The Station: Apple Car News, 9/11 Travel Impact & Airline Pledge

The Station: A Weekly Transportation Newsletter

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Reflections on September 11th

Almost twenty years ago, while traveling on the monorail at Newark Airport, I remarked on the imposing World Trade Center towers in the distance. I expressed surprise to my then-fiancé, now my husband, that he had never visited their observation decks.

Just days later, while dining in Slovenia, a television report detailed a plane colliding with one of those very towers. Like countless others, we spent the remainder of that day absorbed in news coverage, contemplating the unfolding events.

On the morning of September 11th, a total of four airplanes were hijacked. Two were deliberately flown into the World Trade Center, one struck the Pentagon, and the fourth crashed in a field within Pennsylvania. Tragically, 2,996 lives were lost.

The Transformation of Travel

The terrorist attacks of September 11th instigated a cascade of changes that fundamentally altered the world, including the way we travel. My flight to Newark on September 6th, 2001, and subsequent connection to Europe, represented a level of ease that now seems inconceivable – arriving at the airport less than 45 minutes before departure.

The return journey from Europe offered a glimpse into the future of air travel, though some of the implemented measures, such as multiple pre-boarding interviews, proved to be temporary.

Soon after my return, the responsibility for passenger screening and airport security was transferred to a new federal agency: the Transportation Security Administration (TSA).

However, security wasn’t the sole aspect of air travel to undergo modification.

Financial Impacts and Industry Consolidation

The airline industry faced substantial financial setbacks, leading to cost reductions, the introduction of new traveler fees, and industry consolidation. The Government Accountability Office (GAO) reported that U.S. airlines incurred losses of $23 billion between 2001 and 2003.

Several major airlines, including USAir and United Airlines, were compelled to file for bankruptcy protection during this period.

Further financial difficulties arose during the Great Recession of 2008, resulting in additional bankruptcies and further consolidation within the industry. Currently, four airlines – American, Delta, Southwest, and United – dominate the majority of domestic flights.

The COVID-19 Pandemic's Impact

Following a period of recovery and profitability, the airline industry, and travel in general, faced another significant disruption: the COVID-19 pandemic.

Acknowledgements

A thank you to my colleague, cybersecurity editor Zack Whittaker, for providing the featured image for this post, captured yesterday.

Stay in Touch

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

Micromobility Developments

Previous discussions have highlighted the potential of shared micromobility solutions in fostering more equitable and accessible transportation networks within cities. Shared mobility providers are now extending this concept to actively support various social and political movements.

According to a North American Bikeshare and Scootershare Association report from 2020, agencies and operators facilitated access to demonstrations by offering free or discounted rides. Furthermore, many organizations contributed financially or through fundraising initiatives to nonprofits dedicated to racial justice.

Beyond direct support, the report indicates that approximately 75% of operators prioritize diversity in their recruitment processes. Moreover, 69% confirm representation of women and people of color at all organizational levels.

Updates from Operators

Lime has resumed operations in Oakland, initially deploying 500 scooters with plans for expansion to 1,000 in the coming weeks. The company had previously withdrawn from the city during the pandemic. This return focuses on serving “Communities of Concern” identified by the city, allocating half of its fleet to historically underserved neighborhoods.

Tier is collaborating with Luna, an Irish computer vision startup. This partnership integrates Luna’s camera technology and smart city solutions into Tier’s shared e-scooter fleets throughout Europe and the Middle East. Luna is expanding its team with 15 new hires specializing in computer vision/AI, hardware, IoT, and project management, spurred by this increased workload. The collaboration originated from a trade mission between Ireland and Germany, exploring synergies in e-mobility and the automotive sector. Luna recently completed a pilot program with Voi in England, while Spin, backed by Ford, is gradually deploying technology from Drover AI on scooters within the United States.

Voi, a Swedish company, is partnering with the U.K. government’s Kickstart Scheme to create employment opportunities for individuals aged 16-24 who are receiving Universal Credit and facing long-term unemployment risks. Voi is recruiting 25 young people nationwide for positions as Warehouse Operatives and Fleet Specialists, guaranteeing at least six months of employment and valuable experience in the evolving transportation industry.

Bird has refreshed its brand identity. The company’s scooters and bikes will now feature a new “Electric Sky” blue color scheme, replacing the previous black, white, and silver options. This color choice aims to evoke associations with environmentally friendly transportation, clear skies, and positive experiences, mirroring the aesthetics of Revel’s mopeds and Swapfiets’ bicycles.

Expanding the Definition of “Micromobility”

Xpeng, a Chinese electric vehicle manufacturer, has announced plans to develop a robotic unicorn designed for children to ride. This quadrupedal robot will be capable of navigating diverse terrains, recognizing objects, and providing interactive experiences. The project leverages Xpeng’s expertise in AI and automated driving technologies. The initial design appears appealing and soft, despite its metallic construction, though the horn’s length could be considered. Notably, it avoids the unsettling appearance of Xiaomi’s robotic dog.

Squad Mobility, a Dutch startup, has revealed details regarding its compact, affordable electric city car, which incorporates solar panels to supplement battery charging throughout the day. The company anticipates a prototype of this solar-assisted quadricycle by October of this year, with deliveries projected to begin by the end of next year. The ultimate goal is to collaborate with car-sharing or shared micromobility operators to offer fleets of the Squad car for shared use.

At the Munich Motor Show, BMW showcased several electric bike concepts with striking designs. The Motorrad Vision AMBY resembles a motorcycle, but leans towards an off-road motorbike classification, featuring substantial tires and a riding position conducive to aggressive maneuvers. The i Vision AMBY is a more conventional road e-bike, yet possesses a retrofuturistic aesthetic and a frame finished in a postal service-inspired beige color.

Advanced Driver-Assistance Systems for Scooters

Efforts to prevent shared electric scooters from being operated on sidewalks have spurred advancements in technology within the micromobility sector. Initially focused on geofencing, scooter companies are now implementing technologies akin to advanced driver-assistance systems commonly found in automobiles to gain a competitive edge. Further details on this trend can be found in my article featured in Extra Crunch.

Micromobility America Conference

The organizers of another leading micromobility newsletter are hosting an event in the San Francisco Bay Area. Scheduled for September 23rd, the event will bring together a diverse group of experts, founders, investors, and innovators to discuss the potential of lightweight electric vehicles to revolutionize transportation. Featured speakers include Brazilian racing driver Lucas Di Grassi, American entrepreneur and former presidential candidate Andrew Yang, Wired senior writer Lauren Goode, and analyst and originator of the term “micromobility” Horace Dediu.

Registration is currently open, but space is limited, so prompt action is advised.

— Rebecca Bellan

Investment Highlights of the Week

Continued investment activity is observed within the ride-hailing sector, with Cao Cao Mobility, a subsidiary of Geely Automobile Holdings, being a recent recipient of funding.

The company successfully secured $589 million (RMB 3.8 billion) during a Series B funding round. This round was spearheaded by Suzhou Xiangcheng Financial Holding Group, an investment firm supported by the Xiangcheng district government in Suzhou.

This latest investment elevates Cao Cao Mobility’s cumulative funding to approximately $773.2 million (RMB 5 billion).

As highlighted by TechCrunch’s Rebecca Bellan, Cao Cao’s potential for expansion and increased market share is contingent upon continued favorable regulatory conditions in China. Competitors like Didi Global and Amap have faced heightened governmental oversight, which has inadvertently benefited Cao Cao.

A cybersecurity review led to the temporary removal of Didi Global from app stores within China. Consequently, Cao Cao, currently operating in 62 Chinese cities, experienced a 32% surge in ride volume during July.

Notable Funding Rounds This Week …

Accure, a German firm specializing in battery safety software, based in Aachen, completed a $8 million Series A round. The investment was led by Blue Bear Capital, with participation from Capnamic Ventures and 42CAP.

BP Ventures, the venture capital division of BP, invested €10 million ($11.9 million) in Ryd, a German provider of in-car digital payment solutions. These funds will facilitate Ryd’s expansion into new international markets and the enhancement of its service offerings.

Prior to its anticipated IPO within the next two quarters, Delhivery, an Indian logistics company, attracted investment from Lee Fixel’s Addition. The Gurgaon-based firm disclosed a $76.4 million investment from Addition as part of a Series I funding round.

Delimobil, a Russian car-sharing service, has engaged banking institutions to manage its initial public offering (IPO) and aims to raise approximately $350 million, according to Reuters reports.

Skydweller Aero, a U.S.-Spanish aerospace company, secured an additional $8 million in funding exceeding initial targets. This was led by Leonardo S.p.A, Marlinspike Capital and Advection Growth Capital, supplementing its prior $32 million Series A round.

The company has also established a partnership with Palantir Technologies to leverage the Foundry analytics platform for large-scale data processing and the operation of aircraft intended for telecommunications, governmental functions, and emergency response.

Tritium Holdings, an Australian company developing DC fast-charging technology for electric vehicles, raised A$40 million ($29.4 million) from Cigna’s investment division.

WattEV, focused on establishing a network of truck stops and operating a fleet of 12,000 shared electric trucks, will receive a $5 million grant from the California Energy Commission. This grant is designated for the construction of the state’s first dedicated electric truck stop. The company also recently finalized a $6 million Series A round, led by Canon Equity.

Whispers from the Industry

Information reaches me from various sources. Rather than keeping these insights to myself, I aim to disseminate them.

Recent, extensive reporting – including coverage from TechCrunch – details Ford Motor’s recruitment of Doug Field, a former engineering leader from Apple’s special projects group and the company’s automotive initiative.

Field, previously a senior vice president of engineering at Tesla, has been appointed as Ford’s chief advanced technology and embedded systems officer. Following this announcement, reports surfaced indicating that Kevin Lynch, who spearheaded the Apple Watch’s development, assumed Field’s responsibilities within the car project.

These developments prompted inquiries from TechCrunch readers (as evidenced by direct messages and emails) regarding the potential status of Apple’s automotive program. I consulted with several contacts, and one source indicated that Apple personnel were engaged in meetings with battery manufacturers in Korea as recently as the past week.

This suggests continued progress on the project. Earlier in August, The Korea Times reported that an Apple team was in discussions with LG Chem, SK, and Hanwha, exploring potential partnerships.

Apparently, these discussions are ongoing.

Policy Updates

Welcome to this week’s policy review! Significant developments have emerged within the aviation sector, with leading airlines committing to supply 3 billion gallons of sustainable aviation fuel (SAF) by 2030. This aligns with a national objective of decreasing aviation emissions by 20% before the decade’s end.

This pledge was announced by Airlines for America (A4A), representing major carriers such as United Airlines, Delta, American Airlines, and Southwest. Previously, in March, A4A had established a goal of 2 billion gallons for 2030. Furthermore, United Airlines separately announced plans to procure 1.5 billion gallons of SAF from Alder Fuels, contingent upon fulfilling specific requirements.

A4A emphasized the crucial role of governmental support in fostering SAF development. This includes a “blender” tax credit for SAF blended with traditional fuel and collaborative public-private research initiatives focused on SAF technologies.

However, this represents only an initial step, should President Joe Biden’s vision materialize. His administration aims for a completely zero-carbon aviation industry by 2050, as detailed in a White House fact sheet released Thursday. Aviation currently contributes 11% to the nation’s transportation-related emissions.

Moreover, while 3 billion gallons of SAF appears substantial, a representative from United Airlines informed TechCrunch that the airline’s annual consumption is approximately 4 billion gallons. The White House estimates overall demand could reach 35 billion gallons per year by 2050.

To address this projected demand, President Biden is advocating for SAF incentives within the $3.5 trillion spending bill under congressional consideration. These include a tax credit and $4.3 billion allocated to SAF project funding.

It’s vital to acknowledge two key points. Firstly, SAF currently carries a higher price tag than conventional jet fuel, which already represents a significant expense for airlines. Secondly, the stated airline goals are non-binding and voluntary. Consequently, in my assessment, a tax incentive, or similar mechanism, will be essential to achieve cost parity between SAF and conventional fuel – and to encourage widespread adoption.

Turning to other policy matters, noteworthy actions are unfolding in New York State. New York City has set a target to deploy 40,000 public Level 2 chargers and 6,000 DC fast chargers by 2030. This infrastructure expansion, as outlined in the Department of Transportation’s EV plan, is necessary for the city to achieve its 2050 carbon neutrality goal.

Additionally, the New York State legislature has enacted a law mandating that all new passenger vehicles sold within the state be zero-emission by 2035. This makes New York the second state, following California, to establish a firm deadline for phasing out internal combustion engine vehicles. It remains to be seen if this will initiate a broader trend in state policies, but similar legislation could gain traction in the years ahead.

— Aria Alamalhodaei

Recent Developments and Industry Updates

Self-Driving Technology

Anthony Levandowski, a prominent figure in autonomous vehicle technology and recipient of a presidential pardon, recently participated in an interview with The Information. He discussed his company’s strategic shift from large trucks to specialized dump truck applications.

Sterling Anderson, a co-founder of Aurora, detailed the company’s autonomous vehicle development procedures in a recent blog publication. Aurora has collaborated with six different Original Equipment Manufacturers (OEMs) and successfully integrated its self-driving system across eight unique vehicle platforms. Anderson highlighted the resulting “highly refined Driver-vehicle interface” and a structured program for vehicle design and launch, known as the Aurora Driver Development Program. Notably, Aurora has designated Pittsburgh as its official headquarters.

Mobileye, a subsidiary of Intel, and Sixt SE, a leading rental car provider, have announced a collaborative effort to launch a robotaxi service in Munich next year. This service will leverage the extensive assets developed and acquired by Intel and Mobileye, including the $900 million acquisition of Moovit in 2020, an Israeli startup specializing in urban traffic analysis and transportation recommendations, particularly for public transit.

Users will be able to access the robotaxi service through the Moovit application. Additionally, the service will be integrated into Sixt’s mobility ONE app, offering customers a comprehensive range of transportation options, including ride-hailing, rental, sharing, and subscription services. It’s important to note that the initial rollout will be limited in scale, mirroring the phased approach adopted by early rider programs pioneered by nuTonomy and Waymo.

WeRide, a Chinese company focused on autonomous vehicle technology, has introduced its inaugural cargo van model. The company will partner with Jiangling Motors, a Chinese automobile manufacturer, and ZTO Express, a leading Chinese express delivery service, to facilitate the large-scale commercialization of its self-driving van. These “robovans” will be built on JMC’s battery electric vehicle platform, featuring a fully redundant system, and will incorporate WeRide’s complete suite of autonomous driving software and hardware solutions.

Electric Vehicles and Battery Technology

GM has extended a production halt at its Orion Assembly Plant for an additional two weeks, citing a shortage of battery packs. This shortage is linked to the extensive safety recall affecting the Chevrolet Bolt EV and Bolt EUV models. GM stated the downtime at the Orion plant will now continue through September 20.

Ford has recruited six experienced executives to lead its newly established commercial vehicles and services division. This move precedes the launch of the E-Transit cargo van and the F-150 Lightning Pro pickup truck – two electric vehicles central to Ford’s strategy for serving commercial customers.

Sila Nanotechnologies’ advanced battery technology has reached a commercial milestone with its integration into the latest Whoop fitness tracker. This achievement represents the culmination of a decade of research and development by the Silicon Valley-based startup. Sila Nano also maintains joint battery ventures with BMW and Daimler, aiming to introduce batteries utilizing its silicon-anode technology into the automotive market by 2025.

Solid Power, a battery developer supported by Ford and BMW, is preparing for pilot production of its solid-state batteries in early 2022. A dedicated facility will be used to manufacture a sulfide-based solid electrolyte material and produce pilot-scale, 100 ampere battery cells. These pouch cells are slated for testing in automotive applications by both Ford and BMW.

Discover Squad Mobility and its concept for the ideal urban transportation solution. The key features include a compact size, affordability, electric power, and integrated solar panels.

Tesla has officially established a new electric vehicle record at Nürburgring. A Tesla Model S Plaid, driven by Andreas Simonsen, completed a lap of the 20.8-kilometre (12.9-mile) Nordschleife loop in 7:35.579, as confirmed by the motorsports complex.

Toyota Motor has expressed opposition to a proposal from U.S. House Democrats that would provide an additional $4,500 tax incentive for union-made electric vehicles in the United States. The company argues that the proposal unfairly discriminates against American autoworkers who have chosen not to unionize.

Volta Trucks, a manufacturer of full-electric commercial vehicles, has announced that its initial vehicle production will take place in Steyr, Austria, through a partnership with Steyr Automotive, formerly MAN Truck and Bus Austria.

Delivery, Sharing, and Other News

DoorDash, Caviar, Grubhub, Seamless, Postmates, and Uber Eats are jointly pursuing legal action against the City of New York. The lawsuit challenges a new law that would permanently cap the commissions these apps can charge restaurants for utilizing their services. The companies are seeking an injunction to prevent enforcement of the legislation, as well as monetary damages and a jury trial.

Plentywaka co-founder and CEO Onyeka Akumah was featured in a TechCrunch interview as part of their ongoing founders Q&A series.

Additional Insights

Hyundai Motor Group has unveiled its hydrogen strategy, committing to offer hydrogen fuel cell versions of all its commercial vehicles by 2028. The company aims to achieve cost parity with EV batteries by 2030. Hyundai also provided details about its high-performance, rear-wheel drive hydrogen sports car, the Vision FK, which boasts a targeted range of 373 miles. However, the company has not yet announced a production timeline for the vehicle.

GM has introduced the 2022 Chevrolet Silverado, a full-sized pickup truck featuring significant technological enhancements. These include the hands-free Super Cruise advanced driver assistance system, an infotainment system integrated with Google services, and a redesigned interior.

David Zipper authored an article for Slate examining the increasing challenges posed by infotainment systems in vehicles.