Motional postpones its commercial robotaxi plans amid a restructuring process

Motional, the autonomous vehicle startup formed from a $4 billion joint venture between Hyundai and Aptiv, is undergoing significant restructuring. As part of this process, the company will pause its commercial operations and delay its plans to launch a driverless taxi service, according to sources familiar with the matter.

The company’s plan to launch a commercial driverless robotaxi service with its second-generation AV, the Hyundai Ioniq 5, has been pushed to 2026, two years later than originally planned. This delay aims to focus on advancing core technology and refining the business model while preserving capital.

During an all-hands meeting on Tuesday, Motional informed employees about the restructuring, which includes layoffs. The exact number of affected employees was not disclosed, but notifications began shortly after the meeting. Before a 5% workforce cut in March 2024, the company employed over 1,300 people.

Motional will halt its current commercial operations, which include taxi rides in autonomous Hyundai Ioniq 5 vehicles in Las Vegas via the Uber and Lyft networks, and deliveries for Uber Eats in Santa Monica. All these operations currently utilize human safety operators behind the wheel.

The company will redirect resources to focus on the core technology development, which will involve increased testing and potentially expanding to new cities. Currently, Motional tests its technology in Boston, Pittsburgh, and Las Vegas. Motional CEO Karl Iagnemma emphasized in a blog post that the focus will be on developing and generalizing the core driverless technology while reducing emphasis on near-term commercial deployments.

Iagnemma noted, “Driverless vehicles will enter the market when the technology has evolved, and — just as importantly — when the business case for autonomous deployment is clear. While we’re excited by our pace of technical progress, and our initial commercial deployments have yielded valuable insights, large-scale deployment of AVs remains a goal for the future, not the present.”

This shift indicates a strategic pivot for Motional, prioritizing long-term technological advancements over immediate commercial applications.