China’s Pony AI Is Uber’s Latest Robotaxi Partner in Middle East

(Bloomberg) -- Robotaxi company Pony AI Inc. will partner with ride hailing giant Uber Technologies Inc. to launch in the Middle East this year, as the auto industry’s push into autonomous driving gathers pace.

Once the system is rolled out, riders will be able to select Pony AI self-driving vehicles when booking a trip on the Uber app, Pony AI said in a statement on Tuesday. The cars will have a safety operator onboard during the initial pilot phase, though the vehicles will operate with Pony AI’s fully autonomous service once they get approval from relevant authorities.

Uber has partnered with a string of Chinese self-driving technology companies in markets outside of the US and China. Earlier this month, it struck a deal with Beijing Momenta Technology Co. to deploy services in Europe starting from 2026. Meanwhile, its partnership with WeRide Inc. already offers autonomous rides in Abu Dhabi, with Dubai set to follow soon, and there are plans to expand to 15 more cities globally.

WeRide was granted the UAE’s first national license for self-driving cars in July 2023 and operates the largest robotaxi fleet in the Gulf state. 

Uber, which offers robotaxis in the US via Alphabet Inc.’s Waymo, is looking to tap surging demand for self-driving technology. It invested in WeRide’s US initial public offering last year, Bloomberg News has previously reported, and was in discussions to invest in Pony AI’s IPO — though the final amount of the transaction hasn’t been disclosed by the companies.

For Pony AI, a further expansion may help the company meet its goal to turn profitable in 2028 or 2029. It reported a full-year loss of $274.1 million for 2024. 

The company has endured turbulence in its share price since its IPO. After surging to a record in February — and turning founder and Chief Executive Officer James Peng into a billionaire — the stock tumbled more than 80% by mid-April. Since then, it’s more than doubled, in part due to a partnership with the cloud service of technology giant Tencent Holdings Ltd. that would make Pony AI’s robotaxi service available to qualifying users on China’s Wechat. 

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