Tech Industry Faces Setback as Hyperloop One Plans Shutdown
TEHRAN (Tasnim) - Hyperloop One, a pioneer among hyperloop startups with previous backing from Virgin Group, is slated to halt its operations by December 31.
The move marks another setback in the technology sector's endeavor to materialize Elon Musk's 2013 conceptualization. Despite raising and expending substantial funds since its establishment in 2014, Hyperloop One's imminent closure represents a poignant point in the pursuit of the hyperloop idea.
Originally envisioned as an innovative mode of transportation operating within vacuum-sealed tubes, the hyperloop concept aimed at enabling high-speed transit for people and goods. Yet, beyond a few technology demonstrations and experimental tracks, its practical implementation remains elusive.
Throughout its tenure, Hyperloop One underwent various transformations, encountering internal conflicts between co-founders and adapting its identity. After Richard Branson's investment in 2017, leading to the renaming as Virgin Hyperloop One, subsequent events led to a fractious relationship. Branson's public criticism of Saudi Arabia in the aftermath of Jamal Khashoggi's killing resulted in the Kingdom withdrawing its planned collaboration with the startup, prompting Branson's departure as chairman.
Following these alterations, Dubai-based DP World assumed majority ownership of the startup, initiating a shift toward cargo-focused initiatives in early 2022. This strategic shift entailed a significant reduction in workforce, slashing half of the staff while shedding the Virgin branding. According to Bloomberg's report, DP World will inherit Hyperloop One's intellectual property, while the company's tangible assets, including a test track situated outside Las Vegas and related infrastructure, are anticipated to be divested.
