to rectify the local taxi industry?

New forces in car manufacturing are accelerating the rollout of high-level intelligent driving, and autonomous driving companies are also striving to expand their territories.

According to the official website of Luobo Kuaipao, an autonomous driving travel service platform under Baidu Apollo, it is currently recruiting "AI Driving Training Specialists" for Hong Kong, China. Their main responsibilities include AI function testing, vehicle data tracking and collection, daily vehicle maintenance, and various travel tasks. There are no high requirements for driving experience, but some knowledge of automotive mechanical components is necessary for simple repairs and part replacements. Priority will be given to "experienced drivers" with working experience in taxis, buses, etc.

(Image from Luobo Kuaipao Hong Kong official website)

Additionally, according to TVB News, Luobo Kuaipao plans to conduct a pilot operation in Hong Kong, China, with the first phase of testing at the airport as early as the end of this year. Last month, Baidu has already submitted applications for pilot testing permits and autonomous vehicle certificates, which are still under review.

Unknowingly, the battle for Robotaxi has quietly escalated. 2026 will be a significant turning point for autonomous driving. Not only will autonomous driving companies that have been dormant for years see a surge in momentum, but even AI automakers like XPeng Motors and Tesla are fully prepared to enter the market. The Robotaxi starting line is already crowded with competitors.

As of July 28, 2024, Luobo Kuaipao has provided over 7 million autonomous driving travel service orders to the public. For an autonomous driving company still in the pilot operation phase, this achievement is not easy. Hong Kong, China, is undoubtedly a blue ocean for Robotaxi development, and obtaining the pilot operation qualification there may be another opportunity for Luobo Kuaipao to increase its orders.

However, facing the underdeveloped ride-hailing and electric vehicle market in Hong Kong, China, Luobo Kuaipao faces both significant opportunities and challenges. What are the chances of success?

Everything is ready, and Hong Kong is eagerly awaiting its first "pioneer

Hong Kong, China, is considered a blue ocean for Robotaxi development because there are no corresponding service providers locally. Although Didi, Pony.ai, AutoX, and other providers are actively deploying markets outside the mainland, Luobo Kuaipao is progressing the fastest and is expected to become the "first pioneer" in the Hong Kong Robotaxi market.

The local authorities welcome autonomous vehicles. In October this year, the Hong Kong Transport and Logistics Bureau publicly stated that the regulatory framework for autonomous vehicles in Hong Kong, China, was implemented in March this year. Currently, multiple large-scale autonomous vehicle projects are being promoted in Hong Kong, with test routes covering public roads and various application scenarios.

According to the documents submitted by Luobo Kuaipao to the Islands District of Hong Kong, the first phase of autonomous driving tests will be conducted before the end of the year, starting during off-peak hours. There will be a local driver with over ten years of driving experience as a backup operator (also known as a safety officer in the mainland) sitting in the driver's seat to monitor the autonomous vehicle's driving conditions throughout the journey and take over control when necessary. It is often said that autonomous driving threatens local public transportation employment, but Luobo Kuaipao's open recruitment in Hong Kong also provides a new employment opportunity for those engaged in taxis, buses, etc.

To adapt to Hong Kong's traffic rules and driving habits, these autonomous vehicle models entering the port will adopt right-hand drive design.

Although Hong Kong, China, does not currently have large-scale Robotaxi services, relevant departments have paved the way for autonomous driving a long time ago. In 2017, 2019, and 2020, the "Hong Kong Smart City Blueprint," the "Hong Kong Smart Mobility Roadmap," and the "Hong Kong Smart Mobility Roadmap 2.0" were released, all mentioning autonomous vehicles.

Regarding regulations, the Hong Kong Legislative Council passed the "Road Traffic (Amendment) (Autonomous Vehicles) Bill 2022" in 2023, and the newly formulated "Road Traffic (Autonomous Vehicles) Regulations" have come into effect, aiming to provide conditions for autonomous vehicles.

(Image from Luobo Kuaipao)

At the same time, there are clear regulations for autonomous vehicles entering Hong Kong. Suppliers are required to provide detailed technical, safety, and operational requirements for testing and using autonomous vehicles. While showing an open attitude towards autonomous driving, corresponding evaluation and approval standards have also been established.

Hong Kong, China, is optimistic about autonomous vehicles, and with the goal of smart urban development, the introduction of autonomous driving projects is only a matter of time. In the long run, Robotaxi will be a massive market, but the winner is always the "first crab-eater." Luobo Kuaipao has caught a good opportunity.

Breaking the high-price monopoly of taxis relies on Robotaxi

Hong Kong, China's local transportation system is highly developed, with the MTR, trams, taxis, franchised and non-franchised vehicles, basically meeting the travel needs of local residents.

Local taxis are renowned for being expensive, which is related to Hong Kong's having the world's highest oil prices, high labor costs, and expensive taxi license operating fees. Trams are a common choice for travel, business trips, and inspections in Hong Kong. Locals generally choose the MTR for travel because, compared to the mainland, local taxi fares are exorbitantly high, with a starting fare of 20-30 Hong Kong dollars, and different regions have different fare standards. Once, when passing through the Cross-Harbour Tunnel, an additional toll of 100 Hong Kong dollars was charged; another time, due to not having Hong Kong dollars, only Renminbi could be used for payment at a "1:1" rate, which was a loss.

Many mainland netizens who have traveled to Hong Kong also commented on the high cost of local taxis.

On Xiaohongshu, one netizen listed specific consumption details, such as spending 97 Hong Kong dollars for a 6-kilometer taxi ride and 12 Hong Kong dollars for two pieces of luggage. If passing through a tunnel, an additional 50 Hong Kong dollars in tunnel fees will be charged. Moreover, some taxi drivers only accept paper money and do not support electronic payments.

(Image from Xiaohongshu)

According to the consumption details provided by this netizen, a single trip can cost nearly 150 Renminbi. Tolls for passing through Hong Kong tunnels are mandatory, with fees as high as 60 Hong Kong dollars during peak hours and 8 Hong Kong dollars during off-peak hours, making the fee system quite complex.

Many netizens recommend taking public transportation such as buses and the MTR when traveling to Hong Kong.

Why haven't ride-hailing services "rectified" the local taxi market? Despite the presence of mainland platforms like Uber, Gaode Maps' ride-hailing service, and Didi, the ride-hailing business in Hong Kong has not developed.

The number of local taxi licenses has remained stable at around 18,000, with a complete service system. In this relatively small area, there is limited space for ride-hailing services to survive. Of course, online platforms like HK Taxi can book taxi services and support electronic payments, offering convenience comparable to ride-hailing services.

Additionally, the status of private car-sharing ride-hailing services is complex. Locally, they are considered "white-plate cars" that operate without a business license but charge passengers for rides, always falling into the "gray area" of non-compliance. Therefore, when mainland platforms like Gaode Maps' ride-hailing service and Didi enter the Hong Kong market, they mainly provide services in cooperation with taxi companies rather than private car ride-hailing services, essentially serving as another channel for Hong Kong taxis.

Due to the lack of compliant operating qualifications, ride-hailing services lack a reasonable operating environment. It was not until 2024 that the Hong Kong Transport Department began conducting policy research on regulating ride-hailing services.

Now, it seems that Hong Kong may skip the ride-hailing stage and enter the RoboTaxi era because the local authorities are more inclusive towards autonomous vehicles than ride-hailing services and are more welcoming to the addition of Robotaxi. Autonomous driving companies have great opportunities, and Luobo Kuaipao, the first to enter Hong Kong for pilot operations, will have more first-mover advantages. The entry of autonomous driving is also expected to promote more competition in the local travel industry and reduce taxi fares.

Weak infrastructure for autonomous driving in Hong Kong; will Luobo Kuaipao pioneer the industry?

Whether it is due to urban development needs or the public transportation operating environment, Hong Kong, China, has sufficient reasons to introduce Robotaxi.

With the rapid advancement of autonomous driving technology driven by end-to-end data models, mainland autonomous driving service providers also have an expansion demand to go global.

However, entering a new market and facing a brand-new traffic environment requires time for even autonomous driving platforms that can think and plan routes on their own to collect road data and adapt to local road traffic.

As a high-density city with mountainous and coastal terrain, Hong Kong, China, has a highly complex road network with various special intersections such as deformed intersections and multi-way intersections. According to Hong Kong statistics, in 2023, the motor vehicle density in Hong Kong was approximately 364 vehicles per square kilometer on average, indicating a high population and vehicle density, and the complexity of local traffic is easy to imagine. It is not difficult to understand why Luobo Kuaipao mentioned in the document that operations will start during off-peak hours.

Currently, both autonomous driving and high-level intelligent assisted driving generally have an issue: relatively conservative driving. To ensure safety, they rarely take the initiative to engage in maneuvers, and computers are not subject to traffic control scheduling, requiring human supervision. Luobo Kuaipao's first pilot operation route is set at the airport, which should also be a result of a thorough assessment of local traffic conditions.

(Image from Luobo Kuaipao)

Furthermore, most current autonomous vehicles are powered by pure electricity. For Robotaxi to operate smoothly in Hong Kong, adequate charging facilities are necessary. According to the Kilowatt platform, as of September 2024, there were approximately 9,100 public charging piles in Hong Kong, China, distributed across the city's 18 districts. The local electric vehicle population accounted for about 11.2%, and the overall new energy infrastructure is underdeveloped.

For Luobo Kuaipao entering Hong Kong, charging should not be a difficult problem to solve. However, in addition to the maintenance and repair needs of electric vehicles, Robotaxi also requires daily maintenance, parking, and other issues that the platform needs to address. Baidu's sixth-generation autonomous driving vehicle already supports fully automatic battery swapping, but whether it can be implemented in Hong Kong remains to be seen.

Overall, Hong Kong's local traffic conditions and automated refueling facilities will be challenges for Luobo Kuaipao in its early layout . High initial cost investments are unavoidable. In this regard, Luobo Kuaipao's pioneering entry into Hong Kong can also be seen as exploring and improving infrastructure for the industry.

The Robotaxi market will undoubtedly be a trillion-level market in the future. According to Frost & Sullivan's predictions, by 2030, the Robotaxi market sizes in China and globally are expected to reach 488.8 billion yuan and 834.9 billion yuan, respectively. Not only Luobo Kuaipao but also autonomous driving companies like WeRide, Pony.ai, AutoX, and AI enterprises like XPeng Motors and Tesla have set their sights on this huge Robotaxi market. The "carrot battle" is intensifying.

Luobo Kuaipao's first foray into Hong Kong is a courageous attempt to go global. Let's wish Luobo Kuaipao every success in Hong Kong and a grand opening!

Source: LeiTech