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UBER vs. PONY: Which Stock is Leading in Autonomous Ride-Hailing?
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Key Takeaways
UBER expands AV reach via partnerships with WeRide in Dubai and NVIDIA for AI-driven mobility solutions.
PONY plans to expand its fleet to over 1,000 robotaxis by 2025, focusing on key Chinese cities.
PONY's partnership with Shenzhen's top taxi firm supports large-scale Gen 7 robotaxi deployment.
The robotaxi market has huge potential. The global robotaxi market is projected to reach $45.7 billion by 2030, at a CAGR of 91.8% from 2023 to 2030. This highly lucrative space attracts both Pony AI (PONY - Free Report) , an autonomous-driving company based in Guangzhou, China, and ride-hailing company Uber Technologies (UBER - Free Report) . Let’s delve into the autonomous vehicle (AV)-related details of 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 its self-driving division but continued to focus on becoming the ultimate ride-hailing super app.
In line with its partnership-driven strategy, Uber announced a deal with China’s WeRide (WRD - Free Report) earlier this year to introduce self-driving cars in Dubai. The companies announced a partnership with Dubai’s Road and Transport Authority. This collaboration aims to integrate WeRide's self-driving technology into Uber's platform.
The partnership, which will explore data insights, safety protocols and regulatory frameworks to support a smooth transition to autonomous mobility, is in line with Dubai’s goal of making one-fourth of all city trips autonomous by 2030. Dubai represents the second city in the region where WeRide and Uber are teaming up to bring cutting-edge autonomous mobility solutions to the public. In December 2024, Uber and WeRide launched a robotaxi service in Abu Dhabi.
The deal with NVIDIA (NVDA - Free Report) is another prominent one inked by Uber this year in the autonomous ride-sharing landscape. By leveraging NVIDIA’s cutting-edge AI platforms—Cosmos and DGX Cloud—and Uber’s vast repository of ride data, the partnership aims to create scalable and efficient AV models. Uber’s partnership with NVIDIA is aimed at accelerating the development of autonomous driving solutions.
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.
A Look at PONY’s Role in the Robotaxi Field
Pony AI aims to have in excess of 1,000 robotaxis in its fleet by 2025-end, from around 250 robotaxis late last year. Management stated on the first-quarter 2025 conference call that the large-scale deployment will ramp up gradually throughout the second half of the year. PONY is working closely with its partners, like Uber, to ensure a quick ramp-up.
Pony is also looking to strengthen its approach to sourcing key components to allow it to rapidly adapt to changing demand and ensure the efficient execution of its mass production plans. Moreover, the company’s long-lasting collaborations with the central and local governments should also help in the quick ramp-up. PONY’s government collaborations not only enhance its credibility but also position it to secure licenses required for commercial deployment of its Gen 7 robotaxis. Pony’s seventh-generation robotaxis have already hit the roads (for testing purposes) in the southern Chinese megacities of Guangzhou and Shenzhen.
In May, PONY partnered with Uber to deploy its robotaxis on the Uber platform. The partnership is expected to be launched in a key market in the Middle East later this year, with scope for further expansion. During the pilot phase, the robotaxis will have a safety operator onboard. PONY’s technology is a suitable choice for Uber's global platform as it is scalable and cost-effective. Recently, PONY entered into a partnership with Shenzhen Xihu Corporation Limited, Shenzhen’s largest taxi operator. Through this association, PONY plans to deploy more than 1,000 Gen 7 robotaxis throughout the city. This move represents one of PONY’s boldest fleet scale-up efforts to date and signals its growing operational focus on tier-one urban centers in China.
How Do UBER And PONY’s Key Metrics Stack Up?
Shares of PONY have declined in excess of 5% since its Nasdaq debut in November 2024. Uber shares have gained in double digits in the same time frame.
Image Source: Zacks Investment Research
The bottom-line estimates for both Pony and Uber have remained stable over the past seven days.
PONY's Earnings Estimate Revisions
Image Source: Zacks Investment Research
UBER's Earnings Estimate Revisions
Image Source: Zacks Investment Research
Conclusion
Even though Uber’s autonomous vehicle technology is advancing, commercialization is likely to take significantly longer. Regulatory challenges may result in Uber taking longer to commercialize the autonomous vehicle business. Concerns that self-driving cars could eliminate intermediary services are also prevalent as far as Uber is concerned.
Pony is already a leading player in the autonomous driving technology industry. Moreover, Pony’s operations are likely to be minimally impacted by the tariff uncertainty. On the first-quarter 2025 conference call, management confirmed that the majority of the company’s supply chain is sourced locally. China’s robotaxi market, of which Pony AI is an integral part, is growing rapidly. Driven by positives like unwavering support from the country’s government, a large market for robotaxis, and a cost-effective supply chain, China is becoming a global leader in autonomous vehicle technology and robotaxi deployment. As of 2024, China’s self-driving taxi market was valued at approximately $12 billion, with scope for further expansion. The U.S. self-driving taxi market was valued at only $8 billion.
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).
Image: Bigstock
UBER vs. PONY: Which Stock is Leading in Autonomous Ride-Hailing?
Key Takeaways
The robotaxi market has huge potential. The global robotaxi market is projected to reach $45.7 billion by 2030, at a CAGR of 91.8% from 2023 to 2030. This highly lucrative space attracts both Pony AI (PONY - Free Report) , an autonomous-driving company based in Guangzhou, China, and ride-hailing company Uber Technologies (UBER - Free Report) . Let’s delve into the autonomous vehicle (AV)-related details of 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 its self-driving division but continued to focus on becoming the ultimate ride-hailing super app.
In line with its partnership-driven strategy, Uber announced a deal with China’s WeRide (WRD - Free Report) earlier this year to introduce self-driving cars in Dubai. The companies announced a partnership with Dubai’s Road and Transport Authority. This collaboration aims to integrate WeRide's self-driving technology into Uber's platform.
The partnership, which will explore data insights, safety protocols and regulatory frameworks to support a smooth transition to autonomous mobility, is in line with Dubai’s goal of making one-fourth of all city trips autonomous by 2030. Dubai represents the second city in the region where WeRide and Uber are teaming up to bring cutting-edge autonomous mobility solutions to the public. In December 2024, Uber and WeRide launched a robotaxi service in Abu Dhabi.
The deal with NVIDIA (NVDA - Free Report) is another prominent one inked by Uber this year in the autonomous ride-sharing landscape. By leveraging NVIDIA’s cutting-edge AI platforms—Cosmos and DGX Cloud—and Uber’s vast repository of ride data, the partnership aims to create scalable and efficient AV models. Uber’s partnership with NVIDIA is aimed at accelerating the development of autonomous driving solutions.
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.
A Look at PONY’s Role in the Robotaxi Field
Pony AI aims to have in excess of 1,000 robotaxis in its fleet by 2025-end, from around 250 robotaxis late last year. Management stated on the first-quarter 2025 conference call that the large-scale deployment will ramp up gradually throughout the second half of the year. PONY is working closely with its partners, like Uber, to ensure a quick ramp-up.
Pony is also looking to strengthen its approach to sourcing key components to allow it to rapidly adapt to changing demand and ensure the efficient execution of its mass production plans. Moreover, the company’s long-lasting collaborations with the central and local governments should also help in the quick ramp-up. PONY’s government collaborations not only enhance its credibility but also position it to secure licenses required for commercial deployment of its Gen 7 robotaxis. Pony’s seventh-generation robotaxis have already hit the roads (for testing purposes) in the southern Chinese megacities of Guangzhou and Shenzhen.
In May, PONY partnered with Uber to deploy its robotaxis on the Uber platform. The partnership is expected to be launched in a key market in the Middle East later this year, with scope for further expansion. During the pilot phase, the robotaxis will have a safety operator onboard. PONY’s technology is a suitable choice for Uber's global platform as it is scalable and cost-effective. Recently, PONY entered into a partnership with Shenzhen Xihu Corporation Limited, Shenzhen’s largest taxi operator. Through this association, PONY plans to deploy more than 1,000 Gen 7 robotaxis throughout the city. This move represents one of PONY’s boldest fleet scale-up efforts to date and signals its growing operational focus on tier-one urban centers in China.
How Do UBER And PONY’s Key Metrics Stack Up?
Shares of PONY have declined in excess of 5% since its Nasdaq debut in November 2024. Uber shares have gained in double digits in the same time frame.
The bottom-line estimates for both Pony and Uber have remained stable over the past seven days.
PONY's Earnings Estimate Revisions
UBER's Earnings Estimate Revisions
Conclusion
Even though Uber’s autonomous vehicle technology is advancing, commercialization is likely to take significantly longer. Regulatory challenges may result in Uber taking longer to commercialize the autonomous vehicle business. Concerns that self-driving cars could eliminate intermediary services are also prevalent as far as Uber is concerned.
Pony is already a leading player in the autonomous driving technology industry. Moreover, Pony’s operations are likely to be minimally impacted by the tariff uncertainty. On the first-quarter 2025 conference call, management confirmed that the majority of the company’s supply chain is sourced locally. China’s robotaxi market, of which Pony AI is an integral part, is growing rapidly. Driven by positives like unwavering support from the country’s government, a large market for robotaxis, and a cost-effective supply chain, China is becoming a global leader in autonomous vehicle technology and robotaxi deployment. As of 2024, China’s self-driving taxi market was valued at approximately $12 billion, with scope for further expansion. The U.S. self-driving taxi market was valued at only $8 billion.
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