Pony AI Launches Driverless Robotaxi Service in Four Chinese Cities

Pony AI, a U.S.-listed Chinese autonomous vehicle firm, has launched its robotaxi service in four major Chinese cities—Beijing, Shanghai, Guangzhou, and Shenzhen—without the need for safety drivers, marking a significant step in the commercialization of self-driving technology. The company has secured regulatory approvals to charge for rides in these cities, with Shanghai granting the latest green light in July 2025 [1]. This expansion highlights Pony AI’s technological maturity and operational readiness in the autonomous mobility sector [1].

The service operates within predefined geographic zones, where Pony AI has deployed advanced sensor systems and mapping technologies to navigate urban environments safely. Each robotaxi completes an average of 15 rides daily, and the company has begun testing its latest-generation vehicles in Beijing. According to Pony AI’s CTO, Tiancheng Lou, the firm is prioritizing safety, cost reduction, and ease of hailing, with hardware costs already reduced by 70% [1].

The development comes as the global race for robotaxi dominance intensifies. In the U.S., Waymo, a subsidiary of Alphabet, operates over 1,500 robotaxis across multiple cities, while Tesla has recently entered the market. Barclays estimates the number of robotaxis in China has reached 2,000 and could rise to 300,000 by 2030. Chinese firms are moving faster in global expansion than their U.S. counterparts, with companies like WeRide and Baidu securing permits in multiple countries, including Saudi Arabia, the UAE, and France [1].

WeRide, another major player, reported record second-quarter robotaxi revenue of $6.4 million, while Baidu plans to launch its Apollo Go service on Uber’s platform in Asia and the Middle East later this year. Bank of America analysts noted that Chinese companies have a cost advantage, with Baidu’s Apollo RT6 robotaxi priced at $37,000—significantly lower than Waymo’s $200,000 per vehicle. The firm also projected that overseas markets could offer greater profitability than China, with a price target of $100 for Baidu [1].

Barclays analysts stated that most Chinese robotaxi operators are approaching breakeven, excluding R&D and headquarters costs, by late 2025. The ability to build cost-effective autonomous vehicles is a key factor in achieving this. Pony AI, which plans to release its earnings on August 12, is positioned to benefit from this trend, with Bank of America assigning a $21 price target to its stock, implying a 60% upside [1].

The rapid deployment of robotaxis in China reflects a broader shift in the automotive industry toward automation. With regulatory support and growing consumer acceptance, the sector is moving from testing to scalable operations. As companies like Pony AI continue to refine their technology and business models, the future of urban mobility could see a significant shift toward autonomous transportation [1].

Source: [1] Pony AI runs robotaxis in four Chinese megacities (https://www.mitrade.com/insights/news/live-news/article-3-1008091-20250804)