Google Absorbs Sidewalk Labs; CEO Leaves for Likely ALS Battle

(Bloomberg) -- Alphabet Inc. will reorganize its struggling smart-city company, Sidewalk Labs, after Chief Executive Officer Daniel Doctoroff decided to step down for health reasons. 

Doctoroff, a former deputy mayor of New York City, said Thursday in a Medium post that it is “very likely” he will be diagnosed with amyotrophic lateral sclerosis, or ALS, a degenerative condition popularly known as Lou Gehrig’s disease. He said he will devote his life to spending time with family and seeking a cure for the ailment. 

The executive, 63, is the former CEO and president of Bloomberg LP, the parent company of Bloomberg News, and served as deputy mayor under Mike Bloomberg, the company’s founder.

In his blog post, Doctoroff announced structural changes to the company he launched, which came to prominence with an unsuccessful plan to build a “city of the future” in Toronto. Alphabet will help Canopy Buildings, an initiative to automate timber construction, become an independent company. 

“Starting next year, Sidewalk products Pebble, Mesa, Delve and Affordable Electrification will join Google, becoming core to Google’s urban sustainability product efforts,” Doctoroff said in the post. Prem Ramaswami, Sidewalk Labs’ president of urban products, and Chief Technology Officer Craig Nevill-Manning will oversee the operation, he said. 

Sidewalk Labs was created in 2015 to make cities more sustainable and connected. Its flagship plan was to develop 12 acres on Toronto’s waterfront, replete with heated sidewalks, underground garbage collection and tall timber buildings. But in May 2020, Doctoroff scrapped the plan, saying it was no longer financially viable amid economic uncertainty from the coronavirus pandemic.

There had also been robust local opposition based on privacy concerns. In June 2020, Sidewalk Labs laid off about half of its staff in Toronto. The company has since been focused on products that could be useful for other cities trying to modernize. 

Turning back to his ALS focus, Doctoroff said his group, Target ALS, has a goal to raise an additional $250 million to fight the disease. He hopes that in 10 years, the world will be much closer to no one having to die from ALS.

“I have always been an optimist and I have always believed in the power of optimism,” Doctoroff said. “This moment is no different.”

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