By Juby Babu and Abhirup Roy
SAN FRANCISCO (Reuters) -Cruise will offer its autonomous vehicles on ride-hailing platform Uber (NYSE:) starting next year, the companies said on Thursday, as the General Motors-backed robotaxi company tries to stage a comeback.
The multi-year partnership will allow Uber drivers to choose a trip with an autonomous Cruise vehicle, they said. Shares of GM rose 1.3% in extended trading, while Uber fell 1.5%.
Uber has been offering self-driving cars in Phoenix on its platform since October last year through a partnership with Alphabet’s (NASDAQ:) Waymo, which has about 700 vehicles in its fleet and is the only U.S. company operating unmanned fare-collecting robotaxis.
Cruise is trying to find its way back to American roads after a major accident in San Francisco last year forced the company to shut down operations. Earlier this year, it resumed testing of safety drivers as it worked to reassure state and federal officials about the safety of its vehicles.
Cruise agreed Thursday to recall nearly 1,200 robotaxis over problems with hard braking, the U.S. auto safety regulator said, closing an investigation into the problem.
Uber’s partnership with Cruise comes as Tesla (NASDAQ:) CEO Elon Musk is set to unveil his delayed plans for a robotaxi product in October amid declining demand for electric vehicles.
Commercializing autonomous vehicles (AV) has been more difficult than expected and has taken longer than promised due to complex technology, rising investments, strict regulatory scrutiny and federal investigations.
Uber sold its own self-driving division in 2020 to reduce cash burn and refocus on its core businesses, including ride-hailing and food delivery.
Uber is “uniquely positioned to provide tremendous value to AV players looking to deploy their technology at scale,” CEO Dara Khosrowshahi said this month during a post-earnings conference call.
Self-driving vehicle rides on Uber’s platform increased sixfold year-over-year in the June quarter, helped by partnerships with companies like Waymo and freight services startup Waabi.