Autonomous Driving Pioneer Pony AI Launches European Commercial Service

Pony AI is making a decisive move into the European market, marking a significant strategic shift to expand its footprint far beyond its Chinese home base. The technology firm, in collaboration with Uber and Verne, has initiated the continent’s first commercial robotaxi service in Zagreb, Croatia.

Financial Performance and Path to Profitability

The company recently achieved a notable financial milestone. For the fourth quarter of 2025, Pony AI reported its first-ever GAAP profit, driven primarily by strategic investment income. While the full year 2025 still resulted in a net loss of $76.8 million, this figure represents a substantial 72 percent reduction compared to the previous year. Annual revenue simultaneously climbed 20 percent to reach $90 million.

The autonomous ride-hailing segment has shown particularly explosive growth:
* Robotaxi revenue surged 160 percent in Q4 2025.
* Fare-based revenue skyrocketed by over 500 percent.
* In Shenzhen, the daily net revenue per vehicle hit 394 RMB.
* The average number of orders per vehicle in Shenzhen reached 25 rides per day.

The company has already achieved unit economics breakeven in the major Chinese cities of Guangzhou and Shenzhen. With approximately $1.5 billion in liquidity from cash and investments, Pony AI considers itself well-positioned to fund its ongoing scaling efforts.

Should investors sell immediately? Or is it worth buying Pony AI?

Global “Dual-Engine” Strategy and Fleet Expansion

The Croatian launch is a key component of a broader global “Dual-Engine” expansion plan. Management aims to be operational in more than 20 cities worldwide by the end of this year, with nearly half of these locations situated outside of China. Target international markets include Singapore, Qatar, and the United Arab Emirates.

To support this aggressive growth, the company is rapidly scaling its vehicle fleet. As of March 25, 2026, Pony AI’s fleet consisted of 1,446 vehicles. The firm plans to more than double this number to over 3,000 units by year-end. A major driver of this expansion is a partnership with Toyota; the Japanese automotive giant is slated to deliver 1,000 bZ4X model vehicles for autonomous use within this year alone.

Operational Challenges and European Foothold

The Zagreb service integration is now viewed as a pilot project for future launches in other major international cities. While hardware costs for its seventh-generation sensor suite are expected to fall by 20 percent, the central operational challenge remains adapting to the diverse regulatory environments across Europe and Asia. This European offensive represents a critical test for the autonomous driving company’s international ambitions.