Drive.ai, a California-based self-driving car startup, has announced to discontinue its driverless car service in Frisco, Texas later this week. The move came after months when the company began piloting its self-driving service in Arlington, Texas. The reason behind withdrawing the service, according to the company, its contract with Frisco, where Drive.ai has operated a small fleet of autonomous Nissan NV200s shuttles on a single route between an office park and a high-end shopping complex, ends later this month.
Reports further noted that the City of Frisco opted not to renew it, with citing high costs. And in the roughly 6 months since Drive.ai entered the Frisco market, business has remained decidedly sluggish, while 5,000 Frisco riders tried the service, only about 20 percent used it more than once a week. In a statement, Drive.ai CEO Bijit Halder stated that we’ve decided to go big on Arlington. What we have been planning for a long time is to, ultimately solve the broader transportation problems that we feel will benefit from our autonomous-vehicle services. Currently, Drive.ai’s service is reportedly paid for by the City of Arlington and the U.S. federal government and will run through October 2019, with an option to extend. According to Haldar, Our partnership with the City of Arlington is a testament to Drive.ai’s ability to develop not only cutting-edge AI technology but also self-driving services that solve the most pressing transportation problems facing communities today.
Drive.ai utilizes Artificial Intelligence to develop autonomous systems, which advance the state of transportation today. In 2017, the company’s total valuation was USD200 million and has raised nearly USD77 million in funding, to data.