Hello, Cross-Border Autonomous Driving: A Gamble of Anxiety, Speed, and Survival
Hello everyone, I'm your financial journalist. Today, we're talking about Hello, the company that usually offers shared bicycles and electric scooters, which has suddenly made a big move into the high-tech field of "robotaxi" (self-driving taxis). It's moving fast, but it's also stumbled along the way, and now it's secured a significant amount of funding.
In simple terms, Hello is trying to use the new story of "building cars" and "operating self-driving vehicles" to revive its struggling shared bicycle business, which is showing signs of decline. This $100 million in financing, along with a valuation of nearly $3 billion, sounds impressive, but the underlying logic is filled with anxiety and strategic considerations.
Let me break down this news into five key points to explain the situation in more straightforward language.
---
1. Why did Hello suddenly jump into Robotaxi? Because its core business is struggling
Many might wonder: Didn't Hello start with bicycles and electric scooters? Why would it suddenly venture into the most costly and technically challenging field of autonomous driving?
The main reason is simple: its core business has hit a ceiling and is in a difficult situation.
- Unprofitable and problematic core business: According to Hello's early prospectus, the gross profit margin of its shared two-wheeler business was extremely low (only 6.7% in 2020), and it has been losing money for years. Additionally, Hello has faced several controversies. For example, in Beijing, it was investigated for illegally deploying too many shared bicycles; on CCTV's "3·15" evening show, it was exposed for illegally lifting speed limits on its electric scooters.
- Increasing regulatory pressure: The shared bicycle industry is now under strict regulation, and the old tactics of deploying vehicles aggressively to gain market share no longer work.
- Urgent need for a new story: For a listed company, if its core business stops growing, its market value will decline. Hello urgently needs a new, high-end, and promising business to attract investors, and Robotaxi seems to be the perfect solution.
In other words: Selling bicycles doesn't generate much profit and attracts criticism, so Hello needs to find a new area to prove its viability. Autonomous driving is the hottest buzzword in this context.
---
2. Rapid development in just one year: Hello's "internet speed" and its "security shortcomings"
Hello entered the Robotaxi market quite late but moved very quickly. From founding the company in June 2025 to starting mass production in July 2026, it took less than a year—this is quite unusual in the autonomous driving industry, where development typically takes 3-5 years.
How did Hello achieve this? By forming a strategic alliance.**
- Powerful partnerships: Hello partnered with Ant Group (providing funds, technology, and user traffic) and CATL (batteries and supply chain). Together, they invested over $3 billion in the initial phase. Later, Alibaba also joined in. This meant Hello didn't have to start from scratch but could leverage the resources of these giants.
- Quick implementation: The HR1 model was quickly produced and planned to be deployed in Guangzhou and Shenzhen.
However, speed comes with costs.
- Safety incident: In December 2025, an accident involving one of Hello's self-driving vehicles in Zhuzhou, Hunan, led to the temporary suspension of all autonomous driving services in the area.
- Expert opinion: Analyst Chen Liting pointed out that this reflects the conflict between the "fast-paced expansion" typical of the internet industry and the "long-term, safety-focused" nature of autonomous driving. The internet focuses on launching products first and then iterating, while autonomous driving requires absolute safety. Hello brought its fast-paced approach to a sector that demands careful safety validation.
---
3. What does this $100 million in financing really mean?
The financing was led by Shanghai State-owned Investment Pilot Fund, with a valuation of nearly $3 billion. This money is both a lifeline and a challenge for Hello.
- Significance of state investment: The leading investor is a state-owned entity from Shanghai, indicating local government support for Hello's approach. For a business like Robotaxi, which relies on government approval for road use and licenses, government trust is more important than technology.
- How the money will be used: CFO Li Zhichao stated that the funds will be primarily invested in research and development, computing power, and data, rather than blindly expanding into more cities. This shows that Hello has learned from past mistakes and is focusing on quality and safety.
- Changing market expectations: Investors now ask not just how many vehicles are on the road but whether they are safe and whether the operating costs have been reduced.
In other words: The government is funding Hello not to show off its fleet but to ensure the technology is reliable and doesn't cause problems for the city.
---
4. Competitors on the field: Hello as a "second-tier" player
Hello is not a seasoned player in the Robotaxi market; it's actually a latecomer.
- First-tier players:
- Baidu Luobo Kuai Pao: Started early, with deep technical expertise and extensive data.
- Didi Autonomous Driving: Possesses massive real-world travel data and develops all its systems in-house, working closely with GAC.
- Xiaoma Zhixing and Weiyuan Zhixing: Professional autonomous driving companies with strong technical foundations.
- Strong competitors:
- Cao Cao Chuxing: Backed by Geely Group, with vehicle manufacturing capabilities and experience in ride-hailing services, and has a "200,000 vehicles" plan for both self-driving taxis and delivery vehicles.
Hello's position:
- Advantages: Hello has a dual-platform approach (bicycles and vehicles), and it benefits from partnerships with Ant Group and CATL.
- Disadvantages: Limited road testing experience (reduced credibility), past safety incidents, and more cautious license approval processes from cities.
In other words: Hello is like a general accustomed to quick battles suddenly facing a protracted campaign. Although it moves fast, its defenses are not strong enough, and it was caught off guard by an accident.
---
5. Future prospects: Can Hello break through?
Hello plans to focus on 10 cities and expand to 3-5 countries by 2026-2027. This is a more pragmatic approach than reckless expansion.
The key to success lies in three areas:
1. Safety: It must resolve safety issues completely and establish a system that reassures the government and the public. Another accident could ruin all its efforts.
2. Cost control: Robotaxi is a capital-intensive industry with high vehicle and maintenance costs. Hello needs to show that it can reduce these costs.
3. Compliance: Obtaining licenses from more cities and operating legally is crucial.
In summary:
The $100 million in financing is not just a financial boost but also a test of Hello's ability to transform. It shows that the market is still willing to give it a chance, but it must shift from its internet-style aggressive approach to a more industrial, safety-focused one.
Implications for the public:
If you follow the transportation industry, you may see Hello's Robotaxi services in major cities like Shanghai and Guangzhou in the coming years. However, for now, you'll likely hear more about safety tests and limited trials rather than widespread coverage. Hello's gamble is whether it can successfully transform from a shared bicycle company into a smart transportation platform. If it succeeds, it will open up new growth opportunities; if not, it might just be a costly setback in its declining core business.
In one sentence: Hello's Robotaxi effort is a battle to trade speed for time and capital for technology. The outcome depends on its ability to maintain stability and safety, not just the number of vehicles.