Uber (UBER, Financial) and Pony.ai (PONY, Financial) unveiled a strategic partnership Tuesday to launch autonomous robotaxi services in the Middle East.
Shares of Pony.ai soar after the news, up 7% on early Tuesday trading.
The partnership will bring Pony.ai's self-driving cars onto Uber's platform, starting in the region before expanding to more global markets. It's a big move for both companies, especially Pony.ai, which is pushing hard to scale its driverless tech worldwide.
The plan is to combine Uber's massive ride-hailing reach with Pony.ai's “Virtual Driver” system, a vehicle-agnostic platform that works across a variety of car types and services.
Pony.ai, founded in 2016, already has a presence in China, East Asia, Europe, and parts of the Middle East. The company builds its own autonomous driving software and hardware in-house.
While the tech looks promising, Pony.ai still faces financial headwinds. It's burning through cash, with profitability still out of reach and valuation metrics under pressure.
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