Uber In Talks With Founder Travis Kalanick To Fund Self-Driving Car Deal

Facing mounting competition from autonomous taxi services like Waymo, Uber is in early talks to help fund Travis Kalanick's potential acquisition of Pony.ai's U.S. subsidiary (source paywalled; alternative source). If completed, the deal would reunite Kalanick with Uber (now under CEO Dara Khosrowshahi) and position Pony.ai to operate independently of its Chinese parent amid rising U.S. regulatory pressures. The New York Times reports: The company, Pony.ai, was founded in Silicon Valley in 2016 but has its main presence in China, and has permits to operate robot taxis and trucks in the United States and China. The talks are preliminary, said the people, who were not authorized to speak about the confidential conversations. Mr. Kalanick will run Pony if the deal is completed, they said. It is unclear what role, if any, Uber would take in Pony as an investor. Financial details of the potential transaction could not be determined. Pony went public last year in the United States, raising $260 million in a share sale. Its market capitalization stands around $4.5 billion.

If the deal goes through, Mr. Kalanick, 48, will remain in his day job running CloudKitchens, a virtual restaurant start-up that he founded after leaving Uber in 2017. He would also work more closely with Dara Khosrowshahi, who took over as Uber's chief executive after Mr. Kalanick's ouster. The discussions are the starkest sign yet that Uber is under pressure from Waymo, the driverless car unit spun out of Google, and other autonomous car services. When Mr. Kalanick was Uber's chief executive, the company tried developing autonomous vehicle technology. It then bought Otto, a self-driving trucking start-up run by Anthony Levandowski, a former Google engineer. Google later sued Mr. Levandowski for theft of trade secrets and sued Uber to bar it from using its self-driving technology.

Under Mr. Khosrowshahi, Uber has taken a different tack to self-driving cars. The company has struck roughly 18 partnerships with autonomous vehicle companies like Wayve, May Mobility and WeRide to bring pilot programs for driverless car services into Europe, the Middle East and Asia. The goal, Mr. Khosrowshahi has said in podcast interviews, has been to put "as many cars on Uber's network as possible." He has maintained that while autonomous vehicles are growing steadily, ride-hailing networks will have both human and robot drivers for years.