SAN FRANCISCO (Reuters) – Kyle Voigt, CEO of General Motors Inc.’s self-driving cruise company, said on Thursday that a driverless vehicle in San Francisco, Calif. The company said it plans to expand its carpooling commercial service (so-called robo-taxis) to Phoenix, Arizona and Austin, Texas within 90 days.
said at a conference event hosted by Goldman Sachs. Both will start with a small number of vehicles at the beginning, and plan to expand next year to make a profit. It also aims to reach $1 billion in cruise revenue by 2025. The company is now in the red, and $1 billion is half the annual investment it currently receives from GM.
Phoenix is already testing a delivery service with one of its investors, U.S. retailer Walmart, and has obtained all the necessary licenses for commercial delivery and ridesharing services. Voigt said the company plans to double or even triple its San Francisco business by the end of the year from its current 70 units.
Alphabet Inc.’s Google’s self-driving unit, Waymo, has already launched a similar ride-sharing service in the suburbs of Phoenix. Waymo is offering free carpools in San Francisco on a limited basis, with the driver riding with them for safety.