General Motors' Cruise robotaxi unit has lost nearly $5 billion since 2018 and the losses are accelerating now that the company starts charging for rides in San Francisco.
GM said on July 26 it lost $500 million on Cruise during the second quarter of 2022 as it began charging for rides in a limited area of San Francisco in early June. The losses amount to more than $5 million a day, making Cruise's effort to transform autonomous driving technology from a long-term research project to a profit-making business a costly one.
Cruise's losses for the first half of the year deepened to $900 million from $600 million during the same period in 2021, when the company was not charging for rides. According to GM executives, higher compensation costs to keep staff on board after putting aside plans for an IPO represented one factor in the results.
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