GM's Cruise autonomy division, who is actually working on robotaxis (unlike another company who claimed to be doing so Tesla ) is now telling its investors its ride-hailing business could eventually reach $50 billion in revenue over the next couple of years.
The company also plans on charging riders as soon as next year, Cruise Chief Executive Officer Dan Ammann is expected to say this week, according to Bloomberg. Ammann will also note that the company could expand in 2023 if California regulators allow it to.
GM is presenting its ride hailing business to investors on October 6 and October 7. The company will explain how ride hailing, mixed with EVs and connected technologies, could soon start increasing the automaker's top line.
Cruise has spent billions trying to get their technology to a jumping off point, so bringing in billions in revenue (or any revenue at all) would be a notable positive for the division. It has taken more time establishing approvals for robotic driving, which has, to this point, delayed revenue.
GM has a majority stake in Cruise. The company said it'll try and use a modified version of the Chevy Bolt to begin charging for rides, pending California Public Utility Commission approvals. The company will also have its Origin autonomous shuttle in production by 2023, alongside of its Hummer EV and electric Silverado.
All eyes will be on Ammann this week, who will show how revenue for Cruise could eventually get to $50 billion. His presentation "will include updates on the automaker’s electric vehicle plans, its SuperCruise driver-assistance feature and how the company will use its Ultify software platform to generate more revenue from app-based services in cars," Bloomberg reported this week.
Chris James, founder of Engine No. 1, an activist investor, said this week: “GM’s goal to go 100% electric by 2035 signals one of the largest transformations in the history of the auto industry and creates an opportunity to re-center the battery supply chain in America. The company’s early lead on battery technology, along with Mary Barra and the board’s leadership, creates tremendous advantages.”