Uber to begin offering option of self-driving Cruise cars

Cruise robotaxis are joining Uber's ride-hailing service next year as part of a multiyear partnership, bringing together two companies that once appeared poised to compete for passengers.

The partnership will allow Uber riders to choose a Cruise autonomous vehicle when planning their trip.

Uber has been offering driverless cars in Phoenix, Arizona, on its platform since October last year through an agreement with Alphabet's Waymo.

The latest partnership with Cruise comes as Tesla chief executive Elon Musk is set to unveil delayed plans for a robotaxi product in October, amid slowing demand for electric vehicles.

The alliance is the latest change in direction for Cruise since its Californian licence to provide driverless rides was suspended in October 2023 after one of its robotaxis dragged a jaywalking pedestrian who had been struck by a human-driven car across a darkened San Francisco street.

The incident led to regulatory inquiries into Cruise and prompted its corporate parent, car maker General Motors, to moderate its ambitions in autonomous driving.

GM had envisioned Cruise generating $1 billion in annual revenue by 2025 as its robotaxis steadily expanded beyond San Francisco to offer a driverless alternative to the ride-hailing services operated by Uber and Lyft.

But now GM and Cruise are looking to make money by mixing the robotaxis with Uber's human-driven cars, giving passengers the option to ask for an autonomous ride.

Cruise is operating Chevy Bolts autonomously in Phoenix and Dallas, with humans sitting behind the wheel ready to take over if anything goes wrong.

The Uber deal underscores Cruise's determination to get back to the point where its robotaxis ride the roads entirely on their own.

“Cruise is on a mission to leverage driverless technology to create safer streets and redefine urban life,” said Cruise chief executive Marc Whitten.

GM also laid off hundreds of employees after losing the Californian licence as part of its financial measures after sustaining $5.8 billion in losses on the robotaxi service from 2021 to 2023.

Despite Cruise's recent woes, Uber chief executive Dara Khosrowshahi expressed confidence the ride-hailing service could out the robotaxis back on the right track.

“We believe Uber can play an important role in helping to safely and reliably introduce autonomous technology to consumers and cities around the world,” Mr Khosrowshahi said.

Shares of GM rose more than 1 per cent in extended trading on Thursday, while Uber Uber shares fell as much as 4.4 per cent.

Meanwhile, Cruise on Thursday agreed to recall nearly 1,200 robotaxis over hard braking problems, the US vehicle safety regulator said, agreeing to close an investigation into the issue.