On May 7, self-driving technology company Motional said it would suspend the deployment of robotaxis with ride-hailing companies Uber and Lyft, and that it would lay off employees as part of a restructuring process to focus on technology development, Reuters reported.
Motional's announcement comes as electric vehicle maker Tesla plans to unveil its robotaxi, called Cybercab, on August 8, while traditional automakers are scaling back their spending on expensive self-driving technology due to regulatory and safety hurdles.
Motional says it has completed more than 100,000 autonomous rides in Las Vegas and thousands of autonomous deliveries in Los Angeles. According to the company's CEO, Karl Iagnemma, "Large-scale deployment of unmanned vehicles will not happen overnight. Driverless cars will enter the market only when the technology has advanced to a certain level and the commercial path for deployment is clear. Motional also expects "commercial deployment to resume once things improve".
Lyft and Uber did not immediately respond to requests for comment.
Last week, auto parts supplier Aptiv said it would sell its stake in Motional, while Hyundai Motor would invest an additional $475 million in Motional. According to previous reports, Aptiv expects earnings per share of $5.55 to $6.05 in 2024, including about $340 million in non-cash equity losses related to Motional's losses.
As part of the restructuring plan, Motional said it will reduce headcount and focus resources on developing and promoting its driverless technology, "while de-emphasizing near-term commercial deployments and supportive activities". However, the company declined to disclose the number of layoffs, but said that various markets and functions were affected.
