Can Tesla And DiDi Take On Robotaxi Industry Giants Waymo And Cruise?

In the last few years, the market for electric vehicles (EVs) has grown significantly. In addition to an increasing number of customers, the industry has also seen a rise in the number of automakers.

This growth, coupled with the progress made in artificial intelligence (AI), has resulted in the advancement of the autonomous mobility industry too.

Self-driving cars are the new talk of the town and the automakers are striving to lead the way in this novel industry.

While the concept of autonomous vehicles isn’t exactly new, the technology yet needs to be perfected before it can be termed as “fully self-driving”, especially as far as its deployment on public roads goes. This is where numerous automakers have faced challenges and have even seen dire consequences resulting from various problems in the system.

At the same time, other automakers have thrived in the same industry, particularly that of robotaxis, which are self-driving, driverless or autonomous taxis.

Robotaxis have become a popular application of self-driving cars globally and has seen various major announcements in the last few weeks.

So, what announcement have been? Let’s explore!
 

What Did Elon Musk And Tesla Announce?

 

• Through a post on X (formerly Twitter), Elon Musk revealed Tesla was finally ready to unveil its Tesla Robotaxi on August 8.

• While Musk has spoken about a Tesla robotaxi for several years, the company hasn’t revealed any details about the self-driving vehicle until now.

• However, the company did tease a robotaxi during a 2023 event, which came in the form of a completely covered car.

• Tesla’s last unveiling was back in November 2019, when it revealed the Cybertruck, which took a few years to get off the lot. Prior to that, 2017 witnessed the reveal of the Roadster 2.0 and the Tesla Semi, its fully electric heavy-duty truck, which also saw deliveries begin in December 2022.

• Ahead of this, Musk has previously spoken about Tesla owners being able to use their personal vehicles as robotaxis and earn revenue by sending the vehicles out to pick and drop passengers.

• The move comes soon after reports emerged mentioning that Tesla had scrapped its plans of producing low-cost electric cars. The model was described as the Model 2 and was expected to be priced at $25,000 as opposed to Tesla’s current cheapest Model 3 at $39,000.

• In contrast, the company faces fierce competition from Chinese EV makers, which come in with vehicles priced as low as $10,000.

• As per the reports, the development of self-driving robotaxis will be executed on the same small-vehicle platform.

• While Tesla did not comment on the matter, Elon Musk dismissed the reports but did not specify any particular inaccuracies.

• Post Musk’s post, Tesla’s shares rose more than 3% in extended trading.

 

What Did DiDi Global And GAC Aion Announce?

 

• As per a news release on DiDi Global’s website, the company announced that its self-driving technology arm, DiDi Autonomous Driving, which formed Andi Technology Co., Ltd. in an equal joint venture with GAC Aion New Energy Automobile Co., Ltd., said it has obtained its business license.

• This makes it the first registered JV in China for the mass production of fully self-driving electric Robotaxi between an L4 autonomous driving company and an automobile company.

• As per the release, the first model to come out of the JV will be a crossover SUV of which production will begin in 2025.

• Set up in May 2023, the JV received funding of around $149 million in October 2023 from two investors affiliated with the municipal government of Guangzhou, which included GAC Group’s wholly owned subsidiary GAC Capital and Guangzhou Development District Investment Group.

• Meng Xing, COO of DiDi Autonomous Driving and General Manager of Andi Technology, said, “The establishment of the joint venture represents a significant step forward in the successful rollout of the first mass-produced vehicle, marking a new phase of productization in the autonomous driving industry”

• [Contd.] “DiDi is committed to closely collaborating with GAC Aion to accelerate the large-scale commercial deployment of autonomous driving.”

• Zhang Xiong, Deputy General Manager of GAC Aion and Chairman of Andi Technology, said, “The joint venture has positioned us as a pioneer in the autonomous driving industry, enabling us to lead the creation of an early L4 commercial route and the world’s initial closed-loop business model for L4 development that encompasses technology, smart manufacturing and operations”

• [Contd.] “By scaling up L4 production, we would be able to optimize technology-related costs, thereby facilitating the development and broader implementation of advanced intelligent driving.”

 

What’s New With Waymo And Cruise?

 

• Alphabet-owned Waymo and General Motors-owned Cruise were both operating robotaxis in San Francisco, with a view to expand to other cities and states in the US. However, their fortunes diverged when Cruise was pulled up for numerous safety incidents, which saw the company lose its license to deploy self-driving vehicles.

• Now, after months, the company is back to robotaxis, as it resumes testing in Phoenix, Arizona.

• The tests will include the presence of safety drivers.

• While the company hasn’t set a timeline for deployment, it’s on the lookout to “gather information, share updates and rebuild trust,” as per spokesman Pat Morrissey.

• Prior to a safety incident in October 2023 in San Francisco, which included one of its robotaxis dragging a pedestrian hit by another car, the company operated driverless robotaxis in Phoenix, Houston, Austin, Dallas and Miami.

• On the flip side, Waymo has seen a good last few weeks, with the company receiving approval to charge for its robotaxi service in Los Angeles, the San Francisco Peninsula and on San Francisco freeways.

• The company has also picked up its driverless robotaxi service in San Francisco.

• In more recent developments, the company also partnered with Uber Eats, where customers could see their orders delivered by a Waymo self-driving car in Phoenix, Chandler, Mesa and Tempe, making it the first time this would be happening in the Phoenix metropolitan area.

Do you think Tesla will taste success with its self-driving robotaxi? Do you think DiDi Global and GAC Aion’s venture can capture the Chinese robotaxi market and expand further? Do you think Cruise can make a comeback or will Waymo run away with the US market?

Let us know in the comments below!