Ontime to invest more in driverless innovation

Ontime will use a significant portion of funds it raised from a stock market listing for research and development into autonomous driving technology and robotaxi services, the Chinese mobile transportation services provider said.

The company, established jointly by automobile manufacturer GAC Group and technology giant Tencent as well as other investors in 2019, was listed on the main board of the Hong Kong Stock Exchange on July 10, becoming the first stock in the autonomous driving technology sector.

"We will continue to deepen our presence in the autonomous driving sector by serving and connecting various participants in the mobility industry, and aim to accelerate the commercial operation of autonomous driving technology," said Jiang Hua, CEO of Ontime.

In its prospectus, the company said that approximately 40 percent of the net proceeds from the global offering would be used for autonomous driving R&D and its robotaxi operation services, marking the largest allocation of funds.

The company, which has 23.8 million registered users, offered 30.048 million shares, of which about 6.01 percent was offered to the public and 93.99 percent internationally, raising a net HK$969.2 million ($124.13 million).

Guangzhou Automobile Industry Group, a controlling shareholder of GAC Group, self-driving solutions provider Pony.ai, autonomous driving startup WeRide and Voyager participated in the issuance as cornerstone investors.

According to public information, Ontime completed its first round of financing of 1 billion yuan ($137.7 million) in April 2022 and a second round of 842 million yuan in June 2023.

Based on its own strengths, the creation of a high-quality data loop over the past few years has been driving the iterative R&D of autonomous driving technology in China, helping accelerate the large-scale commercial deployment of autonomous driving technology, according to Jiang.

The company offers mobility services including ride-hailing and robotaxis, technical services of artificial intelligence data and model solutions, and high-definition maps.

The company, based in Guangzhou, capital of Guangdong province, also provides a full range of support for drivers and fleet operators in terms of vehicle sales and maintenance.

Ontime, a pioneer in driving and commercialization of autonomous driving technology, launched an open robotaxi operation technology platform in 2022, becoming the world's first mobility platform to commercialize a mixed operation of manned ride-hailing and robotaxi services.

The company's robotaxi service is already operational in the central districts of Guangzhou and Shenzhen, two major cities in the Guangdong-Hong Kong-Macao Greater Bay Area.

As of 2023, the company's robotaxi fleet had reached 281 vehicles, ranking first among domestic mobility platforms, with its services having operated for a cumulative total of 20,080 hours and completing a safe trial operation distance of 450,699 kilometers.

Based on the platform's accumulated wealth of data assets, Ontime has developed autonomous driving data solutions including artificial intelligence data and model solutions, high-precision maps and intelligent traffic solutions in recent years for autonomous driving solution providers, vehicle manufacturers, and government agencies.

"Increased investment in research and development of autonomous driving technologies would greatly help in ensuring safety in terms of commercial deployment of the booming technology," said Jiang.

The company's proprietary AI perception algorithm base model has achieved a pre-labeling recall rate and accuracy of over 95 percent in driving data sets, and has been applied in its data and model solutions.

According to Jiang, the company has formulated a three-stage corporate development strategy to drive transformation in the mobility service industry.

In its IPO prospectus, the company said the commercial robotaxi business is still in its early stages, with market participants exploring and optimizing business models, and that the current revenue performance does not necessarily reflect the future of the robotaxi business.

The company's total revenue was 1.014 billion yuan, 1.368 billion yuan, and 2.161 billion yuan in 2021,2022 and 2023, respectively, with a compound annual growth rate of 46 percent.

The cost per kilometer for robotaxi services will be lower than human-driven ride-hailing services by 2026, signaling the gradual popularization of autonomous driving services, the company said.

As ride-hailing services occupy a core position in the robotaxi industry chain, the company will offer a comprehensive solution for the commercialization of robotaxi services for ride-hailing platforms, according to Jiang.

"By integrating our comprehensive offline vehicle service system, we will ensure the stability and economic efficiency of robotaxi vehicle operations on all connected platforms, aiming to make robotaxi a viable, operable and sustainable service in commercial settings," Jiang said.