Uber announced on Tuesday a new partnership with China-based autonomous driving company Pony AI, marking its latest move to expand into the robotaxi market. The collaboration will begin with a pilot launch in a key Middle Eastern market later this year, with plans for further international rollout.
During the pilot phase, Pony AI vehicles will operate with onboard safety drivers, with the goal of transitioning to fully autonomous commercial service as regulatory and technical milestones are met.
The deal is part of Uber’s growing portfolio of partnerships aimed at strengthening its foothold in self-driving mobility, as it competes with rivals like Lyft and Tesla. In recent weeks, Uber also announced collaborations with May Mobility and Momenta, and expanded its strategic alliances with WeRide and Alphabet’s Waymo.
Pony AI shares rose nearly 13% in premarket trading following the news, while Uber shares dipped slightly by 1%. Pony AI, which went public on Nasdaq in November, is backed by Toyota and has active robotaxi licenses in major Chinese cities including Beijing, Shanghai, Guangzhou, and Shenzhen. The company is also exploring expansions into South Korea, Luxembourg, Hong Kong, and other international markets.
As the U.S. government continues to ease certain regulatory barriers for self-driving vehicles—while requiring incident reporting—companies like Uber and Pony AI are accelerating efforts toward large-scale robotaxi deployment.