Pony AI Inc. (NASDAQ:PONY) on Monday disclosed a strategic collaboration with Shenzhen’s largest taxi operator, Shenzhen Xihu Corporation Limited, to deploy a fleet of over 1,000 Pony.ai’s seventh-generation Robotaxis in Shenzhen in the coming years.

This partnership utilizes an ‘asset-light + AI-empowered model’ to integrate autonomous driving with local mobility networks, with the goal of supporting the deployment of intelligent mobility services to more passengers in China’s tier-one cities, the company said.

Xihu Group will focus on fleet and asset operations, safety and service guarantees, and benefit economically from the fleet and asset operations.

Also Read: Tesla Autonomous Driving Rival Pony AI To Expand Robotaxi Fleet Into Dubai Following Agreement With Regulators

Meanwhile, Pony.ai will concentrate on AI technology innovations and scalable Robotaxi dispatch and services, fostering a mutually beneficial outcome that accelerates large-scale development.

This partnership merges Xihu Group’s operational know-how with Pony.ai’s proprietary hardware/software, AI-powered dispatch, and deep understanding of user needs to deliver a seamless autonomous mobility experience.

Pony has been on a collaboration spree to boost expansion across the world.

Last week, Pony AI announced that it signed a memorandum of understanding with Dubai’s Roads and Transport Authority to deploy driverless taxis in the region.

Notably, the company already has licenses in the U.S., South Korea, China and Luxembourg, and has more than 270 robotaxis in its fleet in China.

In May, the company confidentially filed for a Hong Kong initial public offering to help raise capital to expand its business.

Investors can gain exposure to the stock via First Trust S-Network Electric & Future Vehicle Ecosystem ETF (NASDAQ:CARZ).

Price Action: PONY shares are trading higher by 4.36% to $20.10 premarket at last check on Monday.

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