PARTNERSHIP ANNOUNCEMENT:
Cruise, a subsidiary of General Motors, will partner with Uber to introduce driverless vehicles on the Uber platform starting in 2025.
The service will initially launch in an unspecified city using Chevy Bolt-based autonomous vehicles.
BACKGROUND:
Cruise halted its operations in California after its license was revoked due to safety concerns following a pedestrian accident.
Despite this, Cruise continues to operate in Phoenix, Houston, and Dallas with a driver behind the wheel.
FINANCIALS AND OPERATIONAL CHALLENGES:
General Motors has incurred significant financial losses from Cruise, totaling $5.8 billion from 2021 to 2023, with an additional $900 million loss in the first half of 2024.
LEADERSHIP AND VISION:
Under the new leadership of Marc Whitten, Cruise aims to rebuild public trust and establish a stable revenue stream through this partnership.
Uber’s CEO, Dara Khosrowshahi, expressed enthusiasm about the role Uber can play in advancing autonomous technology safely and reliably.
INDUSTRY CONTEXT:
While Cruise faces challenges, competitors like Waymo are expanding their autonomous vehicle services in California, completing over 100,000 paid rides per week.
Cruise, a subsidiary of General Motors, will partner with Uber to introduce driverless vehicles on the Uber platform starting in 2025.
The service will initially launch in an unspecified city using Chevy Bolt-based autonomous vehicles.
BACKGROUND:
Cruise halted its operations in California after its license was revoked due to safety concerns following a pedestrian accident.
Despite this, Cruise continues to operate in Phoenix, Houston, and Dallas with a driver behind the wheel.
FINANCIALS AND OPERATIONAL CHALLENGES:
General Motors has incurred significant financial losses from Cruise, totaling $5.8 billion from 2021 to 2023, with an additional $900 million loss in the first half of 2024.
LEADERSHIP AND VISION:
Under the new leadership of Marc Whitten, Cruise aims to rebuild public trust and establish a stable revenue stream through this partnership.
Uber’s CEO, Dara Khosrowshahi, expressed enthusiasm about the role Uber can play in advancing autonomous technology safely and reliably.
INDUSTRY CONTEXT:
While Cruise faces challenges, competitors like Waymo are expanding their autonomous vehicle services in California, completing over 100,000 paid rides per week.