It’s a good day to be Daniel Kan and Kyle Vogt.
Who are those guys you ask? Well, they’re the co-founders of Cruise, a start-up autonomous car company just bought by General Motors for somewhere in the ballpark of $1 billion dollars. So, yes, we’d call that a very, very good day.
In a statement released Friday, GM announced it was buying the San Francisco-based company. Cruise sells aftermarket roof-mounted autonomous-driving kits. GM hopes to scale up the start-up’s technology to help it keep up with the likes of Tesla, Google and Apple.
GM isn’t commenting on how much it paid for the company, but a report on the website RE/CODE puts it at over the $1 billon mark.
GM says Cruise will operate as an independent unit within GM’s recently formed Autonomous Vehicle Development Team led by Doug Parks, GM vice president of autonomous technology and vehicle execution. It will continue to be based in San Francisco. Founded in 2013, Cruise has moved quickly to develop and test autonomous vehicle technology in the San Francisco bay area.
GM’s executive vice president of Global Product Development Mark Reuss says GM plans to “invest significantly to further grow the talent base and capabilities already established by the Cruise team.”
Friday, Cruise investor and board member Nabeel Hyatt blogged about how excited he was following the announcement.
GM’s purchase of Cruise is the latest investment the automaker’s recently made in alternative modes of mobility. In January, GM invested $500 million in Lyft to develop a network of on-demand ride-sharing vehicles. It’s also established a separate unit for self-driving car development and formed Maven, its personal mobility brand for car-sharing fleets in many U.S. cities.
Photo Credit: General Motors