Cruise’s troubled robotaxis are set to join Uber’s ride-hailing service next year as part of a multiyear partnership between the two companies, which once seemed destined to compete for passengers’ attention.
This collaboration marks a significant shift for Cruise after its California license to provide driverless rides was suspended in October 2023. The suspension came in the wake of a troubling incident where one of its robotaxis dragged a jaywalking pedestrian, who had already been struck by a human-driven vehicle, across a dark street in San Francisco.
The incident triggered regulatory scrutiny of Cruise and compelled its corporate parent, General Motors, to scale back its once bold ambitions in the realm of autonomous driving. GM had projected Cruise would generate $1 billion in annual revenue by 2025 with a growing fleet of robotaxis extending beyond San Francisco into other cities, offering a driverless alternative to existing ride-hailing services by Uber and Lyft.
In light of recent events, GM and Cruise are pivoting their strategy to mix robotaxis with Uber’s human-driven cars, giving passengers the option to choose an autonomous ride if they wish. The specifics of the partnership, including the financial details and the cities where Uber will introduce Cruise’s robotaxis next year, have not been disclosed.
For now, California remains off the table due to the suspension of Cruise’s license in the state.
Meanwhile, Waymo, a Google spinoff, is expanding its robotaxi operations beyond San Francisco to cities around the Bay Area and Southern California. This week, Waymo announced its robotaxis are completing over 100,000 paid rides per week, which includes its established operations in Phoenix.
Cruise is currently operating Chevy Bolts autonomously in Phoenix and Dallas, with human safety drivers ready to intervene if necessary. The Uber partnership highlights Cruise’s resolve to return to fully autonomous road navigation.
“Cruise is on a mission to leverage driverless technology to create safer streets and redefine urban life,” stated Cruise CEO Marc Whitten, who took over after founder Kyle Vogt stepped down following the California license suspension.
In response to the financial hit from the suspension, GM laid off hundreds of employees and tightened its budget after absorbing $5.8 billion in losses on the robotaxi service from 2021 to 2023. Moreover, GM reported an additional operating loss of $900 million on Cruise during the first half of this year, though this was an improvement from nearly $1.2 billion in losses during the same period last year.
Despite Cruise’s recent setbacks, Uber CEO Dara Khosrowshahi remains optimistic that the ride-hailing giant can help rejuvenate the robotaxi service.
“We believe Uber can play an important role in helping to safely and reliably introduce autonomous technology to consumers and cities around the world,” said Khosrowshahi.
