Walmart invests in GM's Cruise autonomous vehicle subsidiary
Walmart and some institutional investors have joined the latest investment in Cruise, bumping the capital influx into the General Motors autonomous vehicle subsidiary from over $2 billion to $2.75 billion.
Walmart and Cruise announced a partnership last fall to launch a self-driving delivery test in Phoenix.
"The investment will aid our work towards developing a last mile delivery ecosystem that's fast, low-cost and scalable," Walmart CEO John Furner said in a statement.
Honda and Microsoft are among other investors with a a stake in Cruise. Furner said Cruise's fleet of all-electric vehicles will help Walmart reach a goal of zero emissions by 2040.
San Francisco-based Cruise said the investment brings its valuation to over $30 billion. Some investment analysts have encouraged GM to spin off the majority-owned subsidiary as a separate public company.
Cruise is testing autonomous vehicles in San Francisco without human backup drivers. The company plans to run a fully self-driving ride-hailing service but hasn't said when it will begin.
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