ADAS Bidding War, Gig Worker Rights & Biden's Executive Order - The Station

The Station: A Weekly Transportation Newsletter

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Welcome to Your Transportation Hub

Greetings, readers! The Station serves as your primary resource for information regarding all methods of transporting individuals and goods, both current and emerging.

Driver Impairment Detection Technology

Prior to proceeding, I would like to highlight an article examining the technology related to detecting impaired driving, which was included in the $1 trillion infrastructure legislation.

Rebecca Bellan investigates the companies that are pioneering driver monitoring systems. This industry may experience growth as a result of the stipulation mandating that automakers integrate technology capable of identifying driver intoxication into new vehicles.

Stay Connected

Feel free to reach out via email at kirsten.korosec@techcrunch.com with any feedback, critiques, perspectives, or suggestions. You can also connect with me directly on Twitter – @kirstenkorosec.

More on Transportation

• Driver Detection Tech: The infrastructure bill's provision could significantly impact the development and adoption of this technology.
• Automaker Response: Automakers are now tasked with incorporating these systems into their future vehicle designs.
• Industry Growth: Companies specializing in driver monitoring are poised for potential expansion.

Micromobility Updates

Recent developments involve JOCO, a privately-owned, docked electric bike service challenging Citi Bike’s dominance in New York City. The company, focused on offering docked e-bikes from private locations, is currently facing legal challenges. The city maintains that operation of docked e-bikes is exclusively within Citi Bike’s purview.

In response, JOCO is adapting its business model to concentrate on providing e-bikes specifically for the delivery and courier services operating within NYC. This strategic shift aims to leverage their existing hardware investments.

Lyft, the parent company of Citi Bike, is actively pursuing increased market share. They are introducing Lyft Pink Annual, a new membership program encompassing various transportation options.

This multimodal membership, priced at $199 annually, offers unlimited bikeshare access across Lyft-operated systems in cities including New York, Chicago, San Francisco, Minneapolis, Portland, Columbus, Denver, and Santa Monica. Lyft asserts this represents a $40 annual savings compared to monthly subscriptions.

Lyft Pink Annual Benefits

• Unlimited 45-minute pedal bike rides.
• Discounted e-bike rides and unlocks.
• 15% off all personal rideshare trips.
• Additional perks such as free food delivery via Seamless+ or Grubhub+.
• Free rental upgrades with SIXT.
• Priority airport pickups and other transportation advantages.

Shifting focus to other e-bike ventures, Lime is now showcasing Wheels, a separate e-bikeshare platform based in Seattle, directly within its application. This integration is intended to boost visibility and business for Wheels.

Furthermore, this collaboration expands Lime’s overall presence and reach within the micromobility landscape.

Scooter Industry Updates

Fenix, a micromobility firm headquartered in Abu Dhabi, has completed the acquisition of Palm, a Turkish shared e-scooter provider. The transaction was valued at $5 million, mirroring the total capital raised by Palm during its seed funding rounds in November and February.

While companies like Lime and Bird maintain a substantial international presence, Fenix is rapidly establishing itself as a leading force in shared micromobility within the Middle East.

Expansion plans include continued growth within Turkey, a nation with a population of 83 million.

Business Restructuring and Mergers

Inokim, a designer and manufacturer of e-scooters, has announced a consolidation of its business operations. The company is integrating its Israeli operations with its manufacturing facility located in China.

This merger with a Chinese manufacturer specializing in premium products will grant Inokim enhanced oversight of its entire electric scooter value chain. This encompasses research and development, manufacturing processes, and both marketing and sales initiatives.

The aim is to accelerate the company’s global expansion efforts.

Safety and Compliance Initiatives

Bird has introduced Community Safety Zones, utilizing geofencing technology to regulate scooter speeds. These zones are being implemented around areas with high pedestrian traffic, such as schools and hospitals.

The initial rollout will occur near schools in Miami, with plans for expansion to all partner cities.

Addressing Misuse and Parking Issues

Tier, a Berlin-based company recently successful in winning the London e-scooter trial, is collaborating with AI startup Captur. This partnership aims to encourage public reporting of improperly parked, misused, or abandoned scooters.

Individuals can report issues by scanning the QR code on the scooter. Tier’s Street Ranger team will then address the problem within ten minutes.

Participants are incentivized through a points system, allowing them to contribute to a charitable donation.

Battery Swapping Network Growth

Gogoro, a Taiwanese company operating a battery swapping network for electric scooters, mopeds, and motorcycles, has reached 400,000 monthly subscribers. The company has also surpassed 200 million total battery swaps since its launch in 2015.

This represents a significant achievement in the battery swapping industry, which has primarily gained traction in Asia. It positions Gogoro as a potential leader as expansion efforts broaden beyond the APAC region.

Industry Acquisitions and Investments: A Weekly Overview

A competitive bidding situation has emerged in the automotive technology sector.

Last week’s discussion regarding Magna International’s proposed acquisition of Veoneer, a Swedish automotive tech company, for $3.8 billion has taken an unexpected turn. On Thursday, Qualcomm entered the fray with a competing bid valued at $4.6 billion.

Qualcomm’s offer, equating to $37 per share, has already been endorsed by Veoneer’s board and doesn’t necessitate shareholder approval. Previously, both Veoneer and Magna had announced board-level approval of the initial acquisition agreement.

The significance of these developments lies in the crucial role these companies play in the automotive supply chain. While perhaps less recognizable than established automakers, they are instrumental in developing and providing the technologies integrated into modern vehicles.

Veoneer specializes in the creation of advanced driver-assistance systems (ADAS), encompassing the hardware and software necessary for limited autonomous functions, such as lane changes and emergency braking. The ADAS market has experienced substantial growth due to the extended timeframe for full autonomous vehicle deployment.

This bidding contest between Magna and Qualcomm underscores a strong belief in the potential of ADAS technology, as both companies strive to maintain a competitive edge against leading Tier-1 suppliers like Continental and Bosch. Qualcomm currently boasts a market capitalization of $164.8 billion, while Magna’s stands at $25.3 billion. Whether Magna will present a revised bid remains to be seen.

Further notable investment activity includes…

Bolt Technology, a competitor to Uber in European and African markets, has seen its valuation double to 4 billion euros ($4.8 billion) following a 600 million euro investment from Sequoia Capital and Tekne Capital Management, as reported by Bloomberg. These funds will be allocated to the launch of a grocery delivery service, branded as Bolt Market. It’s worth noting that Kate Clark of The Information previewed aspects of this deal prior to its public announcement.

Bridgestone has completed the acquisition of Azuga Holdings Inc., a fleet management platform provider, for $391 million. A detailed analysis of this acquisition’s impact on Bridgestone’s strategic growth will be featured in an upcoming article.

Elroy Air secured $40 million in Series A funding, including investment from Lockheed Martin’s venture capital division, to accelerate the development, testing, and validation of its autonomous cargo drone. Additional participants included Marlinspike Capital, Prosperity7, Catapult Ventures, DiamondStream Partners, Side X Side Management, Shield Capital Partners, and Precursor Ventures. This brings Elroy’s total funding to $48 million.

John Deere, a prominent manufacturer of agricultural equipment and technology, has agreed to acquire Bear Flag Robotics for $250 million. This represents a significant achievement for Bear Flag and its investors. Founded in 2017 and a graduate of the YC winter 2018 cohort, the startup had previously raised only $12.5 million in seed funding.

MotoRefi has bolstered its Series B funding by an additional $5 million, bringing the total to $50 million. Details of the initial $45 million raise can be found in a previous article.

Nuvve Holding Corp., a vehicle-to-grid (V2G) platform company, has established a joint venture with Stonepeak Partners and its portfolio company Evolve Transition Infrastructure. The $750 million venture, named Levo Mobility, will concentrate on promoting the electrification of transportation through funding for V2G-enabled electric vehicle fleet deployments.

Third Wave Automation completed a $40 million Series B funding round, led by Norwest Venture Partners, with participation from Innovation Endeavors, Eclipse, and Toyota Ventures, as indicated in a Form D filing. Matt Howard, general partner at Norwest Venture Partners, will be joining Third Wave’s board of directors.

Voi, a micromobility company, has raised $45 million in a funding round spearheaded by The Raine Group. Existing investors, including VNV Global, participated alongside new, currently unnamed, investors. This brings Voi’s total funding to $205 million. The capital will be utilized for research and development of computer vision technology aimed at enhancing safety, preventing sidewalk riding, and ensuring proper scooter parking.

Recent Developments and Industry Updates

A wealth of information has emerged recently across various sectors. Let's delve into the key highlights.

Autonomous Vehicle Technology

Baidu has unveiled Apolong II, a next-generation series of adaptable autonomous minibuses. These vehicles are intended for diverse applications, including public transportation, mobile policing, and healthcare services, representing an advancement over the original Apolong model with enhanced computing capabilities and sensor technology.

The Apolong series is currently operational in 22 urban parks located in cities such as Beijing, Guangzhou, Xiong’an, Chongqing, and Foshan.

Financial Performance Reports

With a surge in new companies entering the public market, our coverage of earnings reports is expanding. We will be analyzing the financial data and related news released by these companies.

Fisker: Despite being a pre-revenue company, Fisker generated $27,000 in revenue during the second quarter through merchandise sales. The company reported a net loss of $46.2 million, equating to $0.16 per share, a significant improvement compared to the $176.8 million net loss experienced in the prior quarter. The substantial loss in Q1 was attributed to changes in SEC accounting practices concerning non-cash items and the retirement of public warrants.

Operational losses amounted to $53.1 million in the second quarter, an increase from the $33 million loss recorded in the first quarter. The company’s cash and cash equivalents totaled $962 million, slightly down from $985.1 million in the first quarter.

Discussions with co-founder Henrik Fisker and statements from the earnings call indicated anticipated operating expenses between $490 million and $530 million for the year. This slight increase in the business outlook is driven by investments in research and development, prototype construction for the Ocean SUV, technology validation, hiring, and the strengthening partnership with Foxconn. Further details regarding the Foxconn collaboration are available below.

GM: The company’s earnings were negatively impacted by $800 million in warranty expenses related to the recalls of Chevrolet Bolt electric vehicles manufactured between 2017 and 2019. The majority of GM’s $1.3 billion in warranty expenses for the last quarter stemmed from the costs associated with repairing defective Bolt batteries.

GM reported revenues of $34.2 billion, a $1.7 billion increase from the first quarter of 2021, and a $17.4 billion increase compared to the same quarter last year. Net income for the second quarter reached $2.84 billion, a substantial improvement from the $758 million loss reported in the previous year, which was largely influenced by the pandemic and its economic consequences. GM’s adjusted income, inclusive of recall costs, was $4.1 billion.

Strong sales of trucks and SUVs, coupled with robust profits from GM Financial, contributed to the positive income results. GM’s financial arm reported net sales of $3.4 billion and adjusted income of $1.58 billion for the quarter.

Lyft: The company achieved positive adjusted EBITDA in the quarter, a profitability metric favored by technology companies that have not yet reached net income profitability. Adjusted EBITDA for the second quarter was $23.8 million.

Revenue for the second quarter was $765 million, more than double the $339.3 million generated during the same period last year. Despite the ongoing COVID-19 pandemic and the emergence of the delta variant, Lyft continued to experience growth, with Q2 revenue increasing by 25.6% from the previous quarter’s $609 million. More information on Lyft’s earnings can be found below.

Nikola: The company reported a net loss of $143 million in the second quarter, an increase from the $115.7 million loss in the same period last year. Its adjusted loss was $0.20 per share, which exceeded analyst expectations. The company’s cash balance at the end of the quarter was $632.6 million. However, the pre-revenue company cautioned that supply chain disruptions are causing delays, leading to a reduction in its vehicle delivery projections.

Nikola revised its production forecast for electric semi-trucks this year from 50 to 100 units to 25 to 50 units. The company also lowered its revenue forecast for the year to between $0 and $7.5 million, down from the previous estimate of $15 million to $30 million.

TuSimple: The autonomous trucking company reported $1.5 million in revenue for the second quarter. A significant development from the earnings report, as highlighted by FreightWaves, is the company’s pending review by the Committee on Foreign Investment in the United States. The review focuses on the 2017 acquisition of TuSimple LLC’s U.S. operations by Tusimple (Cayman) Ltd., with initial concerns centering on Sina’s investment in TuSimple.

Uber: While Lyft achieved positive adjusted EBITDA, Uber did not. However, Uber reported a net income of $1.14 billion in the quarter, driven by investments in companies such as Didi and Aurora Innovation.

This performance positions Uber on track to achieve its pre-tax profitability goal. A detailed analysis of Uber’s earnings is available below (authored by Alex Wilhelm and myself).

The company’s $250 million stimulus package, launched in April to attract drivers back to the platform following a pandemic-related shortage, contributed to its losses.

U.S. Postal Service: Shipping and package volume decreased by 14.1% year-over-year in the third quarter of its fiscal year 2021 as the surge in demand for package delivery services began to subside, according to FreightWaves.

Revenue from this sector of the business fell by 7.8% during the quarter, although shipping and package volume remains higher than pre-pandemic levels.

Velodyne Lidar: Financial difficulties are costly. The sensor company’s second-quarter earnings reveal increased spending on customer acquisition alongside internal conflicts. Expenses included $8 million in equity compensation for the recently departed CEO Anand Gopalan and a 21% rise in general and administrative costs due to increased public company and legal expenses (resulting from a dispute between the board and the founder, David Hall, and his wife, Marta Hall).

The company anticipates a 35% increase in general and administrative expenses for 2021. Velodyne is also investing heavily in sales and marketing, with $47.2 million spent in the second quarter, a significant increase from the $7.1 million spent in the first quarter.

Electric Vehicle Developments

Arrival has announced a collaboration with Microsoft to co-develop its digital fleet and vehicle capabilities for the automotive industry. This cloud-based approach, utilizing Microsoft Azure, will enable advanced data management and telemetry for vehicle fleets.

GM is expanding its commercial vehicle portfolio with two new zero-emission vehicles under the BrightDrop brand. These include a battery-electric cargo van, similar to the Chevy Express, and a medium-duty truck utilizing both Ultium battery and Hydrotec hydrogen fuel cell technology.

Pen Test Partners, a U.K. cybersecurity firm, identified vulnerabilities in six home EV charging brands and a large public EV charging network. While most issues have been resolved, these findings highlight the security concerns surrounding the rapidly expanding Internet of Things (IoT) device landscape.

Volkswagen Group CEO Herbert Diess experienced difficulties recharging his electric vehicle during a road trip. This experience is not uncommon, and highlights the ongoing challenges with EV charging infrastructure.

Electric Vertical Takeoff and Landing (eVTOL) & Aviation

Lilium is in negotiations for a $1 billion order of 220 aircraft from Azul, one of Brazil’s largest airlines. This potential deal would be Lilium’s largest order to date and its first entry into the South American market, with the aircraft operating as part of a new, co-branded airline network in Brazil.

United Airlines will require its U.S. employees to be vaccinated against COVID-19 this fall, as reported by The Hill. United is the first major airline to implement a vaccine mandate, requiring proof of vaccination five weeks after FDA full approval or by October 25th, whichever comes first.

Ride-Hailing Industry

Lyft, Uber, Doordash, and Instacart are collaborating on a ballot initiative in Massachusetts to maintain the classification of gig economy workers as independent contractors. This effort follows a similar successful campaign in California. Dara Khosrowshahi, Uber’s CEO, voiced his support for this measure during the company’s Q2 earnings call.