Facebook bit off more than it could chew costing $20 million and a failure

Facebook attempted to build a railroad that it ended up spending $20 million on but never finished, abandoning the project when the pandemic hit.

Facebook bit off more than it could chew costing $20 million and a failure
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Facebook is well known for its extreme expenditure, typically in its research and development department for virtual reality. However, there are other areas in which the company invests its money.

Facebook bit off more than it could chew costing $20 million and a failure 74

According to a recent report by The New York Times, Facebook attempted to build a railroad that never got finished, costing the company a whopping $20 million and creating a disappointed community. The report states that Facebook wasn't in the project by itself, which was to convert the abandoned Dumbarton Rail Bridge into a commute to assist the expanding area and mitigate congestion on the public transport systems.

Notably, the social media company reached out to community officials with a proposal for the project back in 2017, with Elliot Schrage, Facebook's former vice president of communications and public policy, saying to NYT that the company felt it needed to not only be stewards of the online community but also be good stewards in the physical community.

"That was just so exciting," said Union City mayor Carol Dutra-Vernaci, whose city was "viewed as a crucial juncture in the East Bay to connect commuters traveling from Oakland or the Central Valley. I was just so thrilled, figuring it's really going to happen."

As the publication notes, Facebook's railroad would have been a massive presence in its San Francisco real estate portfolio, but unfortunately, due to political headaches that caused the pace of the project to slow down, and the pandemic, the project was abandoned. Facebook called off the railroad three years later when it took the $20 million blow on its chin.

"I was heartbroken. I understood some of the business reasons, but heartbroken nonetheless," said Warren Slocum, president of the San Mateo County Board of Supervisors, an individual very close to the project.

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NEWS SOURCE:nytimes.com

Jak joined the TweakTown team in 2017 and has since reviewed 100s of new tech products and kept us informed daily on the latest science and space news. Jak's love for science, space, and technology, and, more specifically, PC gaming, began at 10 years old. It was the day his dad showed him how to play Age of Empires on an old Compaq PC. Ever since that day, Jak fell in love with games and the progression of the technology industry in all its forms. Instead of typical FPS, Jak holds a very special spot in his heart for RTS games.

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