Motional, a self-driving technology company, has announced that it will be delaying commercial robotaxi deployments and focusing on developing its core technology. 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.
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.
Legacy automakers are also cutting back on spending for autonomous driving technology due to regulatory and safety challenges. As such, Motional’s decision to focus on developing its core technology may be seen as a prudent move in the current climate.