Shanghai Launches First Public Driverless Taxi Service, Marking Milestone in Autonomous Mobility】

The launch is the culmination of a broader regulatory push by Shanghai’s municipal authorities, who in late July 2025 issued the first batch of “intelligent connected vehicle” demonstration licences to eight companies during the World Artificial‑Intelligence Conference. The permits grant the right to charge passengers for driver‑less rides in a limited pilot zone that includes Jinqiao and Huamu districts, while the city’s Pudong New Area has been declared a “full‑scale open‑road” testing ground, with more than 2,700 kilometres of streets now cleared for autonomous operation.

Pony.ai’s public‑relations lead, Dai Dunfeng, has been the company’s primary spokesperson, briefing the press on the technical underpinnings of the fleet. Each vehicle is equipped with a suite of sensors – multiple high‑resolution cameras, a pair of LiDAR units and several millimeter‑wave radars – that together generate a 360‑degree perception of the environment and can track hundreds of pedestrians simultaneously. The system is rated at Level‑4 autonomy, meaning it can handle all driving functions without human intervention under most conditions, even in adverse weather such as the typhoons that have swept the region in recent weeks.

Baidu’s Apollo division, operating under the “萝卜快跑” (Radish Run) brand, is also slated to begin driver‑less service later this month, while IM Motors (智己汽车) has signalled its intent to join the market in the near future. The convergence of these players reflects a rapidly maturing ecosystem of hardware, mapping, AI chips and 5G communications that underpins the robo‑taxi model.

Industry analysts see the Shanghai rollout as a catalyst for a broader Chinese market. Goldman Sachs, buoyed by the new licences, has upgraded its forecast for the country’s robo‑taxi sector, projecting a steep acceleration in vehicle deployments and revenue streams over the next five years. IHS Markit echoes this sentiment, predicting that commercial robotaxi services will move from “early‑stage trials” to “rapid‑growth” as manufacturers scale production and cities open additional corridors.

Beyond the headline‑grabbing technology, the trial carries profound implications for the urban transport landscape. By eliminating the driver, operators can lower operating costs, offering rides that are cheaper than traditional ride‑hailing services. This cost advantage could pressure conventional taxi firms and app‑based platforms to reinvent their business models, perhaps by integrating autonomous fleets or focusing on premium, driver‑assisted services.

The ripple effects extend to the labor market. Thousands of Shanghai taxi drivers could find their livelihoods displaced as driverless cars take to the streets. Policymakers and city officials have already flagged the need for retraining programs and social safety nets to mitigate the impact on these workers, warning that “the rise of autonomous vehicles threatens the bread‑and‑butter of many families.” The debate over how to balance technological progress with equitable employment will likely shape future regulatory frameworks.

Data privacy and cybersecurity also loom large. Each autonomous vehicle continuously records high‑definition video, lidar scans, and passenger interactions, creating a trove of information that could be valuable for traffic optimisation, but also raises questions about consent, storage, and misuse. Legal scholars note that existing Chinese statutes will need to be refined to address liability in the event of accidents, algorithmic decision‑making, and insurance coverage for driverless fleets.

From a policy perspective, Shanghai’s experiment is a showcase of the city’s ambition to become a global hub for intelligent mobility. By granting demonstration licences and opening its roads to fully autonomous vehicles, municipal leaders are signaling a willingness to adapt regulations, safety standards, and licensing procedures to accommodate emerging technologies. The success of the pilot could pave the way for a national rollout, positioning China as a front‑runner in the global race for autonomous transportation.

Looking ahead, the current limited service area is expected to expand. Both Pony.ai and Baidu have hinted at plans for round‑the‑clock operation and broader geographic coverage, potentially extending into residential districts beyond Pudong and integrating with public‑transport hubs. Industry insiders also anticipate that the driverless platform will serve as a springboard for other applications, such as autonomous logistics, shuttle buses for industrial parks, and even the much‑talked‑about “Cybercab” from Tesla, slated for production in 2026.

In sum, the launch of Shanghai’s driverless taxis transforms a once‑futuristic concept into a tangible, everyday service for city dwellers. It underscores the city’s rapid progress toward Level‑4 autonomy, while simultaneously surfacing the societal, economic, and regulatory challenges that accompany such a shift. As the pilot matures, the world will be watching to see whether Shanghai can balance safety, accessibility, and fairness, setting a template for the next generation of urban mobility.