The Station: Scale AI, NYC Scooters, and TuSimple IPO

The Station: A Weekly Transportation Newsletter

Welcome to The Station, a newsletter focused on the evolving world of transportation. Subscribe here – simply click The Station – to have it delivered directly to your inbox each weekend.

Recent News and Updates

As I prepared this edition, reports surfaced regarding a tragic accident involving a Tesla vehicle. Notably, the driver’s seat was unoccupied at the time of the collision.

The incident resulted in the fatalities of two individuals, who were located in the passenger and rear seats respectively. For the most current information, please refer to updates from @KPRC2Deven, the Houston-based journalist who initially reported on this event.

It is crucial to reiterate that Tesla vehicles currently do not possess full self-driving capabilities.

Upcoming Break

Please be aware that there will be no newsletter issued next week. The Station will resume its regular schedule the week after.

Stay Connected

I welcome your feedback and insights. Feel free to reach out via email at kirsten.korosec@techcrunch.com.

Alternatively, you can connect with me directly on Twitter – @kirstenkorosec – to share your thoughts and ideas.

Micromobility in New York City

Initial predictions regarding the electric scooter pilot program in New York City proved partially accurate. On Wednesday, Lime, Bird, and Veo were formally selected to initiate the city's first venture into shared electric scooter services.

Key considerations for the NYC Department of Transportation included equity, accessibility, and the demonstrated ability to prevent scooters from obstructing sidewalks. Each selected company will deploy 1,000 e-scooters within designated areas of the eastern Bronx, with a subsequent phase planned for broader expansion throughout the borough.

A Competitive Selection Process

Securing operational rights within New York City was a highly competitive undertaking. City concessions are valuable assets, and achieving a presence in New York is considered a significant accomplishment within the micromobility sector.

Companies successfully operating in New York City are positioned for long-term viability as the rideshare industry undergoes consolidation, particularly among prominent two-wheeled micromobility providers. However, the initial scope of the program feels somewhat limited.

While the Bronx is a crucial starting point, the need for dockless e-scooters extends throughout the entire city. It raises questions regarding the potential influence of Lyft-owned Citi Bike on the operational areas granted to e-scooter companies.

Pilot Program Guidelines

The 2018 legislation authorizing the e-scooter pilot program prioritized areas lacking access to docked bike-sharing systems – essentially, areas without Citi Bike service.

Notably, the Bronx pilot zone does not encompass sections of the South Bronx where Citi Bike intends to expand its coverage. The program's effectiveness will be evaluated following the first year of operation.

European Micromobility Updates

Current legislation in Ireland places restrictions on the legality of electric bikes and scooters. However, Tier, a company specializing in e-scooters, is proactively preparing for anticipated regulatory changes.

Based in Berlin, Tier has established collaborations with Luna, an Irish micromobility technology platform, alongside the Insight SFO Centre for Data Analytics and Smart DCU.

These partnerships are geared towards the development of a novel, AI-driven e-scooter trial.

The trial is scheduled to commence on the campuses of Dublin City University immediately following the formal legalization of e-scooters.

A fleet of 30 e-scooters, equipped with computer vision technology, will be deployed.

This deployment will provide Insight researchers with the opportunity to analyze a continuously expanding dataset.

Luna’s technological contributions will ensure the scooters feature pedestrian and lane detection capabilities.

This functionality aims to maximize safety, aligning with the expectations of the Irish government.

In France, legislative progress is being made towards a groundbreaking initiative.

The country is poised to become the first globally to introduce a program enabling citizens to exchange older, less efficient vehicles for electric bicycles or folding bikes.

Individuals who decommission their internal combustion engine (ICE) vehicles may be eligible for a €2,500 rebate towards the purchase of a bicycle.

This measure recently received preliminary approval from the National Assembly.

— Rebecca Bellan

This Week's Notable Deals

While Grab was previously highlighted, the completion of their deal warrants a revisit, as the finalized terms significantly exceed initial expectations.

The ride-hailing, delivery, and super app provider, Grab, has formally announced its intention to become a publicly traded company. Operating across Singapore, Malaysia, Cambodia, Indonesia, Myanmar, the Philippines, Thailand, and Vietnam, Grab has merged with Altimeter Growth Corp, a special purpose acquisition company. This merger establishes a valuation of $39.6 billion for Grab, alongside a substantial $4.5 billion in available cash. A crucial aspect of the agreement is Altimeter’s commitment to a three-year lockup period for sponsor shares.

Grab intends to utilize the capital obtained from public markets to fuel further expansion. The company believes considerable growth potential remains within the Southeast Asian markets for both food delivery and on-demand mobility services. Projections indicate a rise in the total addressable market from $52 billion currently to $180 billion by the year 2025.

Accompanying the announcement, Grab revealed key performance indicators and impressive figures. In 2020 alone, the company achieved a gross merchandise value of approximately $12.5 billion, as reported by Romain Dillet of TechCrunch.

Further Investment Highlights …

Battery Resourcers, a company pioneering a “closed loop” system for transforming recycled battery materials into nickel-manganese-cobalt cathodes for battery manufacturers, secured $20 million in Series B funding. The round was spearheaded by Orbia Ventures, with contributions from At One Ventures, TDK Ventures, TRUMPF Venture, Doral Energy-Tech Ventures, and InMotion Ventures. CEO Mike O’Kronley has not disclosed the company’s current valuation.

Cruise, the autonomous vehicle developer focused on deploying robotaxis in San Francisco and Dubai, welcomed Walmart as a new investor in an expanded fundraising effort, now totaling $2.75 billion. The company’s post-money valuation exceeds $30 billion. This capital injection, alongside several unnamed institutional investors, supplements a $2 billion equity round announced in January, which was led by Microsoft.

Clearcover, a digital car insurance innovator, raised $200 million in a late-stage financing round. The investment was led by Eldridge, the firm managed by Todd Boehly, owner of the Los Angeles Dodgers, according to Reuters.

Dat Bike, a Vietnamese startup aiming to dominate the electric motorbike market in Southeast Asia, secured $2.6 million in pre-Series A funding, led by Jungle Ventures. Dat Bike differentiates itself by offering electric motorbikes that rival gasoline-powered counterparts in both price and performance. This marks Jungle Ventures’ inaugural investment in the mobility sector, with participation from Wavemaker Partners, Hustle Fund, and iSeed Ventures.

Oxbotica, a U.K.-based startup specializing in autonomous driving systems, gained Ocado, an online grocer, as a new investor. Ocado’s $13.8 million stake represents a strategic investment aimed at developing AI-driven, self-driving systems for its operations, encompassing warehouse logistics and last-mile delivery, as detailed by Ingrid Lunden of TechCrunch.

Polestar, the standalone electric performance brand of Volvo Car Group, has secured $550 million in its first external funding round. The round was led by Chongqing Chengxing Equity Investment Fund Partnership, Zibo Financial Holding, and Zibo Hightech Industrial Investment, with participation from SK Inc. and other investors.

TuSimple commenced trading on the public market this week, raising over $1 billion through its initial public offering (IPO), with shares priced at $40. An interview with CEO Cheng Lu is forthcoming and will be published in the coming days.

Xwing achieved another milestone following its successful first gate-to-gate autonomous flight of a commercial cargo aircraft. The company announced a $40 million raise, resulting in a post-money valuation of $400 million.

Scale AI’s Alexandr Wang

Alexandr Wang, co-founder and chief executive officer of Scale AI. Photographer: David Paul Morris/Bloomberg via Getty Images

Scale AI, a company specializing in data labeling – providing essential tools for the development and implementation of artificial intelligence – successfully completed a $155 million funding round in December. Following this initial investment, further investor interest emerged, as recently shared by co-founder and CEO Alexandr Wang.

Consequently, the company secured a $325 million Series E funding round. This round was co-led by Dragoneer, Greenoaks Capital, and Tiger Global, resulting in a valuation exceeding $7 billion. This represents a doubling of the company’s valuation within just four months.

Wellington Management and Durable Capital participated as new investors, alongside existing backers including Coatue, Index, Founders Fund, and YC. Furthermore, Jeff Wilke, previously the CEO of Amazon’s Worldwide Consumer division, will contribute as an advisor to Wang.

“Investment activity demonstrates a growing willingness to fully commit to AI,” Wang stated. “This trend is occurring broadly across the investment landscape.” He believes this shift is driven by AI’s transition from a research-focused field to one delivering tangible impact and concrete business outcomes.

Originally focused on the autonomous vehicle sector, Scale AI is now experiencing increased demand across diverse industries, including governmental organizations. Its client base now encompasses fintech firms like Brex, PayPal, and Square.

The company also serves e-commerce businesses such as Etsy, Instacart, and Pinterest. Transportation and logistics companies including Flexport, GM, Luminar, and Oshkosh are also customers. Additionally, the Department of Defense and the U.S. Air Force utilize Scale AI’s services.

Wang noted a significant change in how customers perceive Scale AI. They are increasingly viewing the company as a comprehensive infrastructure provider and a complete AI partner. This is a departure from seeing them solely as a data lake provider.

“This evolution is a key factor driving excitement among our investors,” Wang explained. The company is positioning itself as more than just a data provider.

Finally, I inquired about potential plans for an Initial Public Offering (IPO) or another fundraising round. Wang did not directly address the question. However, he offered the following insight:

Policy Updates

Aria Alamalhodaei, a reporter at TechCrunch, regularly provides updates on transportation-related policy. Today, she is sharing recent developments in this area.

Electric vehicle (EV) manufacturers are currently involved in legislative efforts across numerous states. These efforts concern their ability to sell vehicles directly to consumers, bypassing traditional franchise dealerships. Currently, Tesla is the primary company with this privilege, and even then, it’s limited to specific states.

Direct Sales Debate

A significant shift in position has emerged from the Alliance for Automaker Innovation, a prominent lobbying group. Previously aligned with dealership groups in opposing direct sales, the Alliance now suggests a different approach.

Wayne Weikel of the Alliance informed Vermont lawmakers during a legislative hearing that the organization supports allowing all automakers to sell directly to customers within the state. This represents a notable departure from their previous stance of defending dealerships’ exclusive sales rights in other states considering similar legislation.

The reasons behind this change in Vermont remain unclear. It is also uncertain whether the Alliance will adopt this position in other states.

Legislative Outcomes

Despite the evolving debate, progress toward direct sales has been limited. Direct sales bills were defeated in both Washington and Georgia during the recent legislative sessions.

A source familiar with the situation highlighted potential conflicts of interest. In Washington, Representative Amy Walen, who chairs a key committee, also owns a Hyundai dealership. A similar situation exists in Idaho, where Representative Jim Addis, involved in reviewing the direct sales bill, is also an auto dealer.

Autonomous Vehicle Emissions

California is also considering legislation related to autonomous vehicles (AVs). State Senator Dave Min initially proposed a bill requiring all AVs in the state to be zero-emission by 2025.

The bill has since passed the California Senate Transportation Committee with revisions. The updated version now mandates that all light-duty autonomous vehicles be zero-emission by 2027. This clarification avoids potential impacts on industries focused on heavy-duty AVs, such as autonomous trucking.

While further legislative steps are required before reaching Governor Newsom, the bill aligns with California’s broader emissions reduction objectives.

Recent Developments in Automotive and Transportation Technology

Here's a summary of the latest news and noteworthy updates in the rapidly evolving world of autonomous vehicles, electric vehicles, and related technologies.

Autonomous Vehicle Updates

Argo AI is set to publish its Voluntary Safety Self-Assessment report on Monday, detailing its approach to safety. A preliminary review suggests valuable insights can be found on page 30 regarding perception capabilities, and further on, how the system navigates ambiguous scenarios.

Cruise has announced an agreement to launch a robotaxi service in Dubai by 2023. This development prompts questions regarding the timeline for technical advancements and deployment progress in San Francisco, their primary target market. The Dubai service will utilize the Cruise Origin, an all-electric vehicle designed for high-speed autonomous operation without traditional driver controls.

Mobileye, a subsidiary of Intel, has partnered with Udelv to provide its self-driving system for thousands of purpose-built delivery vehicles. The companies intend to deploy over 35,000 autonomous Transporters on city streets by 2028, with commercial operations beginning in 2023. Notably, Udelv previously developed its own self-driving system but has transitioned to utilizing Mobileye’s SDS.

Nuro is initiating pizza delivery services with Domino’s in select areas of Houston. Customers who prepay online will have the option of receiving their orders via the R2 delivery bot, receiving a text notification and access code for retrieval.

WeRide, a Chinese autonomous vehicle startup, has secured a permit to test driverless vehicles on public roads in San Jose, California. This makes WeRide the seventh company, alongside AutoX, Baidu, Cruise, Nuro, Waymo, and Zoox, to receive such a permit, initially limited to two vehicles.

Electric Vehicle News

GM and LG Chem are collaborating on a second U.S. battery cell manufacturing facility, a $2.3 billion investment in Spring Hill, Tennessee. This facility will supply the cells required for the 30 electric vehicle models GM plans to introduce by the mid-2020s.

QuantumScape, a solid-state battery developer, has announced the appointment of Celina Mikolajczak to its board of directors. Mikolajczak brings extensive experience from Panasonic Energy of North America and Tesla, where she held key engineering and materials roles.

Rivian has established a battery cell supply partnership with Samsung SDI. While the financial details and duration of the agreement remain undisclosed, Rivian confirms collaboration with Samsung SDI throughout the vehicle development process.

Tesla’s legal dispute with Dr. Guangzhi Cao has been resolved. Tesla had accused Cao, a former employee, of misappropriating Autopilot source code and sharing it with Xpeng, a Chinese EV manufacturer. The case was settled on April 15th, and Cao is no longer employed by XMotors.

TezLab has released a new feature for its Tesla app, displaying the energy mix – detailing the proportions of fossil fuels and renewable sources – used at charging locations, including Superchargers and third-party networks across the United States.

Electric Vertical Takeoff and Landing (eVTOL) Vehicles

NFT Inc. is accepting preorders for the ASKA, its electric flying car. The ASKA, resembling a plane capable of driving, features a distinct design with a bubble front window and a tail reminiscent of conventional aircraft. Deliveries are not expected until 2026.

In-Car Technology and Semiconductor Updates

Apex.AI, a startup focused on automotive software, has achieved safety certification for its software development kit (SDK). This certification validates its suitability for use in production vehicles, leading to partnerships with Toyota and Tier IV.

Taiwan Semiconductor Manufacturing Company (TSMC) executives have cautioned that the global semiconductor shortage may persist into 2022. Factors contributing to the prolonged shortage include the ongoing effects of the COVID-19 pandemic and geopolitical tensions. Despite representing only 4% of their first-quarter revenue, automotive sales experienced a 31% quarter-over-quarter increase.

Ford will introduce its hands-free driving feature on the 2021 F-150 and select 2021 Mustang Mach-E models via a software update later this year, aiming to compete with systems from Tesla and GM. This system utilizes cameras, radar, and software for adaptive cruise control, lane centering, and speed-sign recognition, with an in-cabin camera monitoring driver attention.

Mercedes-Benz has unveiled the EQS sedan, showcasing a wealth of advanced technology, including a microsleep warning system, a 56-inch hyperscreen, a HEPA air filter, and intuitive software. The vehicle is equipped with 350 sensors monitoring various parameters, including distances, speeds, lighting, and driver behavior.

Ride-Hailing Industry

Uber has reportedly lost another legal challenge in Europe. Labor activists have secured a default judgment in the Netherlands, ordering Uber to reinstate six drivers allegedly unfairly terminated through algorithmic means and provide compensation.

Uber’s transit SaaS program is expanding through partnerships with agencies in Denver, Cecil County, Maryland, and Porterville, California, building upon existing collaborations with Marin Transit and Cape May County.

TC Sessions: Mobility 2021

As previously noted, TC Sessions: Mobility 2021, slated for June 9th, will once again be held in a virtual format.

Each week, further details regarding confirmed speakers will be shared.

This week’s focus is a panel discussion centered around the intersection of mobility, financial viability, and equitable access.

The core inquiry guiding this panel is whether mobility solutions can simultaneously be accessible to all, promote fairness, and generate profit – and, if so, how this can be achieved.

To explore these critical questions, we’ve assembled a distinguished group of experts.

These include Tamika L. Butler, a community organizer, transportation consultant, and legal professional; Tiffany Chu, co-founder and CEO of Remix; and Frank Reig, co-founder and CEO of Revel.

Take advantage of Early Bird ticket pricing for the event – secure your spot today and save $100 before the price increases.

Additional participants confirmed for TC Sessions: Mobility 2021 include JoeBen Bevirt, founder and CEO of Joby Aviation.

Reid Hoffman, founder of LinkedIn and an investor (through his SPAC’s merger with Joby), will also be present.

The speaker lineup also features investors Clara Brenner from Urban Innovation Fund, Quin Garcia of Autotech Ventures, and Rachel Holt of Construct Capital.

Furthermore, Ahti Heinla, co-founder and CEO/CTO of Starship Technologies, will be joining the discussions.