PONY AI Inc. Reaches Strategic Partnership with Xihu Group for Robotaxi Deployment in Shenzhen

Rhea-AI Summary

Pony AI Inc. (NASDAQ: PONY) has announced a strategic partnership with Shenzhen's largest taxi operator, Xihu Group, to deploy over 1,000 Gen 7 Robotaxis in Shenzhen. The collaboration adopts an 'asset-light + AI-empowered model' where Xihu Group will manage fleet operations and assets while Pony.ai focuses on AI technology and dispatch services. The partnership combines Xihu's decades of fleet management experience with Pony.ai's autonomous driving technology. As the first company authorized for paid fully-driverless robotaxis in Shenzhen's city centers, Pony.ai aims to expand its autonomous mobility services through this partnership, demonstrating its capability to navigate complex urban environments.

Positive

• Strategic partnership to deploy over 1,000 Gen 7 Robotaxis in Shenzhen
• First company authorized for paid fully-driverless robotaxis in Shenzhen's city centers
• Asset-light model allows efficient resource allocation with Xihu handling operations while Pony.ai focuses on tech
• Partnership with Shenzhen's largest taxi operator provides established infrastructure and compliance framework

Negative

• Deployment timeline is vague, specified only as 'coming years'
• Heavy dependence on single partnership for Shenzhen operations
• Potential operational complexities in integrating autonomous systems with traditional taxi services

Insights

Autonomous Vehicles Technology Expert

Pony AI's 1000+ robotaxi partnership with Xihu Group leverages complementary strengths for efficient scaling in a key Chinese market.

This strategic partnership between Pony AI and Xihu Group represents a significant scaling milestone in the autonomous vehicle industry. The deployment of over 1,000 Generation 7 Robotaxis in Shenzhen follows an intelligent capital allocation strategy through their "asset-light + AI-empowered model."

What makes this partnership particularly effective is how it leverages each company's core competencies. Xihu brings decades of fleet management expertise, local regulatory knowledge, and maintenance infrastructure. Meanwhile, Pony AI contributes its proprietary autonomous driving technology stack and AI-powered dispatch systems. This division of responsibilities allows Pony AI to focus on technology development rather than capital-intensive fleet operations.

The structure is reminiscent of successful technology scaling models we've seen in other industries, where technology providers partner with operational experts to accelerate market penetration. This approach helps Pony AI overcome two critical barriers to robotaxi adoption: regulatory compliance and operational complexity.

Particularly noteworthy is Pony AI's existing regulatory achievement as the first company authorized for paid fully-driverless operations in Shenzhen's city centers. This indicates they've already demonstrated the technical capability to navigate complex urban environments including tunnels and irregular intersections - traditionally difficult scenarios for autonomous systems.

This template for expansion, if successful in Shenzhen, could be replicated across other tier-one Chinese cities, potentially creating a scalable deployment model that accelerates Pony AI's path to widespread commercialization while maintaining technology differentiation.

SHENZHEN, China, June 02, 2025 (GLOBE NEWSWIRE) -- Pony AI Inc. (“Pony.ai” or the “Company”) (Nasdaq: PONY), a global leader in achieving large-scale commercialization of autonomous mobility, today announced a strategic partnership with Shenzhen Xihu Corporation Limited (“Xihu Group”), the city's largest taxi operator, to jointly deploy a fleet of more than 1,000 Pony.ai’s seventh-generation (“Gen 7”) Robotaxis in Shenzhen in the coming years. This partnership marks a significant milestone in integrating autonomous driving with local mobility networks by adopting an "asset-light + AI-empowered model", accelerating the large-scale deployment of safe, efficient, and intelligent mobility services to a broader passenger base in tier-one cities in China.

Xihu Group has extensive experience in fleet management with decades of experience in taxi fleet operation, local regulatory compliance and services and maintenance network, playing a crucial role in enabling Pony.ai to scale up Robotaxi services. By integrating Xihu Group's expertise with Pony.ai's proprietary hardware-and-software technology, AI-powered order dispatch capability and deep understanding of user needs, both parties will work together to deliver a seamless autonomous mobility experience.

Under the terms of the agreement, Pony.ai and Xihu Group will jointly deploy more than 1,000 Pony.ai’s Gen 7 Robotaxis in Shenzhen in the coming years. In addition, it is expected to be further empowered by an "asset-light + AI-empowered model", wherein Xihu Group will leverage its strength on fleet and asset operations, safety and service guarantees, and benefit economically from the fleet and asset operations. Meanwhile, Pony.ai will focus on AI technology innovations and scalable Robotaxi dispatch and service, creating a mutually beneficial outcome and accelerating the large-scale development.

As the first company authorized to operate paid fully-driverless robotaxis within Shenzhen's city centers, Pony.ai has proven technical capabilities in navigating complex urban environments including tunnels, dense traffic, and irregular intersections. Going forward, Pony.ai will continue collaborating with more transportation service providers, automakers and third-party partners to promote mass deployment of autonomous mobility.

About Pony AI Inc.

Pony AI Inc. is a global leader in achieving large-scale commercialization of autonomous mobility. Leveraging its vehicle-agnostic Virtual Driver technology, a full-stack autonomous driving technology that seamlessly integrates Pony.ai’s proprietary software, hardware, and services, Pony.ai is developing a commercially viable and sustainable business model that enables the mass production and deployment of vehicles across transportation use cases. Founded in 2016, Pony.ai has expanded its presence across China, Europe, East Asia, the Middle East and other regions, ensuring widespread accessibility to its advanced technology. For more information, please visit: https://ir.pony.ai.

About Shenzhen Xihu Corporation Limited

Established in 1979, Shenzhen Xihu Corporation Limited is a large-scale comprehensive group with transportation as its main business, cultural tourism real estate and financial capital operation, integrating transportation, industry, trade, tourism, real estate, education and environmental protection industrial parks. Xihu Group is renowned in the Shenzhen industry for its high-quality service and standardized management, well-known as a pure electric taxi operator. Currently, it has nearly 5,000 electric taxis.

Safe Harbor Statement

This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “likely to,” and similar statements. Statements that are not historical facts, including statements about Pony.ai’s beliefs, plans, and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. Further information regarding these and other risks is included in Pony.ai’s filings with the SEC. All information provided in this press release is as of the date of this press release, and Pony.ai does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

For investor and media inquiries, please contact:

Pony.ai
Investor Relations
Email: ir@pony.ai
Media Relations
Email: media@pony.ai

Christensen Advisory
Email: pony@christensencomms.com

FAQ

What is the partnership between Pony AI and Xihu Group?

Pony AI and Xihu Group are partnering to deploy over 1,000 Gen 7 Robotaxis in Shenzhen, with Xihu managing fleet operations and Pony.ai providing AI technology and dispatch services.

How many robotaxis will PONY deploy in Shenzhen?

Pony AI plans to deploy more than 1,000 Gen 7 Robotaxis in Shenzhen over the coming years through its partnership with Xihu Group.

What is Pony AI's operational model in Shenzhen?

Pony AI is using an 'asset-light + AI-empowered model' where Xihu Group handles fleet operations and assets while Pony.ai focuses on AI technology and robotaxi dispatch services.

Is Pony AI authorized to operate driverless taxis in Shenzhen?

Yes, Pony AI is the first company authorized to operate paid fully-driverless robotaxis within Shenzhen's city centers.

Who is Xihu Group in the Pony AI partnership?

Xihu Group is Shenzhen's largest taxi operator with decades of experience in fleet management, local regulatory compliance, and maintenance network services.