Motional, a self-driving technology company, announced on Tuesday that it will be focusing on developing its core technology and delaying commercial robotaxi deployments. This decision comes as the company undergoes a restructuring process and plans to lay off staff. The move follows electric carmaker Tesla’s upcoming unveiling of its robotaxi, called “Cybercab,” on August 8. Legacy automakers are also cutting back on spending for autonomous driving technology due to regulatory and safety challenges.
Last week, auto parts supplier Aptiv announced that it would be selling its stake in Motional, a joint venture with Hyundai Motor. In response, Hyundai Motor will be providing the startup with an additional $475 million in funding. Motional CEO Karl Iagnemma stated that the deployment of driverless vehicles on a large scale will take time and will only happen when the technology has sufficiently matured and a clear business case for autonomous deployment is established.
As part of the restructuring process, Motional will be reducing its workforce and focusing on developing and scaling its driverless technology. The company will also be stepping back from near-term commercial deployments and other related activities. Although the exact number of employees to be laid off was not disclosed, Motional confirmed that roles across various locations and functions will be affected. Motional currently partners with ride-hailing platforms Uber and Lyft to offer driverless taxi services. The startup has already completed over 100,000 autonomous rides in Las Vegas and has also conducted food deliveries in Los Angeles.