General Motors ends Robotaxi venture amid market challenges
Marking a significant shift in strategy, General Motors has decided to halt its robotaxi venture, Cruise, to prioritise personal autonomous vehicles. The decision highlights mounting competition and high costs in the emerging robotaxi market.
General Motors has announced it will cease funding its Cruise self-driving taxi project, redirecting its autonomous vehicle efforts toward personal cars. The decision reflects the intense competition and financial demands of scaling in the robotaxi sector. GM stated that the resources required to make Cruise profitable were a major factor in its pivot.
Cruise has faced mounting challenges in recent months. Following a fatal accident in October 2023 that led California to revoke its driverless testing permit, the company suspended operations across the US and cut a quarter of its workforce. Leadership changes and federal scrutiny further complicated Cruise’s trajectory, with co-founder Kyle Vogt departing amid the fallout.
This move signals broader difficulties within the autonomous taxi industry, where other giants like Ford and Volkswagen have also scaled back ambitions. GM, which owns 97% of Cruise, had once predicted billions in revenue from the venture by 2030. While companies like Tesla, Waymo, and Amazon continue to chase the robotaxi dream, GM is betting its future on personal autonomous vehicles instead.