Dec. 16 at 12:55 PM
$WRD FT article
Summary and conclusion
Chinese robotaxi firms are stuck in the slow lane because their business model remains heavily hardware-driven and capital intensive, making profitability hard to achieve. The cost of sensors, computing, and remote operations keeps unit economics unfavorable, even as fleets expand. Investors remain cautious, shaped by past failures in other mobility hardware booms like bike-sharing. Unlike in the US, where autonomous driving is viewed as a software scaling opportunity, China’s approach relies on asset-heavy fleet operations that limit margins. Until hardware costs fall and regulatory clearance broadens, scaling at sustainable economics will remain elusive.
