WeRide and its $2.43 billion valuation have entered into an extended strategic partnership with Tencent Cloud to speed the growth and commercialisation of its Robotaxi offerings and support global market development. Based on InvestingPro data, WeRide shares are declining more than 40% year to date, reflecting potential value in the autonomous driving space. The collaboration will focus on the integration of WeRide’s autonomous vehicles into Tencent’s online platforms and the utilization of Tencent Cloud’s global infrastructure for WeRide’s international business.
The agreement, based on a previous relationship in April 2024, is to commercialise Robotaxis Level-4 autonomy.
Although WeRide posted $49.48 million in revenue for the last year, it faces challenges, such as a 10.13% decline in revenue.
WeRide’s Robotaxi services will soon be accessible to users via Tencent’s Smart Transportation Mini Program within Weixin/WeChat and Tencent Maps, enhancing the autonomous traveling experience with the promise of increased safety and convenience.
The two companies aim to work together on creating intelligent driving solutions for global markets, with Tencent Cloud’s localized services providing regional norm compliance. Together, the partnership is set to reinforce WeRide’s global penetration, where it already enjoys first-mover advantage in a number of regions.
Along with commercial deployment, the two companies will establish cloud platforms and tools supporting development and implementation of autonomous driving technology. The previous cooperation between WeRide and Tencent Cloud has already yielded fruits, such as quick mass production of a driver assistance solution in collaboration with Bosch.
Tony Han, WeRide’s CEO and Founder, highlighted the importance of combining their autonomous driving capabilities with Tencent Cloud’s computing power to drive innovation and accelerate commercialisation of Robotaxis and other autonomous technologies. Zhong Xiangping, Tencent’s Vice President and President of Tencent Intelligent Mobility, echoed the same sentiments, highlighting the common objective of creating new commercial use cases and delivering better smart mobility experiences.
WeRide, which is known for its autonomous technology, has operations in more than 30 cities in ten nations and is the leading Robotaxi company to be listed on the stock market. Its offerings range from L2 to L4 autonomous driving solutions with usage across different industries like mobility, logistics, and sanitation. Tencent Cloud is known to provide cloud services and digital transformation solutions across different industries.
The success of the collaboration could have profound implications for autonomous driving and intelligent mobility futures, as the two companies aim to change the transportation and cloud computing sectors.
In other recent developments, WeRide announced a 3% year-on-year decline in Q4 2024 revenue of $141 million amid a robust 46% increase in product revenue of $52 million. The firm is continuing to develop its autonomous vehicle operations both locally and globally, with the goal of achieving positive unit economics for its RoboTaxi fleet in key cities by 2025. In a momentous milestone, WeRide has established a 24-hour Robotaxi service in Guangzhou, China’s first autonomous ride-hailing network. This expansion is part of WeRide’s overall plan to improve its self-driving technology and services. WeRide has also partnered with Dubai’s Road and Transport Authority and Uber to launch its autonomous vehicles on the streets of Dubai, marking further global expansion. In its second regulatory breakthrough, WeRide received France’s first Level-4 autonomous public road test permit, which permits speeds up to 40 km/h. These achievements reflect WeRide’s commitment to autonomous driving technology development and expanding its global market presence.
