Key Highlights
- Uber has partnered with Pony.ai and Verne to introduce Europe’s first commercial autonomous taxi service in Zagreb, Croatia.
- Real-world testing is underway using Pony.ai’s seventh-generation self-driving technology integrated into the Arcfox Alpha T5 Robotaxi platform.
- Verne will manage fleet operations and spearhead regulatory compliance efforts across Europe, while Uber provides platform integration.
- As part of the collaboration, Uber is making a strategic investment in Verne.
- Pony.ai shares plunged 12.2% to $10.00 on Thursday following disappointing fourth-quarter profit margin results.
Uber Technologies has unveiled Europe’s inaugural commercial autonomous taxi service, scheduled to commence operations in Zagreb, Croatia. The initiative represents a collaborative effort among Uber, Chinese self-driving technology company Pony.ai, and Croatian mobility startup Verne.
Verne — taking its name from renowned French author Jules Verne — will maintain ownership of the autonomous vehicle fleet and oversee daily operations. The company will also take the lead in navigating European regulatory frameworks and managing service deployment through both its proprietary application and Uber’s established platform.
Pony.ai provides the technological backbone. The company’s seventh-generation autonomous driving platform will serve as the operational core, deployed on the Arcfox Alpha T5 Robotaxi — a vehicle manufactured by Chinese automaker BAIC incorporating Huawei’s advanced technology.
Real-world testing throughout Zagreb’s streets has already commenced, with passenger-charging services anticipated to launch in the near future.
Uber will incorporate the autonomous taxi offering into its worldwide ride-sharing ecosystem, complementing Verne’s independent consumer-facing application. Additionally, Uber is making a strategic capital investment in Verne to facilitate its growth trajectory.
The three-way partnership has outlined ambitious expansion plans, targeting deployment of thousands of autonomous vehicles in Zagreb before extending operations to additional European metropolitan areas and markets.
Understanding the Share Price Decline
Despite generating significant media attention, Uber stock declined 1.3% to $72.14 during Thursday’s trading session. Pony.ai experienced a more substantial drop — falling 12.2% to $10.00 — following the release of fourth-quarter financial results that revealed gross profit margins slightly beneath analyst projections. While revenue reached $29.1 million, marginally surpassing the consensus estimate of $28.6 million, the earnings quality concerns overshadowed the top-line performance.
The subdued investor response to Uber’s announcement indicates that Wall Street has become increasingly accustomed to autonomous vehicle partnership declarations. Uber has established strategic relationships with approximately two dozen self-driving technology providers across various segments, including robo-taxis, autonomous trucking, delivery robotics, and drone services.
Pony.ai’s Journey Toward Profitability
Pony.ai completed its initial public offering in 2024, setting its share price at $13. The stock currently trades substantially below that benchmark. Throughout 2025, the company generated $90 million in revenue while recording an operating deficit of approximately $284 million.
Analyst forecasts anticipate 2026 revenue climbing to $151 million, with the company establishing a pathway to positive operating profitability by 2029. At that juncture, projections suggest annual revenue could approach $1.7 billion — a target that would necessitate expanding the autonomous fleet from several hundred vehicles to tens of thousands.
Pony.ai currently operates commercial robo-taxi services in Beijing and Shanghai, positioning itself as a competitor to Alphabet’s Waymo and Tesla in the international autonomous transportation arena.
Europe has remained behind the United States and China in autonomous taxi rollouts, with the majority of European services still confined to experimental phases. Waymo presently maintains operations spanning 10 American metropolitan areas.
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