Tesla, NHTSA, Kodiak & Air Taxis: The Latest in Transportation

The Station: A Weekly Transportation Newsletter

Welcome to The Station, a newsletter focused on the evolving world of transportation. It delivers insights into all methods of moving both people and goods, from established systems to emerging technologies.

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Los Angeles and the Future of eVTOLs

This week, our focus shifts to Los Angeles and the growing number of eVTOL (electric vertical takeoff and landing) companies aiming to operate within the city. A comprehensive investigation by Aria Alamalhodaei explores the role of Urban Movement Labs.

Urban Movement Labs is a nonprofit organization that originated from the office of Los Angeles Mayor Eric Garcetti. Its primary function is to proactively prepare the city for the integration of eVTOL aircraft.

Lessons from Past Disruptions

Experience with previous transportation innovations, such as ride-hailing services and electric scooters, demonstrates the importance of early planning. Cities must begin considering the implications of future transportation modes well in advance.

Stay Connected

I welcome your feedback, critiques, and insights. Please feel free to reach out with your thoughts.

You can contact me via email at kirsten.korosec@techcrunch.com. Alternatively, you can send a direct message to me on Twitter – my handle is @kirstenkorosec.

The Evolving World of Micromobility

This week featured a discussion with Mike Radenbaugh, the CEO of Rad Power Bikes, as part of a continuing TechCrunch+ series focused on interviewing transportation industry leaders. Radenbaugh initiated his company at the age of 15, assembling early e-bike prototypes from components sourced from Radio Shack and eBay.

Our conversation centered on navigating current logistical challenges, designing bicycles that resonate with riders, and the factors driving the e-bike revolution. A summary of the interview is available to subscribers, offering a more in-depth exploration of these topics.

Bird also experienced a significant week in development. The micromobility company has officially deployed its sidewalk riding detection technology in Milwaukee and San Diego, with plans for expansion to Madrid early in the coming year, and subsequently to additional cities. This technology, developed in collaboration with u-blox, a producer of wireless semiconductors and high-precision positioning modules, will be integrated into all newly manufactured vehicles.

This advancement positions Bird among the growing number of shared mobility operators implementing what can be termed scooter advanced driver assistance systems (ADAS). These systems aim to identify and correct unsafe rider behavior, such as sidewalk riding, in real-time. Superpedestrian recently completed the acquisition of Navmatic to incorporate a comparable technology, relying on precise positioning and sensor data fusion. Other companies, including Spin, Voi, and Helbiz, are utilizing camera systems and computer vision for a different approach.

Furthermore, Bird secured an increased financing credit facility of $150 million, up from $40 million, from Apollo Investment Corporation (Disclaimer: Apollo acquired Verizon Media Group, formerly the owner of TechCrunch, and now operates as Yahoo Inc.). This expansion will take effect upon the completion of Bird’s merger with Switchback II Corporation, with a shareholder meeting scheduled for November 2nd to finalize the agreement. The additional capital will enable Bird to procure more vehicles during the winter months, preparing for increased demand in the spring and summer seasons, and ultimately repaying Apollo.

Expanding on the theme of growth, Russian technology firm Yandex is strengthening its presence in Israel through the acquisition of the Israeli operations of shared e-scooter company Wind, including a fleet of 10,000 Wind scooters. This acquisition will substantially augment Yandex’s fleet size, as the company recently launched its own e-scooter sharing service in Russia with approximately 5,000 scooters.

Yandex is already involved in various mobility platforms within Israel, operating ride-hailing and last-mile delivery services (Yango), an express grocery delivery service (Yango Deli), and testing autonomous delivery robots and self-driving vehicles.

Dott is diversifying its offerings by introducing an e-bike-sharing service in Paris. These bikes will complement Dott’s existing fleet of e-scooters in the city, joining services offered by Lime and Tier.

Gogoro, a Taiwanese e-scooter manufacturer, has officially launched its battery swapping service in China, starting with 45 stations in Hangzhou. The company intends to expand to 80 stations by year-end, with further expansion planned in collaboration with partners Yadea and Dachangjiang Group (DCJ).

Swft, a relatively new mobility startup that began by selling electric hoverboards and subsequently launched three e-bikes and an e-moped, has secured $10 million in seed funding. The company will utilize these funds to broaden its range of light-duty vehicles, including electric motorcycles, a four-wheeled vehicle, a three-wheeled vehicle, and a scooter, over the next few years. Swft employs a direct-to-consumer (D2C) model, but its bikes are also available through Best Buy.

VanMoof has previewed its upcoming high-speed bike, the VanMoof V, through a live YouTube broadcast. The bike, anticipated to be priced around $3,598, is slated for release by the end of 2022. VanMoof claims a potential top speed of 37 miles per hour, though speed limitations in various regions may restrict actual achievable speeds.

Populus is contributing to the evolution of transportation regulations. The company’s platform aggregates data from shared vehicle fleets and provides insights to cities, aiding urban planners in understanding and managing street usage. Populus is currently engaged in Phase II of a U.S. Department of Transportation-funded initiative, collaborating with micromobility operators and analyzing data from over 80 million trips to enhance street safety. Over 15 cities are participating, including Cleveland, Washington, D.C. area cities, Bay Area cities, Lexington and Charlottesville.

…leading to safer conditions for innovative scooters like the new Blizwheel! This portable, foldable scooter weighs under nine pounds and measures just 15.6 inches in length. Despite its compact size, it boasts a top speed of 12 miles per hour. While the eight-mile range could be improved, the company is likely to address this in future iterations. Blizwheel has exceeded its Kickstarter funding goal by over 1,033%, raising approximately $109,000.

Finally, MoonBikes, the creator of electric snowbikes, has announced the completion of a $5 million seed funding round. The MoonBike, conceived by engineer Nicolas Muron, who grew up in the French Alps, combines elements of an e-bike and a snowmobile, featuring a lightweight frame, a front ski, and a rear track. The intended user is someone seeking a novel commuting option in icy environments or a mountain enthusiast desiring a lighter alternative to a snowmobile. It can ascend slopes with a 40% grade, reaches a top speed of 26 miles per hour, and offers a range of up to three hours with the optional dual battery.

 — Rebecca Bellan

Weekly Highlights in Automotive & Tech Investment

Vroom, the online used car marketplace currently trading on the Nasdaq under the VRM ticker symbol, having initially filed for an IPO in 2020, is strategically leveraging its financial resources to acquire additional businesses. This expansion aims to diversify revenue streams and bolster its market position.

Recently, Vroom reached an agreement to purchase United Auto Credit Corporation, an auto financing provider, for a sum of $300 million in cash. The final financial details are contingent upon UACC’s book value at the time of closing. This marks Vroom’s third acquisition, funded entirely through existing cash reserves.

This acquisition follows Vroom’s purchase of CarStory, an analytics and auto retail services firm, completed in December 2020. Prior to that, in 2015 – a period of significant investor interest in online used car platforms – Vroom acquired Texas Direct Auto.

Following the completion of the deal, UACC will operate as an indirect, wholly-owned subsidiary of Vroom, maintaining its current branding. Vroom anticipates that this acquisition will positively impact its earnings immediately after closing, contributing to increased profitability.

The transaction is projected to finalize either in the late fourth quarter of 2021 or the early part of 2022.

Notable Investment Activity This Week …

BMW Group, through its venture capital division, has made an investment in Lilac Solutions, a U.S.-based startup. Lilac Solutions has patented a novel process for extracting lithium from brine resources – natural saltwater deposits – with the goal of improving efficiency, reducing costs, and enhancing sustainability. The amount of the investment has not been publicly disclosed.

CarDekho, an Indian platform for both new and used car search and e-commerce, secured $250 million in a Series E funding round comprised of both debt and equity. This round valued the Jaipur-based company at $1.2 billion and was spearheaded by LeapFrog Investments. Additional participants included Canyon Partners, Mirae Asset, Franklin Templeton, Harbor Spring Capital, and existing investors Sequoia Capital India and Sunley House; this funding is intended to support pre-IPO activities.

Crabi, an auto insurance provider headquartered in Guadalajara, Mexico, successfully raised $4 million in a seed funding round. Kaszek Ventures led the investment, with contributions from Tuesday Capital and Redwood Ventures.

Hailo, a developer of edge-device chips designed for AI applications, completed a Series C funding round, raising $136 million. This represents one of the largest funding rounds to date in the AI chip sector. Sources indicate the investment values Hailo at approximately $1 billion. Poalim Equity and Gil Agmon co-led the round, with participation from existing investors including Hailo Chairman Zohar Zisapel, ABB Technology Ventures (ATV), Latitude Ventures, and OurCrowd, as well as new investors Carasso Motors, Comasco, Shlomo Group, Talcar Corporation Ltd., and Automotive Equipment (AEV). To date, the company has raised a total of $224 million.

MotorK, an Italian automotive sales startup, intends to raise €150 million through an initial public offering on the Euronext Amsterdam stock exchange, as reported by Reuters.

Pon Holdings, the Dutch company owning bicycle brands such as Gazelle, Santa Cruz, and Urban Arrow, has agreed to acquire Cannondale, Schwinn, and Mongoose from Dorel Industries Inc. for $810 million. If approved, this merger will establish one of the world’s largest bicycle manufacturers, with projected annual sales of €2.5 billion, according to Pon.

Reliable Robotics, a company developing autonomous cargo aircraft, secured $100 million in a Series C funding round, led by Coatue Management.

Rose Rocket, a transportation management software startup based in Toronto, raised $25 million in a Series A funding round, led by Addition Capital and Shine Capital.

Woven Capital, the investment division of Toyota’s Woven Planet Group, has made an undisclosed investment in the Climate Technology Sustainability Fund of 2150. This fund, known as 2150, is a venture capital firm based in London and Copenhagen, focusing on investments in technology companies dedicated to sustainable urban development and environmental reshaping.

Policy Updates

Welcome to another edition of Policy Corner.

President Joe Biden is currently navigating considerable pressure to enact both the bipartisan $1.2 trillion infrastructure bill and the $3.5 trillion budget bill proposed by Democrats prior to the COP26 climate summit, scheduled to take place in Glasgow, Scotland later this month, as reported by The Hill. The budget bill specifically incorporates several expenditure measures designed to reduce the nation’s carbon footprint, including a clean energy tax credit and a fee on methane emissions originating from the oil and gas sector.

However, several significant obstacles remain. Aside from the substantial scale of the budget bill – which raises concerns among both conservative Democrats and Republicans – certain provisions are encountering substantial resistance. Previously, I detailed the opposition from automotive manufacturers such as Honda, Toyota, and Tesla to a clause that would broaden tax incentives, potentially offering up to $4,500 for electric vehicles assembled in unionized facilities within the United States.

The debate surrounding this issue continues to intensify. Governor Brian Kemp of Georgia – a state with a single auto assembly plant operated by Kia – has dispatched a letter to Georgia’s congressional representatives, urging them to reject the proposed incentive. He articulated in a public statement that restricting the tax incentive “disadvantages workers in Georgia.” Similarly, South Carolina Governor Henry McMaster has also sent a communication advocating for the removal of this particular provision. South Carolina hosts three vehicle assembly plants, belonging to BMW, Volvo, and Mercedes-Benz, respectively.

Data from OpenSecrets, a spending transparency platform, indicates that lobbying efforts by automakers have increased during the current year compared to the same timeframe last year. Toyota’s lobbying expenditure reached $3.3 million in the first half of this year, an increase from the $2.9 million spent during the corresponding period in 2020; both Ford and General Motors have also amplified their lobbying investments this year.

Furthermore, a noteworthy development has emerged from Colorado. The state’s largest investor-owned utility, Xcel Energy, is initiating a new pilot program in collaboration with six automakers to investigate optimal strategies for aligning EV charging schedules with periods of abundant renewable energy generation.

The “Charging Perks” pilot program is accessible to 600 drivers operating BMW, Chevy, Ford, Honda, or Tesla EVs. The program will leverage day-ahead forecasts of renewable energy availability and synchronize these predictions with drivers’ charging requirements to establish personalized charging schedules.

This initiative is particularly relevant because simply aiming for a target of one million EVs on the road by 2030 – Colorado’s stated objective – is insufficient without careful planning. Without proactive measures, achieving this goal could strain the existing electric grid. Electric utilities will play a crucial role in facilitating a successful transition to electric mobility, and I anticipate the results of this pilot program with interest, particularly regarding potential scalability.

— Aria Alamalhodaei

Kodiak Robotics' Latest Advances

Kodiak Robotics unveiled its fourth-generation autonomous truck in September. Image Credits: Kodiak Robotics

Kodiak Robotics recently detailed its fourth-generation autonomous truck system and announced an expansion of its fleet with 15 new PACCAR Class 8 trucks. Currently, the company operates a fleet of 10 trucks in real-world testing.

The core update lies in the truck’s modular sensor suite. This includes a central pod positioned on the roofline, alongside integrated pods within both side mirrors. I had the opportunity to speak with co-founder and CEO Don Burnette to understand the strategies of this comparatively smaller autonomous vehicle developer as it competes with larger, well-funded rivals in the self-driving truck market.

A primary question was the significance of this new truck generation. What improvements does it represent for Kodiak? While an improvement was anticipated, I sought specific details regarding these advancements. Burnette emphasized the importance of system stability as a key objective.

“Developing self-driving technology involves managing a complex interplay of hardware, sensors, computers, network components, and power systems. Critical decisions must be made frequently, often multiple times per second. Components can be sensitive, and enhancing our systems’ ability to manage and recover from errors is crucial. However, prioritizing the development of inherently reliable hardware and robust architectures initially significantly boosts overall system stability.”

Burnette explained that this increased stability, in turn, accelerates software development and ultimately leads to improved performance in commercial applications. The result is a new generation of trucks that are demonstrably more “stable” and “rugged.”

Another key aspect of this stage is Kodiak’s ability to showcase its future vision. Earlier generations were more experimental in nature. This iteration is more fully integrated, features greater redundancy, and represents a move towards the industrial design phase of Kodiak’s development process. Burnette stated the company aimed “to clearly define our perspective on the long-term application of this technology.”

Trucking companies prioritize minimizing downtime. As Burnette considered large-scale AV fleet deployment, he envisioned a need for specialized technicians nationwide, capable of diagnosing and repairing sensor issues. “This presents a significant challenge for fleet maintenance infrastructure. Therefore, we designed a modular system allowing for quick replacement of faulty components in the field.”

This modularity necessitates robust, easily installed systems with pre-calibrated sensors. Burnette detailed their efforts in this area, mentioning successful testing of a modular system replacement after a mirror was damaged on a parked truck. The truck resumed testing the following day. “We believe we can substantially reduce this replacement time for widespread commercial use.”

Recent Developments in Automotive and Transportation Technology

Here's a compilation of noteworthy news and updates from the automotive and transportation sectors.

Advanced Driver-Assistance Systems (ADAS) – Limitations Highlighted

A recent AAA study revealed that the effectiveness of advanced driver-assistance technologies is substantially diminished in moderate to heavy rainfall. Systems like automatic emergency braking and lane-keeping assistance experienced significant performance drops.

Testing conducted by AAA demonstrated that vehicles with automatic emergency braking experienced collisions with stationary objects 33% of the time during simulated rainfall at 35 mph. Lane keeping assistance systems caused vehicles to deviate from their lane 69% of the time. These findings underscore the need for more realistic testing standards that incorporate typical driving conditions.

The U.S. National Highway Traffic Safety Administration (NHTSA) has issued two letters to Tesla concerning the company’s use of non-disclosure agreements with beta testers of its “full self-driving” software. NHTSA also questioned Tesla’s use of over-the-air updates to address issues that should have triggered a formal recall.

These actions indicate increased oversight by NHTSA regarding Tesla’s practices related to software updates and its Autopilot advanced driver assistance system.

Autonomous Vehicle Progress (Driverless Operation)

Waymo’s vehicles in San Francisco attracted attention after a local television network documented them repeatedly navigating a dead-end street, requiring multiple three-point turns. Waymo provided the following explanation:

“We are continuously adapting to the evolving traffic regulations of San Francisco. Specifically, vehicles traveling north of California on 15th Avenue are required to execute a u-turn due to the presence of ‘Slow Streets’ signage on Lake Street. The Waymo Driver adhered to the same traffic laws as any other vehicle.”

Despite this explanation, questions remained as to why the vehicles continued to enter the street, particularly given the long-standing “slow streets” designation. Waymo clarified that the street was initially used for learning purposes and vehicle access is now restricted.

Electric Vehicle (EV) Updates

Electric Last Mile Solutions announced plans to establish a new technology center in San Francisco. This “urban mobility lab” will concentrate on advanced in-vehicle technology, edge-to-cloud architecture, data analytics, and machine learning applications.

General Motors has resumed shipping replacement battery modules for recalled Chevrolet Bolt EVs, following delays caused by semiconductor shortages and manufacturing plant shutdowns. LG Electronics has agreed to reimburse GM up to $1.9 billion to cover recall costs and repairs. GM will temporarily halt production at the Orion Assembly plant until November 1st to prioritize repairing existing Bolts.

National Grid in New England utilized a Thomas Built Buses Saf-T-Liner C2 Jouley electric school bus, powered by a Proterra battery system, to feed electricity back into the regional grid during over 30 events this summer, demonstrating vehicle-to-grid (V2G) technology.

Porsche reported that sales of its all-electric Taycan model surpassed those of its iconic 911 sports car during the first nine months of the year. Overall sales increased by 13% year-over-year, driven by a nearly threefold increase in Taycan deliveries and strong demand for the Macan.

In-Car Technology Advancements

Hyundai Motor has announced its intention to develop its own semiconductor chips to reduce its dependence on external chip manufacturers.

Spotify’s in-car entertainment system, “Car Thing,” initially launched on an invite-only basis, is now becoming more widely available for purchase by U.S. users at a price of $79.99, as reported by TechCrunch.

Volvo is collaborating with BreezoMeter, a company that utilizes a network of sensors and satellites to monitor air quality. This partnership will integrate micro-local environmental data into Volvo vehicles through the human-machine interface (HMI), available on all new 90 and 60 Series models.

Miscellaneous Industry News

AB Volvo, the construction truck division of Sweden’s Volvo Group, has unveiled a new vehicle constructed with a significant proportion of “fossil-free” steel. The company intends to initiate small-scale production using this material as early as 2022.

The prototype vehicle, a fully electric and autonomous load carrier designed for mining and quarry applications, incorporates over 3,000 kilograms (6,600 pounds) of the new steel. Volvo prioritized construction trucks due to the high steel and cast iron content in their construction.

The Financial Times published an analysis examining the shortcomings of the Biden administration’s “open all hours” ports strategy.

Luminar has appointed Debra Poppas as its new quality leader, bringing experience from her previous role as a VP of quality at PACCAR, and Sameer Ladiwala as chief accounting officer, formerly of Arm.

Startups such as Swvl, Treepz, Jatri, SafeBoda, Urbvan, Chalo, and Buser are emerging in Africa, Asia, the Middle East, and South America, focusing on on-demand transportation solutions. These companies are not only products of emerging markets but are also contributing to economic development by improving mobility.