Neom-backed Pony.ai to launch robotaxis in Dubai

Pony.ai, a Chinese autonomous driving company, will begin trials of its advanced robotaxi fleet in Dubai this year, the company said in a statement.

The US Nasdaq stock exchange-listed company, which is backed by an investment arm of Saudi giga-project Neom, has signed a memorandum of understanding with Dubai’s Roads and Transport Authority (RTA) to introduce autonomous transport.

The rollout will be in multiple phases, with fully driverless operations starting next year, the company said.

The move aligns with Dubai’s 2030 smart city vision, which targets making a quarter of the city’s transport autonomous by 2030.

Pony.ai intends to increase its robotaxi fleet globally over the next two years after starting mass production and deployment of its seventh-generation robotaxis in the second half of this year.

In October 2023 Pony.ai secured $100 million from the Neom Investment Fund, with a commitment to open a research, development and manufacturing headquarters in the kingdom. 

Until now, Pony.ai, which is based in Beijing and Guangzhou, has secured robotaxi testing permits across four markets, including the US, China, South Korea and Luxembourg. 

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In March another Chinese tech company, Baidu, which is also listed on the Nasdaq stock exchange, announced plans to launch an autonomous ride-hailing service in the UAE by the end of 2025.

As part of the deal, Apollo Go, a Baidu unit, is due to deploy 100 fully autonomous vehicles, the RT6 robotaxi, in Dubai by the end of this year, with plans to increase the fleet to 1,000 by 2028.

Pony.ai US depositary shares closed at $17.41 on Friday, up 13 percent in the year to date.