Arrivo shuts downDecember 15, 2018
L.A. based Hyperloop company Arrivo shuts down its operations. Company’s employees were laid off in November. Arrivo is shutting down because it hasn’t been able to secure new funding. Remaining employees were texted or called last Friday.
The company was started in 2017 by former SpaceX engineer Brogan BamBrogan, who was a co-founder of Hyperloop One. Two of BamBrogan’s fellow co-founders had resigned in the months before the current situation with holding Arrivo’s wider operations. It all came as the startup ran low on funding, according to these two employees.
“The ethos of the company is trying to switch the paradigm”, “Mobility and transportation are both words that talk about the ‘getting there.’ And we want to make it so seamless. I don’t want to get to dinner with my friend, I want to be at dinner with my friend.” said Brogan BamBrogan, Arrivo’s CEO.
Unfortunately, Arrivo’s existence elapsed under the name of numerous lawsuits between the company and Hyperloop One. Arrivo was the only Hyperloop company to get rid of the vacuum tube and focus purely on Magnetic Levitation sleds. Maglev is a decades old technology which proved to be more expensive to build and run in terms of electricty usage as opposed to standard wheels. Apparently in need to differentiate itself from competition Arrivo went too far in its radical technology approach and found no appreciation from the Venture Capital side.
The news come not long after Arrivo announced a billion-dollar credit line to build its projects around China. It seems it wasn’t enough.