China’s robotaxi push sparks job loss fears among drivers. Experts say it can create new jobs too
TOPSHOT – The photo taken on August 1, 2024 shows a general view of the driver’s seat and controls of a driverless robotaxi autonomous vehicle developed as part of tech giant Baidu’s Apollo Go self-driving project, in Wuhan, in central China’s Hubei province. Turning heads as they cruise past office buildings and malls, driverless taxis are slowly spreading through Chinese cities, prompting both wariness and wonder. (Photo by Pedro PARDO / AFP) / To go with: CHINA-TECHNOLOGY-AUTOMOTIVE, FOCUS by Jing Xuan TENG (Photo by PEDRO PARDO/AFP via Getty Images)
Pedro Pardo | Afp | Getty Images
China’s robotaxi push is sparking job security fears among drivers, but experts say the technology is already creating new jobs.
On Tuesday, China issued 16,000 test licenses for autonomous vehicles and opened 32,000 kilometers of public test roads. In June, the government also greenlit nine domestic automakers, including BYD and Nio, to begin testing conditionally automated driving technologies on certain public roads. Elon Musk is looking to get regulatory approval for Tesla’s Full-Self Driving technology by the end of this year.
But all that action has led to many Chinese social media users saying autonomous driving is “snatching rice bowls” of drivers, or putting them out of work.
In the long run, autonomous driving will definitely displace the driver jobs. But again, there is already a shortage of drivers. So definitely, for the taxi [companies], you can see it’s a benefit for them.
Mohit Sharma
analyst, Counterpoint Research
Baidu’s self-driving ride hailing platform Apollo Go has around 400 robotaxis operating in Wuhan — its largest operational region — and plans to increase that to 1,000 by the end of the year. Robin Li, CEO of Baidu, said the firm’s share of Wuhan’s ride-hailing market is only about 1%.
“Scaling will be a gradual process and it could take many years,” Li said during the firm’s quarterly earnings call on Aug. 22.
The Apollo Go service became so popular that taxi drivers petitioned Wuhan’s transport authority to limit the use of the service, according to media reports.
A check on the Apollo Go app showed a 16-minute robotaxi ride within the southern suburb of Beijing suburb would cost 10.36 yuan ($1.46), about half the 20 yuan fare listed by ride-hailing apps, which can call taxis.
New jobs created
Despite the flurry of headlines, experts say autonomous mobility will mature gradually.
“You will not lose all the jobs in one go. It will be a slow transition phase area by area, region by region,” said Mohit Sharma, research analyst at Counterpoint Research.
He added that governments could collaborate with robotaxi companies to switch drivers to other jobs, while education systems can train new generations for the jobs of the future.
An Apollo Go spokesperson said the firm is committed toward creating new job opportunities in the ecosystem. Roles include those in monitoring and testing systems, as well as data annotation, the firm said.
Wang Juan, who has been working as an on-road testing operator at Apollo Go for about two years, told CNBC that she decided to join the industry because she was interested in it. On-road testing operators trial autonomous vehicles and provide feedback on problems encountered during the tests for optimization.
She used to work at an automaker but felt her career stagnated there. She jumped at the opportunity to work for Apollo Go instead.
“Very challenging. It’s very different from my previous job,” she said in Mandarin about her current role, translated by CNBC. “In this role, I seek to find the problems and issues with the autonomous cars.”
Jeff Farrah, CEO for the Autonomous Vehicle Industry Association, said the industry “is creating a wide variety of new, well-paying jobs” in the U.S. These roles include service technicians, remote assistance operators, mapping specialists, dispatchers and terminal operators, he said.
“Even though AVs perform all aspects of the driving task, workers are essential to the technology. It’s also important to remember that AVs’ increased accessibility benefits will help the disability community obtain new employment opportunities,” Farrah said.
While there is always some job displacement when new technology enters the market, Sharma agreed innovation will also “create more jobs and new jobs because of the technology.” Sharma named cybersecurity, vehicle testing and validation and software development as some of the opportunities.
“In the long run, autonomous driving will definitely displace the driver jobs. But again, there is already a shortage of drivers. So definitely, for the taxi [companies], you can see it’s a benefit for them,” he said.
– CNBC’s Evelyn Cheng contributed to this report.
Clarification: This story was revised to reflect Apollo Go’s updated count of robotaxis in Wuhan.
Technology
Trump aims to cut $6 billion from NASA budget, shifting $1 billion to Mars-focused missions
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Chinese bargain retailer Temu changed its business model in the U.S. as the Trump administration’s new rules on low-value shipments took effect Friday.
In recent days, Temu has abruptly shifted its website and app to only display listings for products shipped from U.S.-based warehouses. Items shipped directly from China, which previously blanketed the site, are now labeled as out of stock.
Temu made a name for itself in the U.S. as a destination for ultra-discounted items shipped direct from China, such as $5 sneakers and $1.50 garlic presses. It’s been able to keep prices low because of the so-called de minimis rule, which has allowed items worth $800 or less to enter the country duty-free since 2016.
The loophole expired Friday at 12:01 a.m. EDT as a result of an executive order signed by President Donald Trump in April. Trump briefly suspended the de minimis rule in February before reinstating the provision days later as customs officials struggled to process and collect tariffs on a mountain of low-value packages.
The end of de minimis, as well as Trump’s new 145% tariffs on China, has forced Temu to raise prices, suspend its aggressive online advertising push and now alter the selection of goods available to American shoppers to circumvent higher levies.
A Temu spokesperson confirmed to CNBC that all sales in the U.S. are now handled by local sellers and said they are fulfilled “from within the country.” Temu said pricing for U.S. shoppers “remains unchanged.”
“Temu has been actively recruiting U.S. sellers to join the platform,” the spokesperson said. “The move is designed to help local merchants reach more customers and grow their businesses.”
Before the change, shoppers who attempted to purchase Temu products shipped from China were confronted with “import charges” of between 130% and 150%. The fees often cost more than the individual item and more than doubled the price of many orders.
Temu advertises that local products have “no import charges” and “no extra charges upon delivery.”
The company, which is owned by Chinese e-commerce giant PDD Holdings, has gradually built up its inventory in the U.S. over the past year in anticipation of escalating trade tensions and the removal of de minimis.
Shein, which has also benefited from the loophole, moved to raise prices last week. The fast-fashion retailer added a banner at checkout that says, “Tariffs are included in the price you pay. You’ll never have to pay extra at delivery.”
Many third-party sellers on Amazon rely on Chinese manufacturers to source or assemble their products. The company’s Temu competitor, called Amazon Haul, has relied on de minimis to ship products priced at $20 or less directly from China to the U.S.
Amazon said Tuesday following a dustup with the White House that had it considered showing tariff-related costs on Haul products ahead of the de minimis cutoff but that it has since scrapped those plans.
Prior to Trump’s second term in office, the Biden administration had also looked to curtail the provision. Critics of the de minimis provision argue that it harms American businesses and that it facilitates shipments of fentanyl and other illicit substances because, they say, the packages are less likely to be inspected by customs agents.
— CNBC’s Gabrielle Fonrouge contributed to this report.
WATCH: Trump tariffs mean higher prices, big losses for Amazon sellers
Jeff Bezos, founder and executive chairman of Amazon and owner of The Washington Post, takes the stage during The New York Times’ annual DealBook Summit, at Jazz at Lincoln Center in New York City, Dec. 4, 2024.
Michael M. Santiago | Getty Images
Amazon founder Jeff Bezos plans to sell up to 25 million shares in the company over the next year, according to a financial filing on Friday.
Bezos, who stepped down as CEO in 2021 but remains Amazon’s top shareholder, is selling the shares as part of a trading plan adopted on March 4, the filing states. The stake would be worth about $4.8 billion at the current price.
The disclosure follows Amazon’s first-quarter earnings report late Thursday. While profit and revenue topped estimates, the company’s forecast for operating income in the current quarter came in below Wall Street’s expectations.
The results show that Amazon is bracing for uncertainty related to President Donald Trump’s sweeping new tariffs. The company landed in the crosshairs of the White House this week over a report that Amazon planned to show shoppers the cost of the tariffs. Trump personally called Bezos to complain, and Amazon clarified that no such change was coming.
Bezos previously offloaded about $13.5 billion worth of Amazon shares last year, marking his first sale of company stock since 2021.
Since handing over the Amazon CEO role to Andy Jassy, Bezos has spent more of his time on his space exploration company, Blue Origin, and his $10 billion climate and biodiversity fund. He’s used Amazon share sales to help fund Blue Origin, as well as the Day One Fund, which he launched in September 2018 to provide education in low-income communities and combat homelessness.
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