GM takes over EV business unit BrightDrop, CEO out

BrightDrop, General Motors’ commercial EV subsidiary launched in 2021, is being absorbed by its parent company.

GM said Thursday that BrightDrop — a “startup” that spun out of the automaker’s Global Innovation subsidiary and became a wholly-owned subsidiary — will become part of GM. BrightDrop CEO Travis Katz, who was an insider at Redpoint Ventures before taking the top job, has stepped down from the CEO role and will no longer be employed by GM, the company confirmed. BrightDrop CTO Anthony Armenta remains and will join the leadership team at GM’s software division, which is led by Mike Abbott, the former vice president of engineering for Apple’s Cloud Services division, who joined in May.

A small number of BrightDrop employees are expected to be affected by the changes while other positions are eliminated. The company said many of those workers should be able to move to other jobs within GM.

GM has framed the move in a positive light, noting that bringing BrightDrop into the company will benefit fleet customers by providing them with a better single point of contact through its new commercial brand GM Envolve. GM Involves, which launched in May 2023, includes the automaker’s entire commercial portfolio, including gas-powered vehicles and EVs as well as connected services and apps used by fleet customers. BrightDrop was created to sell an ecosystem of electronic and connected products to commercial customers. Its first products were an electric car called the EV600 and a pod-like electric mattress called the EP1.

“We are committed to helping our fleet customers grow their businesses,” Rory Harvey, EVP and president at GM North America said in an emailed statement. “Our innovative commercial solutions and EV vehicle options from the Chevrolet Bolt EV to the BrightDrop Zevo are all available through GM Envolve. This gives our customers one stop shopping for all their commercial needs.”

The idea for BrightDrop was sparked by a team within Global Innovation — the same internal organization that led to the creation of OnStar Insurance, OnStar Guardian and GM Defense — that was evaluating the growth of e-commerce and consumer demand for online delivery, which was exacerbated by COVID -19.

When it was first launched, GM touted BrightDrop’s independence and startup-like structure as assets that would allow it to move quickly and capture market share. Months after the launch, Katz told TechCrunch that the data harvested from these commercial EVs is where the company can build lasting relationships. For example, a supply chain system can monitor the chain of custody, how trucks move through lanes and how packages move to help determine if the products being delivered are experiencing a problem and how the company can eliminate inefficiencies. “Long-term, I think we see that as … a very exciting opportunity. We see ourselves as a solution provider, but it’s a core program,” Katz said in 2021.

GM also had big goals for BrightDrop, saying last November during its investor day that the subsidiary was on track to reach $1 billion in revenue in 2023. The company reported at the time that it had received more than 25,000 reservations and letters of interest from customers. , including Walmart, Hertz and FedEx.

It’s unclear if BrightDrop met that goal since GM hasn’t broken down its finances.