Shenzhen to allow robotaxis citywide, worrying taxi drivers

In short: Shenzhen plans to expand driverless taxi services from July 1, and many taxi and ride-hailing drivers fear it will cut their already shrinking income.

What's going on

Shenzhen, a major city in southern China, is moving ahead with new rules that let the local government approve robotaxis starting July 1. A robotaxi is a taxi that drives itself using sensors and software, like a car that follows a very advanced set of “eyes” and rules.

The city says the goal is “orderly development” of robotaxi testing, public demonstrations and paid services. These programs can be limited to certain zones or allowed more widely across the city. The rules build on earlier trials in places like Nanshan, where companies including Pony.ai and Baidu have already run limited robotaxi services.

This shift is landing in a tense moment for human drivers. Shenzhen has nearly 400,000 licensed drivers across 26 taxi and ride-hailing platforms, according to the city’s transport authority. The authority recently said the market is “saturated,” with drivers averaging just over 13 fares a day, which many drivers say is not enough to make a decent living.

Some drivers told the Financial Times they already work long hours and worry robotaxis will “steal our business.” Pony.ai said its robotaxis are not meant to replace human drivers suddenly, and that they can run longer hours and offer quieter rides.

What to watch

Analysts expect robotaxi growth to be gradual, but the direction is clear. If Shenzhen expands robotaxis beyond limited trial zones, other cities may follow, and more gig workers (people paid per ride or delivery) could face tougher competition for fewer jobs.

Source: Financial Times