Beijing has become the first capital city to approve a big experiment in fare-charging autonomous taxis on its roads. Chinese search giant Baidu and self-driving start-up Pony.ai, which is backed by Toyota, can now begin operating a combined fleet of 100 cars. The licences give the two companies a head-start on rivals such as Uber of the US.

The trials, if successful, will bring closer an era when robotaxi rides are a routine part of city life. They will permit Baidu and Pony.ai to collect a wealth of data on driving conditions and passenger preferences. For ride-hailing companies, autonomous taxis represent a silver bullet for widening losses as labour costs rise.

Baidu holds two-thirds of the permits. Its robotaxis will cover more than 600 pick-up and drop-off points in a designated area in Beijing, which includes commercial and residential buildings, between 7am and 10pm.