Singapore’s largest taxi operator is debuting its first robotaxis in China to assist with “future-proofing” the trade, as rising incomes and ageing populations makes it more durable for firms to search out drivers.
ComfortDelGro, No. 128 on the Southeast Asia 500, will companion with Chinese language autonomous car startup Pony.ai to launch self-driving automobiles within the Chinese language metropolis of Guangzhou. The 2-year pilot is beginning with a small fleet of Lexus RX450 automobiles, and can develop to different fashions over the course of this system.
The corporate, which additionally operates bus and subway providers, each in Singapore and abroad, hopes the partnership will assist it put together for coming labor shortages.
“The development of autonomous vehicle technology is crucial in future-proofing the transport industry,” ComfortDelGro’s CEO Cheng Siak Kian mentioned in a press release. “With continuing driver shortages a global issue, we are exploring innovation solutions to ensure mobility remains accessible and efficient.”
ComfortDelGro, by means of its Pony.ai partnership, hopes to achieve expertise in managing a fleet of autonomous taxis. The corporate operates a world fleet of over 33,000 taxis and personal rent automobiles worldwide, together with greater than 9,500 in China.
Pony.ai is allowed to function autonomous driving mobility providers within the Chinese language cities of Beijing, Shanghai, Guangzhou and Shenzhen, and can be exploring a launch in Hong Kong.
“Guangdong is China’s most populous province and gives us the opportunity to build our capabilities in autonomous vehicles in a mature ecosystem,” a ComfortDelGro spokesperson informed Fortune.
Tackling a labor scarcity
Throughout an interview with Fortune final September, Cheng expressed worries a couple of scarcity of taxi drivers because of growing older populations. “Now is the time to start looking at it,” he mentioned, because the know-how turns into “reasonably robust [and] reasonably mature.” The ComfortDelGro CEO advised that robotaxis might complement, quite than change, human drivers by filling gaps in protection.
Asia has among the world’s lowest fertility charges, notably in international locations like Singapore, Japan, South Korea and China. Working-age populations are shrinking, posing a menace to companies and industries that depend on human labor.
In 2022, ComfortDelGro invested 30 million Singapore {dollars} ($22.5 million) to develop its functionality to function and preserve autonomous automobiles, and to construct a tech platform to help robotaxi providers.
Different firms are turning to robotaxis as a response to growing older Asian populations. Honda and Nissan are partnering with Japanese taxi operators to launch self-driving taxi providers, additionally because of a scarcity of drivers.
This story was initially featured on Fortune.com
