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GM is out of the robotaxi game. That leaves 2.

Dec 14, 2024 - businessinsider.com
General Motors has decided to halt its investment in Cruise, effectively withdrawing from the robotaxi race due to the resource-intensive nature of the venture and a highly competitive market. This move leaves Tesla and Waymo as the primary frontrunners in the autonomous taxi space in the U.S. GM plans to focus on developing advanced driver assistance systems for personal vehicles instead. Analysts suggest that GM's decision indicates that Tesla and Waymo may have superior technology and that the market may not be favorable for late entrants. Safety incidents involving Cruise's fleet, including a significant incident in California, have also contributed to GM's decision.

Waymo is already offering robotaxi services in several U.S. cities and plans to expand to Miami by 2026, while Tesla aims to launch its service in 2025. Amazon's Zoox is preparing to offer rides in Las Vegas and San Francisco by 2025, using unique carriage-style vehicles. Tesla's advantage lies in its extensive data collection from millions of vehicles on the road, which aids in refining its Full Self-Driving feature. Analysts believe that the autonomous vehicle market in the western world will be dominated by a few companies, primarily Tesla, Waymo, and potentially Amazon, due to their resources and technological advancements.

Key takeaways:

  • GM has halted its investment in Cruise, effectively stepping back from the robotaxi race due to the resource-intensive nature of the venture and an increasingly competitive market.
  • Tesla and Waymo are considered the frontrunners in the autonomous taxi space, with Waymo already offering services in several US cities and Tesla planning to launch its service in 2025.
  • Safety incidents involving Cruise's fleet have led to regulatory challenges, including the loss of its operating permit in California, which has benefited Waymo's progress in the state.
  • Amazon's Zoox is preparing to offer public rides with its unique carriage-style vehicles in Las Vegas and San Francisco by 2025, while Tesla aims to leverage its extensive data from existing vehicles to enhance its autonomous services.
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