Cruise (autonomous vehicle)
| Company type | Subsidiary |
|---|---|
| Industry | Autonomous vehicles |
| Founded | 2013 |
| Founder | Kyle Vogt, Dan Kan |
| Fate | Operations halted October 2023; funding ended December 2024 |
| Headquarters | San Francisco, California , United States |
Area served | United States (notably San Francisco, Phoenix, Austin, Dallas, Houston, Miami) |
Key people | Kyle Vogt (Founder, former CEO), Dan Ammann (former CEO), Marc Whitten (CEO as of June 2024) |
| Products | RP-1 retrofit kit, Cruise AV autonomous vehicles, Cruise Origin autonomous shuttle |
| Owner | General Motors |
Number of employees | Approximately 4,000 (November 2023) |
| Parent | General Motors |
Cruise LLC was a U.S.-based autonomous vehicle enterprise and a subsidiary under General Motors, headquartered in San Francisco, California. Established in 2013 by Kyle Vogt and Dan Kan, Cruise specialized in developing self-driving car technologies. General Motors acquired the firm in 2016, after which Cruise operated with considerable autonomy, concentrating on building fleets of driverless taxis.[1] Following multiple incidents, Cruise halted its operations in October 2023, with CEO Kyle Vogt stepping down the following month.[2] The company recommenced public road testing activities in May 2024.[3]
In December 2024, General Motors ended its financial support for Cruise, redirecting autonomous vehicle initiatives toward enhanced driver assistance systems for personal automobiles and discontinuing backing for autonomous taxi services.[1]
History
Cruise originally created consumer-targeted kits designed to retrofit vehicles with limited autonomous driving features. Their initial RP-1 system enabled on-demand self-driving capabilities for the Audi A4 or S4 models from 2012 onward. Priced at $10,000, this retrofit kit aimed to convert any vehicle into a highway autopilot system. Nevertheless, Cruise shifted its strategy to focus on urban driving environments, discontinuing RP-1 in January 2014 to develop a fully autonomous vehicle based on the Nissan Leaf. By 2015, the company redirected efforts toward software development for fully autonomous cars. Cruise advocates for shared vehicle ownership as a means to lower environmental impact, reduce accidents, and alleviate city traffic congestion.
In June 2015, Cruise secured a permit from the California Department of Motor Vehicles to test its self-driving technology on public roads. After completing its participation in Y Combinator, Cruise was acquired by General Motors in March 2016. Although the purchase price was not publicly disclosed, estimates placed it between $500 million and over $1 billion. Today, Cruise constitutes a central component of GM’s autonomous vehicle strategy.
At the time of acquisition, Cruise employed approximately 40 staff members. By September 2016, CEO Kyle Vogt announced that the workforce had expanded to more than 100 employees. GM CEO Mary Barra reported nearly 200 employees by June 2017, highlighting rapid growth consistent with GM’s increased investment in autonomous driving technologies.
Acquisition by GM and investments
GM CEO Mary Barra emphasized that Cruise maintained control over both technological development and commercialization efforts, preserving operational independence to avoid common challenges faced when large corporations acquire startups.
Following its acquisition by General Motors in March 2016, Cruise concentrated on advancing autonomous vehicle software and hardware platforms utilizing modified Chevrolet Bolt electric vehicles.
In April 2017, GM pledged $14 million to broaden Cruise’s presence in California with plans to hire roughly 1,163 full-time employees by 2021.
In May 2018, SoftBank Vision Fund invested $2.25 billion into Cruise alongside an additional $1.1 billion from GM. Later that year, Honda contributed $750 million with intentions to invest an extra $2 billion over a twelve-year period.
November 2018 marked the appointment of Dan Ammann, former GM president, as CEO of Cruise. By May 2019, Cruise secured an additional $1.15 billion in equity funding, elevating its valuation to $19 billion.
In January 2021, Microsoft, Honda, and other institutional investors injected $2 billion in new equity capital, increasing Cruise’s valuation to $30 billion. In March of the same year, Cruise acquired the self-driving startup Voyage.
In March 2022, General Motors purchased SoftBank Vision Fund 1’s equity stake in Cruise for $2.1 billion while also investing an extra $1.35 billion into the company.
Robotaxi trials and authorization
In September 2021, Cruise secured a permit from the California Department of Motor Vehicles allowing it to operate driverless taxi services without onboard safety drivers. By November 2021, co-founder Kyle Vogt completed the company’s inaugural fully autonomous taxi trip.
By February 2022, Cruise made its service available to the public and submitted a request to U.S. regulators (NHTSA) seeking permission to deploy self-driving cars without manual controls. Later that month, Kyle Vogt was appointed as CEO.
In June 2022, Cruise earned California’s first-ever Driverless Deployment Permit, granting the ability to charge fares and become the pioneer in offering fully autonomous robotaxi services in a major metropolitan area. After an accident in June, the company conducted a software recall and update on 80 vehicles in August. By September 2022, Cruise was operating a fleet of 100 robotaxis in San Francisco and announced plans to expand to 5,000 units, which sparked concerns regarding increased urban traffic congestion.
In September 2022, Cruise revealed intentions to extend operations to Phoenix, Arizona, and Austin, Texas within three months, aiming for $1 billion in revenue by 2025. As reported by The Verge, Cruise experienced a $561 million loss in Q1 2023 while generating $30 million in revenue primarily from non-operational sources but remained optimistic about reaching $1 billion revenue by 2025 and $50 billion by 2030. CEO Kyle Vogt highlighted that part of the fleet was providing driverless rides around the clock throughout San Francisco.
Halt of operations and eventual closure
Following safety concerns and incidents after receiving approval for continuous robotaxi service in San Francisco in August 2023, the California DMV revoked Cruise’s self-driving permits immediately in October 2023 amid an investigation into a pedestrian collision. Three days later, Cruise suspended all robotaxi operations nationwide, covering locations including Phoenix (Arizona), Austin, Dallas, Houston (Texas), and Miami (Florida).
On November 8, Cruise initiated an over-the-air software recall affecting 950 autonomous vehicles connected to the pedestrian incident. The following day, the company reduced its contingent workforce supporting autonomous functions; at that time, Cruise employed approximately 4,000 full-time employees.
CEO Kyle Vogt stepped down on November 19 during the suspension period. General Motors appointed Mo Elshenawy, Cruise’s Executive Vice President of Engineering, alongside GM General Counsel Craig Glidden as co-presidents. An internal report by Quinn Emanuel Urquhart & Sullivan released in January 2024 attributed much of the DMV’s suspension decision to inadequate leadership at Cruise. The company continued to face investigations by both the U.S. Department of Justice and Securities and Exchange Commission.
On June 25, 2024, Marc Whitten—formerly with Amazon and Microsoft—was named CEO. By December 2024, GM discontinued funding for Cruise’s autonomous taxi development efforts and redirected focus toward advanced driver assistance technologies for consumer vehicles. This restructuring is projected to conclude by mid-2025.
Cruise RP-1
Announced in June 2014 as Cruise's first offering, the RP-1 was a retrofit kit priced at $10,000 designed for 2012 and newer Audi A4 and S4 models. The system featured a roof-mounted sensor array equipped with cameras, radar, GPS, inertial measurement units, and an onboard computer managing steering, acceleration, and braking functions. Engineered primarily for limited-access highways, it controlled speed regulation, maintained safe following distances, and preserved lane positioning. Pre-orders were limited to 50 units with a deposit requirement of $1,000. However, by 2015 Cruise shifted focus toward building a fully autonomous vehicle platform and ultimately did not bring the RP-1 to market.
Initially, automated driving technologies were tested using Nissan Leaf electric vehicles; however, those trials ceased after December 2016.
Cruise AV
The Cruise AV is an autonomous vehicle built on the Chevy Bolt platform. The initial generation (G1) was adapted by Cruise in San Francisco, whereas the subsequent second and third generations (G2 and G3) are produced at GM’s facility in Orion Township, Michigan. These models employ Cruise’s proprietary AI and drive control software. The Cruise AV incorporates a combination of Lidar, radar, and camera systems, with approximately 40% of its components custom-engineered specifically for autonomous driving functions.
By 2016, Cruise had deployed about 30 self-driving G1 Cruise AVs for testing purposes. By mid-2017, GM and Cruise had manufactured roughly 180 units spanning G1 and G2 versions, including a production batch of 130 G2 vehicles. Testing expanded onto public roadways in locations such as San Francisco, Scottsdale (Arizona), and the Detroit metropolitan area. Early 2017 footage demonstrated these vehicles effectively navigating complex urban environments in San Francisco, underscoring their sophisticated autonomous capabilities.
In July 2017, Cruise introduced "Cruise Anywhere," a ridesharing program allowing San Francisco employees to utilize the vehicles. By October 2020, the California Department of Motor Vehicles authorized permits for fully driverless testing. Following this approval, Cruise commenced deploying driverless Cruise AVs on San Francisco streets without safety operators onboard. In September 2021, Honda began testing the G3 Cruise AV in Japan as part of its initiative to develop Level 4 autonomous mobility services.
Cruise Origin
In January 2020, Cruise revealed the Cruise Origin, a fully driverless vehicle designed for ride-hailing with Level 4–5 autonomy. Unlike converted autonomous cars, the Origin was purpose-built without manual driving controls and is entirely electric. It is constructed on GM’s BEV3 platform featuring Ultium battery technology. Projected production costs at scale were around $50,000 per unit with an anticipated operational lifespan of one million miles. Manufacturing was planned at GM’s Detroit-Hamtramck plant, rebranded as Factory Zero.
Honda partnered with Cruise in January 2021 to introduce the Origin into Japan’s Mobility as a Service (MaaS) ecosystem. By September 2022, a prototype intended for Tokyo had been completed and entered testing phases. Cruise aimed to begin mass production in 2023 and secured a $5 billion credit facility from GM to facilitate commercialization efforts, starting assembly of 100 pre-production vehicles by mid-2021. Prototype evaluations continued until July 2022.
In June 2021, California granted permits allowing Cruise to operate limited driverless taxi services generating revenue. In February 2022, GM and Cruise formally requested authorization from the National Highway Traffic Safety Administration (NHTSA) to deploy the Origin commercially. Since the vehicle lacks traditional manual controls, NHTSA must issue an exemption from Federal Motor Vehicle Safety Standards. Production readiness was reportedly achieved by early 2023; however, regulatory approval remained pending as of September 2023.
Following a pause in Cruise operations, GM ceased production of the Origin in November 2023.
Regulation
In June 2022, Cruise obtained authorization from the California Public Utilities Commission (CPUC) to run revenue-generating driverless taxi services within designated hours and zones in San Francisco. Subsequently, both Cruise and Waymo submitted applications to the CPUC seeking to extend operating hours for their robotaxi fleets. In January 2023, city officials in San Francisco expressed opposition to these expansions due to incidents involving Cruise AVs blocking traffic and obstructing emergency response activities.
Draft resolutions approving expanded service hours were published by the CPUC in May 2023; however, the scheduled hearing was postponed from June 29 to July 13 for additional examination. Prior to this hearing, an activist group named Safe Street Rebel released a widely viewed video demonstrating how placing a traffic cone on an autonomous vehicle temporarily disables it—an act that sparked a "Week of Cone" protest campaign. Cruise responded by cautioning that such interference disrupts their complimentary rides and meal delivery services while causing local traffic delays.
The CPUC delayed the hearing once more until August 10. At that session, commissioners approved the expansion by a vote of three to one, permitting both Cruise and Waymo to operate their robotaxi services around-the-clock throughout San Francisco.
On October 24, 2023, the California Department of Motor Vehicles suspended Cruise’s permit authorizing testing and operation of autonomous vehicles without safety drivers present. This action followed an incident where Cruise allegedly failed to provide video evidence showing a pedestrian being dragged approximately 20 feet by a Cruise AV traveling at seven miles per hour. Cruise denied withholding footage, stating it had been shared multiple times. The DMV declared that Cruise’s vehicles posed an unreasonable safety risk for public roads due to ongoing testing concerns and ordered an immediate suspension with no defined end date pending completion of required corrective measures. Concurrently, the CPUC also revoked Cruise’s commercial robotaxi operating permit.
In May 2024, while an investigation by the National Highway Traffic Safety Administration (NHTSA) into possible vehicle defects continues, Cruise resumed returning some vehicles to public roadways.
Disruptions to Police and Fire Operations
In April 2022, the San Francisco Police Department (SFPD) halted a Cruise autonomous vehicle operating at night without headlights. The unoccupied car, running without any onboard human operators or passengers, stopped before an intersection and then proceeded through it after the officer moved away; it subsequently halted again and engaged its hazard lights. Cruise explained that the vehicle relocated to the "nearest safe location" following instructions once the officer cleared the scene.
Also during April 2022, an empty Cruise AV obstructed a San Francisco Fire Department (SFFD) truck responding to a fire around 4 AM. The fire engine was unable to bypass a double-parked garbage truck by moving into the oncoming lane because the Cruise AV was occupying that space. Although the AV had stopped to yield, it could not pull aside due to parked vehicles on the curb. Unlike a human driver who might have reversed to clear the way, the autonomous vehicle remained stationary, causing delays in emergency response; San Francisco authorities indicated this resulted in slower SFFD arrival times and led to property damage as well as injuries.
In June 2023, footage surfaced showing a Cruise vehicle seemingly impeding police and fire units responding to a mass shooting incident in San Francisco. Cruise refuted claims of obstruction, asserting that emergency responders were able to maneuver around the vehicle. Both police and fire departments declined to provide statements. Between January and June 2023, the San Francisco Fire Department documented 39 cases where Cruise and Waymo autonomous taxis hindered first responder access.
In August 2023, a San Francisco firetruck collided with a Cruise vehicle while responding to an emergency call with active lights and sirens. Following this collision, the California Department of Motor Vehicles instructed Cruise to reduce its active fleet size by half pending investigations and implementation of safety improvements.
Between July and November 2023, Austin’s police and fire departments reported 12 "near miss" encounters involving Cruise vehicles. The Austin Fire Department requested establishing a no-go zone around Fire Station 2, while Austin Police noted that Cruise cars failed to interpret hand signals that conflicted with traffic lights.
Accidents and Traffic Obstructions
On June 3, 2022, a Cruise AV taxi carrying three rear-seat passengers collided with a Toyota Prius after executing an unprotected left turn. Cruise reported minor injuries for occupants in both vehicles. General Motors stated that the Prius was traveling at excessive speed and occupying an incorrect lane. In response, Cruise modified its vehicle software to limit unprotected left turns.
On June 29, 2022, approximately twenty Cruise AVs caused a two-hour traffic jam at Gough and Fulton streets in San Francisco. An anonymous employee from Cruise revealed frequent loss of communication with vehicles, sometimes necessitating tow truck assistance. Other immobilization events in 2022 included a fleet-wide communications outage on May 18, incidents in Tenderloin on June 21, and two separate occurrences near Sacramento and San Francisco on September 22. Between May 29 and September 5, San Francisco authorities logged 28 autonomous vehicle failures reported via emergency calls. Social media posts indicated additional incidents likely went unreported during overnight hours when Cruise operated about 30 driverless vehicles commercially. In October, US News & World Report highlighted numerous traffic disruptions caused by Cruise taxis.
In March 2023, two passengerless Cruise AVs drove through a blocked intersection in San Francisco and became entangled with downed Muni trolleybus power lines. The next day, another empty Cruise AV rear-ended a Muni bus on Haight Street.
Remote support necessity
In November 2023, The New York Times disclosed that remote operators intervened on average once every miles driven by Cruise vehicles. Vogt indicated that in complex urban settings, vehicles sought remote assistance approximately "2–4% of the time," emphasizing that numerous issues were autonomously resolved prior to human involvement. According to a Cruise representative, remote support is activated every miles. Brad Templeton clarified that this does not mean continuous remote control; 98% of operator connections occur within three seconds, and 80% of cases are settled without requiring human intervention. In 2022, Cruise reported an average distance between disengagements of miles.
Obstacle detection failures
In November 2023, The Intercept exposed that Cruise vehicles had difficulty reliably detecting children and sizable potholes, as revealed by internal safety documentation.
Pedestrian injuries
In August 2023, a Cruise autonomous vehicle traveling at mph through a green light collided with a pedestrian who was subsequently hospitalized due to knee pain.
On October 2, 2023, in San Francisco, a pedestrian was initially struck by a driver who fled the scene and then was hit and dragged roughly feet by a Cruise AV operating without a safety driver onboard. Emergency personnel employed the Jaws of Life to extricate the individual trapped beneath the vehicle. Cruise stated that the AV attempted to avoid the collision by steering right, halted immediately after impact, and tried to pull over but unintentionally dragged the pedestrian. This event triggered regulatory examination and underscored difficulties within Cruise’s autonomous vehicle operations.
Investigations
The National Highway Traffic and Safety Administration (NHTSA) commenced preliminary inquiry PE22-014 on December 12, 2022, concerning incidents where Cruise vehicles reportedly engaged in "excessively hard braking or became immobilized." Three instances involved automated systems applying hard brakes as another vehicle rapidly approached from behind, leading to rear-end crashes. On January 4, 2023, NHTSA issued two letters requesting pertinent data from Cruise.
In August 2023, the California DMV initiated an investigation following "recent troubling incidents" involving Cruise AVs, resulting in an immediate suspension of Cruise’s permit for testing and operating autonomous vehicles in San Francisco effective October 24, 2023.
Following two pedestrian collisions in August and October 2023, NHTSA launched preliminary investigation PE23-018 on October 16, 2023. The agency also identified two further incidents from publicly accessible videos showing AVs encroaching on pedestrians entering roadways.