Uber Technologies is reportedly planning to invest in the US initial public offering (IPO) of Pony AI, a China-based autonomous driving firm, reported Bloomberg, citing sources.
The IPO, which has been upsized, is expected to be priced next week, according to the undisclosed sources.
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There is also potential for Uber to use Pony AI’s technology in a partnership outside the US, according to a source.
Uber’s interest in Pony AI’s IPO underscores the company’s continued focus on autonomous driving technology.
It also follows Uber’s recent investment in the US IPO of China’s WeRide and its robotaxi service agreement in Abu Dhabi.
The size of Uber’s potential investment in Pony AI is still under deliberation and has not been finalised.
Representatives from Uber and WeRide have declined to comment on the matter, while Pony AI has not responded to requests for comment by Bloomberg.
Uber has been actively collaborating with various automated driving technology firms, including Waymo and Wayve Technologies.
Pony AI’s IPO was initially set for pricing on 21 November but was postponed as the company addresses regulatory questions.
The offering has been increased to 20 million American depository shares from the initially planned 15 million, potentially raising $260m, with a price range of $11 to $13 per share.
Founded in 2016, Pony AI develops and operates self-driving fleets in the US and China, including trucks and robotaxis.
The company holds permits to provide fare-charging, fully driverless taxi services in Beijing, Shenzhen, and Guangzhou.
Other companies, such as Beijing Automotive Group and Guangzhou Automobile Group, have also shown interest in participating in Pony AI’s IPO.
Pony AI, which is 13.4% owned by Toyota Motor Corporation, operates a fleet of over 250 robotaxis in China.
The company reported that its revenues doubled to nearly $25m in the first half of 2024, despite incurring a net loss of $51m.
In 2022, Pony AI was valued at $8.5bn and secured $100m in funding from Saudi Arabia’s Neom Investment Fund last year.
