Alibaba Invests In Autonomous Driving Company DeepRoute.ai: Report

Alibaba Group Holding Limited BABA, which has been in the news lately due to a tightening Chinese regulatory landscape, is quietly amassing shares in a Chinese autonomous driving company.

What Happened: Alibaba has become a stakeholder in Shenzhen-based DeepRoute.ai, a Level 4 self-driving solution provider to OEM Tier 1 suppliers and ride-hailing and logistics companies, the CnEVPost said, citing information from Chinese data and analytics company Qichacha.

Alibaba reportedly has a 19.68% stake in privately held DeepRoute.ai, which was founded in 2019 and operates out of Shenzhen and Fremont, California.

In July, DeepRoute.ai launched its robotaxi service to Shenzhen residents with a fleet of 20 self-driving cabs. It is the first company to be granted a permit to operate in the city.

"The taxis are free of charge and open to everybody over the age of 18 through an application process on DeepRoute's official WeChat account. The submissions will be reviewed, and users will be sent an invitation code to activate the service," the company said in a statement.

Related Link: 3 Alibaba Analysts Say Valuation Is Attractive Despite Q1 Disappointment

Why It's Important: Alibaba has dabbled with autonomous driving in the past. The company said in June that it will work with its logistics subsidiary Cainiao to develop self-driving trucks,

The Chinese e-commerce giant has a stake in AutoX, another Chinese autonomous startup that started testing driverless vehicles in China.

Alibaba also has a joint venture partnership with China's SAIC Motor to introduce internet-connected cars powered by the former's AliOS operating systems.

The stake in DeepRoute.ai is only going to deepen Alibaba's push into self-driving technology.

BABA Price Action: Alibaba shares were trading down 3.37% Friday at $159.59. 

Related Link: Top Official In Alibaba's Home City Investigated By Chinese Regulator

Photo: courtesy of DeepRoute.ai.