An autonomous vehicle from Pony.ai.
Pony.ai
The Chinese start-up Pony.ai announced on Friday that it is collaborating with Tencent Cloud to create autonomous driving technologies and provide robotaxi services via Tencent’s WeChat and other platforms.
The Nasdaq-listed company, which focuses on autonomous vehicle solutions, particularly robotaxis and robotrucks, stated in a press release that this collaboration will involve joint efforts in areas such as cloud computing, mapping data, information security, and the development of intelligent cockpit systems.
As part of this partnership, Pony.ai’s robotaxi ride-hailing service will be integrated into Tencent’s widely used WeChat app, as well as Tencent Maps and other applications.
Pony.ai CEO James Peng mentioned to CNBC during the Shanghai Auto Show on Friday that discussions between the two companies had been ongoing for “quite some time.” He highlighted Tencent’s extensive user base and cloud services as key reasons for this mutually beneficial partnership, as the start-up aims to expand its reach.
Peng expressed hope that users would soon be able to book Pony.ai robotaxi rides directly through the WeChat app.
WeChat is recognized as the most popular ‘super app’ globally, offering a range of services from messaging to payments to food deliveries, with over 1 billion monthly users.
“Pony.ai has top-tier autonomous driving technology, while Tencent shines in cloud services, mapping, and cockpit technologies,” stated Zhong Xiangping, VP of Tencent Group and President of Tencent Smart Mobility, in the Friday release.
“This strategic alliance is not only about enhancing each other’s tech and resources but also represents a new phase of joint innovation,” he added.
The release indicated that both companies will also work together on the development, testing, and operation of robotaxis, specifically focusing on Level 4 (L4) autonomous driving.
SAE International defines L4 autonomy as a level where drivers can disengage from driving in certain areas. This contrasts with Level 3 (L3), where drivers must stay attentive and ready to take control if needed.
This Tencent Cloud partnership was announced just a day after Pony.ai presented its L4, seventh-generation robotaxi technology at the Shanghai Auto Show on Wednesday. As a result, the company’s stock prices surged around 40% in the U.S. on Thursday.
Pony.ai continues to position itself as a leading entity in China’s autonomous driving sector. The company was the first to receive a permit in China to charge for fully driverless taxi services in a central business area of Shenzhen, where Tencent is located.
However, the firm might face increased scrutiny due to rising trade tensions between China and the U.S., a market that Pony.ai views as very important for its growth.
This week, James Peng reportedly told the Financial Times that the company is contemplating a secondary listing outside of the U.S. due to concerns that the U.S. government may initiate the delisting of Chinese firms from the New York Stock Exchange.
If this occurs, it would be less than six months after Pony.ai’s initial public offering in the U.S. Nonetheless, Peng mentioned to the Financial Times that several factors would need to be taken into account.
— Reporting by Nur Hikmah Md Ali of CNBC contributed to this article.
