Nio, a leading electric vehicle (EV) maker, has decided to steer clear of the robotaxi market, unlike its competitors such as Xpeng and Tesla. During the Nio IN 2024 event in Shanghai, William Li, the founder, chairman, and CEO of Nio, expressed his views on why the company is not interested in pursuing robotaxis as a business model.
Li believes that focusing on improving smart driving technology to enhance safety and reduce accidents is more valuable than venturing into the robotaxi sector. He emphasized that while robotaxi technology may advance in the future, it may not prove to be a sustainable and profitable business in the long run. Li pointed out that the limited number of taxis that can operate in a city remains the same, whether they are driven by humans or operate autonomously.
According to Li, the concept of robotaxis being a globally scalable business like software or cloud services is unrealistic. He urged industry players to rethink the viability of robotaxis as a widespread and profitable venture. Li also questioned the ethical implications of displacing human ride-hailing drivers by introducing robotaxi services, stating that it is not an inspiring or ethical business move.
While companies like Tesla, Xpeng, and Baidu are actively pursuing research and development in the robotaxi field, Nio remains focused on enhancing vehicle safety through technology. Tesla had initially planned to unveil its robotaxi in August but rescheduled the launch to October. Xpeng announced its intentions to explore the robotaxi business in the near future, aiming to launch a competitive robotaxi service by 2026.
In contrast to Nio’s stance, Chinese tech giant Baidu has already introduced its robotaxi platform, Apollo Go, in several Chinese cities, sparking concerns among existing ride-hailing drivers about losing business opportunities. Despite the growing interest in autonomous driving technology and robotaxis, Nio’s strategic decision to prioritize safety and driver experience over entering the robotaxi market sets it apart from its competitors.
At the Nio IN 2024 event, the company unveiled new developments, including an autonomous driving chip, SkyOS, a second-generation Nio Phone, and other innovations. By focusing on enhancing technological capabilities and user experience within its vehicles, Nio continues to differentiate itself in the EV industry and remains committed to innovation and safety.
