Pony.ai to Launch Driverless Robotaxi Service in California

Pony.ai Advances Driverless Vehicle Testing in California

Pony.ai, a leading robotaxi company with operations spanning both China and the United States, has initiated trials of driverless vehicles on California’s public roadways. These tests are a precursor to the anticipated launch of a commercial robotaxi service within the state in 2022.

Driverless Testing Underway

The company confirmed that daily testing of vehicles operating without human safety drivers is currently taking place in Fremont and Milpitas, California. Simultaneously, Pony.ai is conducting similar driverless vehicle assessments in Guangzhou, China.

Plans are also in motion to reinstate a public rideshare program in Irvine this summer, utilizing autonomous vehicles (AVs) initially equipped with human safety operators. The ultimate objective remains the deployment of a fully driverless service to the general public by 2022.

Vision for Full Autonomy

“Achieving complete driverlessness is fundamental to realizing true autonomy and serves as a vital impetus for our ambitious long-term vision,” stated James Peng, CEO and co-founder of Pony.ai.

Navigating Regulatory Approvals

Despite this progress, Pony.ai still faces necessary regulatory approvals before commencing commercial operations. Companies seeking to offer driverless rides to the public require deployment permits from both the California Department of Motor Vehicles (DMV) and the California Public Utilities Commission (PUC).

Recently, Cruise became the first entity to secure a driverless autonomous service permit from the California PUC, enabling passenger transport testing. The subsequent step, a deployment permit from the DMV – currently held only by Nuro – is also crucial.

California Permit and Industry Context

Pony.ai’s recent milestone in California follows the state’s issuance of a permit in May, authorizing the testing of a six-vehicle driverless fleet within a 39-square-mile zone. While 55 companies currently hold permits for autonomous vehicle testing with safety drivers, permission for driverless operation is less frequently granted.

Pony.ai is the eighth company to receive a driverless testing permit in California, joining other firms like AutoX, Baidu, WeRide (all Chinese), and Cruise, Nuro, Waymo, and Zoox (U.S.-based). Currently, Nuro is the sole recipient of a deployment permit, allowing commercial operation.

Company History and Evolution

Founded in 2016 by former Baidu engineers Peng and Lou Tiancheng, Pony.ai has been authorized to test autonomous vehicles with safety drivers since 2017. The May DMV permit expands upon the company’s existing operational scope within the state.

Previous Ridesharing and Delivery Services

Pony.ai has previously operated ridesharing services in Fremont and Irvine, California. In 2019, the BotRide pilot program utilized a fleet of electric Hyundai Kona crossovers, equipped with Pony.ai’s self-driving system and Via’s ride-hailing platform, to transport customers on public roads. This service, however, required a human safety driver.

Subsequently, Pony.ai launched PonyPilot, a robotaxi service in Irvine, which was later adapted to focus on package delivery in response to the COVID-19 pandemic. A partnership with e-commerce platform Yamibuy facilitated autonomous last-mile delivery to customers in Irvine, addressing increased online order volumes.

Future Outlook and Funding

With the easing of pandemic restrictions and California’s return to normalcy, Pony.ai is preparing for the launch of its commercial robotaxi service. The company has secured partnerships and over $1 billion in funding, including a $400 million investment from Toyota, to support this endeavor.

In November of last year, Pony.ai’s valuation reached $5.3 billion following a $267 million funding round. The company maintains collaborative relationships with various automakers and suppliers, including Bosch, Hyundai, and Toyota.