ALI Technologies, a start-up specializing in Hoverbikes, has officially submitted for bankruptcy.
The Japanese start-up ALI Technologies, envisioning a futuristic transformation of urban transportation through its hoverbike, has officially filed for bankruptcy.
The decision, as stated by its US parent company, is part of a strategic relocation plan to California, where they aim to rejuvenate their aspirations with a new business partner.
ALI Technologies gained attention for its highly publicized hoverbike, even featuring Prince Albert II of Monaco atop the craft at one point. Despite the initial hype, the hoverbike did not achieve significant sales.
The bike, previously likened to Star Wars-inspired technology, resembled an aerial water scooter and had a flying capacity of approximately 40 minutes at speeds reaching up to 100 km/h (62 mph) on a single charge. CEO Daisuke Katano expressed hope that the hoverbike would introduce nothing less than a “new method of movement.”
The hoverbike was introduced to the market in 2021 with a hefty price tag of $680,000 (£534,000). However, the business faced challenges right from the beginning, primarily due to restrictive laws in Japan and other locations that prohibited such devices from flying over city roads.
Ben Gardner, a partner at the law firm Shoosmiths, highlighted the regulatory hurdles that limited the hoverbike’s practicality, despite its “groundbreaking” technology. He suggested that with additional research, development, engagement with government authorities, and marketing efforts, the hoverbike could have had a chance, at least for more extensive real-world testing and deployment. Unfortunately, ALI Technologies ran out of both time and money.
In an attempt to raise funds, ALI Technologies agreed to be acquired by the US firm Pono Capital Corp last year, leading to the listing of its shares on the Nasdaq stock exchange. However, most of Pono’s investors opted to sell their stock after the listing, negatively impacting the Japanese firm’s financial standing. As a result, ALI Technologies, under its US parent company Aerwins Technologies, announced in October that it would relocate operations from Tokyo to California to focus on redesigning the hoverbike and obtaining regulatory certification in the new location.
In December, the company entered into a partnership with another US firm to advance its plans, ceased operations in Japan, and aimed to offer the redesigned vehicle for sale at a reduced price point of $200,000. Unfortunately, due to financial constraints and challenges, the company decided to discontinue its non-core operations carried out by its subsidiary, ALI.
The narrative also touches upon the broader landscape of flying vehicles, noting that various tech firms are striving to introduce such innovations in urban areas. Examples include a prototype flying car completing a flight in Slovakia and receiving certification in 2022, as well as a flying car in the US obtaining Special Airworthiness Certification from the Federal Aviation Administration in 2023. Additionally, retailers like Amazon and Walmart are experimenting with drone deliveries to homes in the US.
