Cruise

GM acquires Cruise for approximately $1B — at the time the largest automaker acquisition of a tech company. Kyle Vogt and Dan Ellison join GM. Cruise's self-driving technology integrated into GM's Chevy Bolt fleet. GM commits to unlimited internal funding. Waymo (Alphabet) is the main competitor. Target: commercial robotaxi launch by 2019.

SoftBank invests $2.25B in Cruise, valuing it at $11.5B — the largest external investment in an autonomous vehicle company. GM retains majority control. Cruise now has runway to outlast competitors. Honda invests $750M in 2020 implying $19.2B valuation. Microsoft and others invest $1.35B in January 2022 at $30B valuation. Total invested capital exceeds $15B.

Cruise launches paid robotaxi service in San Francisco, competing directly with Waymo. Riders can hail driverless Cruise vehicles 24/7 across a geofenced area. 400+ driverless vehicles operating. GM CEO Mary Barra projects Cruise will reach $1B revenue by 2025. Safety record described as among the lowest per-mile incident rates in the city.

October 2, 2023: A Cruise vehicle is involved in an accident after a human driver hits a pedestrian and throws her into Cruise's path. The Cruise vehicle stops — dragging the pedestrian 20 feet. Critically, Cruise provides regulators with incomplete footage that obscured the dragging sequence. California DMV suspends Cruise's driverless permit. NHTSA opens formal investigation. Cruise suspends all driverless operations nationally.

Kyle Vogt and Dan Ellison resign November 2023. GM announces 900 Cruise layoffs December 2023. GM writes off $5.5B in Cruise losses in Q1 2024. Commercial robotaxi operations permanently ended. GM retains a small Cruise research team. $15B+ invested across 8 years produced zero sustainable commercial robotaxi service. Waymo, the only survivor, has 700+ commercial vehicles across 4 US cities.