May 7 (Reuters) - Self-driving technology company
Motional said on Tuesday it will pause robotaxi deployments with
ride-hailing firms Uber Technologies ( UBER ) and Lyft ( LYFT ),
while it lays off staff as part of its restructuring process to
focus on technology development.
The development comes ahead of electric carmaker Tesla's
unveiling of its robotaxi, dubbed "Cybercab", on Aug. 8
and as legacy automakers limit spending on expensive autonomous
driving technology in the face of regulatory and safety hurdles.
Motional said it has completed more than 100,000 autonomous
rides in Las Vegas and food deliveries in Los Angeles.
"Large-scale driverless deployment will not 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," CEO Karl
Iagnemma said in a blog post.
Motional said in a statement it expects "to resume
commercial deployments once the unit economics are more
favorable".
Lyft ( LYFT ) and Uber ( UBER ) did not immediately respond to requests for
comment on the pause of their partnerships with Motional.
Auto parts supplier Aptiv ( APTV ) said last week it would
sell its stake in Motional, its joint venture with Hyundai Motor ( HYMTF )
, while the Korean automaker will fund the startup
with additional $475 million.
Last month, OpenAI and Khosla Ventures-backed Ghost Autonomy
said it was winding down operations, citing an uncertain path to
long-term profitability.
As part of Motional's restructuring process, the startup
said it would reduce workforce, focus resources on developing
and generalizing its driverless technology "while de-emphasizing
near-term commercial deployments and ancillary activities".
The company declined to provide the numbers of employees to
be laid off, but said roles across locations and functions were
impacted.