An internet analyst has predicted that Baidu will go through some tough times, especially now that more and more consumers are turning to their mobile phones for Internet use.
Baidu's main cash cow is its search engine service. However, this branch is experiencing problems as Internet users are giving smartphone applications priority when searching for products, services, and even news.
According to the Financial Times, Internet analyst for Nomura China, Jialong Shi said of the Chinese tech giant's troubles, "For Baidu, these years are difficult years. Their current cash cow, the search engine business, is facing a structural issue: many users and contents are taken away by the super-apps, while their new revenue drive, AI, is still in a cultivation stage."
Back in the day, when desktops were dominating the technology era, Baidu competed actively with Alphabet's Google. Despite its past authority in China's Internet market, the company had a slow start in transitioning to the mobile realm.
While Microsoft and Alphabet have gone ahead in providing a variety of services and improvements to Internet users, Baidu remained in place and received backlash from the 2016 scandal of a cancer patient dying from a product advertised by the search engine.
Adding to the 2016 controversy was early 2019's beating through veteran journalist Fang Kecheng's viral article. The article stated that the Apollo creator
Financial experts noted that the Beijing-based tech provider is still among the largest in stock market value. However, its performance over the past years put it behind rival companies Tencent and Alibaba.
Despite the issues that Baidu is facing with its search engine arm, other departments are doing fairly well, including Apollo, it's driverless car project that has gained the attention of international and local investors. In fact, the company has just signed a partnership deal with one of the country's most popular online travel providers.
China's leading search engine has forged a partnership with top Chinese travel agency Ctrip and experts believe the deal could help re-establish Baidu's name in the tech industry. The collaboration seeks to promote tourism through Baidu's artificial intelligence (AI) expertise and cloud computing capabilities.
According to Xinhua, the two companies have agreed to explore improved customer service strategies that will provide traveling customers with a more satisfying experience. The project will further seek to offer consumers with technology-based services and benefits that go beyond traditional tourism service.
To further up the efforts of both companies to boost local and global tourism, the joint venture will look into smart services that leverage Baidu's autonomous driving and speech technology expertise. Finally, the project seeks to reduce costs and enhance efficiency in operations.
