Autonomous Driving Is Going to Be the Next Big Trend. Here Are 2 Tech Companies to Keep an Eye On.

Core Insights - The autonomous driving industry is poised for significant growth, particularly in the ride-hailing sector, with companies like Uber and Baidu well-positioned to capitalize on this trend [2][3][4]. Industry Overview - The autonomous ride-hailing market is projected to reach between $11 trillion to $12 trillion globally, driven by advancements in AI and battery technology that will lower the cost per mile of autonomous driving to approximately $0.25 [4]. - The low cost of autonomous vehicles is expected to create substantial new demand for travel, benefiting companies that are strategically positioned in this market [5]. Uber - Uber is adapting to the growth of autonomous ride-hailing by partnering with major autonomous-driving software companies like Waymo, allowing it to serve as a marketplace for both human-driven and self-driving vehicles [6][7]. - Although Uber does not own its self-driving technology, it leverages its extensive customer base and operational expertise to create value through partnerships, such as bringing Waymo's services to Austin and Atlanta in 2025 [8]. - This neutral stance enables Uber to collaborate with various partners, potentially increasing its addressable market despite a lower share of commission [9]. - Uber can apply its partnership strategy across its other businesses, such as Uber Eats and logistics, to strengthen its position in the evolving autonomous mobility landscape [10]. Baidu - Baidu is also positioned in the autonomous ride-hailing industry but focuses on developing its own autonomous driving platform, Apollo, and offering ride-hailing services under the Apollo Go brand [11]. - The Apollo platform has emerged as a leader in autonomous driving software in China, with Apollo Go providing over 1.1 million rides in Q4 2024 and achieving fully driverless operations across China since February 2025 [12]. - Baidu aims to expand its ride-hailing services from 12 cities in China to 65 cities by 2025 and over 100 cities by 2030, with plans to enter international markets, starting with Hong Kong [13]. - Despite being an early mover, Baidu faces challenges such as regulatory hurdles and financial constraints, but its strong relationships with regulators and solid financial position provide a foundation for its ambitions [14].