Walmart Invests in GM’s Cruise Autonomous Vehicle Subsidiary
DETROIT (AP) — Walmart and some institutional investors have joined the latest investment in Cruise, bumping the capital influx into the General Motors autonomous vehicle subsidiary from over $2 billion to $2.75 billion.
Walmart and Cruise announced a partnership last fall to launch a self-driving delivery test in Phoenix.
“The investment will aid our work towards developing a last mile delivery ecosystem that’s fast, low-cost and scalable,” Walmart CEO John Furner said in a statement.
Honda and Microsoft are among other investors with a a stake in Cruise. Furner said Cruise’s fleet of all-electric vehicles will help Walmart reach a goal of zero emissions by 2040.
San Francisco-based Cruise said the investment brings its valuation to over $30 billion. Some investment analysts have encouraged GM to spin off the majority-owned subsidiary as a separate public company.
Cruise is testing autonomous vehicles in San Francisco without human backup drivers. The company plans to run a fully self-driving ride-hailing service but hasn’t said when it will begin.
Last week, Cruise announced a partnership with the Dubai Roads & Transportation Authority to make the vehicle company the exclusive provider of autonomous vehicles and ride-hailing service in the United Arab Emirates city, marking Cruise’s first expansion beyond the United States.
Image via Cruise
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