Baidu’s Apollo Go to deploy 100 robotaxis in Dubai by 2025

Published 28/03/2025, 17:58
Baidu’s Apollo Go to deploy 100 robotaxis in Dubai by 2025

BEIJING - Baidu Inc. (NASDAQ: BIDU and HKEX: 9888), a leading AI company with a market capitalization of $34.5 billion and annual revenue of $18.2 billion, has announced a strategic agreement with Dubai’s Roads and Transport Authority (RTA) to introduce its autonomous ride-hailing platform, Apollo Go, to the Middle East. According to InvestingPro analysis, Baidu maintains a strong financial position with a "GOOD" overall health score. The collaboration will see the deployment of 100 Apollo Go autonomous vehicles in Dubai by the end of 2025, marking the company’s first fleet outside mainland China and Hong Kong.

The launch in Dubai is part of Apollo Go’s global expansion strategy and follows the platform’s successful operation in China, where it has provided over 10 million rides. The agreement also includes plans to expand the fleet to at least 1,000 autonomous vehicles by 2028, supporting Dubai’s goal to convert 25% of its transportation to autonomous mode by 2030. With a healthy current ratio of 2.09 and strong gross profit margins of 50.35%, Baidu appears well-positioned to fund this expansion.

Yunpeng Wang, Corporate Vice President of Baidu and President of Baidu’s Intelligent Driving Group, highlighted the alignment between Apollo Go’s mission and Dubai’s vision for autonomous transportation. The partnership will leverage Apollo Go’s experience from large-scale deployments in Chinese cities, such as Wuhan, to adapt and operate the vehicles according to Dubai’s local laws and needs.

The RT6 robotaxis, specifically designed for driverless mobility, will be introduced to the streets of Dubai, offering enhanced reliability and comfort. The vehicles’ deployment will test the maturity and stability of Apollo Go’s autonomous driving system in a complex urban traffic environment.

This strategic move comes after Baidu’s first venture into a right-hand-drive market in Hong Kong, where Apollo Go was granted the first autonomous driving test licenses in November 2024. The company’s ongoing commitment to delivering safe, green, and intelligent mobility services is part of its broader vision to drive the future of urban transportation and create smarter, more connected cities.

The information is based on a press release statement from Baidu, Inc. Trading at $93.33, Baidu’s stock currently appears undervalued according to InvestingPro Fair Value metrics, with a P/E ratio of 9.96 suggesting potential upside opportunity. For deeper insights into Baidu’s valuation and growth prospects, including exclusive ProTips and comprehensive analysis, check out the full Pro Research Report available on InvestingPro.

In other recent news, Baidu has been actively engaging in financial maneuvers, including a $2 billion exchangeable bond offering and a 10 billion yuan senior note issuance. The funds from these offerings are intended to repay existing debts and potentially enhance Baidu’s share repurchase program, as noted by Citi analyst Alicia Yap, who maintains a Buy rating with a $139 price target. Bernstein analysts have also maintained a Market Perform rating on Baidu, raising the price target to $108 due to anticipated growth in the company’s AI cloud services. This aligns with Baidu’s expectations for increased AI Cloud revenue and the monetization of AI Search later this year.

Benchmark analyst Fawne Jiang reaffirmed a Buy rating with a $130 price target, citing Baidu’s significant growth in AI Cloud and the potential benefits from the adoption of GenAI in China. Baidu’s strategy to open-source its ERNIE 4.5 series and provide free access to ERNIE Bot is expected to drive broader technology adoption. Citi hosted a post-earnings call with Baidu’s management, highlighting advancements in AI capabilities and the role of AI cloud services as a growth driver. The management’s confidence in the sustained growth of its AI cloud business and anticipated recovery in core advertising revenues further supports Citi’s optimistic outlook. These developments reflect Baidu’s strategic focus on AI and cloud services as key growth areas.

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