A Deeproute.ai robotaxi is shown.
Deeproute.ai
GUANGZHOU, China – Alibaba has led investments worth more than $ 300 million in the start-up of Chinese autonomous driving DeepRoute.ai.
The Shenzhen-based start-up makes auto-driving systems for vehicles involving hardware and software. DeepRoute.ai runs a fleet of autonomous taxis with some operated by its partners, including firm CaoCao and carmaker Dongfeng Motors. But the company is also developing technology for logistics.
Alibaba’s participation in the funding round underscores the ambitions of China’s technology giants to settle in the driverless car zone. Alibaba is already investing in another Chinese autonomous driving vehicle launch called AutoX and is supporting electric vehicle manufacturer Xpeng.
Alibaba also has its own logistics group called Cainiao, which plans to develop trucks with automatic driving.
Maxwell Zhou, CEO of DeepRoute.ai, told CNBC that “most of the money is spent on developing the technology and the rest increases the size of the fleet” of its robotaxis. The money will also be used to hire more talent, Zhou added.
The CEO said the company currently operates around 70 robotaxis and wants to expand its fleet between 150 and 160. Half of the robotaxis will be operated by DeepRoute.ai, while the other half will be run by its partners, he said. Zhou.
In a press release, the company said its long-term strategy includes developing medium-service trucks for urban logistics, improving traffic for shipments and delivering goods.
Zhou declined to comment on any specific project with Alibaba, but said “all opportunities are possible.”
There are some sources of revenue for DeepRoute.ai. You can charge passengers for their robotaxi service or the revenue share with a travel company. Or you can sell your autonomous driving system to car manufacturers for a one-time fee and an annual service fee.
In the logistics space, DeepRoute.ai could lead a self-driving fleet for a company or sell its driverless technology.
China’s autonomous driving industry is being very competitive.
Chinese Internet giant Baidu and the Didi app, which invests in vehicles, are investing in autonomous driving. A number of other emerging companies in China, including Pony.ai and WeRide, are also putting money into this space. Last week, WeRide launched a new product called Robovan designed for urban logistics, an area that Deeproute.ai is also exploring.