Better watch out for those traffic cones.
Robotaxis are coming to Tokyo as Honda, General Motors (GM) -), and Cruise, GM’s autonomous driving unit, announced they will establish a joint venture next year to prepare for the robotaxi service that will use the Cruise Origin vehicle.
Related: Tesla slumps as Musk warns on growth, Cybertruck potential after Q3 earnings miss
The companies plan to launch the driverless ride service in central Tokyo in early 2026, starting with dozens of Cruise Origins, and then expanding to a fleet of 500 Cruise Origins. They will then look to expand and scale the service outside of central Tokyo.
From the US to Japan 🇯🇵 Cruise is committed to delivering safe and accessible transportation solutions.
— cruise (@Cruise) October 19, 2023
We’re excited to announce plans to establish a joint venture with @GM and @Honda to bring self-driving tech to Japan starting in 2026. Learn more: https://t.co/AapC4PZOcX pic.twitter.com/mHdjXIuSwm
GM said Japan has the potential to be one of the largest driverless ridehail markets in the world, noting that the region also has "a growing need for new forms of transportation, with ongoing driver shortages and an increasing need for accessible forms of transportation."
Using smartphone app to hail rides
The Cruise Origin can accommodate up to six passengers. Customers will use a smartphone application to hail rides and make payments.
There might be some pushback from Japan's taxi industry, which is often seen as being conservative, according to the Japan Times.
"Our basic stance is that we are hoping to grow this business by cooperating with transportation service operators," Honda CEO Toshihiro Mibe said during a news conference. "We believe the driverless taxi service will contribute to solving the issue of taxi driver shortages, too."
Cruise and Waymo, Alphabet's (GOOGL) -) self-driving division, have faced opposition in San Francisco, where a Cruise robotaxi collided with a fire truck in August.
San Francisco Fire Chief Jeanine Nicholson has said that the vehicles were “not ready for prime time.”
Protestors have shut down driverless cars by putting traffic cones on the vehicles' hoods.
"The Japanese will appreciate your janky tech as much as the people of San Francisco and Austin," one person said on X, formerly Twitter. "Good luck Honda."
Another commenter said that "autonomous vehicles are considerably safer than human driven vehicles. And it’s only going to get better."
Officials open investigation
The announcement comes just days after the National Highway Traffic Safety Administration opened an investigation into whether Cruise is taking sufficient precautions with its autonomous robotaxis to safeguard pedestrians.
The agency said on Oct. 17 that it had received two reports from Cruise of incidents in which pedestrians were injured, and identified two further incidents via videos posted on websites, according to Reuters.
NHTSA said the reports suggest Cruise vehicles are “encroaching on pedestrians present in or entering roadways, including pedestrian crosswalks, in the proximity of the intended travel path of the vehicles,” and the issue “could increase the risk of a collision with a pedestrian, which may result in severe injury or death.”
One incident occurred Oct. 2 in San Francisco in which a pedestrian was struck by a hit-and-run driver, thrown into an adjacent lane and hit a second time by a Cruise robotaxi, which was not able to stop in time and trapped the pedestrian for a period of time.
NHTSA's preliminary evaluation covers about 594 Cruise vehicles and is the first step before the agency could seek to force a recall.
In December, NHTSA opened a separate safety investigation into the autonomous driving system in Cruise vehicles in December after reports of two injuries in rear-end crashes. NHTSA said Cruise vehicles “may engage in inappropriately hard braking or become immobilized.”
Cruise CEO Kyle Vogt said safety was the company's top priority, adding that it would help regulators with the "very difficult" job of regulating emerging technologies like this.
Get investment guidance from trusted portfolio managers without the management fees. Sign up for Action Alerts PLUS now.
