DeepRoute.ai, a Chinese autonomous vehicle start-up, has received more than USD 300 million in funding from Alibaba. This Shenzhen-based startup develops self-driving systems for automobiles, which include both software and hardware. DeepRoute.ai operates a fleet of self-driving taxis, some of which are managed by partners such as ride-hailing company CaoCao and carmaker Dongfeng Motors. However, the firm is also creating logistics technologies. The participation of Alibaba in the investment highlights the desire of China’s technological behemoths to get a foothold in the field of autonomous automobiles. Alibaba is already a backer of another Chinese self-driving vehicle startup, AutoX, as well as EV manufacturer Xpeng.
Alibaba does have its own logistics unit, Cainiao, which is working on autonomous trucks. DeepRoute.ai’s CEO Maxwell Zhou told CNBC that “the majority of the funding is being invested towards developing this technology and the rest is scaling-up their fleet of vehicles” of its robotaxis. Funds will also be spent on employing additional talent, as per Zhou. According to the CEO, the business presently runs approximately 70 robotaxis and plans to increase its fleet to between 150-160. DeepRoute.ai will control half of the robotaxis, while its partners will handle the other half. According to a press release, the company’s long-term plan involves the development of medium-duty vehicles for urban logistics.
Zhou refused to respond on particular initiatives with Alibaba, but did say that “any opportunity is possible.” DeepRoute.ai earns money from a variety of sources. It may either charge customers for its robotaxi business or split income with a ride-hailing company. Alternatively, it may offer its self-driving technology to manufacturers in exchange for a one-time charge as well as an ongoing service fee. DeepRoute.ai may manage an autonomous vehicle fleet for a firm or sell its autonomous technology in the logistics industry. China’s autonomous driving sector is becoming increasingly competitive. Baidu, the Chinese internet behemoth, and Didi, the ride-hailing service, are both betting on autonomous vehicles. A spate of other Chinese start-ups, like Pony.ai and WeRide, are also investing in this sector. WeRide released a new product called Robovan last week, which is geared for metropolitan transportation, an area that Deeproute.ai is also pursuing.
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