Baidu’s Apollo Go Robotaxi Service Hits Profitability Milestone in Select Chinese Cities
Autonomous vehicles finally crack the revenue code—and Wall Street's still betting on horse-drawn carriages.
The Profitability Breakthrough
Baidu's Apollo Go service now operates in the black across several urban centers, proving robotaxis can generate real returns beyond Silicon Valley hype cycles. The service cuts through traffic—and skepticism—with demonstrable financial viability.
Scaling Without Subsidies
These vehicles bypass traditional ride-hailing economics by eliminating driver commissions and fatigue constraints. Continuous operation turns depreciation curves into competitive advantages rather than liabilities.
Urban Mobility Reimagined
From Wuhan to Chongqing, Apollo Go's profitable routes showcase how targeted deployment beats blanket coverage. Density matters more than geography when algorithms optimize fleet utilization.
The bottom line? While legacy auto manufacturers chase quarterly earnings, Baidu just rewrote the playbook for transportation-as-a-service—and did it without burning venture capital to fuel the journey.
Baidu builds a global robotaxi network
Baidu isn’t just setting its sights on Australia; it is keen to spread beyond Asia. Earlier this month, Apollo Go received 50 more trial licenses in Dubai, doubling its total fleet to about a hundred cars in the United Arab Emirates. According to Dubai’s Roads & Transport Authority, the partnership could reach more than 1,000 fully autonomous vehicles in the next few years.
And then there’s Baidu in Europe, which is moving cautiously but ambitiously. The company set up a Swiss corporation to abide by local laws that govern where data must be stored, and hired staff on the ground to oversee operations.
Deals with American ride-hailing giants are providing other openings, too. A tie-up with Uber will enable Apollo Go vehicles to ply to certain international markets, excluding China and the U.S. At the same time, a partnership with Lyft will open doors for launches in the UK and Germany from 2026, upon receiving regulatory approvals.
Europe, however, brings its own hurdles. Technical obstacles and concerns over cybersecurity, privacy, and road safety are slowing the approval process. Halton Niu, general manager of Baidu’s overseas intelligent driving unit, noted that some regulators may initially be hesitant. But seeing Apollo Go in action often changes minds. During a June visit to Baidu’s Beijing campus, European Central Bank President Christine Lagarde even took a ride in a robotaxi herself.
Baidu faces rising competition and risks
Baidu is not the only one that is running to build lucrative robotaxi services. Rivals like Alphabet’s Waymo and General Motors-backed Cruise are scaling their own fleets, as Tesla continues to promise broader autonomous capabilities through its vehicles.
What sets Baidu apart, analysts say, is price. With China’s established electric vehicle supply chain, Apollo Go vehicles are less costly to make and deploy than Western competitors. That price advantage could be especially important in markets sensitive to cost, including Southeast Asia and Australia.
Still, Baidu faces steep hurdles in convincing regulators, gaining public trust, and adapting vehicles for different traffic systems. So far, only a handful of Chinese cities are profitable, and expanding the bedrock globally will require further investment.
Since 2013, Baidu has poured billions into autonomous driving research, building a fleet of more than 1,000 vehicles operating in China and abroad. With Apollo Go reaching profitability, the company says its long years of investment are finally beginning to pay off.
However, for Australian commuters, the Baidu robotaxi may be available soon. The era draws closer, as China’s largest search engine turns its driverless cars into a global business.
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