Hyperloop One, the high-speed freight transportation company, is set to shut down after facing challenges in securing contracts to construct a functional hyperloop, as reported by Bloomberg News. Despite achieving the world’s first passenger ride on a super high-speed levitating pod system in 2020, the Los Angeles-based firm has not been able to secure contracts for hyperloop projects. According to sources, Hyperloop One will liquidate its remaining assets, and the employment of its remaining staff will conclude by the end of this year.
In a hyperloop system, which utilizes magnetic levitation for near-silent travel, a journey between New York and Washington could be completed in just 30 minutes-twice as fast as a commercial jet flight and four times faster than a high-speed train. Elon Musk rekindled interest in hyperloop technology in 2013, outlining the workings of a modern hyperloop system. Musk’s own venture, The Boring Company, aims to transport passengers in pods through an intercity network of large underground vacuum tubes known as the hyperloop.
Hyperloop One, founded in 2014, had raised over $400 million in funding, primarily from United Arab Emirates shipping company DP World and British billionaire Richard Branson. The company’s closure marks a setback for the development and implementation of hyperloop transportation technology.