The California Department of Motor Vehicles (DMV) has revoked the license of General Motors’ robotaxi service, Cruise, due to safety concerns. This decision comes just two months after another state regulator approved an expansion of the service. The approval was met with protests from police and fire officials who claimed that the driverless vehicles were causing traffic issues during emergencies. The DMV concluded that Cruise’s robotaxis posed an unreasonable risk to public safety. The specific reasons for the suspension were not elaborated on, but recent incidents, including an accident involving a Cruise robotaxi and a critically injured pedestrian, heightened concerns.
In response to the suspension, Cruise has ceased its robotaxi operations in San Francisco and is cooperating with regulators’ inquiries into the accident. The company’s engineers are working on improvements to ensure a better response in rare events like this. Waymo, another robotaxi service operated by GM, continues to operate in the city. However, Waymo’s vehicles have also caused traffic issues with sudden stops.
The suspension of Cruise’s robotaxi service is a significant blow to GM’s ambitions for the company. Cruise had predicted generating $1 billion in revenue by 2025 but had a revenue of $106 million last year and incurred significant losses. Cruise is also testing its robotaxi service in Los Angeles, Phoenix, and Austin.
During a conference call before the suspension, GM CEO Mary Barra praised Cruise as a breakthrough in transportation technology, with safety as a priority. However, Cruise’s robotaxi service faced criticism even before the suspension, with civic leaders attempting to revoke the permit after the vehicles caused traffic disruptions shortly after expansion approval.
