Key Highlights
- A collaborative venture between Uber, Pony.ai, and Verne brings the first commercial autonomous taxi service to Europe, debuting in Zagreb, Croatia.
- Testing is currently underway utilizing Pony.ai’s Gen-7 self-driving technology integrated into the Arcfox Alpha T5 Robotaxi vehicle.
- Verne takes ownership of the fleet and manages operations while spearheading regulatory compliance across Europe, with Uber embedding the service into its app.
- As part of the agreement, Uber is making a strategic investment in Verne to support growth initiatives.
- Pony.ai shares plummeted 12.2% to $10.00 on Thursday following disappointing fourth-quarter profit margin results.
Uber Technologies has revealed plans for Europe’s inaugural commercial autonomous taxi service, scheduled to commence operations in Zagreb, Croatia. The initiative represents a tripartite collaboration involving Uber, Pony.ai—a Chinese autonomous vehicle technology company—and Verne, a Croatian startup.
Verne—taking its name from celebrated French author Jules Verne—will maintain ownership of the vehicle fleet and oversee daily operational management. The company will also spearhead initiatives to obtain necessary European regulatory clearances and manage service deployment across both its proprietary application and Uber’s established platform.
Pony.ai supplies the technological backbone. The company’s Gen-7 autonomous driving platform will serve as the service’s core, operating within the Arcfox Alpha T5 Robotaxi—a vehicle manufactured by Chinese automaker BAIC incorporating Huawei’s advanced technology.
Road testing throughout Zagreb has already commenced, with revenue-generating rides anticipated to launch in the near future.
Uber plans to incorporate the autonomous taxi offering into its worldwide ride-sharing network while Verne simultaneously operates its independent consumer application. Additionally, Uber is becoming a strategic investor in Verne, bolstering the startup’s expansion trajectory.
The three partners have articulated ambitious goals to grow the fleet to thousands of self-driving vehicles in Zagreb, with subsequent expansion planned for additional European metropolitan areas and territories.
What Caused the Stock Decline
Despite the significant announcement, Uber stock decreased 1.3% to $72.14 during Thursday trading. Pony.ai experienced a steeper decline—tumbling 12.2% to $10.00—following the release of 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, the margin shortfall overshadowed the top-line beat.
The subdued response from Uber’s investor base suggests the market has become accustomed to autonomous vehicle partnership disclosures. The ride-hailing giant has now established relationships with approximately two dozen self-driving technology firms across multiple sectors including autonomous taxis, freight transportation, delivery robotics, and aerial drones.
Pony.ai’s Path Toward Profitability
Pony.ai completed its initial public offering in 2024, setting the IPO price at $13 per share. Current trading levels sit considerably beneath that benchmark. Throughout 2025, the autonomous vehicle company generated $90 million in revenue while recording an operating deficit of approximately $284 million.
Financial analysts anticipate 2026 revenue will climb to $151 million, with management targeting operational profitability by 2029. At that juncture, projections suggest annual revenue could approach $1.7 billion—a goal that would necessitate expanding the robo-taxi fleet from several hundred vehicles to tens of thousands.
Pony.ai currently maintains commercial autonomous taxi operations in Beijing and Shanghai, positioning the company alongside Alphabet’s Waymo and Tesla in the competitive global self-driving vehicle marketplace.
Europe has remained behind both the United States and China regarding robo-taxi implementation, with the majority of services still confined to pilot programs and testing phases. Waymo presently maintains operations spanning 10 American cities.
