Cruise paused its robotaxi service in 2023 after a tragic accident where a woman was dragged by a self-driving car. That incident led to massive layoffs and the departure of top executives, sparking speculation that Cruise would soon fold into GM entirely.

So, it was a surprise when the company restarted service in April, albeit with safety drivers. My guess? The cost per ride with safety drivers made profitability tough to envision, and GM likely didn’t want to risk another high-profile incident damaging its brand.

Running a self-driving taxi service isn’t as straightforward as it sounds. Vehicles with human supervision don’t need to be nearly as perfect as fully autonomous cars ferrying people through unexpected circumstances.

With Cruise now officially out, the robotaxi market narrows to Waymo—continuing to expand its footprint—and Tesla, promising its fleet as early as 2025.

Cruise’s robotaxi service will likely shut down as GM pulls its funding

Cruise is out.