Pony.ai steps up mass production of robotaxis, targets overseas expansion
The Guangzhou-based company – the only firm with approval to operate robotaxi services on the mainland's four most developed cities – is banking on an accelerated pace of commercialisation at home and abroad to achieve cost efficiency, according to Lou Tiancheng, co-founder and chief technology officer.
'We are anticipating a pickup in production [of robotaxis],' he said in an interview on the weekend. 'Over the past few years, we have solidified our tie-ups with carmakers to attest to the feasibility of building a large volume of driverless cabs.'
Pony.ai would partner with local carmakers GAC and BAIC, and Toyota of Japan in production, and target a fleet of 1,000 robotaxis by the end of this year, he added.
Nasdaq-listed Pony.ai received a permit to run its robotaxis in Shanghai's Pudong New Area last week. The permit allows the company to charge fares, pioneering the move in the nation's major commercial and financial hub.
Pony.ai will initially operate its fleet in the Jinqiao and Huamu areas totalling a combined 40 sq km. That will be gradually expanded to other parts of Pudong, China's 1,400 sq km pioneer zone to showcase progress in building a modern socialist system.
'We believe this milestone demonstrates Pony's technological and operational readiness in the robotaxi business,' BofA Securities said in a report on Monday, reiterating its buy recommendation. 'We believe that Pony will scale up its robotaxi fleet size and see improving profitability, given better economies of scale.'
Meanwhile, Pony.ai has expanded its operations in Beijing, Guangzhou and Shenzhen, offering its services 'at any time'. It previously operated only between 7am and 11pm.
The company is also looking to create new revenue sources by offering value-added in-car infotainment services to customers or supplying autonomous driving control systems to carmakers, Lou said. It was looking at Hong Kong, South Korea, the Middle East and Europe as potential markets to widen its reach, he added.
Pony.ai, Baidu's autonomous driving unit Apollo, and robotaxi start-up WeRide are deemed by analysts and industry officials as China's answer to US-based Waymo, the global leader in self-driving taxi service.
Driverless cabs could account for 6 per cent of China's taxi market, aided by advanced digital infrastructure and public acceptance, HSBC said in a report earlier this month. China's robotaxi market could eventually be worth about US$40 billion a year, the bank said, without giving a time frame.
Pony.ai reported a 4.3 per cent increase in revenue to US$75 million last year, while its net loss more than doubled to US$275 million.
Shanghai authorities also granted licences to Baidu's Apollo, WeRide, Jinjiang Taxi, Dazhong Transportation and SAIC Motor to operate robotaxis in Pudong, on the sidelines of the three-day World Artificial Intelligence Conference in the city.
The issuance of these licences – on a pilot basis – demonstrates Shanghai's efforts in advancing the development of driverless technology.
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