Robotaxi company Pony.Ai has hundreds of driverless taxis in China’s major cities and has plans to expand in Europe and the Middle East. CNN’s Marc Stewart takes a trip in one of their robotaxis to see how it navigates the streets of Shanghai.

Shanghai

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RoboTaxi company Pony.Ai, co-founded in Silicon Valley in 2016 by CEO James Peng, has established a significant presence in China with a fleet of approximately 300 driverless taxis. These vehicles operate in several major Chinese cities, including Shanghai, offering level four autonomous driving capabilities. Level four autonomy allows the vehicle to operate independently, though a driver can intervene if necessary.

Pony.Ai's robotaxis provide a private, competitively priced alternative to traditional taxi services and ride-hailing apps such as Didi. Passengers experience a fully automated ride, where the steering wheel moves on its own and navigation is controlled by the system, creating a distinct environment compared to conventional taxis.

The company emphasizes safety as a core concern, particularly in light of public scrutiny following a fatal crash involving a Xiaomi SUV. Chinese authorities have responded by increasing restrictions on how electric vehicles advertise their autonomous features. Industry leaders, including Peng, advocate for clear standards and frameworks developed by expert groups and regulators to ensure safety.

Pony.Ai aims to expand its fleet to 1,000 autonomous taxis in Chinese cities in the near future. Beyond China, the company is extending its reach into Europe, having secured a testing permit in Luxembourg, and plans to partner with Uber in the Middle East. Despite having a research and development center in California, the company reports minimal short-term impact from U.S. trade tariffs, though acknowledges such policies can create uncertainty for future business operations. Many Chinese electric vehicle and automotive technology companies have experienced similar limitations due to trade restrictions.

Pony.Ai views building trust with riders as essential to the broader adoption of autonomous vehicles. The company continues to pursue both domestic and international opportunities as the industry adapts to evolving regulations and market demands.



China’s driverless taxis are en route to new regions

RoboTaxi company Pony AI was co-founded in Silicon Valley in 2016 by CEO James Peng, a former Baidu and Google engineer. The U.S. market currently, of course, Waymo is leading the way, and Tesla is coming up with cyber autonomous driving as well. Our main focus actually shifted into China and the rest of the world. They currently have a fleet of around 300 driverless taxis in parts of China's four tier one cities, including Shanghai. I have ridden in taxis around the world, but this is the first time I'm going to use an autonomous driverless taxi system. All right, we'll give this a try. Start ride. OK, here we go. This is new. This is crazy. And there's a map that's telling us exactly where we're going. There's lots of traffic. There's people on their bikes. There's people waiting to cross the street. We really wouldn't know that there isn't a driver on board, except when you look to the front, the steering wheel is turning completely on its own. I have to admit, this is a very surreal feeling. People actually get used to it and start playing with their phones and do all sorts of other things. So why then take a driverless cab here rather than, say, a Didi, a Chinese taxi app service similar to Uber? What we are offering is a level four experience where the vehicle itself will be in charge of all the driving and the safety. We're providing similar experience like Didi. It's a private space and it's a similar price or even a little bit cheaper. Level four autonomous driving is capable of navigating without a driver, although a driver can take back control if needed. Right now, some EV makers offer lower level driver assistance in their passenger cars where the driver must be attentive and ready to take back control at any time. There have been concerns over intelligent driving safety in China after a fatal crash of a Xiaomi SUV in March, causing the government to tighten restrictions on advertising for EVs using words like autonomous and smart. Safety is always hyper important. I think any accidents like those is a tragedy. So we shouldn't overpromoting the capability of the vehicle. I think more can be done is on the standards. It's the industry group that who are the experts come up with the detailed standards. I think government should have a framework. Incidents like these have put pressure on EV makers and robo taxi companies to prove to regulators and customers their products are safe. Peng says word of mouth is the first step to building trust. I think it's a matter of how we can help the riders to build a trust between the rider and the vehicle. The goal is to have a thousand of these robo taxis active in China's cities by the end of the year. We are in Shanghai, a city of more than 20 million people. I wonder what the potential will be. Will this result in safer drives? Will it reduce congestion? This has potential to be a big game changer. Pony AI has an R&D center in California, but Peng says the impact of U.S. trade tariffs on their plans is minimal in the short term. Luckily, we were not directly impacted. But of course, it's the sediment. It's the potential. What's next? I think still definitely have some somewhat of a restraining factor on us. Many Chinese EV makers and auto tech companies already felt that restraining factor from trade tariffs from President Trump's first term and now have minimal U.S. presence. Meanwhile, Pony AI is moving into Europe with a permit for testing in Luxembourg and partnering with Uber in the Middle East later this year, proving the industry shakeup may offer a new roadmap for the future.

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