Robotaxi Behemoth Cruise Experiences Near-Total Collapse

­Robotaxis might not materialize as quickly – or as completely – as originally projected. But really, is anyone surprised that autonomous service vehicles, with all their endemic red tape, controversy, and risk, would run into a perfect storm of delays and political wrangling?

Autonomous vehicles, in general, have had a rocky history, with consumer agita compounded by political pressure and some very real, very public accidents.

Are these self-driving cars safer than traditional vehicles (even with the former’s shaky safety record)? Almost assuredly. But many people are already predisposed against automation, especially where it detracts from human control. So even a single fatal accident involving driverless vehicles is terrifying, and the public (over)reacts in turn, followed by a heavy dose of political interference.

2023 opened with a ton of promise for the San Francisco-based Cruise, the defacto autonomous arm of General Motors, and the year began with a $1.5 billion GM investment.

Back in February, Mo Elshenawy, Cruise's EVP of engineering, noted that, "When you consider our safety record, the gravity of our team’s achievement comes into sharper focus…to date, riders have taken tens of thousands of rides in Cruise AVs.”

And while the accidents – some of them serious – continued to pile up, Cruise received permission to operate 24/7 in San Francisco, to the consternation of locals.

At the same time, certain San Fran politicos were urging the California Public Utilities Commission to slow the expansion of self-driving vehicles, and after an incident between a Cruise taxi and a fire truck, Cruise’s operating fleet was cut in half.

And after a particularly scary accident involving a pedestrian, the California DMV suspended Cruise’s ability to operate in the state. All’s not lost – Cruise has a presence in other states, and they’re pivoting to focus on their Chevy Bolt AV robotaxi platform.

But with CA representing the fifth-largest economy in the world, any setbacks or restrictions there can sound the death knell for a promising tech company.

Meanwhile, competitor Waymo stands to benefit most from Cruise’s virtual collapse, and projections are still high – one estimate has the market reaching $118.61 billion by 2031.

But again, the ability to operate (and thrive) in the Golden State is paramount for most tech companies, putting Cruise, and the entire self-driving taxi enterprise in serious jeopardy.