Motional to pause robotaxi deployments with Uber, Lyft
Motional's hitting pause on robotaxi deployments with Uber and Lyft, and they're laying off staff in the process. They're calling it "restructuring to focus on technology development," which is corporate speak for "we need to figure this out before burning more cash."
The timing's rough. This comes right before Tesla's big robotaxi reveal (the "Cybercab") on August 8, and it's part of a broader pattern where legacy automakers are backing away from expensive autonomous driving projects. Regulatory hurdles, safety concerns, and unclear economics are making everyone rethink their approach.
Here's the thing—Motional's actually completed more than 100,000 autonomous rides in Las Vegas and food deliveries in Los Angeles. That's real operational experience. But CEO Karl Iagnemma's being honest about where they're at: "Large-scale driverless deployment won't happen overnight. Driverless vehicles will enter the market when the technology has evolved and – just as importantly – when the business case for autonomous deployment is clear."
Translation? The tech works, but the math doesn't yet. They'll "resume commercial deployments once the unit economics are more favorable," which means they're waiting for costs to drop or revenue opportunities to improve.
The business side's messy too. Last week, Aptiv decided to sell its stake in Motional (it's a joint venture with Hyundai), though Hyundai's committing another $475 million to keep things going. And just last month, Ghost Autonomy—backed by OpenAI and Khosla Ventures—shut down entirely, citing no clear path to profitability.
That's two autonomous vehicle companies hitting the brakes in the same month. The technology's getting there, but the business model isn't proven yet. Motional's being smart by pausing instead of burning through capital on deployments that don't pencil out economically.
The company wouldn't say how many people they're laying off, just that it's affecting "roles across locations and functions." That's never good news for the people losing their jobs, but it's probably necessary if they want to survive long enough to see the economics improve.
Source: Reuters