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GM-owned Cruise will partner with Uber to offer driverless rides
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GM-OWNED CRUISE WILL PARTNER WITH UBER TO OFFER DRIVERLESS RIDES

Published Thu, Aug 22 20244:07 PM EDTUpdated Thu, Aug 22 20244:18 PM EDT
Lora Kolodny@in/lorakolodny/
Michael Wayland@MikeWayland
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Key Points
 * Uber Technologies and General Motors’ Cruise have agreed to a multi-year
   partnership, under which the embattled autonomous vehicle company plans to
   offer driverless rides to Uber users as soon as next year.
 * The announcement comes as Cruise attempts to revive its robotaxi business
   after the company ceased operations following an October 2023 incident.

In this article

 * UBER-0.86 (-1.17%)
 * GM+0.54 (+1.16%)

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A Cruise autonomous taxi in San Francisco, California, US, on Thursday Aug. 10,
2023. 
David Paul Morris | Bloomberg | Getty Images

Uber Technologies and General Motors’ Cruise have agreed to a multi-year
partnership, under which the embattled autonomous vehicle company plans to offer
driverless rides to Uber users as soon as next year.

The Thursday announcement comes as Cruise attempts to revive its robotaxi
business after the company ceased operations following an October 2023 incident
in which a pedestrian in San Francisco was dragged 20 feet by a driverless
Cruise vehicle after she was first struck by a human driver in another car.



State and federal regulators have investigated the incident, which led to an
exodus of Cruise leaders including CEO and co-founder Kyle Vogt, as well as
significant layoffs.

Both Cruise CEO Marc Whitten and Uber CEO Dara Khosrowshahi hailed the
partnership in a press release, stressing that the companies believe autonomous
vehicles can be deployed safely.

“Cruise is on a mission to leverage driverless technology to create safer
streets and redefine urban life,” Whitten said in the release. “We are excited
to partner with Uber to bring the benefits of safe, reliable, autonomous driving
to even more people, unlocking a new era of urban mobility.”

Khosrowshahi said in the release that Uber is “thrilled to partner with Cruise
and look forward to launching next year.” 

Cruise declined to provide details regarding its relaunch plans or the terms of
its partnership with Uber.




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In 2016, Uber aimed to develop its own autonomous vehicle technology and
partnered with Volvo to do so. But it abandoned the effort after a 2018
incident, in which an Uber self-driving car struck and killed a woman named
Elaine Herzberg as she was walking her bicycle across a road in Tempe,
Arizona. The Uber safety driver on board at the time, Rafaela Vasquez, was
ultimately held legally liable for the incident.

Since then, Uber has emerged as a partner to other autonomous vehicle
developers. It has partnered with Google-owned Waymo to offer driverless rides
or food delivery to Uber users via robotaxis in Arizona.

On Uber’s most recent earnings call, analysts asked the company how the
emergence of robotaxis would likely impact the ridehailing giant’s business
long-term.

Khosrowshahi said on the call that “AV players” experience much higher
utilization with Uber than they do “without a network on a first-party basis.”
He also predicted there will be a “pretty long hybrid period as autonomous is
developing and regulators are trying to figure out exactly how to regulate it.”
He added, “We don’t think this will be a winner-take-all market.”

Cruise competitor Waymo said this week that it is already delivering 100,000
paid robotaxi rides per week in cities where it operates commercially in the US:
San Francisco, Phoenix and Los Angeles. The company is also testing in and plans
to expand its service into Austin, Texas.

The new partnership isn’t the first time GM has partnered with a ride-haling
company. GM invested $500 million in Lyft in early 2016, with plans to
eventually develop a fleet of autonomous vehicles that could be summoned using
Lyft’s mobile app. That never happened, as GM decided to instead launch its own
vehicles and network through Cruise.

A Cruise spokeswoman said the company remains focused on relaunching its own
driverless ridehailing service and app, despite the Thursday announcement.

Cruise is currently conducting supervised autonomous vehicle testing with a
safety driver in Phoenix, Dallas and Houston.


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