The Station: Uber Spinout & EV SPACs - Latest News

The Station: A Weekly Transportation Newsletter

The Station is a newsletter published every weekend, focusing on the diverse world of transportation. To subscribe and receive it directly in your inbox, simply click The Station.

Welcome New Readers and Team Members

Greetings to both returning subscribers and those joining us for the first time! The Station is devoted to exploring the current and emerging methods of moving both people and goods.

Expanding Our Coverage

Our transportation reporting team is growing. Aria Alamalhodaei and Rebecca Bellan joined us this Monday and have already begun contributing insightful articles.

Tamara Warren, an experienced editor formerly with The Verge and a veteran of automotive and technology journalism for twenty years, recently published a review of the Aston Martin DBX.

Vehicle Reviews and Analysis

This week, Abigail Bassett, a seasoned World Car Juror and former CNN producer covering cars, technology, and business, provides a detailed analysis of the new VW ID. 4.

Looking Ahead

We are only at the beginning of our journey. Vamos – let's move forward!

Please extend a warm welcome to our new team members. Connect with Rebecca Bellan on Twitter at @RebeccaBellan and with Aria at @breadfrom. Feel free to send them a direct message!

Addressing Micromobility Challenges

The increasing prevalence of scooter congestion has spurred innovation, leading to the creation of numerous companies focused on resolving this issue. Tortoise, for example, provides scooter repositioning software, while Swiftmile develops docking stations that also incorporate charging capabilities.

However, a question remains: what if a solution could function seamlessly across different scooter brands? The city of Paris is undertaking a project to investigate this possibility.

A pilot program, scheduled to begin in the second quarter of the current year, will evaluate universal charging infrastructure for electric scooters. DUCKT, the company selected for the pilot, will deploy 150 docking and charging stations.

These stations will draw power from existing infrastructure such as bus stops and streetlights. DUCKT was recognized as one of 15 winners in the Urban Innovation District competition.

Each winning entity is implementing a distinct urban project within the 13th arrondissement. This competition, organized by Paris & Co.’s urban innovation lab, encompasses pilots addressing areas like food waste reduction, rainwater harvesting, urban greening, and waterproofing.

Several projects also focus on mobility solutions. Ezymob is developing a mobile application to aid visually impaired individuals in navigating public transportation.

Mobilypod is introducing a cargo bike subscription service, complete with bike shelters, and LaCroix Lab is testing 4SafeMobilities, a system intended to optimize traffic flow at intersections and pedestrian walkways.

Porsche is simultaneously expanding its commitment to electrification into the realm of two-wheeled vehicles.

Alongside the global launch of the Porsche Taycan Cross Turismo, the latest addition to its electric vehicle lineup, the German automaker revealed two new electric bikes this week.

These bikes are priced between $8,000 and upwards of $10,000, reflecting the brand’s position as a provider of luxury performance products.

Mobility Investment Trends in 2020

Rather than focusing on a single “deal of the week,” a broader examination of 2020’s investment landscape in transportation reveals significant trends. CB Insights’ State of Mobility report, released on March 3rd, analyzes investment data and patterns within the transportation sector for the year.

Overall, the COVID-19 pandemic contributed to a 5% decrease in total funding year-over-year, reaching $27.19 billion. However, CB Insights observed a recovery trend during the latter half of the year. The total number of deals completed was 522, representing a 21% reduction from the previous year.

The Rise of SPACs

While total funding provides a partial picture, 2020 was notably defined by the surge in Special Purpose Acquisition Company (SPAC) deals within the automotive and mobility industries. A total of 107 exits occurred, with 22 startups going public through mergers with these “blank check” companies.

For context, only five auto and mobility SPAC deals took place between 2015 and 2019. A substantial 68% of these 2020 SPAC deals involved electric vehicle (EV) companies and those developing supporting EV technologies.

This trend is continuing into 2021, with companies like Joby Aviation, Hellbiz, and Otonomo having already reached merger agreements to become publicly listed.

Technology Funding Peaks

Both electric vehicle technology and autonomous vehicle technology experienced peak funding levels in 2020. EV tech firms secured $12.8 billion across 193 deals, while autonomous vehicle companies attracted $7.3 billion across 105 deals, as reported by CB Insights.

The autonomous vehicle industry appears to be maturing, evidenced by a 16.8% increase in average deal size compared to the prior year, reaching $104 million.

Shifts in Investment Focus

Funding for connected car technology and auto commerce both decreased in 2020. Connected car tech experienced its second consecutive year of decline in both funding and deal volume.

Funding dropped by 52% to $1 billion in 2020. CB Insights attributes this to the widespread adoption of connectivity solutions, leading investors to redirect their resources towards emerging areas like electrification and autonomy.

Micro-Mobility and Shared Mobility

Funding for bike and scooter companies increased by 52% year-over-year, totaling $2.4 billion in 2020. However, this remains below the levels seen in 2017 and 2018, when scooters gained significant investor interest, with $3.2 billion and $4.9 billion raised respectively.

Funding for shared mobility companies (MaaS) declined by 20% in 2020, reaching $6.3 billion across 116 deals.

Notable Investment Deals

Other deals that garnered attention …

• Aero, a startup from Expa, secured $20 million in Series A funding, led by Keyframe Capital.
• Boom Supersonic, developing supersonic jets, received a strategic investment from American Express Ventures to support the Overture airliner’s development.
• Fluid Truck, a Denver-based commercial vehicle rental platform, raised $63 million in Series A funding, led by Bison Capital.
• Instacart, the grocery delivery service, raised $265 million from existing investors, increasing its valuation to $39 billion.
• Loggi Tecnologia, a Brazilian delivery company, raised 1.15 billion reais ($205 million) in a round led by CapSur Capital, valuing the company near $2 billion.
• Rollick, an online marketplace for powersports, RVs, and boats, secured $8.5 million in funding from various investors.
• Volocopter, a German electric VTOL aircraft developer, raised €200 million (approximately $241 million) in a Series D round, with participation from BlackRock and others.

Volocopter is developing an urban air mobility service, with CEO Florian Reuter anticipating live services within two years for its two vehicle models.

A Compilation of Policy Updates

Policy decisions are increasingly shaping the future of transportation.

This newsletter will now feature a recurring segment dedicated to tracking significant legislative developments concerning electric vehicles (EVs), autonomous vehicles (AVs), public transportation, and personal mobility solutions.

California's Proposed AV Emission Standards

This week’s focus shifts to California, where State Senator Dave Min has proposed legislation mandating that all autonomous vehicles operating within the state be zero emission by the year 2025.

The bill, backed by the Union of Concerned Scientists, aims to prevent the integration of outdated technologies into the future of transportation.

Potential Impacts on AV Developers

The proposed amendment aligns with California’s broader emission reduction objectives, but it introduces complexities for AV companies that currently rely on non-electric vehicles.

Companies like Cruise and Zoox exclusively utilize electric vehicle fleets. However, industry leader Waymo, along with several other developers, employ a combination of vehicle types, including the Chrysler Pacifica Hybrid minivan.

Bill's Current Status

As Rebecca Bellan points out, the bill is still in its early stages, leaving room for potential revisions or even abandonment.

Industry responses have been carefully worded to maintain a neutral stance.

Analysis of public statements and private discussions suggests that efforts will be made to amend the bill’s language to better accommodate industry needs while preserving its core intention.

Possible modifications include extending the deadline, incorporating hybrid vehicles, and creating exemptions for long-haul trucking.

Direct Sales Legislation for Electric Vehicles

Simultaneously, legislative efforts are underway in at least eight states to authorize direct sales of passenger electric vehicles.

Successful passage of these laws would enable EV manufacturers like Tesla, Lucid, and Rivian – including those preparing to launch their first vehicles – to sell directly to consumers.

Industry Collaboration

Tesla, Rivian, and other EV companies are collaborating to advance this legislation.

Such industry alliances are common when all parties share a common benefit.

Notably, Tesla’s involvement signifies a willingness to relinquish its current monopoly on direct sales in certain states.

Key Considerations

• The proposed California bill requires all AVs to be zero emission by 2025.
• This could impact AV developers using hybrid vehicles.
• Legislation supporting direct EV sales is being considered in multiple states.
• Industry collaboration is driving the push for direct sales.

Interesting Articles and Recent Developments

Several noteworthy stories deserve attention within the automotive and technology sectors.

An interview with Aston Martin’s CEO, Tobias Moers, featured in Automotive News Europe, provides additional insight alongside Tamara Warren’s evaluation of the DBX model.

Serve Robotics Emerges

Postmates X, the robotics division acquired by Uber for $2.65 billion last year, has now become an independent entity known as Serve Robotics.

Serve Robotics secured seed funding led by venture capital firm Neo. Additional investment came from Uber, Lee Jacobs and Cyan Banister’s Long Journey Ventures, Western Technology Investment, Scott Banister, Farhad Mohit, and Postmates co-founders Bastian Lehmann and Sean Plaice.

Tesla's New Platform and Community Reaction

Tesla is discontinuing its existing forums in favor of a new social media platform, the Tesla Engagement Platform.

This transition has sparked discontent among some of the brand’s most dedicated enthusiasts.

Tortoise Expands Grocery Delivery

Tortoise has secured a new partnership with Albertsons Companies, the parent company of Safeway and Jewel-Osco.

Albertson’s will initiate a pilot program utilizing remote-controlled delivery robots, developed by Tortoise, for grocery deliveries. The initial phase will be implemented at two Safeway stores in Northern California, with potential expansion across the state and the West Coast if successful, according to Tortoise co-founder and president Dmitry Shevelenko.

Toyota's Investment in Sustainable Mobility

Toyota Motor has announced plans to issue 500 billion yen ($4.7 billion) in “Woven Planet Bonds.”

These bonds will finance a range of initiatives focused on renewable energy and transportation projects, including advancements in assisted mobility vehicles and the increased adoption of battery electric and fuel cell vehicles.

Volkswagen's Electric Future

Volkswagen intends to introduce an all-electric sedan in 2026.

The project, internally known as Project Trinity, is expected to establish benchmarks in charging speed, battery range, and overall technological innovation, as reported by Car and Driver.

Volvo's Commitment to Electric Vehicles

Volvo Cars has declared its intention to exclusively manufacture and sell all-electric vehicles by 2030.

This commitment is part of a larger transformation for the automaker, which will also involve a shift towards online sales. The announcement coincided with the launch of the C40 Recharge, a crossover built on the company’s CMA platform.