The companies are exploring various monetization models, including selling advanced driver assistance systems (ADAS) to automotive original equipment manufacturers (OEMs), forming partnerships with OEMs, and securing government contracts. However, these models come with their own challenges, such as limited revenues, reluctance of OEMs to share user data, and lengthy and arduous processes. Some companies, like Pony and WeRide, are also expanding to overseas markets like the Middle East. The next year is expected to be crucial for these companies as they strive to prove the viability of their new business models amidst drying funding and accumulating losses.
Key takeaways:
- Chinese robotaxi startups, including Deeproute.ai, WeRide.ai, Pony.ai and Momenta, are seeking alternative revenue streams as the widespread commercialization of robotaxis remains a distant reality and their valuations become prohibitive for most investors.
- These companies are shifting to less advanced but more commercially viable smart-driving solutions, such as advanced driver assistance systems (ADAS), and are also exploring partnerships with automotive original equipment manufacturers (OEMs).
- Some companies, like WeRide, are depending on government contracts for survival, while others, like Pony, are exploring overseas markets like the Middle East.
- Despite these efforts, there is disagreement among industry insiders about the profitability of these alternative business models, and the next year is expected to be a critical time for these companies as funding dries up and losses continue to accumulate.