Baidu, a Chinese tech giant, surpassed Wall Street’s Q2 earnings estimates last August, despite various challenges in China’s economy. In addition, Apollo Go, Baidu’s robotaxi business, showed off its next-generation autonomous vehicle, the Apollo RT6, as the service exceeded 1 million rides.
Baidu’s Self-Driving Program
Like Google in the United States, Baidu dominates three-fourths (75.5%) of the Chinese search market. Although Baidu’s cloud business, which grew 31% year-on-year in the second quarter, was the show’s star, the company is putting more effort into its autonomous driving initiative.
The vehicle lacks a steering wheel, brake and accelerator pedals, and a rear-view mirror, making it one of the most advanced autonomous vehicles on the market.
The remote driving service, powered by 5G technology, is a key factor in ensuring the safety and reliability of Apollo Go vehicles. The service allows for real-time monitoring of the vehicle’s performance and provides remote assistance if needed.
Additionally, the massive trove of real-world data collected from these vehicles helps to improve autonomous driving technology. With these measures in place, Baidu was able to receive the first-ever permits in China authorizing it to provide fully driverless ride-hailing services to the public.
In 2021, Baidu and Chinese manufacturer Geely formed a partnership to work on an intelligent EV startup. As a result, JIDU, the self-driving EV startup, was founded in March 2021 using Geely’s automotive skills and Baidu’s cutting-edge software.
Since its founding, JIDU has introduced several EV prototypes, starting with the ROBO-01, powered by cutting-edge Nvidia Drive Orin computer chips. Companies like Nio and Li Auto also use these computer chips in EV smart cars
Ambitious Plans
Last June, Baidu unveiled its plans for the future with the Apollo RT6, its 6th-generation AV. To advance the initiative, the tech giant has teamed with several significant automakers, including Toyota, Geely, and Ford.
JIDU has ambitious plans to produce 800,000 autonomous electric vehicles annually by 2028. Meanwhile, as Apollo Go takes off, Baidu’s Q3 earnings reveal the tech company is working diligently to meet its goal.
Baidu’s Q2 2022 Earnings Highlights
Although lockdowns and a tech crackdown last year resulted in growth stalling for many Chinese businesses, Baidu has primarily overcome these difficulties.
Baidu’s total income decreased by 5% from 2021 to $4.43 billion (29.6 billion yuan), marking the company’s first decline in two years. However, despite analysts’ predictions of a fall, Baidu outperformed expectations.
The company reduced costs by 5% to save money, keeping R&D spending constant to advance Apollo Go. Meanwhile, the program achieved significant milestones in 2022, including:
- On July 20, 2022, the number of rides provided surpassed one million (287,000 in Q2).
- Apollo Go started offering fully driverless rides on August 8, becoming the first company to do so in China.
- The self-driving service began collecting fees after being granted a permit on July 20.
Rapid Progression
Apollo Go is available in more than ten cities, including all of China’s major cities (Shenzhen, Shanghai, Beijing, and Guangzhou).
The program is moving forward quickly, and Baidu has the first-mover advantage in China. Watching the self-driving startup expand with solid alliances and connections to the industry will be fascinating, especially as the all-electric Apollo RT6 starts to be released.
According to Baidu’s Q2 earnings, the company is not decelerating, and Apollo Go will likely continue to have high demand as China’s economy reopens.
Conclusion
In conclusion, Baidu’s Apollo Go has achieved a major milestone in China by reaching 1 million EV autonomous rides. This success is due to the Remote Driving Service powered by 5G technology, which ensures the safety and reliability of the vehicles. With massive cost reductions and ambitious plans for the future, Baidu is now the largest robotaxi service provider in China.
The autonomous ride-hailing service is available in several cities across the country, with safety operators and drivers providing remote assistance if needed. As Apollo Go continues to expand rapidly, it will be interesting to see how this program develops over time.
