Baidu Gets Green Light to Charge Fees in Beijing for Robotaxi Business

In a statement to CNBC, Chinese multinational technology company Baidu has kicked off its robotaxi business after getting approval to charge fees in Beijing.

The company’s permit for its Apollo Go Robotaxi business was approved by Beijing’s municipal government to collect fares in a part of the capital city.

Other major cities like Shanghai will likely follow suit by early next year, according to Wei Dong, vice president and chief security operation officer, at Baidu’s Intelligent Driving Group.

The company has said that it would charge a premium level fare for the robotaxis, without disclosing an exact price.

This approval from China’s capital makes it the first time such a large city in the country has allowed companies to charge the public for robotaxi rides.

It sets the stage for other cities like Shanghai, Guangzhou and Shenzhen to do the same, said Wei Dong to CNBC. He expects those cities to act later this year or early next year.

The Apollo unit that runs the robotaxi business can collect fares from passengers taking one of 67 self-driving cars in Beijing’s suburban district of Yizhuang.

Fares would be comparable with the premium level ride-hailing charges available through apps like Didi, which can cost twice as much as ordinary rides.

Baidu can only offer public robotaxi rides when a human staff member is accompanying passengers but has been testing fully autonomous driverless vehicles in Beijing.

Last week, Baidu CEO Robin Li said the company planned to expand its Apollo Go robotaxi service to 65 cities by 2025, and to 100 cities by 2030. That’s up from five cities currently.

Cruise, which is backed by GM, said earlier this month it has applied with the California government for final approval to become the first robotaxi operator to commercialize fully autonomous rides in San Francisco.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.