The Station: A Weekly Transportation Newsletter

The Station is a newsletter published every week, focusing on the diverse world of transportation. Subscribe here — simply select The Station — and have it delivered directly to your inbox each weekend.

Greetings to both regular subscribers and new readers! Welcome to The Station, a publication committed to exploring both current and emerging methods of moving people and goods between locations.

This Week's Highlights

A substantial amount of information awaits this week, so let's proceed directly to the updates.

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

Your input is always valued and helps shape the content of The Station.

We aim to provide a comprehensive overview of the transportation landscape, covering everything from electric vehicles to autonomous driving and beyond.

Stay tuned for in-depth analysis and the latest news in the world of mobility.

Micromobility Updates

The surge in electric bicycle purchases represented a positive trend during the COVID-19 pandemic. Recent legislation proposed by Representatives Jimmy Panetta (D-CA) and Earl Blumenauer (D-OR) has the potential to further stimulate sales. The Electric Bicycle Incentive Kickstart for the Environment (E-BIKE) Act suggests a consumer tax credit covering 30% of an electric bicycle’s price, capped at a $1,500 credit.

This proposed bill would apply to new electric bicycles priced under $8,000 and is designed to be fully refundable, ensuring accessibility for lower-income individuals, as stated in Panetta’s announcement. Eligible individuals could claim the credit once every three years, with couples filing jointly able to claim it twice when purchasing two electric bicycles.

Furthermore, the bill requires the IRS to submit a report after two years, providing lawmakers with data on credit distribution across different income tax brackets. Currently, a tax credit exists for two-wheeled plug-in electric vehicles, but this only extends to motorcycles capable of reaching speeds of at least 45 miles per hour, excluding bicycles.

Strong support from bicycle advocacy organizations has been evident, though the E-BIKE Act’s prospects for passage through Congress remain uncertain. PeopleForBikes, a supporting organization, highlights studies indicating that a 15% increase in electric bicycle usage in the U.S. could lead to an 11% reduction in carbon emissions.

Another initiative aims to provide tax advantages to cyclists. Blumenauer is also working to reinstate the bicycle commuter tax benefit, which was eliminated in 2018 by the Tax Cuts and Jobs Act. His Bicycle Commuter Act of 2021, introduced last month, would broaden benefits to include commuters utilizing e-bikes, bike-sharing programs, and conventional bicycles.

Developments in the Micromobility SPAC Sector…

Helbiz, a micromobility company offering e-scooters, e-bicycles, and e-mopeds in Europe and select U.S. cities, has announced plans to merge with a special purpose acquisition company (SPAC) to become publicly traded. The merger with GreenVision Acquisition Corp. is anticipated to finalize in the second quarter of the year.

The resulting entity, to be named Helbiz Inc. and listed on the Nasdaq under the ticker HLBZ, is projected to have a valuation of $408 million. A significant portion of the capital raised through this deal will be allocated to expanding into the “cloud” or “ghost” kitchen sector, as part of a diversification into food delivery services.

Reviewing the company’s filings with the Securities and Exchange Commission (SEC), the valuation appears to be based on the $4 million in revenue Helbiz generated in 2020. Approximately 96% of this revenue stemmed from mobility rentals, with the remaining 4% originating from advertising within the app and at charging stations.

Helbiz forecasts revenue of $449 million by 2025 – within just four years – from its existing mobility and advertising operations, as well as these “new verticals,” which are understood to be the ghost kitchens. It will be interesting to observe whether other micromobility SPACs emulate Helbiz’s move and if this trend influences the valuations of competitors like Lime.

Lime previously secured $170 million in funding last May, but at a reduced valuation of $510 million. However, Lime’s CEO, Wayne Ting, has recently presented a more optimistic financial outlook for the company. Rumors of SPAC activity surrounding Bird have also circulated, but the status of other companies remains unclear.

Significant Deals in the Mobility Sector

This week witnessed substantial activity within the electric aircraft and logistics technology spaces, with Archer Aviation securing a deal that has earned it recognition as “deal of the week.” The company, concentrating on urban air mobility solutions, has entered into a definitive merger agreement with Atlas Crest Investment Corp., resulting in an equity valuation of $3.8 billion.

Simultaneously, Archer gained United Airlines as both a customer and an investor. United has placed a firm order valued at $1 billion for Archer’s aircraft, with an additional option to purchase up to $500 million worth of aircraft.

Regarding the special purpose acquisition company (SPAC) arrangement, Archer anticipates receiving $1.1 billion in gross proceeds. This includes $600 million from a private investment in public equity (PIPE) involving investors like United Airlines, Stellantis, Exor’s venture arm, Baron Capital Group, Federated Hermes Kaufmann Funds, Mubadala Capital, Putnam Investments, and Access Industries.

Ken Moelis and his affiliates, alongside Marc Lore – a key initial backer of Archer – are contributing $30 million to the PIPE investment.

Following the merger, the newly formed company will be listed on the New York Stock Exchange under the ticker symbol “ACHR.”

While Archer is still in the process of scaling production, its electric vertical take-off and landing (eVTOL) aircraft is engineered for a range of up to 60 miles on a single charge, achieving speeds of 150 miles per hour. A full-scale eVTOL prototype is slated for unveiling later this year, with volume manufacturing targeted to commence in 2023.

Other noteworthy transactions include…

BusUp, a platform focused on bus commuter services, successfully raised $6 million in a Series A funding round. The round was spearheaded by Proeza Ventures, a Latin American mobility investment firm, with participation from Autotech Ventures and IESE’s Business School venture fund, Finaves V.

This capital injection will facilitate BusUp’s expansion into the United States and strengthen its presence in existing European and Latin American markets, responding to the increasing demand for employer-sponsored commuter benefits and mobility solutions.

Chowbotics, a Bay Area robotics company renowned for its salad-making robot, Sally, is set to be acquired by delivery service DoorDash. The financial details of the acquisition remain undisclosed. To date, Chowbotics has secured approximately $21 million in funding, including an $11 million round in 2018.

The company’s vending machine-style salad bar robot was particularly well-suited for the challenges presented by the pandemic, minimizing human contact in food preparation. Furthermore, the robot incorporated a contactless ordering feature via a dedicated app, as highlighted by TechCrunch hardware editor Brian Heater.

Joby Aviation is reportedly in discussions to become a publicly listed company through a SPAC merger, potentially achieving a valuation of nearly $5.7 billion, as reported by the Financial Times. This follows Joby’s recent acquisition of Uber’s air taxi unit, Elevate.

Last year, the company secured $590 million in investment, with Toyota leading the funding round.

Kargo, a startup specializing in smart loading dock platforms, founded in late 2019, has raised $6 million in seed funding. Investors included Founders Fund, Accomplice, Sozo Ventures, and several other unnamed participants.

Kargo operates as both a hardware and software provider. The company’s core offering consists of sensor towers installed on loading docks. These towers utilize computer vision to automatically identify and verify all incoming and outgoing freight in real-time. The accompanying software platform, offered on a subscription basis, processes and analyzes this data, providing customers with comprehensive supply chain visibility.

Hyzon Motors, a startup concentrating on hydrogen fuel cell technology for commercial vehicles, has reached an agreement to go public through a merger with Decarbonization Plus Acquisition Corporation, resulting in a $2.7 billion valuation.

Instabox, a Swedish startup focused on last-mile e-commerce deliveries, secured $90 million in a Series B funding round, led by EQT Ventures, according to Sifted.

Plus.ai, a self-driving truck technology company operating in both China and the United States, raised $200 million in a funding round led by Guotai Junan International, CPE, and Wanxiang International Investment. Existing investors, including FTA, also participated.

The company intends to utilize these funds to expedite the global commercialization and deployment of its automated trucking system. Plus.ai is actively developing a sales and support network to assist fleets in integrating the automated trucking system into their operations, and plans to expand deployments in the U.S. and China, as well as into Europe and other parts of Asia. CEO and co-founder David Liu indicated that excerpts from a recent interview may be featured in a future newsletter.

Siemens is preparing to divest its Intelligent Traffic Systems unit, which encompasses traffic light technology and equipment, as reported by Reuters. The anticipated valuation for this unit ranges between $604 million and $725 million.

Veoneer Loses Lidar Contract

During its February 3rd earnings conference call, Veoneer disclosed the loss of a lidar production contract with a customer developing autonomous vehicles. The OEM customer in question has opted to pursue an alternative approach to its lidar core technology.

This development also represents a setback for Velodyne, as Veoneer had previously announced in 2019 that it was utilizing Velodyne’s technology to fulfill a contract for supplying sensors to this same, as yet unnamed, autonomous vehicle client.

Veoneer's Perspective on the Shift

Veoneer CEO Jan Carlson stated that the volume of orders from this particular OEM had been declining over time. He further clarified that this contract loss would not impact the company’s existing order backlog.

Carlson also highlighted a broader trend occurring within lidar technologies. “We are seeing a significant evolution in lidar technologies over time,” he explained. “Our strategy centers on being a robust integrator, offering expertise in areas like cybersecurity, automotive-grade engineering, and functional safety to companies with strong technological capabilities but limited experience in the automotive sector.”

Identifying the Autonomous Vehicle Customer

Emmanuel Rosner of Deutsche Bank has suggested that Ford (through its Argo AI subsidiary) is the likely customer. His reasoning stems from Ford’s early investment in Velodyne and the logical assumption that a contract existed to utilize Velodyne sensors in Argo’s robo-taxi program.

However, it appears this order has now been canceled. It remains uncertain whether Argo will now source lidar from another supplier or rely on its own internally developed sensors, acquired through the purchase of Princeton Lightwave.

Independent sources have corroborated this assessment, confirming that Ford/Argo is indeed the customer involved.

The initial plan involved integrating Velodyne’s lidar into Ford’s autonomous vehicles, but this was ultimately abandoned due to Argo’s accelerated progress in developing its own in-house lidar technology, originating from Princeton Lightwave.

Ford Divests from Velodyne

Update: Following the initial reporting, Ford filed a regulatory disclosure with the SEC revealing that it had completely divested its shares in Velodyne.

The sale of its remaining stake occurred before the end of 2020. Ford had previously held approximately 13.1 million shares of Velodyne, representing a value of around $244 million as of the end of the third quarter of 2020.

Argo Expands Testing Domain

In early February, Argo announced via Twitter that it has broadened its operational testing to include highways. This expansion means Argo’s autonomous vehicles are now being tested and operated in urban, suburban, and highway environments.

The inclusion of highway testing is crucial for any company aiming to deploy robotaxis, as airports frequently serve as common pick-up and drop-off locations for ride-hailing services.

Recent Developments and Industry Insights

Numerous updates have emerged across the transportation sector, warranting a closer examination of recent events.

Automotive Technology

According to LMC, a leading analyst firm, the global automotive industry experienced a production shortfall of at least 450,000 units in January and February due to the ongoing semiconductor shortage. This situation is anticipated to persist throughout the first half of the year, as reported by Automotive News.

However, LMC’s report also suggests potential improvements. The firm projects a 10% decline in global vehicle production during the first quarter compared to 2019 levels. This translates to a total loss of 1.1 million units, with 600,000 to 700,000 attributable to the chip shortage and the remaining portion stemming from renewed COVID-19 lockdowns.

Luminar, a lidar technology company now publicly traded, has announced the addition of Dr. Mary Lou Jepsen and Katharine A. Martin to its board of directors. Dr. Jepsen is the CEO, founder, and chairman of Openwater, a firm specializing in MRI technology alternatives, and also serves on the Lear Corporation board. Ms. Martin chairs the board of Wilson Sonsini Goodrich & Rosati and is a partner at the firm’s Palo Alto office. These appointments join existing board members including Austin Russell, Alec Gores, and others.

Autonomous Vehicle Systems

Aurora has established a collaborative agreement with Toyota and Denso to jointly develop and test vehicles incorporating Aurora’s self-driving technology. The initial phase will involve a fleet of Toyota Sienna minivans, with testing expected to commence by the end of 2021, as stated by the companies involved.

It’s worth noting that Aurora completed the acquisition of Uber Advanced Technologies Group in December, a self-driving vehicle unit previously funded by Toyota, Denso, and SoftBank’s Vision Fund. The acquisition, finalized in January, involved Uber transferring its equity in ATG and investing $400 million into Aurora, resulting in Uber holding a 26% stake in the combined entity. Toyota also maintains a minority stake in Aurora following the acquisition.

Aurora’s co-founder, Sterling Anderson, clarified that this partnership represents a new initiative and isn’t merely an extension of Toyota’s prior agreement with Uber ATG. Nevertheless, parallels exist with a 2018 agreement between Toyota and Uber aimed at launching an on-demand autonomous ride-hailing service, which included a $500 million investment from Toyota.

Hyundai Motor Group unveiled an updated version of its “walking car” robot concept. This innovative design allows the vehicle to utilize its wheels for conventional travel or transition to a legged mode for navigating challenging terrains. The latest iteration is designed for cargo transport and is compact enough to be carried by a drone.

The TIGER robot – an acronym for transforming intelligent ground excursion robot – represents the first “uncrewed” ultimate mobility vehicle (UMV) concept originating from New Horizons Studio, Hyundai Motor Group’s UMV development facility in Mountain View, California.

John Suh, head of New Horizons Studio, expressed his commitment to realizing the Tiger concept “as soon as possible,” estimating a five-year development timeline. The initial two years will focus on resolving core technical challenges and establishing a foundational design. Beta-product development and advanced testing will follow in 2023 and 2024, culminating in a commercially available product.

Delivery Services

Cajoo, a French startup securing €6 million in funding, launched its services in Paris this week. The company focuses on providing rapid grocery delivery, promising orders fulfilled within 15 minutes via a mobile application.

Founded by Henri Capoul, Guillaume Luscan, and Jeremy Gotteland, Cajoo distinguishes itself through a full-stack approach. The startup operates its own micro-fulfillment centers, manages its own inventory, and directly controls its delivery fleet, as detailed by Techcrunch’s Romain Dillet.

Electric Vehicle Market

Audi introduced the 2022 e-tron Quattro GT and its high-performance variant, the RS e-tron GT. These vehicles represent flagship models in Audi’s expanding electric vehicle lineup and mark the company’s initial foray beyond electric crossovers and SUVs.

Royal Dutch Shell Group presented a five-pillar strategy for navigating a future defined by zero emissions and climate consciousness. This plan encompasses the installation of 500,000 EV charging stations, continued investment in hydrogen and natural gas alongside a 1-2% annual reduction in oil production, increased focus on lubricants, chemicals, and biofuels, expansion of renewable energy generation and carbon offsets, and investment in carbon capture and storage technologies.

As highlighted by TechCrunch climate editor Jon Shieber, Shell’s plan to deploy 500,000 EV chargers within four years underscores the burgeoning EV charging infrastructure boom attracting significant investor interest and driving companies toward public offerings to secure necessary capital.

Tesla engaged in discussions with Chinese authorities, including the State Administration for Market Regulation, the Cyberspace Administration of China, and the transportation authority, following consumer complaints regarding acceleration issues, battery fires, software malfunctions, and other vehicle concerns, as indicated by a government notice released Monday.

Tesla affirmed its commitment to “sincerely accept[ing] the government departments’ guidance” and “strictly comply[ing] with Chinese laws.” The company also pledged to enhance its internal operational structure and workflow under regulatory direction to ensure safety and protect consumer rights. A noticeable difference exists in Tesla’s communication style when interacting with China versus the United States.

Toyota Motor North America announced the introduction of three new electrified vehicles to the U.S. market, aiming to attract customers with a diverse range of lower-emission and zero-emission options. Two of these vehicles will be fully electric, while one will be a plug-in hybrid, with sales anticipated to begin in 2022.

Flight Technology

Aerion, a company dedicated to developing commercial supersonic flight technology, has entered into a new partnership with NASA focused on supersonic point-to-point travel. This collaboration is facilitated through a Space Act Agreement, enabling NASA to leverage private sector expertise to achieve its objectives.

Ride-Hailing Industry

Uber and Lyft both reported substantial financial losses in 2020, a consequence of the COVID-19 pandemic’s impact on ride-hailing demand, as analyzed by TechCrunch’s Alex Wilhelm. Uber’s revenue decreased from $13 billion in 2019 to $11.1 billion in 2020, while Lyft’s revenue fell from $3.6 billion in 2019 to $2.4 billion in 2020.

Using standard accounting principles, Uber’s net loss for 2020 amounted to $6.77 billion, an improvement from the $8.51 billion loss in 2019. However, utilizing Uber’s adjusted EBITDA metric, the losses were reported as $2.73 billion and $2.53 billion for 2019 and 2020, respectively.

Uber employs an adjusted EBITDA definition that excludes 12 different expense categories to achieve these figures. Despite these losses, Uber’s share price has quadrupled since the pandemic lows, currently exceeding $60 per share, despite shrinking revenue and projected future losses.

For a more in-depth analysis of Uber and Lyft’s earnings, refer to Alex Wilhelm’s comprehensive article on Extra Crunch.