomous driving will definitely change the driver’s job. But again, there is already a shortage of drivers. So of course, for the taxi (company), you can see that it is beneficial for them.
Mohit Sharma
analyst, Counterpoint Research
It’s Baidu Self-driving hailing platform Apollo Go has around 400 robotaxis operating in Wuhan – its largest operational area – and plans to increase to 1,000 by the end of the year. Robin Li, Baidu’s CEO, said the company’s share of Wuhan’s ride-hailing market was only about 1%.
“Scaling will be a gradual process and may take many years,” Li said during the company’s quarterly earnings call on Aug. 22.
The Apollo Go service has become so popular that taxi drivers have petitioned the Wuhan transport authority to restrict use of the service, according to media reports.
A check on the Apollo Go app shows a 16-minute robotaxi ride in the southern suburbs of Beijing will cost 10.36 yuan ($1.46), about half of the 20 yuan fare listed by the ride-hailing app, which can call taxis.
A new project is created
Despite the headlines, experts say autonomous mobility will mature gradually.
“You will not lose all jobs in one. It will be a slow transition phase area by region, region by region,” said Mohit Sharma, research analyst at Counterpoint Research.
He added that the government could collaborate with robotaxi companies to switch drivers to other jobs, while the education system could train a new generation for the jobs of the future.
An Apollo Go spokesperson said the company is committed to creating new job opportunities in the ecosystem. Roles include system monitoring and testing, as well as data annotation, the company said.
Wang Juan, who has been working as a road test operator at Apollo Go for about two years, told CNBC that he decided to join the industry because he was interested. Road test operators test autonomous vehicles and provide feedback on issues encountered during testing for optimization.
He used to work at a car manufacturer but felt his career stopped there. He jumped at the chance to work for Apollo Go instead.
“Very challenging. Very different from my previous projects,” he said in Mandarin about his current role, translated by CNBC. “In this role, I seek to find issues and problems with autonomous cars.”
Jeff Farrah, CEO for the Autonomous Vehicle Industry Association, said the industry is “creating a variety of new, well-paying jobs” in the U.S. The roles include service technicians, remote assistance operators, mapping specialists, operators and terminal operators, he said.
“Even though AVs perform all aspects of driving tasks, workers are important for technology. It is also important to remember that AVs’ increased accessibility benefits will help the disabled community get new employment opportunities,” said Farrah.
While there is always some job displacement when new technology enters the market, Sharma agreed that innovation will also “create more jobs and new jobs because of technology.” Sharma named cybersecurity, vehicle testing and validation and software development as some of the opportunities.
“In the long run, autonomous driving will definitely change the driver’s job. But then again, there is already a shortage of drivers. So of course, for taxi (companies), you can see that it is beneficial for them,” he said.
– CNBC’s Evelyn Cheng contributed to this report.
Clarification: This story has been revised to reflect the number of upgraded Apollo Go robotaxis in Wuhan.
