Pony AI Inc. (NASDAQ:PONY) and Uber Technologies Inc. (NYSE:UBER) are doubling down on their driverless ambitions. On Thursday, the companies announced plans to deploy more than 2,000 Pony AI robotaxis across Europe, expanding their existing autonomous driving partnership.

The move builds on their current collaboration in Zagreb, Croatia, and will extend to four additional European cities. The companies also have their sights set on the Middle East, where they plan to deploy robotaxis as well.

Here's how the division of labor works: Pony AI brings the Level 4 autonomous driving technology and operational know-how. Uber handles the customer side—booking, payments, and customer service—through its platform. Local fleet partners may manage day-to-day operations. The model is a three-legged stool: autonomous driving tech, a mobility platform, and fleet operations, with vehicle funding and ownership varying by market.

This isn't Pony AI's first rodeo. The company already operates paid, fully driverless robotaxi services in China's four tier-one cities. And it says it has achieved city-wide breakeven unit economics in multiple markets—a milestone that many in the industry still dream about.

The international partnership between Pony AI and Uber was first announced in May 2025. In 2026, they teamed up with Croatian mobility company Verne to launch a commercial robotaxi service in Zagreb, with Verne serving as fleet owner and operator.

Now, they're scaling up. "This expanded agreement marks an important new phase in the partnership between Pony AI and Uber. It reflects our shared commitment to bringing safe, reliable Robotaxi services to more European cities," said Pony AI founder and CEO Dr. James Peng.

Uber's Global Head of Autonomous Mobility & Delivery, Sarfraz Maredia, framed it as a shift in the industry's focus: "The next chapter for autonomous mobility is about moving from individual launches to repeatable commercial scale."

Investors, meanwhile, are watching the numbers. PONY stock traded slightly lower in premarket trading Friday, with Nasdaq futures up 0.23% and S&P 500 futures up 0.08%. The company is set to report earnings on Tuesday, August 18, and the report could offer fresh insight into growth, fleet expansion, and progress toward scalable robotaxi operations.

Wall Street expects a loss of 17 cents per share, compared with a loss of 13 cents a year earlier. Revenue is expected to rise to $35.18 million from $21.50 million.

Analysts are generally bullish on PONY, with a Buy consensus rating and an average price forecast of $13.30. Recent analyst moves include HSBC initiating coverage with a Buy rating and a $16.60 price forecast on March 31, and Barclays lowering its price forecast to $10 from $15 on March 30 while maintaining an Equal-Weight rating. Barclays had also initiated coverage with an Equal-Weight rating and a $15 price forecast on December 17, 2025.

In premarket trading Friday, Uber shares were up 0.75% at $76.45, while Pony AI shares were down 0.24% at $8.31.