China's drivers anxious as Robotaxis gain ground

China's ride-hailing industry is undergoing a significant transformation as the country rapidly embraces autonomous vehicle technology. With the proliferation of robotaxis operated by tech giants like Baidu, Pony.ai, and WeRide, drivers who have relied on ride-hailing as a source of income are increasingly worried about the threat to their livelihoods.

Liu Yi, a 36-year-old Wuhan resident and one of China's 7 million ride-hailing drivers, is among those fretting about the rise of robotaxis. As he watches his neighbours order driverless taxis from Baidu's Apollo Go subsidiary, Liu predicts a crisis for Wuhan's ride-hailing drivers. "Everyone will go hungry," he said, concerned about the competition they will face.

The threat of job loss from artificial intelligence is becoming a reality for ride-hailing and taxi drivers globally, as thousands of robotaxis hit Chinese streets. China has moved aggressively to green-light trials, in contrast to the more cautious approach taken in the United States, where regulators have been quick to launch investigations and suspend approvals after accidents.

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At least 19 Chinese cities are currently running robotaxi and robobus tests, with seven cities approving tests without human-driver monitors by at least five industry leaders, including Apollo Go, Pony.ai, WeRide, AutoX, and SAIC Motor. Apollo Go has announced plans to deploy 1,000 robotaxis in Wuhan by the end of this year and operate in 100 cities by 2030, while Pony.ai, backed by Japan's Toyota Motor, aims to have 1,000 robotaxis by 2026.

The rapid pace of robotaxi deployments in China has been driven by the government's push to support the development of "new productive forces," as President Xi Jinping called for last year. This has sparked regional competition, with Beijing announcing testing in limited areas in June and Guangzhou saying it would open roads citywide to self-driving trials.

The contrast between the U.S. and China's approaches to autonomous vehicle development is stark. In the U.S., robotaxi developers face more scrutiny and higher hurdles, with Alphabet's Waymo being the only firm operating uncrewed robotaxis that collect fares. In comparison, China's fleets continue to proliferate, despite safety concerns.

The impact of robotaxis on Chinese ride-hailing drivers is already being felt. In Wuhan, Liu and other drivers call Apollo Go vehicles "stupid radishes" – a pun on the brand's name in local dialect – and say they cause traffic jams. Liu also worries about the impending introduction of Tesla's "Full Self-Driving" system and the automaker's robotaxi ambitions.

Wuhan driver Wang Guoqiang, 63, sees the threat to workers who can least afford disruption. "Ride-hailing is work for the lowest class," he said, as he watched an Apollo Go vehicle park in front of his taxi. "If you kill off this industry, what is left for them to do?"

The economic impact of the transition to robotaxis is a concern for the Chinese government, as ride-hailing provides a last-resort job during economic slowdowns. In July, discussion of job loss from robotaxis soared to the top of social media searches, with hashtags like "Are driverless cars stealing taxi drivers' livelihoods?"

While the long-term benefits of automating jobs could benefit China given its shrinking population, economists warn that the government must balance the speed of change with the creation of new jobs. "We do not necessarily need to push at the fastest speed, as we are already at the forefront," said Tang Yao, an associate professor of applied economics at Peking University.

The transformation is already evident in the education sector, where driving schools like Eastern Pioneer Driving School in Beijing have more than halved their instructor numbers since 2019. Instead, they have teachers at a control centre remotely monitoring students in cars equipped with computer instruction tools, which have improved efficiency, pass rates, and safety awareness, according to the school's intelligence director, Zhang Yang.