Cruise LLC

Cruise LLC. It is an American self-driving car company headquartered in San Francisco, founded in 2013 by Kyle Vogt and Dan Kan. Acquired by General Motors in 2016, the company develops and deploys a fleet of all-electric, driverless ride-hailing vehicles, aiming to provide a commercial service. Its primary technology platform is centered on a purpose-built autonomous vehicle called the Cruise Origin, designed without traditional controls like a steering wheel or pedals.

History

The company was founded in 2013 by entrepreneurs Kyle Vogt and Dan Kan, initially focusing on aftermarket autonomous driving kits. In 2016, General Motors acquired the startup, making it a key part of GM's Advanced Technology and Innovation group. Significant investment followed, including a substantial infusion from the SoftBank Vision Fund in 2018 and a further equity investment from Honda in the same year. Under the leadership of Dan Ammann, who became CEO in 2019, the company shifted its focus toward launching a commercial ride-hailing service. In early 2022, Kyle Vogt returned as CEO, and the company began charging for driverless rides in San Francisco, marking a major commercial milestone. In October 2023, the California Department of Motor Vehicles suspended its deployment permit, leading to a nationwide pause of all public road operations.

Technology and operations

The core of the technology is a proprietary combination of sensor fusion, machine learning, and computer vision systems. Its fleet primarily consists of modified Chevrolet Bolt vehicles, densely equipped with lidar, radar, and camera arrays to perceive the environment. The company is developing the Cruise Origin, a fully driverless vehicle built in partnership with General Motors and Honda that lacks manual controls. Operations are managed through a remote assistance system where human operators can provide guidance to vehicles in complex situations. Prior to the 2023 suspension, its commercial service operated in San Francisco and had begun limited testing in cities like Phoenix and Austin.

Business model and partnerships

The primary business model is to operate a commercial, driverless ride-hailing and delivery service. Its major strategic partnership and primary source of funding and manufacturing is its parent company, General Motors. Additional significant investors have included the SoftBank Vision Fund, Honda, Microsoft, and Walmart, the latter partnering for autonomous delivery pilots. The company has also engaged in collaborations with organizations like the Disability Rights Education & Defense Fund to ensure accessibility. Revenue was intended to be generated through passenger fares in its app-based service and through logistics contracts, aiming for a path to profitability following scaled deployment.

Safety record and incidents

The safety record has been scrutinized following several high-profile incidents involving its autonomous vehicles. In October 2023, a pedestrian in San Francisco was struck by a human-driven vehicle and then dragged by a driverless car, leading to a critical injury and subsequent regulatory actions. The company has reported multiple collisions to the National Highway Traffic Safety Administration, including incidents where its vehicles obstructed emergency responders. These events, along with reports of vehicles stalling in traffic and impeding public transportation like Muni buses, contributed to the suspension of its permits by the California Department of Motor Vehicles and an expanded investigation by the NHTSA.

Regulatory environment

The company operates within a complex and evolving regulatory landscape across multiple jurisdictions. Its primary regulators in California include the California Department of Motor Vehicles, which issues deployment and testing permits, and the California Public Utilities Commission, which authorizes passenger service. At the federal level, the National Highway Traffic Safety Administration oversees vehicle safety and has opened defect investigations into its operations. The company has also engaged with local authorities in cities like San Francisco, Austin, and Phoenix to coordinate testing. The regulatory approach has been a patchwork of state-level rules, as the United States lacks comprehensive federal legislation specifically governing autonomous vehicles.

Category:Autonomous vehicle companies of the United States Category:Companies based in San Francisco Category:General Motors