In the midst of China’s deteriorating economy and soaring unemployment rates, Baidu has launched unmanned self-driving taxis named “Carrot Express” at a discounted rate to seize market share, exacerbating the concerns of millions of taxi drivers facing unemployment. Some mainland residents disclosed that seizing market share at lower prices is a common tactic used by the Chinese Communist Party.
Recently, news about Baidu’s “Carrot Express” unmanned self-driving cars has been hitting the top trending lists on Weibo, with their similarly low discounted fares compared to public buses and subways, attracting a large number of passengers.
In an online video, a man from Hubei Province shouted on an unmanned taxi, “Only 3.9 yuan for a 10-kilometer ride, no need to buy a car anymore!”
According to mainland media reports, starting from May, “Carrot Express” taxis began massive deployments, with 1,000 cars in Wuhan alone. “Taking unmanned cars to tour Wuhan” has become a unique spectacle in Wuhan.
Passengers can hail a ride online through a mobile app, and upon the car’s arrival, input their last four digits of the phone number to automatically unlock the car doors. Once seated in the back, passengers click on “start the trip” on the screen, and the car will automatically set off towards the destination.
“Carrot Express” has also expanded its services to Guangzhou. According to Guangzhou News Radio, passengers in Guangzhou have reported that the official subsidies currently make the fares very cheap. From the Star Yue bus stop to Luogang Wanda, it costs only 4 yuan, totaling approximately 50 cents per kilometer, which is cheaper than driving one’s own car.
In addition, some netizens in Guangdong shared their ride experiences on social media, saying that a 7.1-kilometer trip costs only 4.99 yuan, which is “a great deal!”
Despite the criticisms of “Carrot Express,” such as slow speeds, sudden halts in the middle of the road, collisions with pedestrians causing traffic jams, it has gained popularity due to its low cost, 24-hour availability, and as a result, its order volume has surged. According to Baidu’s first-quarter financial report released in May, as of April 19th, “Carrot Express” had provided over 6 million travel service orders to the public. The automated driving orders accounted for approximately 826,000, with a 25% year-on-year increase.
Currently, “Carrot Express” has launched unmanned self-driving travel services tests in Beijing, Wuhan, Chongqing, Shenzhen, Shanghai, among other cities.
Against the backdrop of China’s continued economic decline and high unemployment rates, ride-hailing and taxi driving have been seen as the only means of livelihood for many unemployed individuals.
The number of ride-hailing drivers has surged in the past two years. According to the China Ride-Hailing Driver Licenses Information Platform, the number of ride-hailing driver licenses issued nationwide soared from 2.55 million in October 2020 to 5.406 million in April this year, marking a 112.4% increase.
The market takeover by “Carrot Express” has added to the employment concerns of related workers, fearing that “Carrot Express” has taken away their livelihoods.
Recently, taxi operators in Wuhan issued an open letter, stating that traditional taxis are already on the brink of extinction. The taxi business has been squeezed due to the development of ride-hailing services, and now with the emergence of unmanned self-driving taxis, many taxi operators are finding it difficult to sustain their businesses.
The open letter states, “Technology monopolizes resources, robs ordinary people of their livelihoods, making it hard for many drivers to make a living, forcing them to exit the industry.”
The letter calls for “strict control of the number of ride-hailing vehicles,” fair competition, and regulations on the services provided by “Carrot Express” to limit regional operations and avoid excessive orders.
Some taxi drivers complained to the mainland media “Caijing Society,” saying, “(Carrot Express) has flooded the market to the point where we can hardly get any customers!”
Several ride-hailing and taxi drivers have noted a decrease in daily order volume and revenue since the launch of “Carrot Express,” with earnings dropping from 400 yuan for a 10-hour shift to 300 yuan or even 200 yuan.
On July 14th, a mainland resident, Mr. Zhao, told Epoch Times, “This is a common tactic used by the Chinese Communist Party. When they want to enter an industry, they first offer substantial subsidies to the industry. Once the company becomes very competitive, it squeezes out all other competitors, monopolizes the industry and then raises prices.”
Ms. Liu, another mainland resident, shared that “a large number of university graduates are unemployed now. In order to survive, they deliver express packages, drive for ride-hailing services, and work for Didi. However, with the emergence of ‘Carrot Express,’ many ride-hailing drivers can’t get any passengers, essentially facing unemployment.”
She revealed that when ride-hailing companies first went public, they also used the same strategy to dominate the market.
“When they first emerged, they offered as cheap as bus fares, only 1 yuan or a few cents, and even free rides. This situation persisted for a long time until they swallowed up all the small taxi companies. Then they started gradually increasing the prices, up to over 3 yuan, which people could still accept as the normal fare for hailing a taxi was 8 yuan.”
“Then ride-hailing services increased it to over 5 yuan, which people accepted because it was still cheaper than 8 yuan. Later, it increased to over 6 or 7 yuan, and after successfully dominating the market, it rose to over 8 or 9 yuan.”
“At that time, when we tried to hail a taxi on the street, we found it difficult to get one because the avenues for taking a ride had been monopolized by Didi. Even if their prices were higher, the common people had to use it. Now, ‘Carrot Express’ has just appeared. It must be particularly cheap because it needs to dominate the market in this way.”
Mr. Zhao remarked, “With the worsening economic situation now, nothing is going well. Jobs are too hard to find. I feel that the environment for survival and work has been completely destroyed by the CCP. It’s too difficult to make a living!”