GM Cruises into Driverless Rideshare
GM was recently allowed to start charging fares in San Francisco for its rideshare start-up called Cruise. Cruise is a driverless robotaxi service. Established rideshare services like Uber and Lyft have invested millions in autonomous driving technology for years with Lyft having launched Motion a driverless service in Las Vegas this past March 2022. Many service industries look to automate in order to provide customers with a consistent level of service since we cannot separate our customer experience from the individual(s) that provide that service. Hence the idea is that we can have a consistent rideshare experience that won’t vary depending on driving skills or interaction with the human driver.
A couple of takeaways are that GM, the largest US auto manufacturer, is now competing in the rideshare industry and second what does this tell us about how they view their corporate strategy. This is an example of how even large corporations like GM can launch new ventures to adapt and gain experience as new technologies change their competitor environment. GM has “intrapreneurs”, who are company executives that foster innovation and new projects like Cruise. The entrepreneurial mindset can exist in large companies like GM.
GM’s website states that, “We stand together to drive the world forward. Everybody in.” This statement doesn’t say anything about making cars or vehicles. The idea of driving and forward movement relates to transportation. So, if GM sees themselves in the transportation business, then their competitors are not just the direct ones like Toyota or Ford, but substitutes to owning a car with whatever would move or transport people and things. Rideshare, buses, trains and even bikes can be seen as a substitute to owning a car, but if your goal is providing transportation then that allows your business model to change how you provide that transportation, whether it’s a good like a car or a service as in their launch of Cruise.
Tech Crunch Article
Cruise can finally charge for driverless robotaxi rides in San Francisco by Rebecca Bellan
