Baidu Developing Self-Driving Car

(RTTNews) - Baidu Inc (BIDU) is planning its own self-driving car this year, as the Chinese Internet search company jumps on the bandwagon that already has Google and others on board.

Baidu CEO Robin Li - speaking at the Chinese People's Political Consultative Conference in Beijing - said the company has been experimenting with smart cars and is working with automakers. Li also said that Baidu will soon roll out lending applications and services.

The move comes as companies venture beyond core business areas, seeking to stand up to peers and remain relevant in an innovative environment, and at the same time, try to wring out a profit from lucrative business propositions.

Earlier, Google was said to be planning its own ride-hailing service. Google said its driverless car technology in development is about two to five years from being ready for widespread use.

And to heat up the fray, Apple Inc (AAPL) was said to be working on its own electric car. Recent reports said the tech giant would start producing electric cars by 2020.

Baidu's announcement comes as Chinese customers prefer to keep in touch with the latest technology, and seek comforts on par with Western standards. But costs will ultimately be a determinant when purchasing high-tech products like a driverless car.

The Chinese government too is supportive of such technologies. Last week, Miao Wei - Minister of Information Technology and Industry in China - said the agency would encourage new-age Chinese firms to partner with traditional original equipment manufacturers and automakers to boost innovation.