- Ride-hailing firm edges toward profitability as scale expansion lifts revenue and efficiency
- Geely-backed platform unveils global robotaxi ambitions despite rising competition
Hong Kong-listed ride-hailing platform Caocao Mobility moved closer to profitability in 2025, reporting sharply narrower losses and its first quarter of adjusted profit after listing last year, as rapid network expansion and algorithm-driven efficiency gains boosted scale in China’s intensely competitive mobility market.
In its first full-year results since debuting on the Hong Kong Stock Exchange in June 2025, the company posted revenue of 20.2 billion yuan ($3 billion), up 37.7% year on year.
Net loss narrowed to 614 million yuan, down 50.8% from 1.25 billion yuan a year earlier, while adjusted net loss fell nearly 30% to 508 million yuan, according to its full-year earnings report released on March 27.
Self-sustaining operations
The adjusted loss margin improved to 2.5% from 4.9%, with management disclosing that adjusted profitability turned positive in the fourth quarter — signaling a shift from subsidy-driven growth toward self-sustaining operations.
Growth was driven primarily by core ride-hailing services, where revenue climbed 36.8% to 18.56 billion yuan, alongside a 63.6% surge in vehicle sales income.
Gross transaction value rose 38.2% to 23.43 billion yuan, supported by aggressive geographic expansion and deeper penetration into lower-tier cities. The platform expanded its footprint from 136 to 195 cities during the year.
Operational scale also strengthened on both sides of the marketplace. Average monthly active drivers increased 35.4% to 631,000, while monthly active users jumped 43.9% to 41.3 million.
Management attributed improving profitability to economies of scale and optimization of its “Caocao Brain” dispatch engine, which enhanced driver allocation and subsidy efficiency.
Beyond near-term financial improvement, the company used the earnings release to outline an unusually detailed robotaxi roadmap, positioning autonomous mobility as its next major growth engine.
Backed by parent automaker Geely Holding Group, Caocao is developing a third-generation Level-4 autonomous vehicle purpose-built for robotaxi operations, scheduled for debut by the end of 2026 and mass production starting in 2027.
Robotaxi as a second growth curve
Founded in 2015 in Hangzhou, the company plans to deploy 100,000 robotaxis globally by 2030 and has begun laying groundwork overseas, including a strategic partnership with the Abu Dhabi Investment Office and the establishment of an international business unit.
Hong Kong is also being explored as an early testing ground for commercial deployment.
Still, commercialization risks remain significant. Robotaxi adoption depends heavily on regulatory approvals, technological maturity and declining hardware costs, all of which require sustained capital investment.
Competition is intensifying as autonomous-driving developers such as Baidu Apollo, Pony.ai and WeRide race alongside mobility platforms including Didi Global and OnTime to establish viable commercial models.
