Pony.ai Secures First Permit for Fully Driverless Taxi Operations in Shenzhen

Pony.ai, a Chinese robotaxi startup, has achieved a significant milestone by becoming the first company in China to acquire a permit that allows it to charge fares for fully driverless taxi services. This permit pertains to selected areas in the bustling Nanshan business district of Shenzhen, a city often referred to as China's Silicon Valley due to its vibrant technology landscape.

The approval granted to Pony.ai is a crucial development in the city's ongoing efforts to embrace cutting-edge transportation solutions. The company is now authorized to operate without any human staff inside the vehicles in designated parts of the district, which is also home to major tech firms like Tencent and DJI. However, the permit has its limitations, as it only covers specific zones, particularly the financial sub-district, rather than the entire area.

Previously, Pony.ai has conducted trials in other areas of Shenzhen and has offered services with human operators in regions that connect to key locations such as the Shenzhen International Airport and the Shenzhen Bay Checkpoint, which leads to Hong Kong.

While the exact number of robotaxis operating in the Shenzhen area was not disclosed, Pony.ai has mentioned that these driverless vehicles can function daily from 7:30 a.m. to 10 p.m. local time. Residents can book rides using Pony.ai's dedicated app or through a mini-program available on the WeChat messaging platform.

Pony.ai is not only active in Shenzhen but also operates robotaxi services in other major Chinese cities like Beijing, Shanghai, and Guangzhou, totaling over 250 cars across the country as of late November last year.

In late 2021, Beijing's local authorities began allowing both Pony.ai and Baidu's Apollo Go to charge fares for their robotaxi services in a southern suburb of the city. Recently, Pony.ai launched a paid route for its robotaxis from this suburb to Beijing South Railway Station, although current regulations require a human staff member to be present in the driver's seat.

In its latest reports, Pony.ai noted a "significant increase" in passenger fares during the fourth quarter compared to the same period the previous year. However, the overall revenue from its robotaxi services saw a notable decline of about 61.9%, amounting to $2.6 million. This decrease was primarily due to reduced service fees related to its autonomous vehicle engineering solutions. In contrast, the company reported a 72.7% rise in revenue from its robotruck services, totaling $12.9 million thanks to the expansion of its robotruck fleet.

Pony.ai, robotaxi, Shenzhen