Uber Seeks $10m Stake In Pony AI Via IPO

Matthew Broersma,
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A Pony AI autonomous vehicle. Image credit: Pony AI

Uber reportedly seeks $10m stake in Chinese autonomous driving firm Pony AI via US IPO, may use Pony AI’s technology in non-US partnership

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Uber Technologies is seeking to buy a more than $10 million (£8m) stake in Chinese autonomous driving start-up Pony AI through its US initial public offering (IPO), as it expands existing deals with autonomous driving firms, Bloomberg reported.

The company may consider using Pony AI’s technology in a partnership outside the US, the report said.

Uber is reportedly still considering the size of a potential investment in Pony AI.

The Chinese firm’s IPO was initially expected to be priced on 21 November, but has been pushed back and may take place next week as the company addresses regulatory questions, Bloomberg cited unnamed sources as saying.

uber

WeRide investment

The offering has been increased to 20 million US depository shares from a previous 15 million, potentially raising $260m in a price range of $11 to $13 per share.

Pony AI was founded in 2016 and develops and operates fleets of self-driving vehicles in the US and China, including trucks and robotaxis.

Uber invested in WeRide, another China-based autonomous driving company, when the company held its US IPO last month, the report said.

San Francisco-based Uber has an existing robotaxi service agreement with WeRide in Abu Dhabi.

In August the California Public Utilities Commission (CPUC) issued a permit to WeRide to begin testing its robotaxis in the state, where it will compete with the likes of Alphabet’s Waymo, GM’s Cruise and Amazon’s Zoox.

After formerly developing its own in-house self-driving technology, Uber has more recently made deals to offer rides from robotaxi operator Waymo in some cities and has invested in autonomous riving firm Wayve Technologies.

Waymo tie-up

In September the company said it would give riders access to Waymo vehicles via the Uber app in Austin, Texas and Atlanta starting in early 2025, expanding a deal that began in Arizona last year.

Once services begin Uber users will be able to be matched with a driverless Waymo for some trips, the companies said.

The deal is to see Waymo rides offered through Uber’s app, and not on Waymo’s own app, in a measure that seems calculated to expand Waymo services to as broad a user base as possible.

In San Francisco and Los Angeles, by contrast, Waymo offers rides via its own app.