Three years ago, Mary Barra, CEO of General Motors Co. announced the company’s plans to create a Tostada robot taxi as part of the Cruise service. However, these plans have now been canceled due to the high cost of developing the technology. This was reported by Bloomberg.

“We looked at the amount of money to deploy a robotaxi business and to maintain that business and grow it, it’s quite a bit of capital. A robotaxi business is not GM’s core business,” Barra said.

The Cruise team will be merged with General Motors, and the company will focus on more modest goals, such as developing advanced safety systems for cars. It is also planned to offer an autonomous driving system as a feature for future models.

General Motors is also abandoning its previous plans to generate an additional $50 billion in revenue from robotaxis and subscriptions by 2030. The company intended to double its profits through electric vehicles and autonomous driving, but without Cruise, this will not be achieved.

The company has invested more than $9 billion throughout the project’s development. Refusing to develop a robotaxi will save more than $1 billion in annual costs. GM is currently buying back Cruise shares, which will allow it to increase its stake from 90% to more than 97% under agreements with other shareholders.

Earlier, Tesla introduced its own robotaxi Cybercab. This is a two-seater electric car with self-driving function. The cost of the car is $30 thousand, and production will begin in 2026-2027.