(Yicai) May 7 -- Pony AI's shares skyrocketed after the Chinese self-driving technology startup said it is linking arms with Uber Technologies to deploy its robotaxis on the ride-hailing giant’s platform.

Pony AI [NASDAQ: PONY] closed 48 percent higher at USD14.32 a share in New York yesterday. The stock has soared 244 percent since April 23, when the Guangzhou-based company unveiled its new autonomous driving solution and robotaxi fleet on the first day of the Shanghai Auto Show.

The partnership is expected to first launch in a key market in the Middle East later this year, Pony AI said in a statement released the same day, adding that the plan is to scale deployments to additional international markets in the future.

“At Pony.ai, our vision is to develop autonomous driving technology that is not only safe and reliable but also scalable, transforming daily transportation," said Chief Executive Peng Jun. "Partnering with Uber accelerates our shared mission to make autonomous mobility a real, everyday experience for more consumers around the world.

"By combining our proven autonomous systems with Uber's unparalleled ride-hailing platform, we're poised to set a new standard for the commercialization of driverless services, starting in the Middle East before expanding to new markets," Peng noted.

Established in 2016, Pony AI is trialing its robotaxi services in China's four first-tier cities of Beijing, Shanghai, Guangzhou, and Shenzhen through partnerships with several carmakers. It also allied with Tencent Holdings on April 25 to promote its robotaxi services on the Shenzhen-based tech giant's super app Weixin, known internationally as WeChat.

Pony AI expects to break even by 2028 or 2029, depending on the number of robotaxis it deploys commercially, Peng said during the Shanghai Auto Show that ended May 2.

But the firm still has some way to go before achieving profitability, after its net loss widened 120 percent to USD275 million last year, mainly because of higher research and development spending. Revenue rose 4 percent to USD75 million, but only USD7.3 million came from its robotaxi services, while the rest was from its self-driving truck and tech licensing businesses. 

Editor: Martin Kadiev