Uber has announced a partnership with Chinese tech firm Baidu to bring autonomous vehicles to its platform.

The deal will introduce Baidu’s Apollo Go robotaxis in select markets outside the US and mainland China, starting in Asia and the Middle East later this year.

Riders may get a chance to use Apollo Go’s fully driverless vehicles, though this option won’t be directly selectable in Uber’s app at launch.

The agreement is part of Uber’s broader push to collaborate with autonomous vehicle providers as robotaxis become more common in the ride-hailing space.

🔗 Source: TechCrunch

🧠 Food for thought

1️⃣ Uber’s strategic pivot from developer to platform player

Uber’s partnership with Baidu represents a significant shift from its original autonomous vehicle strategy that cost the company nearly $1.8 billion in unsuccessful in-house development 1.

After selling its self-driving unit (Advanced Technologies Group) to Aurora in 2020 for $4 billion following years of setbacks, including a fatal crash in Arizona, Uber has rapidly assembled partnerships with multiple AV providers 2.

This platform approach offers Uber notable advantages: the company maintains its position in the future of transportation without bearing the massive R&D costs and regulatory challenges of developing the technology itself.

The rapid succession of deals with Waymo, Cruise, WeRide, and now Baidu demonstrates how Uber is leveraging its global ride-hailing network to attract autonomous vehicle partners, creating what CEO Dara Khosrowshahi calls a “hybrid network” of human and robot drivers 3.

This strategic repositioning allows Uber to remain relevant in the autonomous future without the financial burden that contributed to its $8.6 billion loss in 2019 despite $14.1 billion in revenue 2.

2️⃣ Chinese robotaxi companies accelerating global expansion

The Uber-Baidu partnership highlights how Chinese robotaxi companies are expanding internationally, with Baidu’s Apollo Go testing in Hong Kong and the UAE, with plans for Switzerland and Turkey 4.

Baidu has already surpassed Waymo in total ride completions, achieving over 11 million rides compared to Waymo’s 10 million, demonstrating the scale Chinese operators have achieved 4.

This global expansion is occurring alongside significant market growth projections, with the global robotaxi market expected to grow from $4.4 billion in 2025 to $124.9 billion by 2034, representing a compound annual growth rate of 45.2% 5.

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