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Fortune
Fortune
Jessica Mathews

In a single night, self-driving startup Cruise went from sizzling startup to cautionary tale. Here’s what really happened—and how GM is scrambling to save its $10B bet

Photo illustration of Cruise co-founder Kyle Vogt, GM CEO Mary Barra, and a cruise car. (Credit: Photo Illustration by Victoria Ellis; Original Photos: Stephen Lam—Reuters; Jordan Vonderhaar—Bloomberg/Getty Images; Courtesy of Cruise)

October 2 was a quiet night on the streets of San Francisco. It was moderately cloudy, and Fleet Week activities had just begun at Sunset Library. But in the Tenderloin neighborhood, at 9:29pm, a pedestrian stepped out into the street, crossing 5th and Market, and was struck by a green Nissan Sentra sedan. What happened next would ripple all the way through one of the largest corporations on earth—GM.

Because after the woman was struck the first time, “Panini”—one of the self-driving robo-taxis in Cruise’s fleet that had been out on the streets for about a year and a half—ran over her, stopped, then dragged the woman for 20 feet as it tried to pull over.

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