Shanghai Automotive Industry Corporation (SAIC)-backed ride-hailing platform Xiangdao Mobility is gearing up for an IPO.

According to the Hong Kong Stock Exchange website, Xiangdao Mobility (Shanghai) Technology Co., Ltd. (Xiangdao Mobility) has submitted its listing application, with China International Capital Corporation (CICC) and Guotai Junan International acting as joint sponsors.

The prospectus reveals steady revenue growth and gradual profitability improvements for Xiangdao Mobility in recent years. A key focus for the company is the commercialization of Robotaxi (autonomous ride-hailing). A significant portion of the IPO proceeds will be allocated to R&D for autonomous driving technology and the commercial rollout of Robotaxi services.

The Robotaxi sector is highly competitive, with players including ride-hailing platforms (such as CAOCAO INC and Ruqi Mobility), dedicated Robotaxi firms (like Pony.ai and WeRide), and autonomous driving solution providers (such as DeepRoute.ai and Momenta). How will Xiangdao Mobility differentiate itself? The company declined to comment, citing the quiet period ahead of its IPO.

**Four and a Half Years of Losses Totaling ~¥1.9 Billion** Xiangdao Mobility reported revenues of approximately ¥4.729 billion, ¥5.718 billion, and ¥6.395 billion in 2022, 2023, and 2024, respectively, showing steady growth. However, the company remains unprofitable, with net losses of ¥780 million, ¥600 million, and ¥410 million over the same period. In H1 2025, revenue reached ¥3.013 billion, with a narrowed net loss of ¥110 million. Cumulatively, losses over the past four and a half years amount to ~¥1.9 billion.

Notably, gross margins have improved, rising from 1% in 2022 to 6.6% in 2023 and 7% in 2024, reaching 11.3% in H1 2025. This was attributed to higher margins in ride-hailing services and improved efficiency in vehicle leasing.

Ride-hailing is Xiangdao Mobility’s core business, contributing ~¥4.991 billion (78% of total revenue) in 2024, while vehicle leasing services for corporate clients generated ~¥1.084 billion.

From 2022 to H1 2025, revenue from its top five clients accounted for 6.8%, 5.1%, 3.7%, and 4.0% of total revenue, respectively. SAIC, its largest client, contributed ¥171 million, ¥94 million, ¥70 million, and ¥31 million over the same period, representing 3.6%, 1.7%, 1.1%, and 1.1% of revenue.

SAIC is not only a major client but also a key shareholder, holding ~75.37% of Xiangdao Mobility (directly owning 6.43% and 68.94% via Changzhou Saike). Other investors include Momenta, AutoNavi, CATL, and Alibaba, covering critical segments like auto manufacturing, autonomous driving solutions, mapping, and batteries.

**Aiming for First "Fully Driverless" Robotaxi Operations by Year-End** A significant portion of IPO proceeds will fund autonomous driving R&D and Robotaxi commercialization. The company sees Robotaxi as a strategic pivot with vast potential.

Xiangdao Mobility already holds key permits for high-level autonomous operations. It launched Robotaxi trials in Shanghai in December 2021 and was among nine entities approved for L3/L4 autonomous vehicle road tests in June 2024. In July 2025, it secured Shanghai’s first license for fully driverless demo operations. To date, its Robotaxi service has completed over 330,000 rides across 48,000+ pickup points, covering 2.5 million kilometers.

The company aims to launch fully driverless Robotaxi operations in Shanghai by end-2025 and expand to core urban areas, targeting multi-city commercialization by 2027.

Pacific Securities forecasts Robotaxi costs could drop to ¥2.1/km by 2026 and further to ¥1/km by 2030, with China’s market potentially exceeding ¥2.93 trillion by 2030.

However, competition is intensifying, with ride-hailing platforms, autonomous driving firms, and solution providers all vying for dominance. As an R&D-intensive sector, sustained funding is critical, making Xiangdao Mobility’s IPO a strategic move to secure capital.

Debut Securities notes that Robotaxi’s success hinges on technology, policy support, and funding. According to Frost & Sullivan, Xiangdao Mobility is China’s first automaker-backed L4 Robotaxi platform. Its proprietary "Xiangdao Smart Brain" system leverages AI for dynamic dispatching and risk management.

Post-IPO, Xiangdao Mobility may compete head-to-head with automaker-backed rivals like CAOCAO INC. With SAIC’s backing, whether it can overcome profitability challenges and scale Robotaxi operations will be closely watched.