Lucid CEO Steps Down, Flexport Faces 'Founder Mode' Challenges

TechCrunch Mobility Update: Leadership Change at Lucid and Flexport's Rapid Innovation

Welcome to TechCrunch Mobility, your primary source for the latest news and perspectives on the evolving world of transportation. Don't miss out – subscribe for free by clicking TechCrunch Mobility!

Lucid Motors announced an unexpected development this week with the resignation of its CEO and CTO, Peter Rawlinson. The news of his departure, which also includes relinquishing his position on the board, gained traction due to his absence from the fourth-quarter earnings conference call.

Lucid Motors Leadership Transition

Sean O’Kane, a senior reporter, provides a comprehensive overview of the situation. This includes a detailed look at the EV manufacturer’s recent performance, the interim leadership arrangements, and the company’s future objectives.

While Rawlinson will maintain a presence with the company, his role will be limited. He will serve as a “strategic technical adviser” to Turqi Alnowaiser, the chairman of the board and a key executive within Saudi Arabia’s sovereign wealth fund – Lucid’s principal shareholder. He will not be involved in day-to-day operations or have decision-making power.

Lucid’s path forward centers on two key priorities: increasing EV sales, particularly of the new Gravity SUV, and achieving cost reductions. This presents a significant challenge, especially considering the ongoing development of a new midsize vehicle platform, slated for release in late 2026.

Prior to delving into further news, we want to spotlight an article concerning Flexport CEO Ryan Petersen and the introduction of a new range of products and features by the freight forwarding and logistics startup.

Flexport's Accelerated Product Development

While many of these new offerings leverage AI, it was the speed of their implementation that proved most noteworthy. Petersen shared with TechCrunch that this is the first in a planned series of bi-annual product announcements.

Petersen credits Airbnb founder Brian Chesky’s concept of “founder mode” as the inspiration for this strategy. Despite the initial buzz surrounding “founder mode” – sparked by Paul Graham’s essay – Petersen’s recent actions demonstrate that this management approach continues to hold relevance and is not merely a passing trend.

This rapid rollout signifies a commitment to continuous innovation and responsiveness to market demands.

Recent Developments at Cruise

Following the substantial workforce reduction at Cruise earlier in the month, further adjustments are taking place. GM, the parent company, previously announced a near 50% decrease in Cruise’s employee count.

The remaining Cruise operations are being integrated into General Motors. This shift in strategy is intended to focus resources on enhancing the Super Cruise driver-assistance system.

Ultimately, the goal is the future deployment of personally operated autonomous vehicles.

Sources indicate that additional staff reductions have occurred since the initial announcement. Specifically, the Cruise marketing team, consisting of approximately eight individuals, has been let go.

It is anticipated that the finance and legal divisions will also experience cuts as the organizational transition progresses.

Confidential News Channel

Do you have information you’d like to share? You can reach Kirsten Korosec at kirsten.korosec@techcrunch.com or via Signal at kkorosec.07.

Alternatively, contact Sean O’Kane at sean.okane@techcrunch.com or Rebecca Bellan at rebecca.bellan@techcrunch.com.

Instructions for secure and encrypted communication methods, including SecureDrop, are also available.

Recent Investment and Acquisition Activity

Focusing on the realm of logistics and related sectors, recent developments include a significant shift for Just Eat Takeaway. Following the sale of Grubhub last month for $650 million – considerably less than the $7.3 billion valuation at the time of its 2020 acquisition – Just Eat Takeaway is now facing acquisition itself.

A definitive agreement has been reached with global technology firm Prosus to acquire Just Eat Takeaway for €4.1 billion in cash. Successful completion of this transaction will position Prosus as a leading force in the global food delivery market, ranking fourth in size.

Notable Investment Rounds and IPOs …

AiDEN Auto, a startup specializing in connected vehicle technology and data privacy solutions, secured $4.2 million in seed funding. This round was spearheaded by Nuri Venture Partners, with participation from IF Insurance, Tengro Ventures, Band of Angels, Mentors Fund, Start Equity Ventures, Conxcity, Weltham Capital, alongside angel investors and family offices. The San Francisco-based company, established by former Volvo engineers, has now raised a total of $6.1 million.

AIRO Group, an aerospace and defense contractor with locations in Albuquerque, New Mexico, and Washington, D.C., has filed for an initial public offering (IPO) anticipated to generate approximately $100 million. The company intends to list its shares on the Nasdaq stock exchange.

Circuit, a provider of electric shuttle services for short distances, has raised $17 million during a Series B funding round. MKB, a private investment firm, and existing investors Tribeca Venture Partners and Impact Engine contributed to this funding.

Donut Lab, a subsidiary of Verge Motorcycles dedicated to the development of electric motors and associated technologies, has secured €15 million in funding. Risto Siilasmaa, the founder of F-Secure and WithSecure, and former chairman of Nokia, served as the anchor investor and will also join Donut Lab’s board of directors.

Gozem, an African startup offering a diverse range of services – including ride-hailing, commerce, vehicle financing, and digital banking – through its mobile application across Togo, Benin, Gabon, and Cameroon, has raised $30 million in a Series B round. This funding comprises $15 million in equity and $15 million in debt, led by SAS Shipping Agencies Services and Al Mada Ventures.

Vidyut, a Bengaluru, India-based company focused on providing financial solutions for commercial and passenger electric vehicles, has received $2.5 million in funding from Flourish Ventures.

Recent Developments and Industry Updates

Self-Driving Technology

AAA’s latest annual survey assessed consumer sentiment regarding advanced driver-assistance systems and fully autonomous vehicles. The results indicate a declining enthusiasm for self-driving cars, with only 13% of drivers identifying it as a priority. This represents a decrease from the 18% recorded in 2022.

Furthermore, over half of those surveyed (53%) expressed a lack of interest in actually riding in a driverless vehicle. Conversely, there remains significant interest in ADAS features, particularly Automatic Emergency Braking systems.

Avride, a company originating as a spinout from Yandex, has initiated commercial operations in Tokyo, Japan. Their autonomous sidewalk delivery robots, a fleet of approximately ten units, are now actively serving customers in the city center.

Electric Vehicles and Battery Innovation

Aston Martin has announced a reduction of 170 positions within its workforce and a postponement of its planned electric vehicle launch. The company will now concentrate its efforts on developing an ultra-luxury hybrid model instead.

Following a previous report detailing the organization and motivations behind the Tesla Takeover movement, it appears the protests are gaining momentum. Demonstrations have occurred at Tesla showrooms across numerous U.S. cities, and the long-term impact on Tesla’s financial performance remains to be seen.

Range Energy, a startup specializing in electrified semitrailers, is restructuring its leadership team. Ali Javidan, the founder and previous CEO, will transition to the role of president and CTO. Jon Foster, formerly the CFO of Zoox and instrumental in its acquisition by Amazon, has been appointed as the new CEO.

Advancements in Aerial Mobility

Joby Aviation has released its recent earnings report, revealing key progress updates. The electric vertical takeoff and landing (eVTOL) company anticipates delivering an aircraft to Dubai by mid-2025 for passenger transport demonstrations.

Currently, Joby operates a test fleet of five aircraft and has made advancements in stage four of the FAA type certification process. The company projects completion of the final FAA certification phase within the next year. However, this development is financially demanding, with Joby reporting a net loss of $608 million for 2024.

Innovations in Vehicle Technology

Google faced a €100 million antitrust fine from Italy’s competition authority four years ago. This penalty stemmed from the company’s refusal to allow a third-party electric vehicle charging application, developed by Enel, to integrate with the Android Auto platform.

A recent ruling by the Court of Justice of the European Union has upheld the Italian authority’s assessment, confirming that Google’s initial restriction could constitute an abuse of antitrust regulations. Natasha Lomas, a senior reporter, covered this development.

The CJEU’s judgment establishes guidelines for technology companies regarding interoperability. These conditions could have broader implications for app developers seeking integration with major platforms.

Current Vehicle Evaluations

No new vehicles are currently undergoing testing, however, updates will be provided shortly.

The "Current Vehicle Evaluations" segment offers insights into the various transportation methods being assessed. This includes electric and hybrid automobiles, e-bikes, and experiences with self-driving technology.

Understanding the Program

This ongoing series is dedicated to informing the public about our evaluations of emerging transportation options.

We aim to provide comprehensive coverage of both conventional and innovative vehicle technologies.

• Electric Cars: Assessments of range, performance, and charging infrastructure.
• Hybrid Vehicles: Analysis of fuel efficiency and the integration of electric and gasoline power.
• E-Bikes: Reviews of features, usability, and suitability for urban commuting.
• Autonomous Vehicles: Reports on safety, functionality, and the future of self-driving technology.

Regular updates will be published as testing progresses, offering detailed findings and observations.