WeRide Tops Estimates on Surging Domestic Ride-Hailing Demand

WeRide Inc. sales beat expectations, powered by surging domestic ride-hailing demand and accelerated expansion in Europe.

The company’s stronger domestic performance comes after the Chinese government resumed issuing robotaxi permits in July following a high-profile incident earlier this year.

Second-quarter revenue grew 82% to 231.7 million yuan ($34.4 million), topping the 170.7 million yuan analyst estimate, according to a Wednesday filing. Revenue from its ride-hailing operations in China jumped 140% from last quarter.

While the resumption of robotaxi permit approvals is likely to resume, success hinges on getting significantly more such cars on the road in major Chinese cities including Beijing, Shanghai, Guangzhou, and Shenzhen, Bloomberg Intelligence analyst Robin Leung wrote in a note ahead of earnings.

For the time being, unit profitability will continue to be low in the near term and prolong cash burn, said Leung, though noting that “WeRide’s stronger pricing power and asset-light strategy in the Middle East should help it break even faster than rivals.”

Beyond China, Guangzhou-based WeRide is also accelerating its overseas expansion, piloting robotaxis in Spain and Switzerland, as well as the United Arab Emirates and Singapore.

“While global commercialization of autonomous driving remains at an early stage, the addressable market is substantial, and growth visibility is high,” said Chief Financial Officer Jennifer Li, noting that the group’s “firmly on the path toward self-sustaining cash generation.”

WeRide posted a second-quarter loss of 400.7 million yuan, wider than the 301.3 million yuan analysts had expected.