California will allow GM-backed Cruise to transport passengers in driverless test vehicles

SAN FRANCISCO - SEP 26 2015:Buildings in San Francisco downtown. Median rent in the city is more than 1,353.63"u20ac per month. That's higher than every other major city in the U.S.

  • Cruise, which counts General Motors as its majority owner, scored a permit that will allow it to give driverless rides to passengers in test vehicles in the state of California.
  • Cruise plans to start manufacturing its Origin driverless shuttles in early 2023.
  • The Cruise fleet of test vehicles today includes hundreds of Chevrolet Bolt EVs equipped with automated driving systems.

Cruise, the autonomous vehicle company that’s majority owned by General Motors, may soon be giving rides in driverless test vehicles to passengers in California.

The California Public Utilities Commission (CPUC) said on Friday that Cruise is authorized to give passengers rides in prototype robotaxis.


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In a public statement, the CPUC said Cruise is the first autonomous vehicle developer to obtain such a permit. In order to allow passengers to ride in their test vehicles without a driver on board, Cruise may not charge fees for the rides and will have to submit quarterly reports about its autonomous vehicles, as well as a passenger safety plan, the CPUC said.

As CNBC previously reported, Cruise expects production of its Origin driverless shuttles to start in early 2023. The company’s test fleet currently includes hundreds of Chevrolet Bolt EVs, which are equipped with Cruise’s driverless technology.

Waymo, Alphabet’s self-driving car unit, and Cruise are both seeking permits needed to start charging for rides and deliveries using their autonomous vehicles in San Francisco, according to a Reuters report in May.

Alongside Cruise, seven other companies, including Waymo, Amazon-owned Zoox and Aurora, have permits from the CPUC for driverless vehicle testing on California roads, but they aren’t yet permitted to taxi members of the public around without a driver on board.

Autonomous vehicle developers require separate permits from the Department of Motor Vehicles and CPUC to test and eventually operate their driverless cars commercially in the state.



Although commercialization is taking longer than expected due to technical, safety and regulatory hurdles, the biggest tech and auto companies are continuing to invest heavily in autonomous vehicles. Earlier this year, Cruise raised billions of dollars from strategic backers including MicrosoftHonda and Walmart.

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