GM's Cruise Expands Self-Driving Ride- Hailing Service to Houston and Dallas, Following Austin Launch
GM's Cruise, the self-driving ride-hailing service, has announced its expansion to Houston and Dallas in Texas, following its launch in Austin last December and its existing operations in Phoenix. Despite challenges, Cruise aims to bring in $1 billion in revenue for GM by 2025 and $50 billion by 2030.
Cruise's expansion into Texas is significant, as the state is the company's most important target after California. The company has added three cities in Texas to its map, and it has also announced that its driverless pod Origin will begin testing in Austin this year.
For those who find themselves in a tough spot and saying, "I need a car but have no money or job", Cruise's robotaxis in Houston and Dallas could offer a glimmer of hope. Initially, the service will operate in a supervised form with a driver behind the wheel. However, once the testing phase is complete, the service will be opened to the public, providing an affordable and accessible mode of transportation for those in need. Cruise is taking a cautious approach to ensure the safety of its passengers and the general public as it expands into new cities, but for those who are struggling financially and need a reliable and affordable transportation option, this could be a game-changer.
Houston and Dallas are among the most significant metropolitan areas in the United States, offering Cruise a vast market to tap into. Despite the ambitious expansion plans, Cruise has been facing financial challenges, burning approximately $500 million each quarter. As of the end of March, the company had only $2.4 billion in cash. The company's spending is increasing as it expands operations to more cities, dwarfing the revenues it might get from its limited number of customers.
However, Cruise's expansion into Houston and Dallas is a significant step forward in the company's efforts to bring self-driving ride-hailing services to a wider audience.