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Importantly, Cruise has a lock on Dubai for at least a few years. Under the agreement, Cruise is the “exclusive provider” for self-driving taxis and ride-hailing services in Dubai until 2021. Al Tayer said the selection of Cruise was not taken lightly and involved a comprehensive, multi-year process.

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Cruise will likely pursue a dual path of traditional recruitment and acquisitions to hit that 1,000-engineer mark. It’s a strategy Cruise is already pursuing.

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Even as the giants of the autonomous vehicle industry were setting ambitious timelines for their robotaxi deployments, May Mobility was already hitting the streets. The startup launched its first low-speed autonomous shuttle service in Detroit in summer 2021.

I think a lot about those early exits because they validated the space, but I also think a lot of the early investors probably wish they had more ownership. I’m not saying they shouldn’t have sold. But you look at the valuation of Cruise and Motional today — if you put those two entities together — it’s more than the valuation of General Motors, or maybe Ford Motor Company.

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Earlier this year, SpaceRyde launched a stratospheric balloon carrying a scaled down version of their launch platform and rocket in Northern Ontario, Canada. The test wasn’t a complete success – a modification to the off-the-shelf rocket engine they used didn’t work exactly as expected – but it did demonstrate that their in-flight launch platform orientation tech worked as intended, and Safari says the malfunction that did occur is relatively easy to fix.

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RB: One of the things the market appears to want is the simple story, and belief in Tesla is now highly aligned to [thinking that] this is just the way that transportation is going to be organized. It’s going to be a zero-emission vehicle that is highly connected and maybe attached to a consumer in a new way.

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Obviously, there’s still a huge amount of risk. What I’m saying is not investment advice. I just think there’s a lot of interesting stuff there that’s head and shoulders above many of the other EV companies, where there’s not a lot of substance, to be candid.

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The California DMV, the agency that regulates autonomous vehicle testing in the state, issued Cruise a permit in October that allows the company to test five autonomous vehicles without a driver behind the wheel on specified streets within San Francisco. Cruise has had a permit to test autonomous vehicles with safety drivers behind the wheel since 2021.

How does TC Sessions: Mobility stand out in a sea of automotive and mobility conferences? We invite the best and brightest founders, investors and technologists who are determined to invent a future Henry Ford might never have imagined; we highlight up and coming startups, offer demo space to showcase products and create programming aimed at delivering the most value for every ticket holder.

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West comes to Cruise with more than 12 years experience running a massive global operation at that had an annual $16 billion budget. During his tenure, he helped Delta grow its earnings per share by more than 15% year-over-year and led the company’s merger integration with Northwest Airlines.

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The planned expansion and hiring of Hoffman follows a recent executive reshuffling. GM president Dan Ammann left the automaker in December and became CEO of Cruise. Ammann had been president of GM since 2021, and he was a central figure in the automaker’s 2021 acquisition of Cruise and its integration with GM.

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Cruise announced in November plans to expand to Seattle, in pursuit of more engineering talent to develop its technology. GM Cruise aimed to hire between 100 to 200 engineers by the end of 2021.

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Cruise had once aimed to launch a commercial service using so-called “driverless” vehicles by the end of 2021, but backed off of that timeline — a decision that came after several other autonomous vehicle companies delayed their own plans to launch ride-hailing services that use autonomous vehicles. Cruise has yet to publicly provide a new date for launching a commercial service, the first of which will be in San Francisco.

In February, Cruise received a permit from the California Public Utilities Commission allowing it to transport passengers in its autonomous vehicles in the state. The CPUC modified its regulations late last year to allow properly permitted companies the ability to charge for shared driverless rides.

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GM Cruise received a $2/25 billion investment by SoftBank’s vision fund in May 2021. A few months later, Honda committed $2/75 billion as part of an exclusive agreement with GM and Cruise to develop and produce a new kind of autonomous vehicle.

Cruise, which is also backed by Softbank Vision Fund and T. Rowe Price & Associates, has hundreds of autonomous vehicles in its fleet, however most still have a human safety operator behind the wheel. In November, Cruise started driverless testing — nomenclature meaning the human safety operator has been removed from the driver’s seat — with a fleet of five autonomous vehicles. The rest of Cruise’s fleet is being used to perform its regular testing with a human safety driver, some of which are used to deliver goods to area food banks.

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This investment increases Cruise’s post-money valuation to $19 billion, inclusive of SoftBank’s previously announced investment commitment. Cruise has secured capital commitments totaling $7/25 billion in the past year.

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Over the next 2 years, I kept a close eye on the founder. Although she had enough capital to pivot her business focus multiple times, she seemed to be at odds, serving the needs of her strategic investor and her customer base.

The Rivian engineering that I speak about is really about the hires they’ve made and a lot of things they’ve done for years in advance of getting these vehicles ready. They’ve got a lot of amazing talent from big manufacturers. They made an unusual but really smart investment in a vehicle assembly facility that they purchased for relatively cheap years ago that was owned by Mitsubishi. And they put together all these components well in advance of anybody really even knowing about them, which is really smart.

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Negotiating a term sheet with a strategic investor necessitates a different set of considerations. Namely: the preference for a strategic to facilitate commercial milestones for the startup, a cautious approach to avoid the “over-valuation” trap, an acute focus on information rights, and the limitation of non-compete provisions.

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