Cruise’s problematic robotaxi service is set to join forces with Uber’s ride-hailing platform next year in a new partnership. The two companies, once seen as rivals in the race for passengers, will team up for a multiyear venture.
The collaboration marks a significant shift for Cruise following the suspension of its California license to offer driverless rides in October 2023. This suspension came after a troubling incident where one of Cruise’s robotaxis, involved in an accident, inadvertently dragged a pedestrian across a dimly lit San Francisco street.
In response to the incident, General Motors, Cruise’s parent company, has scaled back its ambitious plans in autonomous driving. Initially, GM had high hopes for Cruise, aiming to generate $1 billion in annual revenue by 2025 by expanding its robotaxi service beyond San Francisco to compete with Uber and Lyft.
The new partnership will see Cruise’s autonomous vehicles integrated with Uber’s human-driven cars, allowing passengers to choose between a driverless ride or a traditional one. Details of the financial arrangement and specific cities where the robotaxis will be offered have not been disclosed.
Given Cruise’s suspended license in California, the state won’t be part of the initial rollout. In contrast, Waymo, a subsidiary of Google, is expanding its robotaxi fleet beyond San Francisco, with operations in various cities including Phoenix, where it has been offering rides for several years.
Cruise is currently operating its Chevy Bolts autonomously in Phoenix and Dallas, with human backup drivers as a safety precaution. The collaboration with Uber underscores Cruise’s commitment to advancing its technology to achieve fully autonomous navigation.
Cruise’s CEO, Marc Whitten, emphasized the company’s dedication to utilizing driverless technology to enhance road safety and transform urban living. The partnership with Uber comes in the aftermath of founder Kyle Vogt stepping down amid the license suspension fallout.
General Motors also made significant cutbacks, laying off hundreds of employees in response to the financial pressures stemming from losses on the robotaxi service. Despite these challenges, Uber’s CEO, Dara Khosrowshahi, remains optimistic about the collaboration and believes Uber can help steer the robotaxi service back on track.
Khosrowshahi expressed confidence in Uber’s ability to facilitate the safe integration of autonomous technology into consumer services worldwide.
