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Last week, General Motors (GM) announced it would shut down its Cruise division, representing a sharp turn for the self-driving car industry.
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The end of GM's self-driving, ride-sharing technology venture leaves a gap in the autonomous driving (AV) market. While Tesla has doubled down on its full self-driving (FSD) technology in recent years, few other leading U.S. automakers have ventured into the complicated field.
GM cited the high cost and difficulty of scaling a robotaxi business as the primary reasons for its decision to stop funding Cruise. This might hint at why many other U.S. companies have opted against building their own self-driving cars.
But one Cruise competitor has been working hard to conquer the robotaxi market, not just in the U.S. but well beyond. Now it may have an opportunity to expand its reach across the ocean to a new city.
Far from the United States, a booming AV market is unfolding
While self-driving cars have been slowly rolling out into U.S. cities, a rival economy has been working hard to usher in the new phase of driving. Multiple Chinese automakers are making progress testing their own self-driving vehicles, often on public roads, taking full advantage of their government’s pro-AV policies.
Related: General Motors’ robotaxi exit is a massive hit for tech leader
Now, one of China’s neighbors is gearing up to welcome new autonomous vehicles. Waymo is planning to start testing its self-driving cars in Tokyo, Japan, in early 2025.
Cruise had previously planned to start doing the same in 2026. Waymo, a Google (GOOGL) subsidiary that experts have praised for its self-driving progress, will no longer have to elbow Cruise for market share. Tokyo does not appear to have any self-driving vehicles on its roads currently.
This is an important milestone for Waymo, as it will mark the first time its robotaxis will operate on public roads in any nation other than the U.S. In a statement published on the company’s blog, Waymo provided further context on its planned Japanese expansion, stating:
“This expansion into Japan aligns with the country's vision for the future of transportation. Over the years, the Japanese National and Tokyo Metropolitan governments have been proactively working to address the evolving transportation needs of society and foster the adoption of innovative technologies that can enhance safety and mobility.”
Waymo also notes that it is working with Japanese regulators, policymakers and safety officials to “ensure a responsible and seamless implementation of Waymo's technology” as it begins testing in Tokyo.