Photo: Cruise | Edited
Cruise announced expanding its driverless ride-hailing service in Texas, with Houston and Dallas added to the list after Austin last December. Cruise robotaxis are still working night hours in Austin, making the service unknown to most people. We also expect a slow rollout in the other two Texan cities.
Despite challenging economic conditions, Cruise continues to expand services in more cities. The company controlled by General Motors has just reported disappointing financial results. Cruise burns through cash like there's no tomorrow, with roughly $500 million written off each quarter. The startup had only $2.4 billion in cash at the end of March, which makes many doubt its future beyond 2024.
This probably explains why Cruise is in such a hurry to start operations in new cities and regions. After announcing the lifting of time and space restrictions in San Francisco and expanding in Phoenix, AZ, and Austin, TX, Cruise is now eyeing more Texan cities. The company announced rolling out its self-driving cars to Houston and Dallas, for now in a supervised form, with a driver behind the wheel. Houston will be the first city where the driverless cars will start testing, followed shortly by Dallas.
In the first phase, the general public will not be able to order a Cruise robotaxi in these cities. The startup is using employees to test the system with a safety driver present. Later, Cruise will shift to driverless testing and, if everything goes smoothly, will open the service to the public. Then it will slowly expand operating hours and areas, the same as it did in San Francisco. It's a slow process, but it better be safe than sorry.
Although Cruise said it started its first paid rides in Austin last December, they are still limited to night-time operations. That's why few people have seen Cruise's driverless cars in action. Judging by the reactions to Kyle Vogt's announcement, some don't even know Cruise is operating in Austin. Still, the AV startup will soon expand its commercial services into the city, as it happened in San Francisco.
Texas seems to be Cruise's most important target besides California, considering the three cities it has added to its map. The company recently announced that its driverless pod Origin would also start testing in Austin this year. This makes Texas a vital state for Cruise. California will not be demoted, though. Cruise recently submitted a request to California DMV seeking permission to test its driverless cars throughout the state. If granted, this would mark the first time robotaxis are entering the mainstream.
Hopefully, this will happen before Cruise runs out of money. The startup aims to bring in $1 billion in revenue for GM by 2025 and $50 billion by 2030. Still, Cruise has made no estimates regarding the path to profitability. As it expands operations to more cities, its spending increases, dwarfing the revenues it might get from its limited number of customers.
This probably explains why Cruise is in such a hurry to start operations in new cities and regions. After announcing the lifting of time and space restrictions in San Francisco and expanding in Phoenix, AZ, and Austin, TX, Cruise is now eyeing more Texan cities. The company announced rolling out its self-driving cars to Houston and Dallas, for now in a supervised form, with a driver behind the wheel. Houston will be the first city where the driverless cars will start testing, followed shortly by Dallas.
In the first phase, the general public will not be able to order a Cruise robotaxi in these cities. The startup is using employees to test the system with a safety driver present. Later, Cruise will shift to driverless testing and, if everything goes smoothly, will open the service to the public. Then it will slowly expand operating hours and areas, the same as it did in San Francisco. It's a slow process, but it better be safe than sorry.
Although Cruise said it started its first paid rides in Austin last December, they are still limited to night-time operations. That's why few people have seen Cruise's driverless cars in action. Judging by the reactions to Kyle Vogt's announcement, some don't even know Cruise is operating in Austin. Still, the AV startup will soon expand its commercial services into the city, as it happened in San Francisco.
Texas seems to be Cruise's most important target besides California, considering the three cities it has added to its map. The company recently announced that its driverless pod Origin would also start testing in Austin this year. This makes Texas a vital state for Cruise. California will not be demoted, though. Cruise recently submitted a request to California DMV seeking permission to test its driverless cars throughout the state. If granted, this would mark the first time robotaxis are entering the mainstream.
Hopefully, this will happen before Cruise runs out of money. The startup aims to bring in $1 billion in revenue for GM by 2025 and $50 billion by 2030. Still, Cruise has made no estimates regarding the path to profitability. As it expands operations to more cities, its spending increases, dwarfing the revenues it might get from its limited number of customers.
I am excited to announce @Cruise will go live in Houston and Dallas in the next few months!
— Kyle Vogt (@kvogt) May 10, 2023
Supervised autonomous driving will start in Houston in a few days, with Dallas to follow soon after.
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