Benzinga | Sep 14, 2021 06:55AM EDT

Key Takeaways From Alibaba's Investment In Self-Driving Firm DeepRoute.ai

* Alibaba Group Holding Ltd (NYSE:BABA) has led an investment round of over $300 million into the Chinese autonomous driving start-up, DeepRoute.ai.

* Other investors included Greater China-focused tech investor Jeneration Capital, Chinese automaker Geely Automobile Holdings Ltd (OTC: GELYF), Reuters reported.

* DeepRoute.ai will use the proceeds to double the fleet of its test robotaxis to 150 by 2021 end from the current 70. It will also expand its workforce to 600, including in-vehicle safety drivers, by 2021 end from 400 now.

* DeepRoute.ai collaborated with automaker Dongfeng Motor Group Co Ltd (OTC:DNFGF) (OTC:DNFGY) on self-driving technologies. It also worked with Geely's ride-hailing unit Cao Cao.

* DeepRoute.ai would also develop self-driving light-duty trucks for urban logistics services, adding Alibaba would be a big client.

* Alibaba is already an investor in another Chinese autonomous driving car start-up, AutoX, and is backing electric vehicle maker XPeng Inc (NYSE:XPEV), CNBC reports

* Alibaba also planned to develop self-driving trucks with its logistics subsidiary Cainiao.

* DeepRoute.ai's rival WeRide, backed by Nissan Motor Co Ltd (OTC:NSANF) (OTC:NSANY), plans to develop self-driving vans, while Toyota Motor Corp (NYSE:TM) backed Pony.ai aims to develop autonomous trucks.

* Chinese internet firm Baidu Inc (NASDAQ: BIDU) and ride-hailing app DiDi Global Inc (NYSE: DIDI) are also invested in autonomous driving.

* Price Action: BABA shares traded lower by 1.76% at $162.50 in the premarket session on the last check Tuesday.