TLDR
- Uber has partnered with Pony.ai and Verne to introduce Europe’s inaugural commercial autonomous taxi service in Zagreb, Croatia.
- Road testing is currently underway utilizing Pony.ai’s Gen-7 self-driving technology integrated into the Arcfox Alpha T5 Robotaxi vehicle.
- Verne will manage fleet ownership and operations while spearheading European regulatory compliance efforts, with Uber providing platform integration.
- As part of the partnership agreement, Uber is making a strategic investment in Verne.
- Pony.ai shares plummeted 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 between Uber, Pony.ai (a Chinese self-driving technology company), and Verne, a Croatian startup.
Verne — taking its name from celebrated French author Jules Verne — will maintain fleet ownership and manage daily operations. The company will also spearhead efforts to obtain European regulatory clearances and coordinate service deployment across both its proprietary application and Uber’s existing platform.
Pony.ai provides the technological backbone. The company’s Gen-7 autonomous driving platform will drive the service, operating within the Arcfox Alpha T5 Robotaxi — a vehicle manufactured by Chinese carmaker BAIC incorporating Huawei’s technology.
Public road testing throughout Zagreb has already commenced, with paid passenger services anticipated to begin shortly.
Uber will incorporate the autonomous taxi offering into its worldwide ride-sharing network while supporting Verne’s independent customer application. Additionally, Uber is making a strategic capital investment in Verne to facilitate its growth trajectory.
The three partners have announced plans to expand the fleet to thousands of autonomous vehicles in Zagreb, with eventual expansion planned for additional European metropolitan areas.
Why the Stock Fell
Notwithstanding the significant announcement, Uber stock declined 1.3% to $72.14 during Thursday’s trading session. Pony.ai experienced a steeper decline — plunging 12.2% to $10.00 — following fourth-quarter earnings that revealed gross profit margins falling short of analyst projections. While revenue reached $29.1 million, marginally exceeding the $28.6 million consensus estimate, it proved insufficient to counterbalance the margin disappointment.
The subdued investor response to the Uber announcement suggests the market has become accustomed to autonomous vehicle partnership declarations. Uber has established relationships with approximately two dozen self-driving vehicle providers across robo-taxis, autonomous trucking, delivery robotics, and aerial drone operations.
Pony.ai’s Road to Profitability
Pony.ai completed its public offering in 2024, with shares initially priced at $13. The stock currently trades significantly below that debut price. Throughout 2025, the company generated $90 million in revenue while recording an operating deficit of approximately $284 million.
Analyst projections anticipate 2026 revenue climbing to $151 million, with the company aiming to achieve positive operating profitability by 2029. At that point, forecasts suggest annual revenue could surge to $1.7 billion — a target requiring the autonomous fleet to expand from several hundred vehicles to tens of thousands.
Pony.ai currently provides commercial robo-taxi services in Beijing and Shanghai, positioning itself as a direct competitor to Alphabet’s Waymo and Tesla in the worldwide autonomous vehicle marketplace.
Europe has trailed behind the United States and China in autonomous taxi deployment, with most European initiatives remaining in experimental phases. Waymo presently operates throughout 10 American cities.
