Robotaxi Struggles: Chinese Ruqimobility Financial Report Reveals 10.37B Yuan Revenue with 3.32B Yuan Loss
Guangzhou Automobile Group's ride-hailing platform Ruqi Express recently unveiled its financial report for the first half of 2024. The report showcased a revenue of 10.37 billion yuan during this period, marking a 13.6% year-on-year increase, but the net loss amounted to approximately 332 million yuan, despite a slight decrease compared to the previous year. Established in 2019, Ruqi Express is a joint investment by Guangzhou Automobile Group, Tencent, and Guangzhou Public Transport Group, primarily operating in the Greater Bay Area of Guangdong, Hong Kong, and Macau.
In July 2024, Ruqi Express successfully went public on the Hong Kong Stock Exchange. However, its Robotaxi business has yet to generate stable income, contributing insignificantly to the company's overall revenue. Additionally, Ruqi Express faces profitability challenges, despite having a user penetration rate exceeding 45% in the Greater Bay Area, ranking second.
Furthermore, Guangzhou Automobile Group has several other development plans, including collaborating with CATL to provide battery swapping services and restarting deep cooperation with Huawei, with plans to launch its first model in the first quarter of 2025. GAIEA, a subsidiary of Guangzhou Automobile Group, is also accelerating its international market layout, aiming to establish more overseas manufacturing bases within two years.
Key Takeaways
- Ruqi Express achieved a revenue of 10.37 billion yuan in the first half of 2024, with a 13.6% year-on-year growth.
- During the same period, Ruqi Express recorded a net loss of 332 million yuan, narrowing by 4% compared to the previous year.
- The Robotaxi business has not yet generated stable income, contributing only a small fraction to the revenue.
- Ruqi Express's user penetration in the Greater Bay Area exceeds 45%, ranking second.
- Ruqi Express completed over 1 billion yuan in Series A financing and plans to commence its IPO in 2023.
Analysis
Although Ruqi Express has experienced revenue growth, its sustained losses are primarily due to underperforming in the Robotaxi business. The short-term effects include fluctuations in investor confidence and stock price pressure, while the long-term impact may drive technological innovation and cost optimization. Guangzhou Automobile Group's overall strategic layout, such as the collaboration with CATL and Huawei, may bring new growth opportunities, but heightened market competition should be a concern. The internationalization efforts of Ruqi Express and the promotion of battery swapping services will be crucial for its future development.
Did You Know?
- Ruqi Express
- Explanation: Ruqi Express is a ride-hailing platform jointly invested by Guangzhou Automobile Group, Tencent, and Guangzhou Public Transport Group, primarily operating in the Greater Bay Area. The platform not only provides traditional ride-hailing services but also ventures into Robotaxi (self-driving taxis) business, although the latter has not yet generated stable income. Ruqi Express's successful listing on the Hong Kong Stock Exchange in 2024 demonstrates its activity in the capital market and its investment in future technological developments.
- Robotaxi Business
- Explanation: The Robotaxi business refers to the taxi service using autonomous driving technology. This service is typically provided by vehicles with highly automated driving capabilities, eliminating the need for human drivers. Ruqi Express has introduced Robotaxi service in its business, but currently, this segment contributes very little to its revenue, indicating the challenges of commercializing autonomous driving technology, particularly in achieving scalability and profitability.
- Greater Bay Area
- Explanation: The Greater Bay Area is an economically planned region by the Chinese government, encompassing nine cities in the Guangdong province (Guangzhou, Shenzhen, Zhuhai, Foshan, Huizhou, Dongguan, Zhongshan, Jiangmen, Zhaoqing), and the two special administrative regions of Hong Kong and Macau. This area is one of the most dynamic and open regions in the Chinese economy, as well as an important base for technological innovation and advanced manufacturing. Ruqi Express's choice to operate in this region fully capitalizes on its economic vitality and technological development advantages.