TechCrunch Mobility: Bankruptcy Takes Out Two In the ever-evolving landscape of transportation technology, the past year has seen its fair share of both triumphs and tribulations. As we navigate the exciting, yet often tumultuous, world of mobility innovation, two recent high-profile bankruptcies have sent shockwaves through the industry. The first casualty was Argo AI, a self-driving car startup that had once been touted as a promising contender in the autonomous vehicle race. Founded in 2016 with backing from industry giants Ford and Volkswagen, Argo AI had raised over $3.6 billion in funding and was valued at $7.5 billion as recently as 2021. However, the company's ambitious plans hit a wall as it struggled to overcome the technical and commercial hurdles of bringing fully autonomous vehicles to market. In October 2022, Ford and Volkswagen announced that they were winding down their investments in Argo AI, effectively shutting down the startup. The automakers cited the "enormous challenge to get this technology to market" and the need to prioritize more near-term opportunities as key factors in their decision. This move left Argo AI's 2,000 employees facing an uncertain future, with the company forced to cease operations and file for bankruptcy. The closure of Argo AI serves as a sobering reminder of the immense challenges facing the autonomous vehicle industry. Developing the complex software, sensors, and hardware required for true self-driving capabilities has proven to be far more difficult and time-consuming than many had initially anticipated. Despite the billions of dollars poured into the sector, the road to achieving Level 5 autonomy – the holy grail of self-driving technology – remains long and arduous. The second high-profile bankruptcy was that of Embark Trucks, a startup focused on developing autonomous technology for long-haul commercial trucking. Embark had raised over $150 million in funding and had partnered with some of the industry's biggest names, including Anheuser-Busch, Ryder, and DHL, to pilot its self-driving technology. However, in November 2022, Embark announced that it would be ceasing operations and filing for bankruptcy. The company cited the "incredibly challenging fundraising environment" and the need to prioritize "near-term profitability and cash preservation" as the primary drivers behind its decision. The failure of Embark Trucks underscores the difficulties faced by startups in the autonomous trucking space. While the potential benefits of self-driving technology in the commercial freight industry are substantial – including improved safety, increased efficiency, and reduced labor costs – the path to commercialization has proven to be fraught with obstacles. The collapse of both Argo AI and Embark Trucks serves as a cautionary tale for the broader mobility industry. It highlights the immense technical, financial, and regulatory hurdles that innovators must overcome to bring their transformative visions to life. As the industry continues to evolve, it's clear that not every bold idea and well-funded startup will succeed. However, the demise of these two companies does not mean that the mobility revolution has stalled. In fact, the lessons learned from their failures may ultimately help to shape a more sustainable and resilient future for transportation technology. For example, the closure of Argo AI could spur a reevaluation of the industry's approach to autonomous vehicle development. Perhaps a more incremental, modular approach – focusing on specific use cases and deployment scenarios rather than aiming for the Holy Grail of full autonomy – may prove to be a more viable path forward. Similarly, the downfall of Embark Trucks may inspire a renewed focus on practical, near-term applications of autonomous trucking technology, such as highway driving assistance or remote-controlled operations, rather than the elusive goal of fully driverless long-haul operations. Ultimately, the bankruptcies of Argo AI and Embark Trucks serve as a wake-up call for the mobility industry. They remind us that innovation is not always a smooth, linear process, and that even the most promising ideas and well-funded startups can falter in the face of the complex technical, commercial, and regulatory challenges that lie ahead. As the industry continues to evolve, it will be crucial for mobility innovators to learn from these cautionary tales, to maintain a clear-eyed view of the obstacles they face, and to develop more sustainable, scalable, and practical approaches to transforming the future of transportation.