SoftBank from Japan will be investing around $2.5 billion in self-driving cars from GM. The Vision Fund from Softbank will be taking a stake in the Cruise cars that are self-driven. This unit will be operating separately with investments from SoftBank to a 19.6% stake. This vision to materialize by the beginning of the next year, in early 2019, will bring in a fleet of self-driving cars that provide ride-hailing services.
The fleet of self-driving cars would have to be large, to enable services. Michael Ronen is happy with the Cruise board for taking immediate action and in the integrated approach in their endeavor. It is not only the number of cars but speed and safety that have to be taken into consideration feel Ronen. He is the Managing Partner from the Investment Advisers of SoftBank.
This venture is to bring in safe and environment-friendly vehicles into the roads for transport. This will help the commuters and people who travel to their work spots, as it would reduce the number of fatalities and improve traffic, feels Ronen from SoftBank.
The agreement between the Cruise Team of GM and SoftBank is for a period of 7 years. Ronen feels that this period is sufficient to see the project run successfully. The amount to be paid will be an initial payment of $900 million. Further, an additional amount of $1.35billion will be introduced as an investment, once the vehicles are ready for the job.
The automobile industry is in need of a giant leap in transformation and automated cars will be the right solution, feel the officials from Cruise.
Cruise had taken this giant leap even earlier. In 2016 through its test drives of these automated cars in centers like San Francisco and in Phoenix. The ride-sharing services will be entering into regular service from 2019, says reports from Cruise.