Key Highlights
- A groundbreaking collaboration between Uber, Pony.ai, and Verne brings Europe’s inaugural commercial autonomous taxi service to Zagreb, Croatia.
- Street trials have commenced utilizing Pony.ai’s Gen-7 self-driving technology integrated into the Arcfox Alpha T5 Robotaxi platform.
- The Croatian startup Verne will manage fleet operations and spearhead regulatory compliance efforts throughout Europe, with Uber providing platform integration.
- As part of this strategic alliance, Uber plans to make a financial investment in Verne.
- Shares of Pony.ai plummeted 12.2% to $10.00 Thursday following disappointing fourth-quarter profit margin results.
Uber Technologies has revealed plans to introduce Europe’s first commercially operating autonomous taxi service, which will debut in Zagreb, Croatia’s capital. This initiative represents a three-company collaboration involving Uber, the Chinese autonomous vehicle technology company Pony.ai, and Verne, an emerging Croatian mobility startup.
Verne — taking its name from the legendary French science fiction author Jules Verne — will assume ownership of the autonomous vehicle fleet and manage daily operational responsibilities. The startup will also spearhead the complex process of obtaining regulatory clearances throughout European jurisdictions while coordinating service availability across both its proprietary application and Uber’s established ride-hailing network.
Pony.ai contributes the critical technological infrastructure. The company’s advanced Gen-7 autonomous navigation system will serve as the backbone of the operation, deployed on the Arcfox Alpha T5 Robotaxi — a specialized vehicle manufactured by Chinese automotive producer BAIC incorporating Huawei’s cutting-edge technology.
Real-world testing on Zagreb’s public roads has already commenced, with commercial fare-based rides anticipated to launch in the near future.
Uber will seamlessly incorporate this autonomous service into its worldwide ride-hailing ecosystem, complementing Verne’s standalone consumer application. As a strategic investor, Uber is committing capital to Verne to facilitate its growth trajectory.
The three-party alliance has articulated ambitious goals to expand the fleet to thousands of self-driving vehicles throughout Zagreb, with subsequent rollout planned for additional European metropolitan areas.
Understanding the Stock Movement
Notwithstanding the significant announcement, Uber stock retreated 1.3% to close at $72.14 during Thursday’s trading session. Pony.ai experienced a more pronounced decline — tumbling 12.2% to $10.00 — following the release of fourth-quarter financial results that revealed gross profit margins slightly under analyst projections. While revenue reached $29.1 million, marginally exceeding the consensus estimate of $28.6 million, the margin shortfall dampened investor enthusiasm.
The subdued response from Uber’s shareholder base indicates that the market has become somewhat desensitized to autonomous vehicle partnership declarations. The ride-hailing giant has now established relationships with approximately two dozen self-driving technology providers across various segments including robotaxis, autonomous freight, robotic delivery systems, and aerial drones.
Pony.ai’s Path Toward Financial Sustainability
Pony.ai completed its initial public offering in 2024, setting the share price at $13. Current trading levels remain substantially below that benchmark. Throughout 2025, the autonomous vehicle company generated $90 million in total revenue while recording an operating deficit of approximately $284 million.
Financial analysts anticipate 2026 revenue climbing to $151 million, with the company establishing an internal target of achieving positive operating profitability by 2029. At that milestone, market forecasts suggest annual revenues could surge to $1.7 billion — an achievement that would necessitate massive fleet expansion from several hundred vehicles to tens of thousands of operational units.
Pony.ai currently maintains commercial robo-taxi operations in both Beijing and Shanghai, positioning the company as a direct competitor to Alphabet’s Waymo division and Tesla in the intensifying global autonomous mobility marketplace.
European markets have fallen behind both American and Chinese competitors in autonomous taxi deployment, with the majority of continental services remaining in experimental phases. Waymo presently maintains active operations spanning 10 American metropolitan areas.
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