Cruise is one step closer to offering a commercial robotaxi service in San Francisco. The autonomous startup, primarily owned by General Motors (GM), with an 80% stake, announced Thursday that it won final approval for the service from the California Public Utilities Commission.
Cruise was proud to add that the authorization is the "the first-ever Driverless Deployment Permit granted by the California Public Utilities Commission" and makes Cruise the first to operate a "commercial, driverless ride-hail service in a major US city."
While Cruise has already been offering nighttime rides to the public in San Francisco, it hasn't yet required these passengers to pay for the service. The company will initially deploy a fleet of 30 driverless all-electric Chevrolet Bolts to transport customers around less congested city areas to minimize the risk of potential accidents and gives regulators a chance to assess the technology.
Why it matters
Cruise is not new to the game, with competitor Google-owned (GOOG) Waymo already active on the streets. Waymo has been charging passengers to be transported around San Francisco in their autonomous vehicles with a backup human driver since October 2020. However, to Cruises' advantage, the approval body permitted them to operate its service with no backup driver, a decade long ambition for several techs and automaker companies. The new rule is a game-changer for the industry, and it's about to get way more competitive.
