Chinese tech giant Baidu Inc received approval for the commercial operation of its autonomous car service in Yangquan, North China's Shanxi province on Friday, and the company's Apollo Go, also known as Luobo Kuaipao is authorized to provide paid robotaxi services in the city starting Sunday.

Yangquan is the third city across the nation launching commercial autonomous driving vehicle services, after Beijing and Chongqing.

The service provided by Baidu's Apollo Go includes over 30 pickup and drop-off points in government departments, residential areas and high-tech industrial parks at the initial stage, Baidu said. The service is available every day of the week from 9 am to 5 pm.

Baidu Apollo has rolled out robotaxi ride-hailing services in eight cities: Beijing, Shanghai, Guangzhou, Shenzhen, Chongqing, Changsha, Cangzhou and Yangquan, and began commercial operation of autonomous car services in Beijing in November.

As autonomous driving technology continues to mature, the autonomous driving industry is poised to consolidate in the coming years. According to market consultancy IHS Markit, the size of the autonomous car service market will exceed 1.3 trillion yuan ($203.5 billion), with the top-ranked service provider accounting for 40 percent of the market share.