GM’s autonomous vehicle division, Cruise, is set to introduce its robotaxis on Uber’s platform starting next year, marking a significant step in the evolving ride-hailing landscape. This multi-year partnership will allow Uber users to opt for a ride in a Cruise autonomous vehicle, further integrating self-driving technology into everyday transportation. The news, announced on Thursday, caused GM’s stock to see a modest rise of 1.3% in after-hours trading, while Uber’s shares dipped by 1.5%.
Uber has already been offering driverless rides in Phoenix through its collaboration with Alphabet’s Waymo, which operates around 700 autonomous vehicles. Waymo currently holds the distinction of being the only company in the U.S. running uncrewed robotaxis that actively collect fares. Now, with Cruise joining the platform, Uber is expanding its autonomous offerings, continuing its push into the future of mobility.
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Cruise’s journey back onto U.S. roads comes after a challenging period, including a significant accident in San Francisco last year that led to a temporary suspension of operations. In response, the company resumed testing earlier this year with safety drivers to ensure compliance with state and federal safety standards. Additionally, Cruise recently agreed to recall nearly 1,200 robotaxis due to hard braking issues, a move that prompted the U.S. auto safety regulator to close its investigation into the matter.
The timing of Cruise’s partnership with Uber is noteworthy, as it coincides with Tesla CEO Elon Musk’s anticipated unveiling of his long-delayed robotaxi plans, expected in October. The commercial rollout of autonomous vehicles has proven more challenging and time-consuming than initially predicted, with hurdles such as complex technology, substantial investments, stringent regulatory scrutiny, and ongoing federal investigations slowing progress.
Uber’s history with autonomous vehicles includes selling its self-driving unit in 2020 to focus on its core operations, such as ride-hailing and food delivery. Despite this, the company remains a critical player in the AV space. According to Uber CEO Dara Khosrowshahi, the company is “uniquely positioned to offer tremendous value for AV players looking to deploy their technology at scale.” This is evident in the six-fold increase in self-driving trips on Uber’s platform in the June quarter, largely due to partnerships with companies like Waymo and Waabi, a startup specializing in autonomous freight services.
As GM’s Cruise prepares to roll out its robotaxis on Uber’s platform, the collaboration signals a continued push towards making autonomous transportation a reality. The partnership not only underscores the potential for self-driving technology but also highlights the challenges and complexities that companies must navigate to bring these innovations to market.
