General Motors (GM) has pulled out of its robotaxi business, Cruise, citing the significant investment costs and risks associated with developing autonomous technology. The exit marks a significant blow to the industry, which is still grappling with the challenges of creating commercially viable autonomous fleets.
The demise of GM’s robotaxi business comes as Alphabet-owned Waymo and Tesla continue to invest heavily in autonomous vehicle technology. While the end of Cruise may be seen as a boon for its competitors, it highlights the significant hurdles faced by many players in the industry. The lack of clear market viability and high stakes involved make it difficult for companies to sustain long-term investments.
The struggles of GM’s robotaxi business are not unique to the company. Ford ended its Argo AI self-driving venture two years ago, and Apple scrapped its decade-long car project due to uncertainty over the direction of autonomous fleets. The exit of Cruise adds to the growing list of failed ventures in the industry.
Source: https://finance.yahoo.com/news/what-cruises-self-driving-end-means-for-tesla-and-waymo-morning-brief-110053822.html