Growth strategy: A fleet of vehicles equipped with Baidu’s autonomous driving technologies conduct road testing in Wuzhen, Zhejiang Province. Widely considered the Google of China, Baidu is hoping research into artificial intelligence will create a new generation of products to help revive revenue growth.
https://youtu.be/S-FssvbZFzc
Partners include Bosch, Continental, Chinese automakers
Company also showed off a voice-activated speaker device
Partners include Bosch, Continental, Chinese automakers
Company also showed off a voice-activated speaker device
Baidu Inc has enlisted more than 50 partners for its Apollo driverless project, signing up major players in areas from mapping and ride-sharing to automaking to aid the Chinese search giant’s foray into AI-powered vehicles.
The program aims to open up part of Baidu’s autonomous car software in the same way that Google released its Android operating system for smartphones. By encouraging more companies to build products using them, Baidu hopes to fine-tune its nascent systems and overtake rival research efforts by the likes of Google parent Alphabet Inc.’s Waymo.
Baidu listed four Chinese carmakers, suppliers Robert Bosch GmbH and Continental AG and technology companies including Microsoft Corp. as part of the Apollo alliance. Southeast Asian ride-hailing giant Grab and mapping systems company TomTom NV are also joining the program, which aims to get fully autonomous vehicles on city streets as early as in 2018.
Widely considered the Google of China, Baidu is hoping research into artificial intelligence will create a new generation of products to help revive revenue growth. It has a stated goal of releasing a driverless car by 2018 with mass production to begin by 2021, but some analysts believe its technology still lags that of competitors like Waymo. At a Baidu conference Wednesday, developers showed off the Chinese search provider’s personal assistant, DuerOS.
Baidu’s shares traded in New York rose 2.7 percent to $184.76 at 10:14 a.m. The stock has risen 12 percent so far this year.
The raft of Apollo agreements unveiled Wednesday at Baidu Create cover virtually every automotive field. Dutch company TomTom said in a statement it will help Baidu with high-definition mapping in the U.S. and Western Europe. Several of Apollo’s members already have separate cooperation agreements in place with Waymo and other driverless car providers.
“As we and our partners contribute to the platform in our areas of specialty, we all gain more, with the results far greater than just our own,” Baidu group president Qi Lu said in a statement.
Tencent
is taking on Alibaba in almost every business related to the Web, from
games to security to search. In the latest escalation of the battle,
Tencent is expanding in messaging services and using the technology to
drive customers to its e-commerce partners -- in a direct challenge to
its rival.
The fight exposes a rare vulnerability for Alibaba,
which is planning an initial public offering that may be the largest in
U.S. history.
Tencent has an enormous lead in messaging, with about a
billion users for its QQ and WeChat products, compared with Alibaba’s
last target of 100 million for its offerings.
Tencent is projected to
report a 52 percent surge in profit when it announces second-quarter
results today, bolstered by messaging.
“Tencent is using Mobile
QQ and WeChat to take traffic away from Alibaba and direct people to
e-commerce platforms backed by itself,” said Bill Fan, a Hong Kong-based
analyst at China
Securities Co. “Instant messaging hasn’t been Alibaba’s strong point,
but it sees the viral effect that Tencent’s app is having so it’s trying
to develop similar services.”
Photographer: Brent Lewin/Bloomberg
Alibaba Group Holding Ltd., 24 percent owned by Yahoo! Inc., is competing with Tencent... Read More
Tencent’s two technologies let people trade messages over mobile phones and tablets, akin to the WhatsApp service that Facebook Inc. (FB)
agreed to acquire this year for $19 billion.
QQ, which began as an
instant-messaging service on desktop computers and was repurposed for
use on mobile devices, has about 848 million monthly active users.
WeChat, known as Weixin in China, has 396 million. (WhatsApp has more
than half a billion active users.)
Most Valuable
The success of the messaging services has helped boost Tencent’s market value to about $161 billion,
making it the most valuable Internet company in Asia.
Alibaba will
compete for that title after it goes public. The latest estimate is that
after the IPO the company could be valued at $187 billion, according to
a survey of 11 analysts by Bloomberg. Tencent shares declined 0.2
percent as of 9:52 a.m. in Hong Kong trading, while the benchmark Hang Seng Index was unchanged.
Alibaba
is trying to close the gap in messaging. In September, it started
offering a service called Laiwang. Still, Tencent has continued to
expand the features available through its apps to maintain its lead
Photographer: Brent Lewin/Bloomberg
QQ and WeChat helped triple Tencent’s mobile-game revenue to 1.8 billion yuan in the... Read More
“In the latest version of QQ, we have upgraded it to a
platform for food, drinking and entertainment, and the number of cities
we cover is also expanding,” said Dowson Tong, president of the
company’s social network group that oversees QQ, in a recent interview.
Revenue Boost
Tencent
has integrated games more tightly into its messaging services to
capitalize on the China online gaming market, which IResearch projects will expand to 225 billion yuan
by 2017.
QQ and WeChat helped triple Tencent’s mobile-game revenue to
1.8 billion yuan in the first quarter from the previous three months.
That
trend likely continued in the second quarter. Tencent’s profit rose to
5.59 billion yuan in the three months ended June, according to the
average of 11 analysts’ estimates compiled by Bloomberg.
That would make the second successive quarter with profit growth of more than 50 percent. Earnings climbed 61 percent in the three months ended March 2011.
QQ was the first iconic product billionaire Ma Huateng created at Tencent in 1999, two years after AOL Inc. (AOL)’s
messaging service took off.
As more Chinese accessed the Internet,
instant messaging became the most popular online app. Ma restructured
QQ’s divisions in 2012 to take it mobile and the effort paid off.
Photographer: Brent Lewin/Bloomberg
QQ was the first iconic product billionaire Ma Huateng created at Tencent in 1999, two... Read More
Last year, 83 percent of China’s Internet users subscribed
to Mobile QQ and 80 percent to WeChat, compared with Laiwang’s 23
percent, according to a survey among almost 4,000 people by Shanghai-based IResearch in June.
Stake Purchases
Tencent is now leveraging its vast user base to go after a bigger share of the China e-commerce market, which IResearch estimates will more than double from last year to 21.6 trillion yuan ($3.5 trillion) in 2017.
The
company in March took a 15 percent stake in JD.com Inc., a direct
competitor to Alibaba, and folded its own e-commerce assets into the
venture. This year, Tencent has also agreed to buy 19.9 percent of
Craigslist-like 58.com Inc. and take a 20 percent stake in Dianping.com,
a website similar to Yelp Inc. that users review restaurants in China.
Single Click
Tencent
has been working closely with JD.com and Dianping, directing traffic
from Mobile QQ and WeChat to the websites, said Tong.
Those
steps are beginning to yield results. A new single-click link to JD.com
from Weixin produced an eightfold increase in daily transaction volumes
compared with an earlier access that took two clicks, JD.com said in
June. This month a similar integration with JD.com was provided to users
of Mobile QQ.
Still, Tencent and its partners are far behind in
e-commerce. Alibaba, which operates platforms including Taobao
Marketplace and Tmall.com that connect retail brands with consumers,
accounted for 76.4 percent of total mobile retail transactions in China,
according to its IPO filing to the U.S. Securities and Exchange Commission.
The
fact that Tencent wrapped its e-commerce assets into JD.com shows it
wants to limit its investment in the segment, said Yao Yue, a
Shenzhen-based analyst with Morningstar Inc.
“Even if Tencent’s
instant messaging apps can direct a lot of traffic to JD.com, at the end
of the day it still depends on who has the better shopping service, and
Alibaba’s Taobao is dominant,” said Yao.
Alibaba hasn’t been
able to achieve the same success in mobile messaging so far. The company
in 2004 started Aliwangwang, a PC-based instant messenger for buyers
and sellers, that is now used for negotiating prices, customer services
and delivery notifications on its Taobao marketplace. It also has a
mobile version called Wangxin.
Lagging Behind
Laiwang
was started by Alibaba to broaden its reach, after billionaire founder
Jack Ma alluded to Tencent being ahead in the messaging race at a Credit
Suisse conference in March 2013.
“We also invested heavily, but
we are not that lucky and not creative, so creative like Tencent, which
has WeChat, such a powerful thing,” Ma said at the conference.
Ma
has vigorously tried to promote Laiwang and said the company wouldn’t
pay bonuses to staff who didn’t get 100 clients for the app before Nov.
30 last year, according to a post on the company’s microblog.
In
an attempt to generate revenue from Laiwang, Alibaba said in January it
would offer games on the app. A month later Alibaba’s Ma said the
company’s achievement on mobile applications wasn’t satisfactory.
Alibaba spokeswoman Florence Shih declined to comment on the company’s mobile strategies, citing pre-IPO restrictions.
Jin
Yuan, a Shenzhen mobile phone user, underscores the lead that Tencent
has in messaging. Jin has been a QQ subscriber for the past 13 years and
says Tencent does a better job of making messaging apps that are easy
to use.
“I use QQ to keep in touch with friends I’ve known since
the PC age and I use it for a lot of group chats,” Jin said. “I like to
use WeChat a lot for sharing information about good places for food.”
China’s biggest search engine launches its own mobile browser, Baidu Explorer
China’s biggest search engine launches its own mobile browser, Baidu Explorer
Baidu Campus, Beijing, China. Image by hwanghsuhui, via Wikimedia Commons
Chinese-language search engine Baidu has decided to try and capture
the massive mobile internet market in China by launching its own mobile
browser, Baidu Explorer.
Baidu is already the dominant search engine China, which has 538m online users, but with 388m of these users accessing the internet via mobile phones, the company needs to tap into this vast market.
Other
mobile products from Baidu include a mobile operating system that
appears on low-cost smartphones the company produces with its
manufacturing partners. But, with Baidu Explorer, it hopes to reach
other smartphone users. The target, according to Reuters, is to have Baidu Explorer downloaded by 80pc of Android users in China by the end of this year.
Though
there is already strong competition in the mobile browser market, Baidu
claims its browser is 20pc faster than its rivals based on internal
tests. It also has strong HTML5 compatibility and users can run HD video
through the browser without having to download additional apps or
software.
Hopes for 80 per cent penetration by year-end
China’s search-and-plenty-more giant Baidu has flagged a $US1.6
billion cloud investment. The investment, announced with a minimum of
detail by CFO Li Xinzhe, will go towards building data centres and
hiring staff.
The Chinese search firm also announced the launch of the Baidu Mobile
Browser, which it says is designed to compete with Chrome and Safari.
It claims a 20 percent performance boost over its rivals based on
internal testing.
Briefing Asian journalists last
Friday (August 31), Baidu said its mobile browser can play
high-definition video without plugins or extra supporting software, according to Reuters.
The company said it hopes that 80 percent of China’s handsets will
run its browser by the end of the year. By some astonishing coincidence,
80 percent is also the search market share the company claims in the
Middle Kingdom, in the absence of Google, which has clashed with Chinese
authorities over search censorship.
The Wall Street Journalsays Baidu’s cloud plans include remote online storage, as well as API access to its map service which last month overtook Google Maps in China. ®
Growth strategy: A fleet of vehicles equipped with Baidu’s autonomous driving technologies conduct road testing in Wuzhen, Zhejiang Province. Widely considered the Google of China, Baidu is hoping research into artificial intelligence will create a new generation of products to help revive revenue growth.
China launches own mobile browser, Baidu Explorer, tosses currency into clouds
