Editor’s Note: Sign up for CNN’s Meanwhile in China newsletter which explores what you need to know about the country’s rise and how it impacts the world.
Hong Kong CNN —
In China, it’s possible to travel six miles in a driverless taxi for just about 50 cents.
Self-driving cars, commonly called robotaxis, are being popularized at cut-throat prices in Wuhan, a sprawling metropolis of over 11 million people in central China. It has ambitions to become the world’s first driverless city, even as the vehicles often struggle to navigate the streets.
“You’ll never have to buy a car,” a passenger inside one of the white robotaxi sedans said in a video that has been viewed over 80 million times on Chinese social media platform Weibo since last week.
The fleet of 500 vehicles operating in the city belongs to Apollo Go, a unit of Chinese tech giant Baidu (BIDU). They serve an area that covers roughly half of Wuhan’s population, according to a May company release.
A major selling point is the price. Base fares start as low as 4 yuan (55 cents), compared with 18 yuan ($2.48) for a taxi driven by a human, state media Global Times reported on Wednesday.
The service launched in 2022 and started to gain traction during the first half of the year. The company aims to double its fleet to 1,000 cars by the end of 2024. Wuhan currently has around 17,000 regular cabs, according to the city’s transport bureau.
But the rapid adoption of the driverless taxis has rattled China’s gig economy workforce, which has suffered from stagnant wages because of deflationary forces stalking the economy following years of tight coronavirus restrictions and a real estate crisis.
“With the Chinese economy struggling a bit, Chinese people are likely much more fearful of losing their jobs, and this serves as a reminder of one of the ways that could happen,” Tu Le, managing director of Sino Auto Insights, told CNN in an email interview. He added that any significant job losses could be a few years away.
On Monday, the National Bureau of Statistics reported that the country’s gross domestic product expanded by just 4.7% in the April to June months, a much slower pace of growth than the 5.1% expected.
There have also been complaints from residents in Wuhan about traffic jams, as driverless cars fail to respond to traffic lights. Earlier this month, one robotaxi ran a red light and crashed into a pedestrian, state-run paper People’s Daily reported.
‘Stealing’ livelihoods
Backlash against the service, particularly against Apollo Go’s allegedly predatory pricing tactics, became the second top trending topic last week on Chinese microblogging site Weibo, with more than 75 million users chiming in on the discussion last week.
“Disrupting the market is the least of their worries. They will steal your rice bowl,” one user wrote, referring to the ability to make a living.
“Driving schools, road inspectors, and taxis are all going to shut down,” another user said.
An Apollo Go spokesperson disputed that characterization. The person told CNN that discounts and subsidies from local governments are commonly used during the initial launch period to get people to try the service. The “extremely low” pricing was a temporary strategy, they added.
Autonomous taxis currently operate on a relatively small scale in several cities around the world, mostly in the United States and China, while the United Arab Emirates is also welcoming companies worldwide to run driverless vehicle trials.
Several US companies, including Waymo, a subsidiary of Google’s parent company Alphabet (GOOG), and GM (GM) subsidiary Cruise, are working on autonomous ride-sharing services but have recently faced setbacks.
Cruise’s permit to test fully autonomous vehicles in California was suspended in October 2023 after a series of collisions, including one that caused grievous injuries to a woman after dragging her across asphalt. The company is now being investigated by the Department of Justice.
Waymo recently had to issue a recall after two of its cars hit the same tow truck within minutes of one another.
Uncertainty over the safety and reliability of driverless cars has cast a long shadow over the industry in the US. But Tesla (TSLA) CEO Elon Musk isn’t bothered, with the electrical vehicle giant vowing to unveil its robotaxi in the coming months.
Conquering the roads
China, already home to the world’s biggest car market, could someday also become the top market for automated vehicles, according to a 2023 report from consulting firm McKinsey.
It projects the sector could generate between $300 billion to $400 billion in revenue by 2035 in part due to support from Beijing to roll out more pilot programs.
Governments in several major Chinese cities, including Wuhan and Shenzhen, have granted commercial licenses for companies to pilot driverless services, while automakers and ride-hailing platforms are also investing in their automated fleets.
Last week, authorities in Shanghai’s Pudong New Area started handing out licenses to driverless car operators, including Apollo Go and Alibaba-backed AutoX, according to state media China Daily. California-based startup Pony.ai, backed by Toyota and Saudi Arabia, was also given the green light to test driverless vehicles in the financial hub.
Officials in Beijing said in June that they were “soliciting public opinion” on regulations involving the use of autonomous vehicles for buses, taxis and car rental services.
Earlier this month, the Beijing Municipal Bureau of Economy and Information Technology issued draft guidelines stating that autonomous vehicles should have drivers or safety officers on board, or be able to be intercepted remotely. Any traffic violations should be handled based on local laws and regulations, it said.
In the southern megacity of Shenzhen, Apollo Go was granted a license in February to run a trial in Bao’an district, People’s Daily reported, which allowed the company to charge. More such trials are expected across the country.
Super cheap robotaxi rides spark widespread anxiety in China
- Advertisment - 
Recent Comments
on College basketball rankings: Kansas helps Big 12 lead conference race for most Top 100 And 1 players
on A weaker dollar, skyrocketing prices and ‘record’ visitor numbers: Good luck in Europe this summer
on Lamar Jackson: NFC side tipped to be ‘overwhelming’ Super Bowl favourites if they signed Ravens QB
on ICC T20 World Cup 2022: “Love Cricket At All Levels, I’ll Watch Any Cricket, And Love Going There”
on 2023 NFL All-Rookie Team: CBS Sports draft expert, former GM unveil league’s best first-year players
on Joe Manchin and Tommy Tuberville introduce bill on name, image and likeness rules for college sports
on San Mateo County Community College District sues five companies over role in ‘pay to play’ scandal
on If you’re a frequent traveler, these wrap tops from Aday will revolutionize your on-the-go wardrobe
on “Completely Knocked Me Out”: Rob Lowe Recalls Boxing Match With Tom Cruise On 1983 Brat Pack Classic
on Biden to tout bill’s prescription drug prices, energy provisions in pitch to Americans, aide says
on Following Exchange With Caitlin Clark At News Conference, Columnist Won’t Cover Indiana Fever Games
on Inside Out Mini Jawbreaker Puzzle Game from Disney Cruise Line Now Available at Walt Disney World
on Katherine Paprocka allegedly embezzled nearly $600k from school for family vacations, IVF treatment
on Johnny Knoxville Talks Jackass Stunts And How They Compare To Tom Cruise’s Mission: Impossible Work
on Napoli owner admits he ‘knew’ Victor Osimhen would end up at ‘Real Madrid, PSG or one English club’
on Camilla Parker Bowles Revealed the ‘Nicest Thing’ She and Prince Charles Do When They Travel Is Free
on Russian cruise and ballistic missiles kill 4 in Ukraine and Ukrainian rockets kill 2 in Russian city
on Can Tom Cruise Save The Box Office Again With Mission: Impossible – Dead Reckoning? An Investigation
on Boise State vs. Air Force live stream, odds, channel, prediction, how to watch on CBS Sports Network
on CONCEPT ART: New Details Revealed for Disney Cruise Line Lookout Cay at Lighthouse Point Destination
on College basketball rankings: Kansas helps Big 12 lead conference race for most Top 100 And 1 players
on Inside Floyd Mayweather’s Lavish Lifestyle: A Look at His Stunning Car Collection and Private Jet
on Cruise guest gets stuck on ‘claustrophobic’ water slide suspended over ocean: ‘That is super scary’
on David and Victoria Beckham so ‘Charmed’ by Tom Cruise They Have His Photos on Display at Their Home
on Boston College vs. Army live stream, how to watch online, CBS Sports Network channel finder, odds
on Big Tech companies will cover travel expenses for employees’ medical procedures, including abortion
on Russian cruise and ballistic missiles kill 4 in Ukraine and Ukrainian rockets kill 2 in Russian city
on A weaker dollar, skyrocketing prices and ‘record’ visitor numbers: Good luck in Europe this summer
on GameFly Sale Offering Nintendo Switch Sports at a Mind-Blowing Price, Don’t Miss the Opportunity!
on Ford Blue Cruise: US regulators investigate fatal crashes involving hands-free driving technology
on San Mateo County Community College District sues five companies over role in ‘pay to play’ scandal
on 2024 Super Bowl: CBS Sports Network and CBS Sports HQ to combine for 115 hours of weeklong coverage
on Despite strong Lunar New Year holiday data, consumer spending in China isn’t roaring back just yet
on 2023 NFL All-Rookie Team: CBS Sports draft expert, former GM unveil league’s best first-year players
on Devout athletes find strength in their faith. But practicing it and elite sports can pose hurdles
on The Rev. Al Sharpton to lead protest after Florida governor’s ban of African American studies course
on After UFC Fallout, Conor McGregor Offers a Valuable Piece of Advice to Free Agent Francis Ngannou
on CONCEPT ART: New Details Revealed for Disney Cruise Line Lookout Cay at Lighthouse Point Destination
on Saipan, placid island setting for Assange’s last battle, is briefly mobbed – and bemused by the fuss
on CONCEPT ART: New Details Revealed for Disney Cruise Line Lookout Cay at Lighthouse Point Destination
on David and Victoria Beckham so ‘Charmed’ by Tom Cruise They Have His Photos on Display at Their Home
on Iowa State starting RB Jirehl Brock among latest college football players charged in gambling probe
on Biden to tout bill’s prescription drug prices, energy provisions in pitch to Americans, aide says
on Iowa State starting RB Jirehl Brock among latest college football players charged in gambling probe
on The Rev. Al Sharpton to lead protest after Florida governor’s ban of African American studies course
on Sports World Hails ‘Superwoman’ Lindsey Vonn for Her Grand Comeback Despite Career-Changing Injury
on San Mateo County Community College District sues five companies over role in ‘pay to play’ scandal
on Saipan, placid island setting for Assange’s last battle, is briefly mobbed – and bemused by the fuss
on ‘Pokémon Scarlet’ and ‘Violet’ Fan Theories Suggest Legendary Time Travel, Alternate Dimension Plot
on Joe Manchin and Tommy Tuberville introduce bill on name, image and likeness rules for college sports
on Inside the Michael Jordan ‘Air’ movie, plus why NFL, others are buying into the sports film industry
on If you’re a frequent traveler, these wrap tops from Aday will revolutionize your on-the-go wardrobe
on How Does Jack Nicklaus Travel? Exploring the Private Jets Owned by the ‘Golden Bear’ Over the Years
on Hollywood Reporter: Tom Cruise negotiated with movie studios over AI before the actors strike began
on Ford Blue Cruise: US regulators investigate fatal crashes involving hands-free driving technology
on Dozens of boats cruise the Seine in a rehearsal for the Paris Olympics’ opening ceremony on July 26
on Devout athletes find strength in their faith. But practicing it and elite sports can pose hurdles
on Despite strong Lunar New Year holiday data, consumer spending in China isn’t roaring back just yet
on David and Victoria Beckham so ‘Charmed’ by Tom Cruise They Have His Photos on Display at Their Home
on CONCEPT ART: New Details Revealed for Disney Cruise Line Lookout Cay at Lighthouse Point Destination
on CBS Sports announces Matt Ryan will join NFL studio show. Longtime analysts Simms and Esiason depart
on Boston College vs. Army live stream, how to watch online, CBS Sports Network channel finder, odds
on Boise State vs. Air Force live stream, odds, channel, prediction, how to watch on CBS Sports Network
on Biden to tout bill’s prescription drug prices, energy provisions in pitch to Americans, aide says
on After UFC Fallout, Conor McGregor Offers a Valuable Piece of Advice to Free Agent Francis Ngannou
on 2024 Super Bowl: CBS Sports Network and CBS Sports HQ to combine for 115 hours of weeklong coverage
on ‘Best Intention’: Chris Kirk Has Absolute Trust in Jay Monahan and PGA Tour’s Widely Debated Model
on 2023 NFL All-Rookie Team: CBS Sports draft expert, former GM unveil league’s best first-year players
on “Completely Knocked Me Out”: Rob Lowe Recalls Boxing Match With Tom Cruise On 1983 Brat Pack Classic
on CONCEPT ART: New Details Revealed for Disney Cruise Line Lookout Cay at Lighthouse Point Destination
on “Completely Knocked Me Out”: Rob Lowe Recalls Boxing Match With Tom Cruise On 1983 Brat Pack Classic
on CBS Sports announces Matt Ryan will join NFL studio show. Longtime analysts Simms and Esiason depart
on Carlos Sainz’s Soccer Fanboy Emerges as Spaniard Shares Defining Moment With This Real Madrid Legend
on Biden: ‘At this point I’m not’ planning to visit East Palestine, Ohio, after toxic train derailment
on ‘Best Intention’: Chris Kirk Has Absolute Trust in Jay Monahan and PGA Tour’s Widely Debated Model
on Ahead of big sports weekend, dispute with Disney leaves millions of cable subscribers in the dark
on A heavy wave of Russian missile attacks pounds areas across Ukraine, killing at least 4 civilians
on 2024 Super Bowl: CBS Sports Network and CBS Sports HQ to combine for 115 hours of weeklong coverage
on 2023 NFL All-Rookie Team: CBS Sports draft expert, former GM unveil league’s best first-year players
on Army vs. Coastal Carolina live stream, how to watch online, CBS Sports Network channel finder, odds
on AL Rookie of the Year Julio Rodriguez Spreads Joy and Sportsmanship to the Youth of Loma de Cabrera
on After UFC Fallout, Conor McGregor Offers a Valuable Piece of Advice to Free Agent Francis Ngannou
on Dubai International Airport sees 41.6 million passengers in first half of year, more than in 2019
on Devout athletes find strength in their faith. But practicing it and elite sports can pose hurdles
on Despite strong Lunar New Year holiday data, consumer spending in China isn’t roaring back just yet
on Dave Portnoy: Taylor Swift’s security should ‘drag Kim Kardashian to jail’ if she attends Eras Tour
on CONCEPT ART: New Details Revealed for Disney Cruise Line Lookout Cay at Lighthouse Point Destination
on “Completely Knocked Me Out”: Rob Lowe Recalls Boxing Match With Tom Cruise On 1983 Brat Pack Classic
on CBS Sports, Serie A announce new TV rights deal; Paramount+ to air over 400 Italian soccer matches
on Cam Newton’s Violent Public Incident Draws Hilarious Reaction From 3x All-Star: “Where Do I Sign Up
on Boston College vs. Army live stream, how to watch online, CBS Sports Network channel finder, odds
on Angel Reese Launches Foundation Dedicated To Empowering Women Through Sports & Financial Literacy
on A weaker dollar, skyrocketing prices and ‘record’ visitor numbers: Good luck in Europe this summer