China expresses concern over extremely cheap robotaxi rides


(MENAFN) In Wuhan, China, passengers can now travel up to six miles in a driverless taxi for approximately 50 cents, thanks to the burgeoning popularity of robotaxis in the city. This ambitious effort aims to establish Wuhan as the world's first driverless city, although the autonomous vehicles often encounter challenges navigating the urban landscape.

A recent viral video on Weibo, which has garnered over 80 million views, features a passenger extolling the benefits of these driverless taxis. The fleet, operated by Apollo Go—a division of the Chinese tech giant Baidu—consists of 500 vehicles that cover an area encompassing about half of Wuhan's population. The service, which began in 2022, is notable for its affordability, with base fares starting as low as 4 yuan (approximately 55 cents). In contrast, a traditional taxi ride in Wuhan costs around 18 yuan (USD2.48), as reported by state media Global Times.

Apollo Go's service has gained momentum, and the company plans to expand its fleet to 1,000 cars by the end of 2024. Wuhan currently has around 17,000 regular taxis, according to the city's transport bureau. Despite the impressive growth of the driverless taxi service, the rapid adoption has raised concerns among China’s gig economy workers. These workers are already facing stagnant wages due to deflationary pressures exacerbated by prolonged coronavirus restrictions and a real estate crisis.

Tu Le, managing director of Sino Auto Insights, noted in an email interview with CNN that the increasing use of driverless taxis highlights job insecurity within China’s gig economy. The fear of job losses is compounded by the broader economic challenges, including a recent report from the National Bureau of Statistics indicating that China's GDP expanded by just 4.7 percent from April to June, falling short of the anticipated 5.1 percent growth.

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