Alibaba-Backed Deeproute Eyes Expansion into European Automotive Market for Autonomous Driving Solutions

Deeproute.ai, a robotaxi startup based in Shenzhen, is making significant strides with its ambitions to establish an operations center in Germany by 2024. With $350 million in funding and more than 500 employees globally, Deeproute joins other Chinese mobility innovators setting up shop in Germany, which is home to some of the world's leading automakers.

This announcement was made during the International Motor Show in Munich, an event that showcased several Chinese players in the mobility sector. Deeproute, backed by Alibaba, also revealed plans to launch its production-ready autonomous driving solution in Germany next year, with aspirations to expand into other European markets subsequently.

The technology—dubbed Drive 3.0—operates without the need for HD maps and is equipped with features such as valet park assist, all while maintaining an attractive hardware price of $2,000. This pricing is bolstered by competitive rates from Chinese lidar suppliers and leverages Nvidia’s Drive Orin system-on-a-chip.

While details about the specific functions of the “operations center” remain sparse, Deeproute has indicated that it plans to hire a dedicated business development team. The exact city for this new base has yet to be determined, but there are several likely candidates.

Historically, Deeproute’s competitor, Momenta, strategically opened an office in Stuttgart two years ago, enabling closer ties with its investor Mercedes-Benz, which is headquartered in the same city, and potentially enhancing relationships with other European OEMs.

Nio, another prominent Chinese electric vehicle manufacturer, has made a mark in Germany with a 1,500-square-meter innovation center in Berlin and a design facility in Munich. It also operates a stylish “Nio House” in the German capital, serving as a members' club and showroom for its electric vehicles.

Deeproute initially focused on Level 4 driverless technology for its robotaxis, but has shifted towards offering more accessible driving solutions to automotive partners, thereby creating opportunities for immediate revenue streams. A company representative stated, “As we’ve collaborated with OEMs on mass production since last year, our focus has transitioned from solely robotaxi operations to road testing for production-ready vehicles.” By the end of 2022, Deeproute had achieved over 800,000 passenger rides, predominantly through its robotaxis across major Chinese cities.

Establishing a presence in Germany is crucial for Deeproute as it aims to expand its OEM customer base, currently including Seres and Geely. With a business development team stationed locally, Deeproute will enhance its ability to connect with regional automakers, support partners in smart driving mass production, and more. As the Chinese robotaxi landscape evolves, it will be interesting to see if other companies choose to follow Deeproute's lead into the German market.