Bryan Salesky and Pete Rander, the founders of Argo AI, a failed self-driving tech company, are embarking on a new venture. The duo, who have extensive experience in the autonomous vehicle (AV) industry, are looking to make a comeback with a start-up that will focus on ride-hailing and trucking.
Despite the challenges that have plagued the AV industry, Salesky and Rander have already secured investment for their new venture. While the backer has not been identified, reports suggest that it is not an automaker. With nearly 50 employees already on board, the start-up will be based in Pittsburgh, Pennsylvania, which is also home to Ford's new division, Latitude AI.
However, the road ahead for the new company will not be easy. The AV industry has faced an excessive amount of turbulence in recent months, with several companies forced to scale back or shutter their operations due to a lack of funding. Embark, an autonomous trucking company, recently laid off 230 staff and is potentially facing dissolution. CEO Alec Rodrigues stated that “the capital markets have turned their backs on pre-revenue companies.”
Moreover, Salesky and Rander's new venture will face fierce competition in the areas it is focusing on. In the freight sector, companies such as Aurora, Waabi, Gatik, and TuSimple are all battling for market share. Similarly, the autonomous ride-hailing market is also fiercely contested, with Cruise, Motional, Waymo, and Zoox all making progress, but facing difficulties. For example, Waymo has had to make job cuts, and Cruise has racked up substantial losses.
Despite these challenges, Salesky and Rander are undeterred, and are betting that their extensive experience in the self-driving arena, coupled with their new venture's focus on trucking and ride-hailing, will help them succeed. The company is reportedly already hiring, with nearly 50 people already on board, and is expected to focus on Level 4 autonomy for trucks and ride-hailing vehicles.
Only time will tell whether Salesky and Rander's latest venture will be a success, but one thing is for certain: the road ahead will be bumpy. The AV industry is still in its early stages, and there is much work to be done before self-driving technology becomes commonplace on our roads. Nevertheless, Salesky and Rander's decision to launch a new start-up is a testament to their belief in the potential of autonomous driving, and their determination to push the industry forward.
