Baidu's Stocks Surge in US and Hong Kong as Apollo Go Teams Up with Uber for Global Expansion

TradingKey - On Tuesday, Eastern Time, Chinese search engine giant Baidu announced a multi-year partnership with ride-hailing titan Uber. The agreement involves deploying thousands of Apollo Go autonomous vehicles on Uber’s platforms outside China and the US, with the first deployments expected in Asia and the Middle East by the end of this year.

As news of this collaboration broke, Baidu’s stock (BIDU) surged to $94.32, closing up 8.65% at $93.3, and continued to rise in pre-market trading on Wednesday. Baidu’s Hong Kong shares (9888.HK) opened with a 5% jump to HK$92.1, before retreating slightly, trading at HK$88.35 at the time of reporting.

Under the agreement, Baidu and Uber plan to deploy sixth-generation Apollo Go driverless cars in Asia and the Middle East by year’s end, with plans to extend to larger markets in the future. Upon launch, passengers will be able to summon these autonomous vehicles via the Uber platform.

The partnership is seen as a win-win, facilitating Baidu’s ambition to globalize its autonomous driving business while providing Uber with a reliable partner to counter competition in the self-driving sector worldwide.

Since 2021, Baidu has operated autonomous taxis in cities like Beijing, yet it is eager to expand internationally. In March, Baidu revealed plans to collaborate with Dubai and Abu Dhabi to start autonomous driving tests and services in Dubai, deploying over 1,000 fully autonomous vehicles. According to CNBC, Baidu also aims to enter the European market.

Uber is also expanding its market reach through partnerships. This year, Alphabet’s self-driving car unit Waymo began offering autonomous taxi services via Uber in Austin, Texas. In the UK, Uber has teamed up with Wayve to initiate a fully autonomous trial service.

The potential in the autonomous driving field is immense. A Goldman Sachs research report indicates that the global autonomous vehicle market is transitioning from concept to commercialization. From 2025 to 2030, China’s market is projected to grow from $54 million to $12 billion, while the US market is expected to expand from $300 million to $7 billion.