TechCrunch Mobility: Analyzing a Potential Takeover

TechCrunch Mobility Update: Luminar and a Potential Takeover

Welcome to TechCrunch Mobility, your primary source for the latest news and perspectives on the evolving world of transportation. Consider subscribing to receive this newsletter directly in your inbox. Each email edition features polls, and this week’s poll focuses on the optimal business strategies for autonomous vehicle technology.

Share your thoughts by emailing me at kirsten.korosec@techcrunch.com with the subject line “AV poll.”

Luminar Faces a New Development

Now, let’s turn to the latest developments concerning Luminar, the lidar company. This situation involves complexities within the company’s leadership structure.

Austin Russell's Return Bid

As you may remember, Austin Russell, Luminar’s founder and CEO, was previously removed from his position by the board following an investigation into ethical concerns. However, Russell’s departure wasn’t silent.

He recently reappeared with the launch of Russell AI Labs, a new venture. Now, a significant development has occurred: Russell has submitted a bid to acquire Luminar.

Sean O’Kane, a senior reporter, initially reported this story, which is available for your review here. He has also uncovered additional details beyond those included in the official SEC filing.

A Potentially Encouraged Move?

This acquisition attempt may appear as a hostile takeover, given its disclosure through a filing by Russell and Luminar’s current lack of comment. However, our sources indicate a different scenario.

Members of Luminar’s board reportedly approached Russell last month regarding this possibility. The term used to describe their interaction was that they “encouraged” the bid.

This suggests that a portion of Luminar’s nine-member board is open to Russell’s return, despite the fact that three members of the audit committee recently conducted an ethics inquiry that led to his resignation.

Potential Acquisition Strategies

The details of the proposed takeover, as outlined in the filing, are somewhat ambiguous. It may involve Russell AI Labs acquiring another company specializing in automotive technology and then merging it with Luminar.

We’ve learned that Russell is currently evaluating several potential acquisition targets as part of the due diligence process conducted by Russell AI Labs, which he envisions as a technology incubator.

Recent Developments in Aviation and Logistics Funding

Significant financial activity has been observed this week within the electric aviation and logistics technology sectors.

Beta Technologies has capitalized on recent adjustments to SEC regulations, prompted by the U.S. government shutdown, to establish a price range for its initial public offering. Shares are being offered between $27 and $33, with the aim of securing up to $825 million in funding. Successful attainment of the upper end of this range would result in a company valuation of approximately $7.2 billion.

The SEC recently provided guidance allowing companies awaiting IPO approval to automatically validate statements concerning share pricing after a 20-day period, even without direct SEC staff review. This rule has encouraged other companies, such as Navan, to proceed with their IPO plans.

Meanwhile, Lilium, despite ceasing operations last year, continues to influence the industry through its intellectual property. Its technology has been acquired by Archer Aviation.

Archer emerged victorious from a competitive bidding process, which included participation from Ambitious Air Mobility Group and Joby Aviation, and secured all 300 of Lilium’s patents for a sum of €18 million ($21 million). This figure represents a notable contrast to the over $1 billion previously invested in the now-defunct startup.

The specific application of these patents by Archer remains undisclosed, though indications can be found in recent reporting.

Further investment highlights from the week include:

• Airbound, an Indian drone startup established in 2020, secured $8.65 million in seed funding. The round was spearheaded by Lachy Groom, co-founder of Physical Intelligence, with contributions from Humba Ventures, Lightspeed Venture Partners, and leaders from Tesla, SpaceX, and Anduril.
• Dexory, a London-based warehouse robotics company, raised $165 million through a combination of equity and debt. A $100 million Series C equity round was led by Eurazeo, with participation from LTS Growth, Endeavor Catalyst, DTCP, Atomico, Lakestar, Elaia, Latitude Ventures, and Wave-X. An additional $65 million was secured in debt financing from Bootstrap Europe.
• FleetWorks, a logistics startup focused on AI-powered dispatching, obtained $17 million in funding, comprising $15 million in Series A equity led by Bill Trenchard of First Round Capital. Y Combinator, Saga Ventures, and LFX Venture Partners also contributed to the Series A round.
• WeRide and Pony.ai have received approval from Chinese securities regulators, paving the way for potential secondary listings on the Stock Exchange of Hong Kong. Both companies are currently publicly traded on the Nasdaq Exchange in the U.S.
• Starship Technologies, specializing in autonomous sidewalk delivery, raised $50 million in a Series C round led by Plural, with participation from Karma.vc, Latitude, Coefficient Capital, SmartCap, and Skaala.
• Upciti, a smart city software firm based in Paris, secured $20 million in Series A funding, led by Notion Capital, alongside investments from Point Nine and Chalfen Ventures.
• Zepto, an Indian grocery delivery service, reportedly raised $450 million in funding in preparation for a forthcoming public listing, as reported by Bloomberg.

These funding rounds demonstrate continued investor confidence in the future of both electric aviation and innovative logistics solutions.

Industry Updates and Key Developments

The National Transportation Safety Board has released its findings regarding OceanGate and the tragic incident involving the Titan submersible. The report concluded that the vessel failed to adhere to established manufacturing safety protocols.

Stellantis is collaborating with Pony.ai, a Chinese firm specializing in autonomous vehicle technology, to develop robotaxis for deployment across Europe. This collaboration is currently formalized through a nonbinding agreement.

Shifting Strategies at Stellantis

Despite its involvement in autonomous vehicle development, Stellantis is adjusting its approach to electrification. The automaker announced a $13 billion investment to enhance its U.S. manufacturing capabilities over the next four years.

This investment will facilitate the development and production of five new vehicles by 2029, across facilities in Illinois, Ohio, Michigan, and Indiana. Notably, only one of these vehicles will be electric, representing a significant shift from Stellantis’ previous electrification plans.

This strategic adjustment has encountered resistance from labor unions in Canada.

New Opportunities in the Gig Economy

Uber is introducing a novel form of gig work centered around digital tasks. These tasks involve contributing data, such as uploading images, to support the training of artificial intelligence models.

Waymo's Global Expansion

Waymo is extending its operations to London, with plans to launch a commercial robotaxi service in the city by 2026. This marks the company’s second international venture, following its initial expansion into Tokyo.

Furthermore, Waymo has established a multiyear strategic partnership with DoorDash. This agreement will enable the delivery of goods to customers in the Phoenix area utilizing driverless vehicles.

This renewed focus on delivery services by Waymo may indicate future strategic direction for the company.

• The partnership with DoorDash utilizes driverless technology.
• It represents a return to delivery experimentation for Waymo.

Exploring Optimal Business Models

Considering Waymo's ventures into delivery services prompts a deeper examination of the most effective business strategies. It has been some time since our last engagement with readers through a poll.

Therefore, we encourage participation from those subscribed to the newsletter. The findings of this poll will be disseminated in the upcoming week's edition.

The Importance of Reader Input

Gathering insights from our audience is crucial for understanding evolving perspectives. Your contributions help shape our analysis and provide valuable data points.

We believe that collective intelligence is a powerful tool, and we appreciate your willingness to share your thoughts.

Anticipating the Results

We are eager to analyze the responses and identify prevailing trends. The results will offer a clearer picture of preferred business models within the autonomous vehicle sector.

Waymo’s delivery initiatives serve as a compelling case study for this exploration.

Newsletter Engagement

For those who haven't yet joined, subscribing to the newsletter ensures you receive exclusive content and early access to poll results.

This is a great way to stay informed and contribute to the ongoing conversation about the future of autonomous technology.