Pony.ai CEO James Peng: robotaxis widespread within five years

James Peng's prediction at the Fortune Leaders Forum comes as Pony.ai, founded in 2016, already operates commercial robotaxi services across four major Chinese cities. The company's average of about 25 rides per day per vehicle suggests usage is moving beyond novelty, with Peng emphasizing that riders span different age groups and professions, not just tech enthusiasts.

Pony.ai's international push includes an expanded Uber partnership to deploy more than 2,000 robotaxis across Europe and an agreement to bring 200 robotaxis to South Korea by 2028. Peng says he selects expansion cities based on relatively expensive taxi markets and favorable regulations, with Uber partnerships helping build trust with governments. Competitors WeRide and Baidu are also expanding abroad in Southeast Asia and Europe, while Peng credits China's "supportive" regulatory environment for the country's strength in autonomous driving.

The financial picture remains mixed: robotaxi revenue reached $12.1 million in Q2, up almost 700% year over year, yet the company still reported an operating loss of $65.7 million. The broader stakes involve urban transformation, as Peng argues robotaxis could reduce parking needs since most private cars are used only about two hours daily. The outcome likely hinges on whether cities adopt favorable regulations and whether economics improve enough to offset ongoing losses.