Cruise, the General Motors-backed robotaxi company, is set to make a comeback with a new partnership with Uber. The two companies announced on Thursday that starting next year, Uber riders will have the option to choose a trip using a Cruise autonomous vehicle. This partnership marks Cruise’s return to the roads after a major accident forced the company to halt operations in San Francisco last year.
While Uber has been offering driverless cars in Phoenix since October 2020 through a partnership with Alphabet’s Waymo, Cruise aims to become the first U.S. firm to operate uncrewed robotaxis that collect fares. Waymo currently has about 700 vehicles in its fleet, making it the leader in the autonomous ride-hailing space.
However, Cruise’s path to commercializing autonomous vehicles has proven to be more challenging than anticipated. The technology is complex, requiring significant investments and undergoing tight regulatory scrutiny and federal investigations. These factors have contributed to the slower-than-expected progress in the AV industry.
In an effort to reduce cash burn and refocus on its core business, Uber sold its self-driving division in 2020. The company’s CEO, Dara Khosrowshahi, sees great potential in partnering with AV players to deploy their technology at scale. In fact, trips by self-driving vehicles on Uber’s platform increased six-fold in the June quarter compared to the same period last year. This growth can be attributed to partnerships with companies like Waymo and Waabi, a startup focused on autonomous freight services.
The partnership between Uber and Cruise comes at a time when Tesla CEO Elon Musk is set to unveil his plans for a robotaxi product in October. Despite the hype surrounding Tesla’s entry into the autonomous ride-hailing market, the demand for electric vehicles has been slowing down. This shift in focus allows Cruise and Uber to position themselves as leaders in the AV space and capitalize on the growing interest in autonomous transportation.
While there are still challenges to overcome, such as regaining public trust after the accident in San Francisco and addressing safety concerns, the Cruise-Uber partnership signals a significant step forward for the autonomous vehicle industry. By providing riders with the option to choose a trip using a Cruise autonomous vehicle, the partnership aims to increase public exposure and acceptance of self-driving technology.
As the race to achieve fully autonomous ride-hailing services continues, the success of the Cruise-Uber partnership will be closely watched. With their combined expertise and resources, both companies have the potential to shape the future of transportation and pave the way for a new era of mobility.
