General Motors’ self-driving taxi service, Cruise, will expand to Phoenix and Austin later this year.
According to Reuters, Cruise, the autonomous taxi service, will expand to two new cities before the end of this year; Phoenix, Arizona, and Austin, Texas. Cruise’s CEO has also announced the goal of $1 billion in annual revenue by 2025. However, it remains unclear how the company will continue to expand and how it will face future challenges.
Currently, the Cruise autonomous taxi service is fairly barebones. The service is only available in San Fransico and only transports commuters through some (not all) of the dense city center. Furthermore, the company is still using a small number of Chevy Bolts equipped with numerous sensors all over the vehicle. Nonetheless, the service has been successful and has given GM a crucial testing platform for its autonomous driving tech.
The success General Motors has found in its limited release has clearly given the CEO an optimistic outlook, setting a goal of $1 billion in revenue by 2025; it remains unclear how the company will expand to attain that goal. Will the company be relegated to warm and dry southwestern cities, or will it be able to tackle Phillidelphia, New York, or Boston? Will the company offer larger vehicles, such as Chevy’s upcoming Chevy Equinox EV, Chevy Blazer EV, or Chevy Silverado EV? And even if they are willing to expand in such a way, how are they working with regulators to ensure that the system moves forward smoothly?
General Motors may have the next Uber in their midst, but their lack of transparency on how they plan on taking on giants such as Uber and Lyft, who are investing heavily in autonomous driving, can make many skeptical of their ability to expand so quickly and successfully.
General Motors must also compete with other automakers looking to introduce their own autonomous driving tech. GM’s Super Cruise will have to compete with Tesla’s FSD, Mercedes’ autonomous driving system, their long rival Ford and their Blue Cruise technology, and many more.
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