GM's Cruise to launch robotaxis on Uber from next year

GM Cruise Uber partnership 2024: General Motors-backed autonomous-vehicle subsidiary, Cruise, will make its driverless cars available on Uber next year. In this multi-year agreement, Uber users would get an option for Cruise autonomous vehicles while making the booking.

GM's shares rose 1.3 per cent in extended trading following the news, while those of Uber dropped 1.5 per cent.

While Uber's been already adding self-driving cars to its platform, specifically in Phoenix since last October, thanks to its partnership with Alphabet's Waymo, it is the only US company that, to this day, runs uncrewed robotaxis charging fares using a fleet of about 700 vehicles.

Cruise is seeking to regain a foothold on US roads after a severe crash in San Francisco last year forced it to shut down operations. The company has resumed testing with safety drivers on board earlier this year as it tries to prove its vehicles' reliability to state and federal regulators.

In a related development, Cruise agreed on Thursday to recall nearly 1,200 robotaxis over issues related to hard braking, and the US auto safety regulator has closed an investigation into the matter.

The deal between Uber and Cruise came just as Tesla chief executive Elon Musk is readying plans for a delayed robotaxi product in October, amid dwindling demand for electric vehicles.

The commercialisation of autonomous vehicles has been slower than what was envisioned, with the process being much longer and complex from a technological viewpoint, coupled with huge investments and strict regulatory scrutiny, and ongoing federal investigations.

Uber offloaded its self-driving division in 2020 to focus on core operations in ride-hailing and food delivery. It has since stepped up efforts to tout itself as an essential partner for AV companies. "Uber is uniquely positioned to offer tremendous value for AV players looking to deploy their technology at scale," said Uber CEO Dara Khosrowshahi on a recent post-earnings conference call.

The number of self-driving car trips on the platform of Uber more than sextupled in the June quarter compared to a year ago, riding on the company's partnerships with firms like Waymo and freight services startup Waabi.

(With Reuters inputs.)