Google parent-organization Alphabet is bidding farewell to another of its drawn out experiments — this time, it’s Loon, the huge balloons the organization had would have liked to supply internet services to the most remote parts of the world.
Loon CEO Alastair Westgarth said in a blog post Thursday “While we’ve found a number of willing partners along the way, we haven’t found a way to get the costs low enough to build a long-term, sustainable business. “Developing radical new technology is inherently risky, but that doesn’t make breaking this news any easier. Today, I’m sad to share that Loon will be winding down.”
The Loon announcement comes after the organization shut down another project it was trying out dubbed Makani, which gave wind power from huge kites, in 2020. The two activities spun out of Alphabet’s “X” specialty unit, which incubates long haul test projects, and were represented under Alphabet’s “Other Bets,” unmistakable from Google, which gives practically the entirety of Alphabet’s income.
The “Other Bets” in the third quarter of 2020 generated only $178 million in income contrasted with $155 million the year before. All of the businesses together made an operating loss of $1.01b, up $941m from the previous year. Alphabet’s cash cow Google on the other hand made $12.6b in income in the same quarter – overall revenue was $46b.
Loon experienced hit monetary difficulties as of lately. But this cancellation means the objective of the Loon executives to raise more money is now but dashed.
“The arc of innovation is long and unpredictable. While this isn’t the outcome I envisioned for Loon when I joined four years ago, I continue to be immensely proud of the accomplishments of the entire Loon team and hope that our efforts will live on in ways that we can’t yet imagine.
Besides financial difficulties, the also faced some technical issues like actually reaching some of their target areas. “We talk a lot about connecting the next billion users, but the reality is Loon has been chasing the hardest problem of all in connectivity — the last billion users: The communities in areas too difficult or remote to reach, or the areas where delivering service with existing technologies is just too expensive for everyday people. “
Well its goodbye to Loon and let’s see what other project lies ahead for the Other Bets section of Alphabet. Google beams internet service to different cities across the world and in Nigeria, they launched a similar service in Lagos in 2018.