To The Moon

Here is the latest update about Baidu’s Robotaxi platform known as Appollo Go.

News extract from CNEVPOST:

Photo of Baidu’s Robotaxi “APOLLO GO”

Baidu's Robotaxi platform Apollo Go gets permit to offer fully driverless rides in Beijing

To date, Baidu's Apollo Go has been offering fully driverless ride-hailing services in Beijing, Wuhan and Chongqing. Baidu has been developing autonomous driving technology since 2013 and has accumulated more than 50 million kilometers of testing in Level 4 autonomous driving.

As of the end of January, Apollo Go offered more than 2 million cumulative rides to the public, Baidu said. In the fourth quarter of 2022, Apollo Go provided 561,000 rides to the public, up 162% year-on-year, according to Baidu's fourth-quarter earnings report. On November 29 last year, Baidu announced that it plans to scale up Apollo's operations in 2023 with fully unmanned self-driving operations in more regions.

My investing muse

Robotaxi is going to be a revolutionary product that goes beyond just public taxi services. This will be a major disruptor and opens up new markets and business opportunities:

• Typically, the first group of people affected would be taxi drivers whose main jobs are at stake. Currently, Appollo Go is limited to various zones but we can expect these zones to expand over time.

• We can expect Robotaxi to be safer and more efficient.

• Productivity increases. Instead of driving your own vehicle to work, you can be driven to work. You can make the choice to rest, catch up on your personal matters or on your work. You do not need to drive and have no concerns about being unable to find car park lots at your destination.

• From train stations, bus terminals and airports, customers would still need to take other transport to make it to the end destination. With the RoboTaxi, you reach the doorstep without having to change from different modes of transport. It is a plus coming to convenience.

• Once the range of these Robotaxi can be extended with battery improvements and an improved charging network, this can be provided as an inter-city transport, compared to inner city transport solutions. This could affect the shares of such travels currently occupied by rails, long-haul buses and even planes.

• There are also opportunities for V2G (Vehicle to Grid) services where the vehicle can sell back electricity back to the grid at times of higher rates to cover its running costs. This is in practice in some states. So, at the right timing, the EV can defray some of its ops costs when it charges during non-peak and sells back to the grid during the peak, making a profit from the difference.

• This can be a new tourism service available. Personalized tours using RoboTaxi can be a new experience. Using the onboard system, narratives and short documentaries could be played along the journey, prompted by geo-fenced tourist attractions and key stops. Thus, we can expect some of the tourism players to invest in this, providing small-group personalized tours without concerns of driver overworking, or fatigue.

• This can imply that motels for typical stopovers may not be needed if Robotaxi can drive sleeping customers overnight to their destination. Such stopover hotels may suffer from this.

• People can invest in such RoboTaxis going forward where the vehicle will have a much better utilization rate, making money while the owner is away. This can be a good income source and yet the owners can have priority over its usage. Currently, cars typically have a 5% utilization rate.

Here is an extract provided by ChatGPT on vehicle utilisation:

The average utilization rate of a family car can vary widely depending on a number of factors, such as the size and composition of the family, the location and type of driving, and the availability of alternative modes of transportation. In general, studies have found that personal vehicles, including family cars, tend to have a relatively low utilization rate, meaning that they are often parked and not in use for a significant portion of the day. According to a study by the American Automobile Association (AAA), the average utilization rate of personal vehicles in the United States is around 5%, meaning that the car is in use for only about one hour per day.

However, it's important to note that the utilization rate of a family car can vary widely depending on the specific circumstances. For example, a family with multiple drivers and a long daily commute may have a higher utilization rate than a family with one driver and a shorter commute. Additionally, families that live in areas with limited public transportation options may rely more heavily on their cars and have a higher utilization rate.

• With a 5% utilization rate for personal vehicles, there is actually much room for utilization. With greater utilization, there is a lesser need for personal vehicle ownership. It could be possible to live on RoboTaxi but rent vehicles when needed for longer trips.

• This can be a landmark change for the supply chain as the resource crunch in drivers can be partially addressed.

• When vehicle autonomy is available for commercial vehicles, it will be game-changing for the supply chain industry.

What considerations do I have:

• Data privacy and security. If the control can be hacked, this can pose a severe security threat.

• Regulatory revisions with the introduction of Robotaxi pertaining to accidents, insurance, maintenance, etc

• Robotaxi is like to put many taxi drivers out of their job. However, this could also open up new markets and jobs as per mentioned above.

• ICE autos would always have their own cult following but it is likely and needful that we transit to a sustainable commute and energy for most vehicles.

barrel-of-oil-infographic

Source: https://energyegypt.net/infographic-what-can-be-made-from-one-barrel-of-oil-visual-capitalist/

• The next most important word after sustainability is transition. There is no need to quit totally on fossil fuel and try cold turkey. It is not possible as the demand for oil and oil-related products is deeply entrenched in our lives and lifestyle. Apart from diesel, gasoline & oil products are essential in make-up, plastics, bitumen (for public roads) and more. We need to develop green and affordable solutions to replace the various oil products so that we can successfully wean ourselves from fossil fuels. It will take time but we can get there.

RoboTaxi is an exciting and landmark innovation. However, we need to get the necessary regulations, security, privacy and governance structure in place so that these would not be abused by criminals. The journey looks long but we are on track to be better than before. Covid19 may have “paused” our green efforts but it is time for us to get back to the program so that our children can have a better future.

@TigerStars

$Baidu(BIDU)$