Baidu (BIDU, Financial) teams up with CAR Inc. to roll out China's first autonomous car rental service, aiming to transform urban mobility with on-demand self-driving vehicles.

The service will let users book Apollo-powered autonomous cars for flexible time slots, covering everything from city landmarks to tourist hotspots. Designed to aid those who can't or prefer not to drive—including seniors, visitors without licenses, and people with disabilities—the pilot merges Baidu's cutting-edge AI driving tech with CAR Inc.'s country-spanning rental network.

Baidu's Intelligent Driving Group VP Yunpeng Wang called it “the first benchmark model for autonomous driving in the cultural tourism rental service industry,” promising a safer, more efficient and personalized ride experience.

Under the deal, Baidu's Apollo unit will integrate its open-source software and hardware stack—spanning cloud data services, perception, planning and vehicle control—with CAR Inc.'s fleet operations.

Both parties will collaborate on industry standards for safety, stability and reliability, aiming to fast-track large-scale autonomous vehicle deployments across diverse scenarios. Apollo's global expansion and existing automaker alliances set a strong foundation, while CAR Inc.'s market leadership and extensive service points ensure broad accessibility.

Why it matters: This landmark partnership could redefine last-mile transportation in China and serve as a template for autonomous mobility services worldwide, unlocking new markets and boosting investor confidence in AI-driven transport solutions.

Investors will watch for the service's pilot launch metrics—user adoption, safety records and regulatory feedback—and gauge how quickly Baidu and CAR Inc. can scale the model across major Chinese cities.