Shanghai has issued its first demonstration licenses for Level 4 autonomous vehicles, allowing eight companies to operate fare-based robotaxi services within designated urban zones. The permits, announced during the 2025 World Artificial Intelligence Conference (WAIC), mark a key milestone in the commercial rollout of self-driving technology in one of China's largest and most advanced cities.
Tech firms, automakers, and taxi operators secure L4 licenses
The license holders span a broad spectrum of the mobility sector, including autonomous driving startups, traditional taxi fleets, and subsidiaries of major automotive groups. The approved companies are Pony.ai, Baidu Zhixing, SAIC Motor AI Lab, UTOPILOT, WeRide, Dazhong Transportation, Shanghai Qiangsheng Taxi, and Jinjiang Taxi.
The firms are authorized to deploy L4 autonomous vehicles in areas such as the Lin-gang Special Area and parts of the Pudong New District. Commercial ride-hailing operations are expected to begin before year-end, with users able to hail driverless vehicles via mobile apps, gaining firsthand experience of AI-powered urban transport.
Regulatory green light signals maturity of L4 technology
The issuance of L4 operational permits in Shanghai holds broader implications for both industry development and policy evolution. L4 autonomy signifies that vehicles are capable of operating independently in controlled settings, highlighting the progress and safety levels of the underlying technologies.
This demonstration initiative demonstrates regulatory trust in the companies involved and represents an important move toward overcoming technical and policy challenges on the path to full commercialization.
Baidu, Pony.ai, SAIC expand footprint across city
Baidu's Apollo Go platform has already achieved large-scale deployment across multiple Chinese cities, accumulating more than 170 million kilometers in Level 4 autonomous driving test mileage—setting a global benchmark and reinforcing the company's leadership in the sector.
Pony.ai has partnered with Jinjiang Taxi to promote robotaxi services in Shanghai's Jinqiao and Huamu districts. SAIC Motor's AI Lab and UTOPILOT are focused on complementary urban mobility and smart logistics applications, gradually expanding the reach of autonomous technology across diverse operational scenarios.
Traditional taxi operators such as Dazhong Transportation and Shanghai Qiangsheng are also undergoing strategic overhauls, forming partnerships with technology firms to transition toward next-generation mobility platforms. As infrastructure and regulatory frameworks mature, consumers will soon be able to summon fully autonomous vehicles with a tap on their smartphones, ushering in a new era of urban transportation.
With regulatory backing strengthening and key technologies reaching maturity, Shanghai is fast-tracking the commercialization of autonomous transport. The city's expanding ecosystem is poised to transform urban mobility, offering a scalable blueprint for intelligent transportation infrastructure and data-driven city management.
Article edited by Jack Wu
