Loon should have been an out-of-this-world experience that transmits internet connection using a balloon service to humans, but Google's Alphabet has scrapped that venture and project due to unforeseen costs. The ventures of Google's parent company, Alphabet, has not been doing well with regards to its past performance as several projects did not come to fruition.
The Mountain View-based Google company, Alphabet, is looking at another failure on its end as the internet-beaming service that is based on gigantic balloons, has faced an unfortunate shut down. This is one of Google and Alphabet's unique projects that averted the normal features or situations in terms of services, as it uses a different approach.
The Balloon Internet Service should have been a venture for internet connection in rural areas, strengthening and allowing them to connect and use the online services despite their far-flung locations. The company was also looking forward to turning this venture into a global experience, being a stable internet provider to different locations, not just in its home country.
Read Also: 'Destiny 2' Harbinger Activity Guide: How to Start the Mission and Find Hawkmoon Location!
Alphabet Shuts Down Loon Due to Enormous Costs
According to Loon CEO Alastair Westgarth's blog post via Medium, the company has the means and ways to move forward with its balloon internet-beaming service but its costs were too much, especially to charge the public. Moreover, the costs were enormous to maintain the business in the long-term, as it would use massive balloons that can be a victim of nature's wrath.
The CEO said that developing new technology is "inherently risky," especially with a unique approach and a company that focused its service on the structure that seems to be high-risk and unstable on its own. Westgarth regarded that investor relationship and investments are not the problems with the venture, but still it pushed them to shut down.
Basically, Loon's internet-beaming service is not sustainable enough to succeed in the current climate and would be facing more fund incursions, rather than profit or growing from the business. Loon has been a subsidiary by Alphabet LLC since its foundation, and it has started its venture since its foundation in 2005, working on distributing the internet.
Loon Shutdown: Alphabet's 2nd Business Closure
The almost 16-year venture of the company shuts down now before it has even launched its balloon internet-beaming services to a full-time and stable connection to the said remote areas of the world. However, this was not the only loss Alphabet has incurred for the recent time, reporting to observe more companies and ventures to close.
According to CNBC, Alphabet shut down its wind power-generating company which makes use of gigantic kites last 2020. The experimental business is called "Makani" and also lists a high-risk business that has been doomed due to enormous costs and little profit to take back or receive from the venture.
Despite the shutdown, Alphabet and Loon consider this farewell, not as a "failure" on both their parts, rather the circumstances that surround the business.
Related Article: Volkswagen 'Trinity' EV is the Next-Generation Flagship Car-CEO Boasts of Reducing CO2 Emissions by 20% in a Year!
This article is owned by Tech Times
Written by Isaiah Alonzo
