Visa The Embedded Lending Opportunity April 2024 Banner

Cruise Plans to Resume Robotaxi Service in One City 

Cruise, General Motors, self-driving cars, autonomous vehicles, robotaxi, ride hailing

Cruise, the autonomous vehicle unit of General Motors, is reportedly planning to resume its robotaxi service with a more focused approach. 

After facing safety mishaps and regulatory scrutiny, Cruise has decided to scale back its operations to a single city and shelve plans for Origin, a driverless taxi built by General Motors, The Wall Street Journal (WSJ) reported Wednesday (Nov. 22). 

The unit will now concentrate on proving its performance in one market before expanding further, according to the report. The specific city and timeline for resuming service were not disclosed. 

This decision comes after California regulators revoked Cruise’s driverless permits due to an incident in which a self-driving vehicle hit a pedestrian, the report said. The unit then suspended its operations in the several cities nationwide in which it had launched. On Sunday (Nov. 19), CEO Kyle Vogt announced his resignation on X, formally known as Twitter.

While Origin remains a part of Cruise’s long-term plans, the company will continue to use retrofitted Chevrolet Bolts for its near-term service, per the report. Origin, which can accommodate six passengers, was showcased in September, but regulatory scrutiny prompted the company to halt factory work temporarily.

Despite these setbacks, General Motors and Cruise will continue their previously announced partnership with Honda Motors to launch a ride-hail service in Japan in 2026 using Origin, according to the report. GM has expressed confidence that the current situation with Cruise will not impact these plans. 

To manufacture and deploy Origin on public roads, GM sought an exemption from federal regulators, the report said. The company’s request to manufacture 5,000 Origins over a two-year period is still pending approval. 

Cruise had outlined plans to expand the service beyond San Francisco, and the company had deployed driverless taxis in Austin and Phoenix in 2022, and begun testing in other cities, per the report. 

However, since then, Cruise has faced software recalls and ongoing safety-defect investigations by federal regulators, according to the report. 

In another effort in the autonomous car space, Google-owned self-driving vehicle firm Waymo teamed up with Uber in May to expand its service. The companies said they plan to enable Uber users to order rides or deliveries from Waymo’s autonomous vehicles.