SAN FRANCISCO — Cruise will be autonomous vehicles on the taxi ride platform Uber Starting next year, the companies said Thursday, as the General Motors-backed robotaxi company attempts to make a comeback.
The multi-year partnership will allow Uber drivers to choose a ride in a Cruise autonomous vehicle, they said. Shares of GM rose 1.3% in extended trading, while Uber fell 1.5%.
Uber offers self-driving cars in Phoenix on its platform since October last year through a partnership with Alphabet’s Get out of herewhich has about 700 vehicles and is the only US company that uses driverless robotaxis that collect fares.
Cruise is looking to make its way back onto American roads after a major accident in San Francisco last year forced the company to cease operations. Earlier this year, it resumed testing with safety drivers as it works to reassure state and federal officials about the safety of its vehicles.
Cruise agreed Thursday to recall nearly 1,200 robotaxis due to a serious crash. brakes issues, the US car safety the regulator said, prompting the investigation into the matter to be halted.
Uber’s partnership with Cruise is coming Tesla CEO Elon Musk is expected to unveil its delayed plans for a robotaxi product in October amid declining demand for electric vehicles.
Commercializing autonomous vehicles (AVs) is proving more difficult than expected and taking longer than promised due to complex technology, huge investments, strict regulations and federal investigations.
Uber sold its self-driving car division in 2020 to cut costs and refocus on its core businesses, including ride-hailing and food delivery.
Uber is “uniquely positioned to deliver tremendous value to AV players looking to deploy their technology at scale,” CEO Dara Khosrowshahi said during a post-earnings conference call this month.
The number of self-driving rides on Uber’s platform increased sixfold in the second quarter compared to a year earlier, thanks to partnerships with companies such as Waymo and freight-services startup Waabi.