General Motors announced on December 11, 2024, its decision to scrap its Cruise robotaxi program after nearly a decade and $10 billion in development. This move has significant implications for Uber Technologies, which had a multi-year strategic partnership with Cruise to deploy autonomous vehicles. The termination of Cruise's operations means Uber loses a key partner in its autonomous vehicle strategy.
The partnership, announced in August, was intended to launch in 2025 with the deployment of Chevy autonomous vehicles on Uber's network. GM cited the time and costs needed to scale the business and rising competition as reasons for the closure. This setback raises questions about Uber's 2025 AV alliance and its broader autonomous strategy.
While Uber has diversified its AV partnerships, the loss of Cruise as a partner could slow its plans for autonomous vehicle deployment. Uber's strategy relies on integrating AV fleets from various developers onto its platform. The challenges faced by Cruise underscore the complexities and capital intensity involved in bringing autonomous driving technology to commercial scale.
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