Pony AI and Uber partner with Verne to launch Europe's first commercial robotaxi service

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Pony AI and Uber are teaming up with Croatian startup Verne to launch what they claim will be Europe's first commercial robotaxi service in Zagreb. The partnership combines Pony AI's autonomous driving technology, Uber's ride-hailing network, and Verne's fleet management, with plans to scale to thousands of vehicles across European cities. The move comes as Pony AI reports 160% year-over-year revenue growth.

Pony AI and Uber Join Forces to Deploy Robotaxis in Europe

Pony AI, Uber, and Croatian startup Verne have announced a partnership to launch what they claim will be Europe's first commercial robotaxi service

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. Testing is already underway on public roads in Zagreb, Croatia, where the service will debut soon, marking a significant expansion for both Pony AI and Uber into the European autonomous vehicle market

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. The partnership divides responsibilities strategically: Pony AI will provide its autonomous driving technology, Verne will act as fleet operator and service owner, and Uber will integrate the service into its global ride-hailing network

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The companies are currently validating their technology using the Arcfox Alpha T5 Robotaxi, manufactured by state-owned Beijing Automotive Group Co (BAIC) and equipped with Pony AI's 7th generation self-driving technology providers stack

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. The driverless vehicles will initially be available on Verne's app before expanding to Uber's platform, with ambitions to scale the fleet to thousands of robotaxis across multiple European cities over the next few years

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Source: The Verge

Source: The Verge

Strategic Positioning in the Robotaxi Race

For Uber, this partnership represents the latest effort to position itself as the dominant platform in the autonomous ride-sharing services era. The company aims to offer driverless rides in more than 10 markets this year, including Munich and the UK, as part of its goal to become the biggest robotaxi platform globally

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. Uber has deliberately avoided developing its own autonomous technology after selling off its in-house research unit in 2020, instead partnering with more than 20 technology providers and car companies worldwide, including Alphabet Inc.'s Waymo in the US and WeRide Inc. in the United Arab Emirates

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Source: PYMNTS

Source: PYMNTS

This approach shields Uber from potential financial blowback as robotaxis threaten to overtake traditional ridehail business models

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. By integrating autonomous fleets into its existing network, Uber maintains its position as the customer-facing platform while leaving the complex and capital-intensive work of developing autonomous technology to specialists like Pony AI.

Pony AI's Global Expansion and Financial Momentum

For Pony AI, one of China's "Big Three" robotaxi companies, the European deployment represents a critical step in its global expansion strategy

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. The company announced Thursday that its robotaxi fleet has surpassed 1,400 vehicles and has extended operations into Croatia as well as the Chinese cities of Hangzhou and Changsha

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. The company's financial performance shows strong momentum, with robotaxi revenues rising 160% year-over-year during the quarter, while fare-charging revenues jumped by more than 500%

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Pony AI CEO James Peng highlighted Croatia's appeal, noting that "Croatia has a strong tourism profile and attracts large numbers of international visitors each year, which adds another dimension to long-term mobility demand"

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. The company also achieved single-unit economics breakeven in Guangzhou and Shenzhen, meaning it books a profit every time it adds a car to its local fleet in these key Chinese markets

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. This profitability milestone signals that the company is moving closer to sustainable commercial operations.

Competition Heats Up in European Markets

The Zagreb launch positions the partnership ahead of several competitors racing to deploy robotaxis in Europe. Waymo has announced plans to launch a robotaxi service in London sometime in 2026, while Uber is separately testing self-driving cars with Momenta in Germany

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. Volkswagen has also committed to launching autonomous ride-sharing services under its subsidiary Moia in Germany

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. Pony AI's peers, including WeRide and Baidu's Apollo Go, have similarly expanded into European markets

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Verne, the Croatian partner backed by Tasaru Mobility Investments (fully owned by Saudi Arabia's Public Investment Fund), spun off from supercar maker Rimac Group, which is 47% owned by Bugatti owner Rimac Group

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. Mate Rimac, founder and CEO of Rimac Group, showcased a fleet of 60 prototype autonomous vehicles late last year, though whether those vehicles will eventually join Uber's fleet remains unclear

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. Verne has announced ambitions to launch a two-seater robotaxi without a steering wheel in 2026, which would rival Tesla Inc.'s Cybercab slated for production this year

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. Uber has agreed to invest in Verne to support future growth, with Verne leading the process of ensuring market readiness and obtaining European regulatory approval for these launches

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Physical AI and the Path to Artificial General Intelligence

Dr. Tiancheng Lou, Pony AI's chief technology officer, positioned the company's work within the broader context of Physical AI development: "The robotaxi is the first true application of physical AI, with its core differentiator lying in driving capability, an area where our competitive edge remains unparalleled across the industry"

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. Physical AI refers to systems that operate in real environments—robots, autonomous machines, and the foundational models that instruct them—going beyond content generation into physical world interaction

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Some experts theorize that machines capable of perceiving, reasoning, and functioning in the physical world may be on a more direct path to reaching Artificial General Intelligence (AGI) than software running in data centers

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. Nvidia CEO Jensen Huang declared at CES in January that the ChatGPT moment for robotics had arrived, suggesting the combination of AI models and computing infrastructure could soon unlock large-scale commercial adoption

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. This positions commercial robotaxi services not merely as a transportation innovation but as critical infrastructure for broader AI development.

The partnership previously planned a rollout in the Middle East last year, though that has been postponed, with an Uber spokesperson declining to provide a reason for the delay while confirming the effort continues

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. Pony AI has also struck a separate tie-up with auto giant Stellantis to deploy robotaxis in Europe, starting with test drives in Luxembourg, where the Chinese company's European division is based

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. As regulatory frameworks evolve and fleet management economics improve, the race to establish dominant positions in key European markets will determine which companies can translate technological capability into sustainable commercial success.

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