One of the pioneering hyperloop startups, Hyperloop One, is reportedly set to shut down its operations by December 31, as per Bloomberg News. This development marks a significant setback in the tech industry’s efforts to materialize the concept initially proposed by Elon Musk in 2013.
Key Takeaway
Hyperloop One, a prominent player in the realm of hyperloop technology, is winding down its operations, marking a notable setback in the pursuit of revolutionizing transportation through high-speed tube systems.
The Rise and Fall of Hyperloop One
Hyperloop One, which had received backing from Richard Branson’s Virgin Group, had been in operation since its establishment in 2014. Despite raising and investing hundreds of millions of dollars, the company faced numerous challenges and was unable to realize its ambitious vision.
The hyperloop concept entails the construction of extensive vacuum-sealed tubes to facilitate the rapid transportation of people and goods at exceptionally high speeds. However, beyond a few technology demonstrations and test tracks, the practical implementation of this concept has not materialized.
Challenges and Transformations
Hyperloop One underwent several transformations, including internal conflicts among its co-founders. Following Branson’s investment in 2017, the company adopted the name Virgin Hyperloop One. However, a fallout between Branson and Saudi Arabia led to the Kingdom withdrawing its planned project with the startup, prompting Branson to step down as chairman.
Subsequently, Dubai port operator DP World gained majority control of the company and redirected its focus to cargo in early 2022. This shift resulted in a significant downsizing, with half of the staff being laid off, and the abandonment of the Virgin branding. DP World is poised to acquire Hyperloop One’s intellectual property, while the company’s physical assets, such as the test track near Las Vegas and other equipment, are set to be divested, according to reports from Bloomberg.
