SAN FRANCISCO: As the General Motors-backed robotaxi company makes a comeback, Cruise will begin offering its autonomous vehicles on the ride-hailing platform Uber starting next year, the firms announced on Thursday.
According to them, the multi-year agreement will let Uber users select a trip with a Cruise automated car. Uber saw a 1.5% decline in extended trade, while GM’s shares increased 1.3%.
Uber and Alphabet’s Waymo have partnered to offer driverless cars in Phoenix on Uber’s platform since October of last year. Waymo is the only American company that operates unmanned robot taxis that gather fares, and it has about 700 vehicles in its fleet.
After a serious accident in San Francisco last year forced the business to cease operations, Cruise is trying to make its way back into American roadways. It has been testing with safety drivers again this year as it attempts to reassure federal and state agencies about the safety of its cars.
The U.S. auto safety agency stated that Cruise has agreed to recall over 1,200 robotaxis due to hard braking difficulties on Thursday, which prompted it to end an investigation into the matter.
Uber’s cooperation with Cruise comes as Tesla CEO Elon Musk is scheduled to disclose its delayed plans for a robotaxi product in October amid decreasing demand for electric vehicles.
The process of commercializing autonomous vehicles (AV) has been more difficult than anticipated and has taken longer than anticipated because of sophisticated technology, massive investments, stringent regulatory oversight, and government probes.
CEO Dara Khosrowshahi stated on this month’s post-earnings conference call that Uber is “uniquely positioned to offer tremendous value for AV players looking to deploy their technology at scale.”
