The robotaxi market has huge potential, as evidenced by the fact that the market, which was valued at $0.4 billion in 2023, is expected to reach $45.7 billion in 2030, at a compound annual growth rate of 91.8% during 2023-2030, according to Markets and Markets. This highly lucrative space attracts both Pony AI PONY, an autonomous-driving company based in Guangzhou, China, and ride-hailing company Uber Technologies UBER. Let's delve into the autonomous vehicle or AV-related details for the two companies.
AV Ambitions of Uber
Uber aims to gain a stronghold in the robotaxi market through strategic partnerships. By adopting this approach, Uber has avoided the massive R&D costs associated with developing autonomous systems independently. In 2020, Uber sold the self-driving division but retained its focus on becoming the ultimate ride-hailing super app.
In line with its partnership-driven strategy, last month, Uber, in collaboration with WeRide WRD, a Chinese autonomous vehicle company, announced plans to introduce commercial robotaxi services in the Greater Zurich Region. This move represents their second joint deployment in Europe, coming just weeks after the announcement of a similar initiative in Madrid.
Since December 2024, WeRide and Uber have introduced robotaxi services across several Middle Eastern markets, including fully driverless commercial operations in Abu Dhabi and Dubai, as well as public services in Riyadh. These deployments provide an operational foundation for their European expansion.
Earlier in the year, Uber entered into a strategic partnership with Amazon’s AMZN Zoox to deploy its purpose-built robotaxis on the former’s platform. The Amazon unit’s robotaxis differ from many other autonomous vehicles currently in development because they are not modified versions of traditional passenger cars. Instead, the vehicles are purpose-built specifically for ride-hailing services and designed to enhance rider comfort and social interaction. The Amazon unit and Uber indicated that Zoox rides are expected to be available in Los Angeles next year.
Uber’s dominant market share in the ride-hailing industry also gives it a unique advantage in the AV space. With its vast network of drivers and customers, Uber can quickly scale autonomous services once the technology matures. Its app is designed to integrate AVs from multiple partners, giving users a variety of options.
Taking a Look at PONY’s Role in the Robotaxi Field
Supporting the AV growth strategy, PONY recently announced that its autonomous mobility service in Singapore, operated in partnership with ComfortDelGro, can now be booked through ComfortDelGro's Zig app. The introduction of consumer-facing app access represents the next phase of the service's rollout in Punggol, broadening availability beyond the initial invitation-only trial and moving toward a more scalable, customer-oriented operating model.
Since June 22, residents and visitors in Singapore's Punggol district have been able to book autonomous rides using the Zig app. After confirming a reservation, passengers travel in Zig-branded vehicles equipped with PONY's self-driving technology along designated routes across northern Punggol.
Since introducing its "dual-engine" growth strategy earlier this year, the Chinese autonomous driving company has continued to broaden its robotaxi presence across both domestic and international markets. These expansion efforts reinforce management's goal of extending its footprint to more than 20 cities worldwide by the end of 2026.
Within China, PONY has further expanded its presence in several strategic markets, including deeper coverage of Guangzhou's urban core. Its operating network now spans the Haizhu District and reaches major high-traffic destinations, including the Canton Tower and the Pazhou business district.
How Do UBER And PONY’s Key Metrics Stack Up
Shares of both PONY and UBER have declined in double digits (% wise) over the past year, even though the latter’s drop is less steep.
1-Year Price Comparison
See how the Zacks Consensus Estimate of UBER and PONY’s earnings for 2026 and 2027 has been revised over the past 30 days.
Earnings Estimate Revisions for UBER
Earnings Estimate Revisions for PONY
Conclusion
While Uber continues to make progress in AV technology, the path to large-scale commercialization is expected to remain lengthy. Regulatory approvals and compliance requirements could slow the commercialization of its AV business. In addition, concerns persist that the widespread adoption of self-driving vehicles may eventually lessen the need for intermediary ride-hailing platforms such as Uber.
Meanwhile, Pony AI has firmly positioned itself as one of the leading companies in the autonomous driving space. The company is also relatively well insulated from tariff-related uncertainties as most of its supply chain is domestically sourced. Moreover, China's robotaxi market, where Pony AI is a major participant, continues to expand at a rapid pace. Supported by favorable government policies, a sizable addressable market and an efficient local supply chain, China is strengthening its position as a global hub for autonomous driving innovation and robotaxi deployment.
Based on our analysis, PONY seems a better pick than UBER now.
While PONY carries a Zacks Rank #2 (Buy), UBER currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Uber Technologies, Inc. (UBER): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).