Key Takeaways From Alibaba's Investment In Self-Driving Firm DeepRoute.ai

Alibaba Group Holding Ltd BABA has led an investment round of over $300 million into the Chinese autonomous driving start-up, DeepRoute.ai.
Other investors included Greater China-focused tech investor Jeneration Capital, Chinese automaker Geely Automobile Holdings Ltd GELYF, Reuters reported.
DeepRoute.ai will use the proceeds to double the fleet of its test robotaxis to 150 by 2021 end from the current 70. It will also expand its workforce to 600, including in-vehicle safety drivers, by 2021 end from 400 now.
DeepRoute.ai collaborated with automaker Dongfeng Motor Group Co Ltd DNFGF DNFGY on self-driving technologies. It also worked with Geely's ride-hailing unit Cao Cao.
DeepRoute.ai would also develop self-driving light-duty trucks for urban logistics services, adding Alibaba would be a big client.
Alibaba is already an investor in another Chinese autonomous driving car start-up, AutoX, and is backing electric vehicle maker XPeng Inc XPEV, CNBC reports
Alibaba also planned to develop self-driving trucks with its logistics subsidiary Cainiao.
DeepRoute.ai's rival WeRide, backed by Nissan Motor Co Ltd NSANF NSANY, plans to develop self-driving vans, while Toyota Motor Corp TM backed Pony.ai aims to develop autonomous trucks.
Chinese internet firm Baidu Inc BIDU and ride-hailing app DiDi Global Inc DIDI are also invested in autonomous driving.
Price Action: BABA shares traded lower by 1.76% at $162.50 in the premarket session on the last check Tuesday.

Market News and Data brought to you by Benzinga APIs

Comments

Popular Channels

Tools & Features

Partners & Contributors

About Benzinga