Written by NetEase Smart Studio (public account: smartman163). Stay tuned for the future of AI and the next big technological revolution!

On January 2nd, NetEase Smart News reported that General Motors' Cruise division has long been highlighting its advanced self-driving technology, especially in complex urban environments. With strong financial backing, Cruise is now carefully evaluating which cities to launch its driverless car pilot programs. The CEO, Kyle Vogt, and his team analyze various factors before making a decision.

One key consideration is whether there's a large market for ride-hailing services like Uber and Lyft to compete. Cruise has already started testing in San Francisco and aims to expand to New York in 2018. The company emphasizes its ability to handle challenging urban driving conditions, which it claims can be done more efficiently than human drivers.

Cruise’s approach is strategic. By focusing on major metropolitan areas, they aim to build a strong foundation before expanding into less complex suburban regions. As General Motors President Dan Amman explained, “We want to reach as many people as possible in the most complex environments, where we can have the greatest impact. That’s where the real business opportunities lie.”

Unlike early ride-hailing companies, Cruise is targeting high-potential markets but faces a high entry barrier. Operating autonomous vehicles in city streets requires significant oversight and technical expertise. However, once Cruise successfully launches fully driverless services in cities like San Francisco or New York, it will gain a competitive edge over other companies trying to enter the same space.

Once established in dense urban areas, Cruise can gradually expand to suburbs with simpler traffic conditions. The idea is that if their cars can handle the chaos of downtown San Francisco or New York, they’ll easily manage suburban routes like those in Mountain View, California. Many competitors are already testing in these areas, but Cruise’s continuous software improvements make it harder for latecomers to catch up.

Additionally, Cruise is working on optimizing network efficiency, which will help maximize vehicle supply. As Amman mentioned, the company is also exploring ways to use its fleet during off-peak hours when demand for shared rides is lower. This could include delivering goods or other services, further increasing utilization and reducing costs per mile.

Amman added, “Early utilization rates may be low, but by applying mathematical models to optimize operations, we can explore new revenue streams beyond just transportation. We see the growth of e-commerce and last-mile delivery as huge opportunities, so we’re focusing on multi-mode applications to boost efficiency and reduce costs.”

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