General Motors (GM) has announced that it will no longer fund its self-driving car subsidiary Cruise, citing safety concerns after a recent incident left a pedestrian stuck under and dragged by one of the company’s robotaxis. The move comes as a surprise to many, given GM’s significant investment in Cruise over the years.
Founded in 2013, Cruise Automation shifted its focus from developing retrofit kits for vehicles to self-driving software. At its peak, the startup had gained attention from automaker executives and venture capitalists alike, but it has since faced numerous setbacks, including failed funding rounds and consolidation in the industry.
Cruise’s latest incident, which occurred on October 2, raised concerns about the safety of robotaxis. In response, Cruise CEO Kyle Vogt resigned, and the company laid off 24% of its workforce. Regulators have also suspended its permit to operate commercially in San Francisco.
The decision comes as GM chairman and CEO Mary Barra has a different vision for Cruise. While GM had previously indicated that it would revive the startup as a leaner, more tightly controlled enterprise, Barra now plans to take a different approach.
This development marks a significant shift in the autonomous vehicle industry, which has faced numerous challenges in recent years. With Cruise’s exit, only a few well-funded giants remain, including Alphabet’s Waymo, Hyundai-backed Motional, and Amazon-owned Zoox.
Source: https://techcrunch.com/2024/12/12/rip-cruise-robotaxi