CaoCao Inc. and Dazhong Transportation signed a strategic agreement on August 3 to jointly explore Robotaxi services in Shanghai and the Yangtze River Delta. CaoCao will lead the full-stack technology solution while Dazhong contributes urban operating capabilities, starting with demonstration operations and gradually advancing toward commercialization.
On August 3, 2026, CaoCao Inc., a strategic mobility platform under Geely Holding Group, signed a strategic cooperation agreement with Shanghai Dazhong Transportation Group to jointly explore Robotaxi autonomous taxi services in Shanghai and the Yangtze River Delta region. This cooperation marks another important milestone in CaoCao's Robotaxi commercialization roadmap, while adding a new variable to intelligent driving applications in Shanghai, a heavyweight in China's automotive industry.
According to the agreement, the cooperation will proceed in phases. It will begin with limited demonstration operations, covering regulatory approvals, fleet management, platform data integration, ground support, and safety services. Once regulatory and operating conditions mature, the two companies plan to expand toward larger-scale Robotaxi fleet operations. It should be noted that neither company has disclosed a specific launch date, fleet size, or initial operating area, making the agreement a framework for phased development rather than an immediate launch of large-scale driverless services.
In terms of division of responsibilities, CaoCao will lead the Robotaxi full-stack technology solution, including onboard intelligent systems and the vehicle operations management platform. Dazhong Transportation, an established Shanghai passenger-transport and fleet operator, will contribute local operating resources, vehicle-management expertise, and on-the-ground support. This division reflects an increasingly common industry model in which automated-driving developers work with incumbent mobility providers to turn technical capability into a service that can operate reliably at city scale.
CaoCao currently operates a fleet of more than 100 Robotaxis in Hangzhou. In April 2026, it became the city's first mobility company authorized to conduct intelligent-vehicle road tests without an onboard safety operator. Earlier this year, CaoCao also announced a partnership with Shanghai International Automobile City, with plans to deploy 100 Robotaxis in Shanghai. The latest agreement with Dazhong gives CaoCao another local operating partner as it seeks to extend its Robotaxi footprint across the Yangtze River Delta.
From an industry perspective, Robotaxi commercialization is accelerating in China. In July 2026, the mandatory national standard for L2-level assisted driving was officially released, and at the end of 2025, the first batch of domestic L3-level autonomous driving models obtained market access permits. Multiple policy tailwinds are driving the intelligent driving industry into the fast lane. At the same time, Robotaxi commercial operations are also accelerating.
CaoCao's parent company, Geely Holding Group, has deep roots in the intelligent driving field. Founded in 2015, CaoCao went public on the Main Board of the Hong Kong Stock Exchange in 2025, becoming the largest tech-driven mobility platform listed in Hong Kong. As of the end of 2025, CaoCao's service network covered over 190 cities across China.
In terms of Robotaxi strategy, CaoCao has set an ambitious goal of "Ten Years, Hundred Cities, Trillion Yuan," planning to expand its Robotaxi service to 100 cities within the next decade, with a target of deploying 100,000 Robotaxis by 2030. In June 2026, CaoCao announced a full AI transformation, releasing its RoboX strategy to build a world-leading physical AI mobility technology platform.
For the Shanghai market, the significance of this cooperation lies not only in introducing a new Robotaxi operator, but also in exploring a "technology plus operations" synergy model. As China's economic center and an automotive industry heavyweight, Shanghai has complex traffic scenarios and strict regulatory environments, making it an ideal testing ground for Robotaxi commercialization capabilities.
From a competitive landscape perspective, the Shanghai Robotaxi market has already attracted multiple participants. In addition to CaoCao, companies such as Baidu Apollo, Pony.ai, and WeRide are also conducting Robotaxi tests and operations in Shanghai and surrounding areas. CaoCao's cooperation with Dazhong, backed by local operating experience and Geely Group's technical support, is expected to carve out a position in the competitive market.
However, Robotaxi commercialization still faces numerous challenges. In terms of technical maturity, multiple intelligent driving-equipped vehicles have experienced assisted driving failures this year, and human drivers are still needed as the "last line of defense." On the policy front, the full deployment of L4 autonomous driving requires clear responsibility allocation, insurance compensation, road rights, and other comprehensive institutional support. Additionally, the sustainability of profit models is a widespread industry concern.
Overall, the strategic cooperation between CaoCao and Dazhong is another important milestone in China's Robotaxi commercialization process. It reflects both the deepening collaboration trend between autonomous driving technology developers and traditional mobility operators, and the industry's transition from pure technical verification to large-scale operations and business model exploration.
