| GM-backed Cruise ready for next phase of growth |
Cruise, the self-driving technology company owned mostly by General Motors, said it has moved out of R&D and beyond the early stages of commercialization. Now, it's gearing up for the next phase: rapid growth.
In 2023, Cruise aims to expand its commercial operations, currently limited to portions of San Francisco, Phoenix and Austin, Texas. It's preparing for volume production of the Origin, an autonomous vehicle with no steering wheel or pedals, at GM's Factory Zero in Detroit.
Cruise CEO Kyle Vogt said the company is on track for — if not ahead of — its goal to reach $1 billion in revenue by 2025.
Achieving that target is not a certainty, though some analysts who follow Cruise and GM say it's a reasonable goal. The company's ability to transition from a cash-burning startup to a sustainable business would represent a significant milestone for Cruise and the nascent robotaxi industry, which has had a rougher path toward viability than many in the industry expected.
"Almost all of our energy as a company is going into scaling," Vogt told Automotive News. "Figuring out how to set up new markets, crank up the volume of vehicles, get ready for the Origin, make sure all of our support systems handle that kind of volume. And so our metrics and reporting have started to resemble that of a business operating at scale."
Since June, when it began charging for rides in San Francisco, Cruise has expanded its commercial fleet of modified Chevrolet Bolts in the city to more than 150 vehicles. The company said that in February, it surpassed 1 million driverless miles, and it now has more than 300 AVs in all three of its markets.
Vogt said Cruise plans to expand into more cities — and increase the scope of its operations — but declined to name possible future locations. Last month, the company asked California regulators to revise its permit to allow for testing of AVs throughout the state.
— Lindsay VanHulle
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