Self-Driving Tech Firm Cruise raises $1.35 billion from Softbank as it Readies Robotaxis
As it prepares to develop a commercial ride-hailing service, self-driving tech firm Cruise said that SoftBank Group Corp's Vision Fund has agreed to invest an extra $1.35 billion in a second tranche.
Cruise, which is majority owned by General Motors, has significant financial backing from partners such as Honda and Microsoft and has no plans to raise further funding from the capital markets in the near future, according to GM CEO Mary Barra.
During a conference call, she remarked, "There is still so much that can be accomplished with a frictionless environment between Cruise and GM."
SoftBank Vision Fund invested $900 million in the San Francisco-based company in 2018 and promised to spend another $1.35 billion when Cruise vehicles were ready for commercial deployment in 2019, which was planned at the time.
The previous CEO of Cruise, Dan Ammann, stated that he planned to receive a regulatory authorization from the California Public Utilities Commission early this year to charge for driverless rides.
Kyle Vogt, the creator and president of Cruise, has taken over as interim CEO since he stepped down in December.
According to Vogt, Softbank's funding will enable Cruise to "quickly scale this technology" across San Francisco and into new cities.
Cruise also stated that as of Tuesday, the general public would be able to sign up for free rides in San Francisco.
"Most people experience childlike delight during the first ride, but then the ride quickly becomes boring (as it should)," he said, adding that "One of them even fell asleep."
Cruise, which is majority owned by General Motors, has significant financial backing from partners such as Honda and Microsoft and has no plans to raise further funding from the capital markets in the near future, according to GM CEO Mary Barra.
During a conference call, she remarked, "There is still so much that can be accomplished with a frictionless environment between Cruise and GM."
SoftBank Vision Fund invested $900 million in the San Francisco-based company in 2018 and promised to spend another $1.35 billion when Cruise vehicles were ready for commercial deployment in 2019, which was planned at the time.
The previous CEO of Cruise, Dan Ammann, stated that he planned to receive a regulatory authorization from the California Public Utilities Commission early this year to charge for driverless rides.
Kyle Vogt, the creator and president of Cruise, has taken over as interim CEO since he stepped down in December.
According to Vogt, Softbank's funding will enable Cruise to "quickly scale this technology" across San Francisco and into new cities.
Cruise also stated that as of Tuesday, the general public would be able to sign up for free rides in San Francisco.
"Most people experience childlike delight during the first ride, but then the ride quickly becomes boring (as it should)," he said, adding that "One of them even fell asleep."
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