Pony.ai Inc. (NASDAQ: PONY) and Uber Technologies Inc. (NYSE: UBER) announced an expansion of their strategic partnership to deploy more than 2,000 Pony.ai robotaxis across Europe. The move builds on the companies' existing commercial service in Zagreb, Croatia, and targets four additional European cities, with further plans for deployment in the Middle East.

The expanded agreement formalizes a joint-deployment model designed to achieve commercial scale by integrating three core functions: Level 4 (L4) autonomous driving technology, a leading mobility platform, and day-to-day fleet operations. Under this framework, Pony.ai provides its L4 technology and operational expertise, while Uber offers customer access through its global mobility platform, including booking, payment, and customer service capabilities.

Operational Structure

Day-to-day fleet operations will be carried out by established local fleet partners selected for each market. Vehicle funding and ownership structures may vary by market, allowing individual partners to take on multiple roles. This model aims to combine Pony.ai's proven autonomous driving technology with Uber's extensive market reach and hybrid platform experience.

Commercial Validation

Pony.ai currently operates paid, fully driverless robotaxi services in four tier-one cities in China. The company stated it has achieved city-wide breakeven unit economics in multiple markets, validating its commercially sustainable model for large-scale operations. The collaboration with Uber dates back to May 2025, when the companies first announced plans to bring Pony.ai robotaxis onto the Uber platform in international markets.

In 2026, the partners worked with Croatian mobility company Verne to launch Europe’s first commercial robotaxi service in Zagreb, with Verne serving as the local fleet owner and operator. Additional details about the rollout in the four new European cities will be announced in phases.

Executive Commentary

"This expanded agreement marks an important new phase in the partnership between Pony AI and Uber. It reflects our shared commitment to bringing safe, reliable Robotaxi services to more European cities," Pony AI founder and CEO Dr. James Peng said.

"The next chapter for autonomous mobility is about moving from individual launches to repeatable commercial scale," said Sarfraz Maredia, Uber’s Global Head of Autonomous Mobility & Delivery.

Market Reaction and Outlook

Pony.ai shares traded slightly lower in premarket trading on Friday, down 0.24% to $8.31, while Uber Technologies shares rose 0.75% to $76.45. Investors are looking ahead to Pony.ai's earnings report scheduled for Tuesday, August 18.

Wall Street expects a loss of 17 cents per share, compared with a loss of 13 cents a year earlier. Revenue is expected to rise to $35.18 million from $21.50 million.

Pony.ai carries a Buy consensus rating with an average price forecast of $13.30. Recent analyst moves include:

• HSBC: Initiated coverage with a Buy rating and a $16.60 price forecast on March 31.
• Barclays: Lowered its price forecast to $10 from $15 on March 30 while maintaining an Equal-Weight rating. Barclays initiated coverage with an Equal-Weight rating and a $15 price forecast on December 17, 2025.

What the Numbers Show

The target of deploying 2,000 robotaxis represents a significant scaling of the initial Zagreb pilot. By leveraging Uber's existing network of human drivers and platform infrastructure, Pony.ai aims to accelerate market penetration without bearing the full cost of customer acquisition and platform development. The reliance on local fleet partners for day-to-day operations suggests a capital-light approach to expansion, shifting operational execution risks to regional entities while Pony.ai retains control over the core technology stack.

Despite the positive partnership news, the market reaction was muted, with shares dipping slightly ahead of earnings. Analyst expectations show revenue growth of approximately 64% year-over-year (from $21.50 million to $35.18 million), but the widening expected loss per share (from 13 cents to 17 cents) indicates that profitability remains distant despite top-line growth.

Pony.ai reported US$10.2 million in revenue from its Robotruck business in the first quarter of 2026, marking a 31% increase from the same period last year. This growth signals a shift from technology testing to scaled commercial deployment for the autonomous driving company. He Xing, Vice President of Pony.ai and Head of the Robotruck business, stated that the rise was primarily driven by the expansion of commercial operations across freight transportation scenarios in China.

The financial performance coincides with significant operational milestones. As of November 2025, Pony.ai operated a fleet of around 200 trucks and had transported more than 1 billion ton-kilometers of freight. The company now expects to deploy 500 to 1,000 Gen-4 autonomous heavy-duty trucks over the next two to three years. These vehicles will operate in three primary scenarios: long-haul freight, bulk commodity transportation, and port logistics.

Vehicle Platforms and Cost Reduction

Pony.ai’s strategy relies on two distinct vehicle platforms: heavy-duty trucks for inter-hub transport and light-duty trucks for urban distribution. The Gen-4 heavy-duty truck has reduced autonomous driving hardware costs by approximately 70% compared with the previous generation. Designed for automotive-grade mass production, these battery-electric vehicles support a service life of 20,000 operating hours or up to 1 million kilometers.

Production of the Gen-4 heavy-duty trucks is underway, with Shenzhen’s Mawan Port identified as an early deployment site. Pony.ai expects to deploy dozens of these Robotrucks for commercial operations at the port, alongside highway freight and bulk commodity routes in western China.

Light-Duty Expansion and Synergies

The light-duty truck segment addresses urban logistics, including express delivery, retail distribution, and food and beverage cold-chain logistics. Introduced in April 2026, this vehicle was co-developed with CATL and built on the Kunshi Chassis Platform. It offers approximately 18 cubic meters of cargo space, which is 2.6 times the volume of mainstream low-speed autonomous delivery vehicles.

Pony.ai estimates that fully driverless light-duty trucks could reduce per-kilometer operating costs by 40% to 50% compared with conventional human-driven operations. The platform shares over 90% of its technological and operational synergies with Pony.ai’s Gen-7 Robotaxi, including charging infrastructure, fleet management, and remote assistance capabilities.

What the Numbers Show

The 31% revenue growth underscores the viability of Pony.ai’s partner-led scaling model. By reducing hardware costs by 70%, the company has improved unit economics for heavy-duty deployments while leveraging shared technology stacks to accelerate light-duty development. The dual-platform approach allows Pony.ai to capture high-volume long-haul demand through heavy trucks while addressing complex urban logistics with lighter, more agile vehicles. This diversification mitigates risk by spreading deployment across different regulatory and operational environments, from controlled port sites to open urban roads.