Richard Branson-backed Hyperloop One is shutting down
Hyperloop One, a start-up once supported by Richard Branson's Virgin Group, is set to close its doors on December 31, Bloomberg reports. Established in 2014, the company aimed to create high-speed transportation systems for cargo and passengers using vacuum-sealed tubes. Despite raising and spending vast amounts of money, Hyperloop One faced numerous obstacles and never secured a contract to build a functioning hyperloop system.
Company's evolution and legal battles
The start-up underwent several changes, including a legal battle between its co-founders. In 2017, after Branson's investment, the company rebranded as Virgin Hyperloop One. However, Branson's criticism of Saudi Arabia following Jamal Khashoggi's murder in 2018 led to the Kingdom canceling a planned project with the start-up and Branson stepping down as chairman. Dubai port operator DP World eventually gained majority control, refocusing the company on cargo in early 2022, cutting half the staff, and dropping the Virgin name.
Assets and intellectual property distribution
As Hyperloop One closes, DP World will obtain its intellectual property, while remaining assets like machinery and a test track near Las Vegas will be sold. The company once planned to build a high-speed freight link between Europe and China for one-day cargo transport. However, it shifted to cargo-only services last year, laying off over 100 employees due to the change in focus. The remaining staff will be laid off on December 31.
