Several years after its launch and a massive $10 billion investment from General Motors, the Detroit-based company announced that it is now shutting down its robotaxi subsidiary, Cruise. Despite the ramping development and extensive testing on its robotaxi brand, GM has now given up on its self-driving public transportation service which was among the top brands in the industry.
Cruise is known for going head-to-head with Alphabet’s Waymo during the dawn of self-driving cars in the United States, and these two were the first to launch their services in the home of robotaxis, San Francisco, California.
GM Gives Up on Cruise Robotaxis, Now Shutting Down its Operations
General Motors shared with the world that it is now giving up on Cruise, its self-driving robotaxi subsidiary, to refocus its developments on autonomous driving technology which will no longer be on public transportation. Moving forward, Cruise will no longer receive funding from General Motors for its robotaxi work, instead, it will be “realigned” to the company’s autonomous driving developments.
“Cruise has been an early innovator in autonomy, and the deeper integration of our teams, paired with GM’s strong brands, scale, and manufacturing strength, will help advance our vision for the future of transportation,” according to GM chair and CEO, Mary Barra.
In this massive change in Cruise’s operations, GM recently talked to its shareholders about increasing their ownership of the company from 90 percent to 97 percent as part of its restructuring.
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Cruise is Not Going Anywhere As it Joins GM’s ADAS Program
GM highlighted its plans to “realign” Cruise to its autonomous driving technology, particularly as the subsidiary will now be joining General Motors’ various technical teams to develop various ADAS (advanced driver assistance system) programs. Furthermore, GM detailed that it will focus its development on ‘Super Cruise,’ its next-gen self-driving technology that is capable of hands-off driving.
The company did not detail what would happen to the electric vehicle fleet that it operated with Cruise’s driverless technology.
The Life and Times of General Motors’ Cruise
Eight years ago, General Motors purchased Cruise and the company focused on launching one of the first robotaxi services in the world, with its initial plan focusing on the United States to operate its new transportation solution. But it was only in 2021 that the company got its permit to test its self-driving capabilities on real streets, with San Francisco approving two services alongside Waymo.
GM’s Cruise saw its extensive testing in the Bay Area where many people were able to hail rides via the robotaxi company using only their app, and this led to the company expanding its testing to other cities, and in SF, a 24/7 operation. However, in 2023, Cruise was involved in an accident where it hit a pedestrian, leading to the company suspending its services temporarily.
This pause on its self-driving operations took almost a year before the company resumed its robotaxi service in SF and other cities earlier this 2024, but it was unknown to many that it would be its last outing. Now, GM made a major decision to realign its focus on driverless technology which also meant Cruise’s shut down, now integrating to its autonomous driving developments for personal vehicles.
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