May Mobility is set to become the first U.S. publicly listed pure-play autonomous ride-hailing technology company by merging with ACP Holdings Acquisition. The transaction values the combined entity at approximately $1.4 billion, with May Mobility expected to trade on the Nasdaq exchange under the ticker symbol MAY.
The deal aims to position the company within a rapidly expanding sector. The global robotaxi market is projected to reach $415 billion by 2035, with the U.S. accounting for a $48 billion portion of that total. The fleet of U.S. commercial autonomous vehicles is expected to grow from roughly 4,000 units to 35,000 by 2030. A year ago, Bank of America estimated the long-term U.S. total addressable market for AV ride-hailing as a trillion-dollar opportunity, noting that drivers currently account for about 70% of every fare.
May Mobility is transitioning from an asset-heavy model to an asset-light strategy to improve its financial outlook. Under its previous approach, which included employing safety drivers and owning vehicles, the company projected annual revenue per vehicle between $130,000 and $150,000 but incurred negative gross margins due to high costs. In the new asset-light model, May Mobility will remove safety drivers and transfer vehicle financing, maintenance, and site operating costs to a fleet operating partner.
While this shift reduces revenue per vehicle to an estimated $50,000 to $72,000 due to revenue sharing, it is expected to generate a gross margin of $35,000 to $50,000 annually per vehicle. Management targets long-term gross margins of 70% and earnings before interest and taxes margins of 30% once the fleet operates without drivers. The company also aims to cut its bill of materials costs by 50% by the end of 2028 through next-generation chips and scaled sensor markets.
The merger could provide May Mobility with up to $337 million in new funding. This capital is intended to strengthen liquidity, finance research and development, and support driverless launches in new markets. However, the company faces significant financial pressure; in 2025, it generated roughly $10 million in revenue with a 27% gross margin while burning $93 million in cash. Without a substantial cash reserve, this burn rate could erode liquidity quickly.
Investors must weigh these financial realities against the presence of established competitors like Alphabet's Waymo and Tesla. Waymo currently generates an estimated $350 million in annualized revenue, representing only about 0.5% of U.S. ride-hailing bookings. The investment is characterized as exceptionally high-risk, with suggestions that most retail investors should watch the debut from the sidelines to gauge demand for a pure-play AV stock.