Despite National Security Concerns, Chinese Driverless Taxis Get Greenlight In California

WeRide, a Chinese autonomous vehicle company, has been authorised to test its driverless vehicles with passengers in California.

This development occurs ahead of WeRide's initial public offering (IPO) on the US stock market, aiming for a valuation of nearly $5 billion. Simultaneously, reports indicate the Commerce Department is considering banning Chinese-connected vehicles, including autonomous vehicles, due to national security concerns.

WeRide Gains Green Light

As of August 2, WeRide possesses two permits from the California Public Utilities Commission: a driver pilot permit and a driverless pilot permit. Both authorisations enable WeRide to test its vehicles on public roads with passengers aboard.

The former requires a human safety driver, while the latter does not. Importantly, these permits do not authorise WeRide to charge passengers for rides, and the service remains inaccessible to the general public.

Whether WeRide has commenced transporting passengers in its autonomous vehicles remains to be seen. A CPUC spokesperson informed TechCrunch that WeRide is authorised to conduct testing in San Jose and surrounding areas, operating a fleet of 12 active vehicles.

WeRide has been conducting autonomous vehicle tests without passengers on public roads in San Jose since 2021, following the acquisition of permits from the California Department of Motor Vehicles.

WeRide's expansion in California has progressed slowly. DMV data reveals the company's vehicles accumulated only 42,391 autonomous miles within the state during 2023. In contrast, Waymo surpassed 9 million autonomous miles.

The Chinese autonomous driving technology company has disclosed limited information about its commercialisation strategy in California. Their CPUC permit restricts vehicle capacity to fewer than 16 occupants, including the driver.

WeRide positions itself as the world's pioneering autonomous driving company. The startup operates and conducts testing in 30 cities across seven countries and holds permits for autonomous driving on public roads in China, Singapore, the UAE, and the United States.

Robotaxi Threat Looms Over Ride-Hailing Workforce

Beyond its robotaxi and robo bus offerings, WeRide is developing Donovan for goods delivery, a robotic street sweeper, and ADAS technology for original equipment manufacturers.

While WeRide and other companies race to commercialise autonomous vehicles in the US, a growing concern is emerging: the potential impact of robotaxis on China's vast ride-hailing industry.

Liu Yi, 36, one of China's 7 million ride-hailing drivers, is driving part-time this year after construction work slowed due to a nationwide surplus of unsold apartments. As the Wuhan resident stands beside his car, watching neighbours order driverless taxis, he foresees another looming crisis.

"Everyone will go hungry," he remarked, referring to Wuhan drivers competing with Apollo Go's robotaxis, a subsidiary of the tech giant Baidu. Meanwhile, China's carmakers, struggling with oversupply, have given employees the choice to either resign or accept minimum wage until business improves.

The Future Of Transportation Or A Threat To Livelihoods

Ride-hailing and taxi drivers face a looming job displacement crisis as China accelerates robotaxi deployment. Economists and industry experts warn that these workers could be among the first casualties of the AI revolution, which threatens 40 percent of jobs worldwide.

Despite the experimental nature of self-driving technology, China has taken a bold approach compared to the US. While the US reacts cautiously, launching investigations and suspending approvals after accidents, China has aggressively green-lighted trials.

Disclosure reveals that at least 19 Chinese cities run tests with robo taxis and robo buses. Even more strikingly, seven cities have approved these trials without needing human-driver monitors, paving the way for advancements by industry leaders like Apollo Go, Pony.ai, WeRide, AutoX, and SAIC Motor.

Economists argue that while the transition may be disruptive, automation, including robotaxis, could ultimately benefit China's economy in the long term due to its ageing population and shrinking workforce.

"In the short run, there must be a balance in speed between the creation of new jobs and the destruction of old jobs," said Tang Yao, associate professor of applied economics at Peking University (via Fast Company). "We do not necessarily need to push at the fastest speed, as we are already at the forefront."

As China races to lead the global autonomous vehicle market, the potential upheaval of its ride-hailing workforce casts a long shadow. While the promise of technological advancement is undeniable, the human cost of this rapid transformation remains a pressing concern.