Cruise Limits Robotaxi Fleet and Faces New Rules After S.F. Collision Probe

Cruise, the autonomous vehicle unit owned by General Motors, is halting driverless car operations across the United States following a serious safety review and mounting regulatory pressure stemming from a collision in San Francisco earlier this month. The decision affects all Cruise robotaxi services that were operating in multiple cities, including San Francisco, Austin, Houston, Phoenix, and Miami.

The move comes after the California Department of Motor Vehicles suspended Cruise’s permit to operate completely driverless vehicles in the state. In a statement on October 24, the agency said Cruise’s robotaxis are “not safe for public operation” and accused the company of misrepresenting the safety of its technology. The suspension followed an incident on October 2 in which a pedestrian was hit and dragged by a Cruise vehicle in downtown San Francisco. The incident began when a human-driven vehicle struck the pedestrian, who was then thrown into the path of a Cruise robotaxi. The autonomous vehicle stopped but then attempted a maneuver that resulted in dragging the pedestrian approximately 20 feet.

Cruise has since confirmed that the vehicle braked aggressively but then tried to pull over while the pedestrian was still under the car. In a blog post, the company said its system recognized a collision but treated it as an obstacle it needed to avoid, a behavior that is now under internal review. The victim in the incident sustained serious injuries and was hospitalized.

In addition to the DMV’s suspension, the National Highway Traffic Safety Administration (NHTSA) has opened a separate investigation into Cruise’s safety practices and how its vehicles respond to pedestrian-related incidents. According to the NHTSA, it received multiple reports of Cruise vehicles potentially failing to yield appropriately to pedestrians on crosswalks, prompting the federal probe.

Cruise had previously touted its efforts to deploy a safe, all-electric, driverless fleet. The company had aggressive expansion plans both nationwide and internationally. In San Francisco, it operated dozens of driverless vehicles and had received approval earlier this year to offer paid rides without a human safety driver on board during nighttime hours.

The DMV’s suspension is indefinite and will remain in effect until Cruise satisfies requirements to improve its safety performance and properly share incident documentation. The agency specifically called out delays in Cruise’s disclosure of video footage related to the October 2 incident. Cruise responded by acknowledging the DMV’s concerns and committing to corrective action, though it disputes the claim that it withheld information.

Parent company General Motors has announced that Cruise will support the injured pedestrian’s recovery and cooperate fully with all investigations. GM CEO Mary Barra has been a vocal proponent of the Cruise division, which has yet to turn a profit but is central to GM’s long-term strategy in autonomous mobility.

As a result of the pause, Cruise will shift its focus to revising its technology and internal processes. The company’s statement on October 26 described the nationwide suspension of driverless operations as a proactive measure to rebuild public trust and enhance transparency. Human-supervised testing will continue.

The case poses a direct challenge to the robotaxi industry, which is working to gain both regulatory approval and public acceptance in dense urban environments. Waymo, owned by Alphabet, continues to operate driverless rides in San Francisco and Phoenix. To date, it has not faced similar restrictions.

Cruise did not disclose a projected timeline for returning to full driverless operations. Local officials, including San Francisco supervisors and the city’s Transportation Agency, had previously raised concerns about unplanned stops and traffic disruptions caused by Cruise vehicles. The current pause may prompt additional scrutiny of how autonomous vehicles are integrated into public roadways.

The DMV stated that its top priority remains public safety and that all autonomous vehicle companies must demonstrate an ability to safely interact with other road users. Cruise says it will use the operational pause to assess its processes and apply lessons before resuming service.

The outcome of the state and federal investigations is expected to set the tone for how autonomous vehicle deployments proceed in California and beyond.