GM’s Cruise to Launch Robotaxis on Uber Platform Starting Next Year
Cruise, the autonomous vehicle subsidiary backed by General Motors, has announced a new partnership with Uber to offer robotaxis on the ride-hailing platform beginning next year. This collaboration marks a significant step in Cruise’s efforts to regain traction in the autonomous vehicle market after a setback last year.
Through this multi-year agreement, Uber users will have the option to book rides in Cruise’s autonomous vehicles. The news positively impacted GM’s stock, which rose by 1.3% in extended trading, while Uber’s shares saw a slight decline of 1.5%.
Uber has already been integrating driverless cars into its platform, particularly in Phoenix, through a partnership with Alphabet’s Waymo, which operates a fleet of approximately 700 autonomous vehicles. Waymo remains the only U.S. company currently offering fully autonomous robotaxis that charge fares.
Cruise’s move to team up with Uber comes as it works to overcome challenges stemming from a significant accident in San Francisco last year, which led to a temporary halt in operations. The company has since resumed testing with safety drivers and is actively working to address regulatory concerns.
In a related development, Cruise agreed to recall nearly 1,200 of its robotaxis due to issues with hard braking, a move that led U.S. auto safety regulators to close an investigation into the matter.
The partnership with Cruise is part of Uber’s broader strategy to expand its autonomous vehicle offerings, a sector that has proven more challenging and costly than initially anticipated due to complex technology, regulatory hurdles, and high investment demands. Uber previously sold its self-driving division in 2020 to focus on its core businesses, such as ride-hailing and food delivery.
Despite these challenges, Uber CEO Dara Khosrowshahi remains optimistic, highlighting the company’s unique position to help autonomous vehicle players scale their technology. In the June quarter, Uber saw a six-fold increase in trips by self-driving vehicles, driven by its partnerships with companies like Waymo and the startup Waabi for freight services.