Deeproute.ai, the Shenzhen-based autonomous taxi startup backed by Alibaba with $350 million in funding and a global workforce of over 500 employees, is setting its sights on opening an operational hub in Germany by 2024.
This move positions Deeproute as another Chinese mobility startup establishing a physical presence in Germany, home to some of the world’s largest automakers, as they expand internationally.
The announcement was made at the International Motor Show Germany in Munich, where several Chinese mobility companies were present.
Deeproute, supported by Alibaba, also intends to introduce its production-ready autonomous driving solution, Drive 3.0, in Germany next year, followed by other European markets.
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Drive 3.0, designed to operate without high-definition maps, boasts features such as valet park assist at an attractive hardware cost of $2,000, partly due to its competitively priced Chinese lidar suppliers. It relies on Nvidia’s Drive Orin system-on-a-chip.
While Deeproute did not provide extensive details about the “operations center,” it did reveal plans to establish a business development team there.
The exact location of this new base is yet to be determined, although there are several obvious options.
Taking cues from history, Deeproute’s Suzhou-based competitor, Momenta, wisely established an office in Stuttgart two years ago.
This strategic move likely facilitated closer relationships between Momenta and its investor Mercedes-Benz, headquartered in Stuttgart, and potentially other European automakers.
Nio, a premium Chinese electric vehicle manufacturer that develops its advanced driver-assistance systems (ADAS) technology in-house, boasts a 1,500-square-meter innovation center in Berlin and a design facility in Munich.
In Berlin, the company also operates “Nio House,” an elegant members’ club and showroom.
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Similar to other ambitious Chinese autonomous vehicle startups, Deeproute initially focused on Level 4 autonomous technologies for robotaxis but has since embraced less advanced driving solutions for automotive partners, which can generate more immediate revenue.
A Deeproute company representative explained, “As we’ve been working with OEMs on mass production since last year, we shifted our focus from robotaxis to production-ready car road testing.”
By the end of 2022, Deeproute had completed over 800,000 passenger rides, with the majority conducted by its robotaxis in major Chinese cities.
Establishing a presence in Germany will be pivotal to Deeproute’s new emphasis on expanding its OEM customer base, which currently includes Seres and Geely.
Having a local business development team will enable Deeproute to “engage with more local automakers, support OEM partners in smart driving mass production, and more,” according to the company representative.
It remains to be seen if other Chinese autonomous taxi firms will follow suit by venturing into Germany.