Trends

Cruise and Uber announce cooperation to deploy robotaxis

The alliance is the latest change in Cruise’s direction since 2023, when its licence to offer driverless rides in California was suspended.

Cruise-0823

Headline

The alliance is the latest change in Cruise’s direction since 2023, when its licence to offer driverless rides in California was suspended.

Context

OUR TAKE Despite Cruise’s recent struggles, Uber CEO Dara Khosrowshahi has expressed confidence that the online taxi service can put robot taxis back on the right track. Self-driving technology has gained momentum in recent years, and it is hoped that driverless technology can one day be used to create safer streets and redefine urban life. — Iydia Ding, BTW reporter Cruise and Uber announced a partnership this week to deploy robot taxis in some U.S. markets next year as part of a multi-year partnership that brings together two companies that once seemed poised to compete for riders.

Evidence

Pending intelligence enrichment.

Analysis

The alliance is the latest change in Cruise’s direction since October 2023, when its licence to offer driverless rides in California was suspended. This comes after one of its robot taxis dragged a jaywalking pedestrian who had been hit by a human-driven vehicle through a dark San Francisco street. The event sparked a regulatory investigation into Cruise and prompted its parent automaker, General Motors , to squash its ambitions in self-driving. GM had envisioned Cruise generating $1 billion in annual revenue by 2025, as its robo-taxis steadily expand to cities other than San Francisco, providing a driverless alternative to the ride-hailing services operated by Uber and Lyft. “Cruise’s mission is to use driverless technology to create safer streets and redefine urban life,” said Marc Whitten, Cruise’s chief executive, who is filling the void created after Cruise founder Kyle Vogt stepped down amid the fallout from the California licence suspension. Also read: GM’s Cruise eyes fare-charging for Robotaxi rides by 2025

Key Points

  • Cruise will dispatch some of its trouble-ridden robotaxis to join Uber’s ride-hailing service.
  • The alliance is the latest change in Cruise’s direction since October 2023, when its licence to offer driverless rides in California was suspended.

Actions

Pending intelligence enrichment.

Author

Iydia Ding (i.ding@btw.media)· author profile pending