Pony.ai, based in China, is a global autonomous driving technology company. Uber might just acquire it soon. Here’s the scoop.
Closed-door talks
When preliminary discussions lead to official acquisition. Uber is reportedly in talks with its co-founder and former CEO, now the chief executive officer of CloudKitchens, Travis Kalanick, to pave the way for the funding of the United States division of Pony.ai, the New York Times stated.
“The talks signal Uber’s response to growing competition from self-driving taxi services such as Waymo and Tesla,” ridesharing media stated.
Kalanick has a rather controversial story in the world of business.
He was the CEO of Uber starting from 2010 until 2017. He was forced to resign in 2017 after speculations and public pressure that he got involved in unethical practices within the company, including reports of sexual harassment at Uber.
During his tenure at Uber, Kalanick was able to develop autonomous vehicle technologies, notably through the acquisition of Otto, a self-driving trucking start-up spearheaded by former Google engineer Anthony Levandowski.
However, he was able to keep his seat on the directorial board until he resigned on New Year’s Eve of 2019. In the weeks leading up to his resignation, he did a smart move of selling off approximately 90 percent of his shares in Uber. That way, he was able to profit about $2.5 billion.
After the sale, he got in on Forbes 400 list of richest Americans.
Right now, he is part of CloudKitchens. CloudKitchens is a company that operates ghost kitchens. These ghost kitchens, or otherwise known as virtual kitchens, are commercial kitchens designed for delivery and takeout solely. There is no dine-in option.
Under this business model, restaurants operate with lower overhead costs – overhead costs are some of the biggest challenges when running restaurants – by eliminating the need of a front-of-house staff and dining space.
Usually, ghost kitchens are partnered with online platforms like delivery apps – such as Uber Eats – or direct via the restaurant’s website. Then, the food is prepared in the ghost kitchen, then delivered to the customer.
The sources who broke the news indicated the talks are still in their early stage. They requested for anonymity for privacy and safety reasons.
Should the deal proceed
So, it could be concluded that the talks are confidential. So, how did the media uncover it?
Nevertheless, if the deal proceeds, Kalanick would lead the Chinese company while still continuing with this role in CloudKitchens, which he founded after he resigned from Uber in 2017 following the boardroom coup.
The financial terms of the possible transaction are undisclosed. Also, it is unclear whether Uber would take an investment stake in Pony.ai as part of the deal, or the other way around.
No comment
It’s not official until it’s official. Uber has made no comments on the talks, except saying, “Uber has a platform strategy, and we intend to work with multiple players in the US and around the world who can safely bring autonomous technology to the world.”
Even representatives from Kalanick have declined to comment. Pony.ai did not respond to Ridesharing Forum’s request for comment.
Long overdue?
The talks of Pony.ai with Uber, apparently, has been going on for such a long time. In November 2024, the ridesharing app was in talks to invest in the Chinese company’s American division, but the final scale of the investment remained undisclosed. So that’s how confidential it is, eh?
However, Uber and Pony.ai have official partnerships, particularly that to help launch commercial robotaxis in the Middle East.