Wealth

WeRide's Global Expansion Amid AI Boom in Transportation

Self-driving technology firm WeRide is accelerating its global expansion as the artificial intelligence boom boosts the adoption of machine learning in transportation. The company is actively developing self-driving technology for a range of vehicles, including robotaxis, minibuses, freight vehicles, and sanitation vehicles. "Logistics delivery and waste transport—these two areas have been moving forward, from indoor robotics to outdoor robotics to autonomous outdoors. Things are moving relatively fast because of the development of AI right now," said Sebastian Yee, Singapore director of business development at WeRide.

Advancements in Logistics and Waste Transport

WeRide is making significant strides in logistics delivery and waste transport, transitioning from indoor robotics to outdoor and autonomous outdoor operations. The rapid development of AI is a key driver behind these advancements. In June, WeRide began safety testing for its "Robosweepers" in Singapore, following similar rollouts in multiple cities in China. These AI-powered vehicles are designed to perform various sanitation tasks such as road sweeping, water spraying, and disinfection, as well as detect road conditions and avoid pedestrians and obstacles. Once they pass safety testing, these vehicles will operate fully autonomously without a safety driver.

Autonomous Public Shuttle Bus Service

In the same month, WeRide deployed an autonomous public shuttle bus service with a safety driver onboard at Resorts World Sentosa, a resort island south of Singapore. This service is part of WeRide’s broader strategy to integrate autonomous driving technologies into public transportation systems. Founded in Silicon Valley in 2017, the firm launched a robotaxi service in Guangzhou, China, in 2019 and has received strategic investments from global automakers like the Renault-Nissan-Mitsubishi alliance and GAC Group.

Range of Autonomous Driving Technologies

WeRide develops and tests a range of autonomous driving technologies, with the most advanced allowing vehicles to drive independently while still having a safety driver as a precaution. “WeRide is the only company that has [driverless] permits from the U.S., China, UAE, and Singapore. Some [companies] just have permits from one or two countries, but we have four countries,” said Kerry Xu, Singapore general manager of WeRide. This extensive range of permits underscores WeRide’s commitment to becoming a global leader in autonomous vehicle technology.

International Expansion Strategy

“We are not just a China company, but more of an international company. We actually started expanding to other countries,” Xu stated. WeRide is now eyeing other markets such as Japan and Europe. “We’re going to Europe. Two months ago, we actually attended the French Open. We deployed a vehicle. So slowly we will branch out. And I think that is a first step,” said Yee. This expansion strategy reflects WeRide’s ambition to become a dominant player in the global autonomous vehicle market.

Initial Public Offering on Nasdaq

WeRide recently filed for an initial public offering on the Nasdaq, without disclosing the amount it aims to raise. This could be the biggest U.S. listing by a Chinese company since Didi’s IPO in 2021. The ride-hailing firm subsequently delisted after reports that Chinese regulators asked the firm’s executives to formulate a plan to do so. WeRide, which is incorporated in the Cayman Islands, acknowledged in an SEC filing that it may face “various legal and operational risks and uncertainties associated with being based in or having our operations primarily in mainland China.” WeRide declined to comment on the IPO.

Strategic Entry into Singapore and UAE

WeRide chose to enter Singapore and the UAE because they are the hubs of Southeast Asia and the Middle East, respectively, and both countries are “very open” toward autonomous vehicle technology, said Yee. “We need to have a government and an ecosystem that has been well established,” he added, emphasizing the importance of regulatory support in the market. Countries also need to have a “level of understanding of AI development” as well as possess “commercial sense.” This strategic entry aligns with WeRide’s goal of expanding into regions that are supportive of autonomous vehicle technology.

Trials and Developments in Autonomous Vehicles

Singapore has been conducting autonomous vehicle (AV) trials for several years, with A*STAR’s self-driving vehicle being the first to be approved for public road testing in July 2015. Changi Airport plans to trial a self-driving bus to transport workers around its restricted area starting this quarter, as part of efforts to increase productivity. AV development could help countries with aging populations, such as Japan and Singapore, overcome workforce constraints. One of Singapore’s goals is to ease the pressure of a growing and aging population on roads by using AVs to boost public transport.

Innovation and Production by Chinese Automakers

While U.S. giants like Tesla and Alphabet’s Waymo have been making significant advances in the AV industry, Chinese automakers have been leading in innovation and production. In its latest move to increase adoption, the Chinese government in June granted approval to a first group of nine domestic automakers, including BYD and Nio, to begin testing conditionally automated driving technologies on certain public roads. This government support is crucial for the continued growth and development of autonomous vehicle technology in China.

Regulatory Approval for Tesla’s Full-Self Driving Technology

Tesla CEO Elon Musk is looking to get regulatory approval for the firm’s Full-Self Driving technology in China by the end of this year. This move reflects the competitive landscape of the AV industry, where companies are racing to secure regulatory approvals and expand their market presence. As the AV industry continues to evolve, regulatory frameworks and technological advancements will play a critical role in shaping the future of autonomous transportation.

Conclusion

WeRide’s accelerated global expansion is a testament to the transformative impact of AI on the transportation industry. With a robust portfolio of autonomous driving technologies and strategic international partnerships, WeRide is well-positioned to lead the charge in the global adoption of self-driving vehicles. As the company continues to navigate regulatory challenges and explore new markets, its innovative approach and commitment to safety will be key drivers of its success.