Hong Kong Stock Concept Tracking | Beijing plans to support self-driving cars for ride-hailing, institutions optimistic about RoboRun's potential to achieve a profitable model (with concept stocks)

Recently, the Beijing Municipal Commission of Economy and Information Technology solicited opinions on the "Beijing Autonomous Driving Vehicle Regulations (Draft for Solicitation of Comments)". The city plans to support the use of autonomous driving vehicles for urban public electric bus passenger transport, online car-hailing services, car rentals, and other urban travel services.

An official from the Municipal Commission of Economy and Information Technology stated that the city will focus on legislation to address the main issues faced by autonomous driving vehicle innovation activities in specific areas. Based on upholding the safety bottom line, clear, transparent, and predictable institutional norms will be provided for market entities of Level 3 and above autonomous driving vehicles.

Guotai Junan pointed out in a research report that Luobokuai Pao is expected to achieve profitability in the commercial model of unmanned driving online car-hailing services.

Luobokuai Pao is Baidu's autonomous driving travel service platform, which has opened passenger testing and operation services in 11 cities. It has conducted full unmanned autonomous driving travel service tests in Beijing, Wuhan, Chongqing, Shenzhen, and Shanghai. Compared to the manned driving version, unmanned driving online car-hailing services have lower prices and better passenger experience. According to Luobokuai Pao's plan, it aims to achieve full coverage in Wuhan by 2024 and deploy 1,000 sixth-generation mass-produced unmanned vehicles for operation.

It is expected that with the increase in deployment volume in the future, the operating costs per vehicle will significantly decrease, and economies of scale may be realized. Luobokuai Pao expects to achieve breakeven in Wuhan by the end of 2024 and profitability in 2025. Investment recommendations: Luobokuai Pao's successful business model in Wuhan is expected to be replicated elsewhere. Autonomous driving may challenge the taxi and online car-hailing industry, with three main investment directions:

1. Internet companies mastering autonomous driving technology;
2. Industrial chain enterprises that manufacture complete vehicles and parts or provide IT services for internet companies;
3. Enterprises related to autonomous driving infrastructure, vehicle-road-cloud.

Concept companies related to online car-hailing and self-driving:

Baidu Group-SW (09888): "Luobokuai Pao" is Baidu's autonomous driving travel service platform, focusing on providing travel services using autonomous driving vehicles (Robotaxi), including autonomous driving and fully unmanned driving operations. Robin Li stated that Luobokuai Pao provided 115,000 services in the past quarter, becoming the world's largest autonomous driving travel service provider. Baidu Apollo continues to expand the scale of Luobokuai Pao, with the goal of landing in 30 cities and serving 3 million users within three years