Walmart Backs Cruise with $2.75B Investment

Cruise Secures Additional Funding, Expanding Beyond Robotaxis

Cruise, the autonomous vehicle company with plans for robotaxi deployment in cities like San Francisco and Dubai, has welcomed Walmart as a new investor. This addition comes as part of an extended fundraising round, bringing the total raised to $2.75 billion.

Valuation and Backers

The company currently boasts a post-money valuation exceeding $30 billion. This latest capital injection supplements a $2 billion equity round announced earlier in January, which was spearheaded by Microsoft.

While the specific amount of Walmart’s investment remains undisclosed, Cruise benefits from backing by a diverse group of investors. These include Honda, the Softbank Vision Fund, and funds managed by T. Rowe Price, alongside its parent company, GM.

Shifting Focus: Beyond Robotaxis

Initially focused on commercial-scale robotaxi services, Cruise’s strategic direction appears to be broadening. Comments from Walmart CEO John Furner indicate a growing interest in expanding beyond passenger transport.

Furner stated that the investment will contribute to the development of a last-mile delivery network characterized by speed, cost-effectiveness, and scalability. He emphasized that this investment signifies a key milestone for Walmart.

Delivery Initiatives and Past Experiments

Cruise has been actively exploring delivery solutions for several years, even while prioritizing its robotaxi endeavors. A pilot delivery program was successfully completed in San Francisco in 2019 in collaboration with DoorDash.

During the onset of the COVID-19 pandemic, Cruise temporarily suspended its San Francisco testing and redirected resources to deliver prepared meals to local food banks.

Existing Partnership with Walmart

Walmart and Cruise already maintain a collaborative relationship. In November 2020, the companies announced plans to pilot grocery delivery services in Scottsdale, Arizona.

This program allows customers to place orders from their local Walmart store for delivery via Cruise’s autonomous, electric Chevy Bolt vehicles. A human safety operator will remain present in the vehicle during operation.

Walmart's Broader Autonomous Vehicle Strategy

Cruise isn't Walmart’s sole partner in the autonomous vehicle space. The retail giant is actively exploring various partnerships to assess the potential of this technology at a commercial level.

Here's a list of Walmart's other autonomous vehicle collaborations:

• Waymo: Testing potential commercial applications.
• Udelv: Piloting autonomous vans for online grocery delivery in Surprise, Arizona.
• Nuro: Launching a pilot program in Houston in 2020.
• Postmates & Ford: A pilot program in the Miami-Dade area.
• Gatik: Delivering online grocery orders from Walmart’s warehouse to stores in Bentonville, Arkansas.

These initiatives demonstrate Walmart’s commitment to investigating and integrating autonomous vehicle technology into its supply chain and delivery operations.