Pony AI and Uber Partner to Expand Robotaxi Services in Global Markets

Uber riders would have the option to select a Pony AI autonomous car for their travel.

Chinese robotaxi company Pony.ai team up with US ride-sharing service provider Uber Technologies to introduce driverless taxis in the Middle East later this year.

Pony AI is based in Guangzhou, capital of southern Guangdong province, the firm reported a full-year loss of US$275 million in 2024.

They plan to increase their footprint in the growing robotaxi market as the automobile industry is welcoming autonomous driving.

This collaboration will debut in key Middle East markets later this year and will roll it out to foreign markets based on the success of this decision.

The joint statement released Tuesday claims the two companies will use Pony AI robotaxis on Uber’s platform in a significant regional market.

In recent weeks, Uber has signed many new partnerships and expanded its current collaboration to effectively compete with Lyft and EV manufacturer Tesla in the robotaxi industry.

They announced that Uber riders would have the option to select a Pony AI autonomous car for their travel.

It added that the vehicles would undergo a safety operation during the initial trial period until completely autonomous commercial service starts operations.

James Peng, co-founder and CEO of Pony AI, stated they want to set new benchmarks for driverless services commercialisation by merging its proven autonomous systems with Uber’s unmatched ride-hailing platform, starting in the Middle East and then reaching other markets.

This partnership will help Uber quickly and safely incorporate autonomous cars as it expands into new countries. For Pony AI, it will be part of its global expansion strategy.

Uber and Waymo, Alphabet‘s self-driving business, collaborate to offer self-driving car services in the United States.

According to Uber CEO Dara Khosrowshahi, the partnership with Pony.ai is a significant step forward in bringing the advantages of autonomous driving to the global community.

Uber partnered with Momenta and May Mobility, Chinese autonomous driving startups, to launch a self-driving car on its platform for markets outside the United States and China. They would incorporate car safety officers when they introduced the service in Europe in 2026.

They have also recently expanded their partnership with China’s WeRide to extend into 15 more international markets across the Middle East and Europe. Uber collaborated with WeRide in late 2024 to launch robotaxis operations in Abu Dhabi and Dubai.

In November, Pony AI listed on the Nasdaq (National Association of Securities Dealers Automated Quotations). Its shares have slumped by over 60%, reaching a record US$23.88 in February. US-listed shares of PonyAI, which debuted on the stock market index in November, increased nearly 13% in premarket trading, and Uber shares went 1% lower.

During Auto Shanghai, China’s largest auto trade show, Pony AI announced its seventh-generation autonomous-driving system and three mass-production robotaxi models developed in partnership with Toyota Motor and Chinese state-owned automakers BAIC Group and GAC.

Tech and electric vehicle companies have been racing to develop self-driving cars and are aiming for widespread adoption of robotaxis, despite engineering and regulatory obstacles.

The US federal government is promoting the adoption of self-driving cars by extending exemptions from some safety regulations while maintaining mandatory incident reporting.

At the Auto Shanghai event, the company stated they aim to start mass producing its robotaxis from next quarter. By 2028, it aims to have 50,000 robotaxis globally. Pony.ai currently runs close to 200 robotrucks and roughly 250 robotaxis.

Pony AI, a Guangzhou-based company founded in 2016 with Toyota’s support, has been looking to expand into South Korea, Luxembourg, the Middle East, and other countries.  

It presently holds robotaxi service licenses in Beijing, Shanghai, Guangzhou, and Shenzhen and wants to launch the services in Hong Kong.