The Station: Aurora SPAC Deal, Spin Strategy & Waymo One App Numbers

The Station: Your Weekly Transportation Update

Welcome to The Station, a newsletter focused entirely on the world of transportation. Subscribe now – simply click The Station – to have the latest news delivered to your inbox each weekend.

TC Sessions: Mobility 2021 is Approaching

The date for TC Sessions: Mobility 2021, a one-day virtual event, is rapidly approaching on June 9th. This event will convene leading experts and innovators within the transportation sector.

For those interested in attending, a complimentary pass granting access to the expo and breakout sessions is available. Simply use the code “station” during registration.

Exclusive Discount for The Station Readers

A special offer is extended to readers of The Station. To secure a full access pass, including access to the main stage featuring interviews with prominent figures such as Mate Rimac, Chris Urmson, and Pam Fletcher of GM, utilize the code “Station50” for a 50% reduction in the ticket price. Tickets are available here.

Additional Benefits of Attending

Purchasing a ticket provides a one-month subscription to Extra Crunch, alongside complete access to all conference video recordings.

A diverse range of companies will be represented, including:

• Aurora
• AutoX
• Gatik
• GM
• Hyundai
• Joby Aviation
• Motional
• Nuro
• Rimac Automobili
• Scale AI
• Starship Technologies
• Toyota Research Institute
• WeRide
• Zoox

…and many more.

Get in Touch

Share your insights, feedback, or tips by emailing me at kirsten.korosec@techcrunch.com. You can also connect with me directly on Twitter – @kirstenkorosec.

Micromobility Updates

Recent developments in the micromobility sector are largely centered around Spin, though the status of a potential spin-off from Ford remains undisclosed. Significant leadership changes are underway, with co-founder Derrick Ko transitioning to an advisory position, alongside fellow co-founders Zaizhuang Cheng and Euwyn Poon. Ben Bear, formerly Spin’s CBO, has been appointed as the new CEO.

Accompanying these personnel shifts is the unveiling of Spin’s strategy for securing dominance in the e-scooter market. The company is proactively pursuing exclusive vendor agreements with municipalities, aiming to prevent competition from other operators. Spin intends to establish itself as the preferred partner for cities and is outlining further initiatives to achieve this goal.

To emulate the success of CitiBike’s arrangement with New York City, Spin is expanding its offerings. The company plans to introduce 5,000 e-bikes over the coming months, beginning in Providence, Rhode Island in June, with subsequent deployments in several other mid-sized cities throughout the summer.

Spin is also highlighting its technological advancements designed to enhance scooter safety and reliability – key attributes for securing long-term city contracts. The company has launched its Drover AI-equipped scooters in Milwaukee, with planned expansions to Miami, Seattle, and Santa Monica. These scooters are capable of detecting improper riding on sidewalks and bike lanes, as well as verifying correct parking practices. Furthermore, Seattle, Santa Monica, and Boise, Idaho will soon receive Spin’s S-200, a three-wheeled adaptive scooter utilizing Tortoise’s remote repositioning technology to address issues like scooters left in gutters or needing relocation within urban environments.

Tier Mobility Secures Funding

Tier Mobility, based in Berlin and recently awarded a permit in London, has obtained $60 million in financing to facilitate fleet expansion and the development of its battery charging infrastructure. This funding takes the form of an asset-backed loan provided by Goldman Sachs.

E-Bike Developments

Lyft is currently testing a new e-bike model, initially in San Francisco, followed by Chicago and New York City. These sleek, white bikes, featuring subtle purple LEDs, are being deployed in various locations for public testing. Brian Heater of TechCrunch evaluated the bike, concluding that it is a well-designed and functional option.

Despite potential anti-theft measures on Lyft’s e-bikes, bicycle theft remains a growing concern. According to NPD Group, bike sales experienced a 63% year-over-year increase in June. Bike Index, a national bike registry, reports a corresponding surge in thefts. Between April and September, over 10,000 bikes were reported stolen to the service, compared to nearly 6,000 during the same period last year – a rise of almost 68%. This raises the question of when residential buildings will prioritize secure bike storage over parking spaces for automobiles.

Top Cities for Cycling

For those choosing to cycle despite the risk of theft, PeopleForBikes has identified the most bicycle-friendly cities.

“The highest-rated cities in the United States this year are Brooklyn, NY; Berkeley, CA and Provincetown, MA (each leading in the large, medium and small U.S. city categories, respectively). Internationally, top performers include Canberra and Alice Springs in Australia; Utrecht and Groningen in the Netherlands and Gatineau, Longueuil and Montreal in Canada, all within the province of Quebec.”

Cycling extends beyond recreation and commuting; it also serves as a means of employment. URB-E, a company aiming to replace delivery trucks with compact electric bikes, has partnered with PackItFresh as its final-mile refrigeration provider. PackItFresh’s totes maintain food at safe temperatures for up to 24 hours, reinforcing the case for supermarkets to transition away from traditional delivery trucks in favor of these more sustainable alternatives.

— Rebecca Bellan

This Week's Notable Deals

Allow me to present a review of recent activity in the investment landscape, focusing on the autonomous vehicle sector and beyond. While a particular arrangement isn’t yet finalized, its potential impact warrants discussion, and as this is my platform, I’m choosing to highlight it.

Specifically, I’m referring to Aurora, a company dedicated to autonomous vehicle technology, and discussions surrounding a possible merger with a special purpose acquisition company (SPAC).

To summarize for those who may have missed my previous report: Multiple sources within the financial industry have indicated that Aurora is nearing completion of a deal to merge with Reinvent Technology Partners Y. This SPAC was established by LinkedIn co-founder and investor Reid Hoffman, Zynga founder Mark Pincus, and managing partner Michael Thompson. Current estimates suggest a valuation of approximately $12 billion, with a potential announcement expected within the coming week. It’s important to note that representatives from both Aurora and Reinvent have declined to provide official commentary.

The team of Hoffman, Pincus, and Thompson, who advocate for a “venture capital at scale” approach, have previously launched three SPACs. Two of these have already resulted in mergers with private entities. Reinvent Technology Partners previously announced a merger with Joby Aviation, an electric vertical take-off and landing company, slated for listing on the New York Stock Exchange later this year. Reinvent Technology Partners Z, meanwhile, merged with the home insurance startup Hippo.

Could this potential deal still be subject to change? Certainly. However, my sources suggest the negotiations have progressed to a stage where a significant obstacle would be required to halt the agreement. It’s also worth mentioning the existing relationship between Hoffman and Reinvent with Aurora; Hoffman serves on Aurora’s board, and Reinvent is an existing investor. While this arrangement is somewhat unusual for a SPAC deal, it isn’t without precedent, as explored further in a related article by Connie Loizos.

Other Investment Highlights …

Getir, a grocery delivery application based in Istanbul, secured $550 million in new funding. This capital injection, which tripled the company’s valuation to $7.5 billion, followed a previous financing round just three months prior, as reported by the Financial Times. Having begun expansion beyond Turkey earlier in 2021, the company is now planning a launch in the U.S. market this year.

Faction Technology, a Silicon Valley startup focused on developing three-wheeled electric vehicles for both autonomous delivery and human-operated transportation, raised $4.3 million in seed funding. Trucks VC and Fifty Years led the investment round.

Flink, a Berlin-based on-demand grocery delivery service utilizing self-operated dark stores and a curated selection of approximately 2,400 items, secured $240 million to facilitate expansion into additional cities and countries. The company promises delivery within 10 minutes or less.

FlixMobility, the parent company of FlixBus and FlixTrain, completed a Series G funding round exceeding $650 million, valuing the Munich-based company at over $3 billion. Co-founders Jochen Engert and André Schwämmlein described the round as a combination of equity and debt, intended to support network expansion in both the U.S. and European markets.

Locus, a startup leveraging artificial intelligence to optimize business logistics, raised $50 million in a new Series C financing round. Singapore’s sovereign wealth fund, GIC, led the round, with participation from Qualcomm Ventures, Tiger Global Management, and Falcon Edge. This brings the startup’s total funding to $79 million, and values the India-based company at approximately $300 million, according to sources familiar with the matter.

Realtime Robotics announced a $31.4 million funding round, building upon a $11.7 million Series A announced in late 2019. Investors include HAHN Automation, SAIC Capital Management, Soundproof Ventures, Heroic Ventures, SPARX Asset Management, Omron Ventures, Toyota AI Ventures, Scrum Ventures, and Duke Angels.

Roadster, a digital platform providing dealers with tools for online vehicle sales, was acquired by CDK Global Inc. for $360 million. As a result of the all-cash transaction, Roadster now operates as a wholly-owned subsidiary.

Sennder, a digital freight forwarder specializing in European cargo transport, particularly full truck load (FTL) freight, secured $80 million in funding, achieving a valuation exceeding $1 billion.

Toyota Ventures, formerly known as Toyota AI Ventures, has undergone a rebranding and launched a new $300 million fund focused on emerging technologies and carbon neutrality. The capital is allocated to two early-stage funds: the Toyota Ventures Frontier Fund and the Toyota Ventures Climate Fund. This expansion brings Toyota Ventures’ total assets under management to over $500 million.

Trellis Technologies, an insurance technology platform, raised $10 million in Series A funding led by QED Investors, with participation from existing investors NYCA Partners and General Catalyst.

VTB, Russia’s second-largest lender, acquired a $75 million minority stake in car-sharing provider Delimobil, as reported by Reuters.

Waymo: A Statistical Overview

Recently, Waymo has been a frequent subject of consideration, extending beyond the previously discussed executive changes. My focus has been on evaluating the progress of Waymo One, its driverless ride-hailing service, and whether it is effectively expanding its operations within the Phoenix metropolitan area.

A notable development is the integration of Waymo One with Google Maps, enabling users to access and book rides directly through the platform.

However, questions remain regarding actual ridership figures. Sensor Tower, a respected mobile app market intelligence firm, has released some data offering a limited insight into user engagement and interest in the service.

Early Development and Testing

Waymo’s journey began with an early rider program launched in April 2017. This initiative allowed a select group of qualified individuals, all bound by Non-Disclosure Agreements (NDAs), to utilize autonomous Chrysler Pacifica hybrid minivans.

These vehicles were consistently monitored by human safety operators positioned behind the wheel.

In December 2018, the company officially introduced Waymo One, both the self-driving car service and its dedicated application. Initially, Waymo-trained test drivers remained present during ride-hailing operations.

Members of the early rider program were the first to transition to the Waymo One service, with the NDA requirement subsequently lifted.

Transition to Driverless Operation

The initial indications of Waymo’s readiness to operate vehicles without human safety personnel emerged in the fall of 2019. TechCrunch contributor Ed Niedermeyer was among the first in the media to experience a driverless ride.

These driverless rides were initially limited in scope and provided free of charge, remaining under the umbrella of the early rider program and its NDA stipulations.

Waymo gradually increased the proportion of fully driverless rides, reaching approximately 5-10% of its total rides in 2020 for its exclusive group of early riders still operating under NDA. The subsequent onset of the COVID-19 pandemic presented challenges.

In October 2020, Waymo announced that Waymo One members – those not subject to NDA restrictions – could invite family and friends to join them on fully driverless rides within the Phoenix region.

Existing Waymo One members received priority access to these driverless rides. The company then began extending access to a broader audience directly through its application, available on both Google Play and the App Store.

Waymo affirmed that 100% of its rides would be fully driverless, a commitment it has upheld. Currently, the application can be downloaded by anyone wishing to hail a driverless ride.

App Install Data

Returning to the data provided by Sensor Tower, monthly estimates for Waymo’s application installs from the U.S. App Store and Google Play have been shared.

The majority of installs originate from iOS, as the Waymo app only became available on Android in April 2021.

It’s important to note that these figures represent app installations, not actual ridership numbers. However, they do illustrate the growing interest in the service, particularly since February 2021.

Image Credits: Sensor Tower

Policy Updates

Welcome back to Policy Corner, providing the latest insights into relevant developments.

This week, a new infrastructure proposal emerged from Washington. The House Committee on Transportation and Infrastructure unveiled a bill allocating $547 billion over five years for improvements to the nation’s transportation systems.

Investment Focus

While the majority of these funds are earmarked for roads, bridges, and passenger rail, a significant portion—approximately $4 billion—is dedicated to expanding electric vehicle charging infrastructure.

An additional $4 billion is proposed for investment in zero-emission transit vehicles, furthering the push towards sustainable public transportation options.

This proposal supplements existing infrastructure plans put forth by President Joe Biden and House Democrats. It is anticipated that the bill, if enacted, will likely undergo revisions as Congressional Republicans seek to reduce its scope.

Further details regarding the bill can be found here.

Battery Supply Chain Strategy

President Biden is prioritizing battery manufacturing as a key strategy for recovering and reusing critical minerals essential to the EV supply chain.

This approach follows a shift away from earlier considerations of supporting domestic mining for minerals like lithium, instead favoring continued imports coupled with end-of-life recycling and reuse.

This decision presents a challenge for the American mining industry but is expected to benefit metal recycling companies.

Companies like Redwood Materials, based in Nevada, and Li-Cycle, a Canadian firm expanding its U.S. operations, stand to gain from this emphasis on recycling.

Mining and Environmental Concerns

Opposition to mining projects has largely stemmed from environmental and conservation organizations.

The situation in Nevada exemplifies this, where a proposed lithium mine faces potential suspension due to the presence of a rare wildflower.

Conservation groups are advocating for protected status for the flower, which, if granted, would effectively halt the mining operation.

Public Opinion on Electric Vehicles

A recent Pew Research Center survey revealed that 51% of Americans currently oppose phasing out the production of gasoline-powered vehicles.

The survey also indicated a correlation between exposure to information about EVs and a greater willingness to consider one for a future vehicle purchase.

• Americans generally acknowledge the environmental benefits of EVs.
• However, there is widespread agreement that EVs currently carry a higher cost.

Increasingly, Americans are becoming more receptive to the concept of EVs and understand their potential advantages, particularly regarding environmental impact.

Nevertheless, policymakers and automotive manufacturers still face the challenge of persuading a substantial portion of the population to adopt electric vehicles.

— Aria Alamalhodaei

Industry Updates and Developments

This week brings a collection of noteworthy updates within the autonomous vehicle and mobility sectors, encompassing new appointments and strategic initiatives.

7-Eleven has announced plans to establish a network of 500 direct-current fast charging stations at 250 locations throughout North America before the close of 2022. Notably, these charging ports will be directly owned and managed by 7-Eleven, differing from their fuel supply model which relies on external suppliers.

Executive Appointments and Personnel Changes

Baraja, a company specializing in lidar technology, has bolstered its leadership team with the addition of seasoned professionals. Paul Eichenberg, formerly of Magna and DaimlerChrysler, joins as chief strategy officer, while Jim Kane assumes the role of VP of automotive engineering.

Brian Heater, TechCrunch’s hardware editor, recently reported on a demonstration held by ride-hailing drivers in Long Island City, Queens. The drivers gathered to protest outside Uber’s offices in anticipation of a proposed state bill. They are advocating for the bill’s passage, as it would facilitate unionization for gig economy workers within the state.

Autonomous Vehicle Progress

Cruise, the autonomous vehicle division of GM – backed by SoftBank Vision Fund, Microsoft, and Honda – has obtained a permit allowing passenger transport in its test vehicles without a human safety driver present.

This permit, granted by the California Public Utilities Commission under its driverless pilot program, represents a significant regulatory milestone for autonomous vehicle deployment. While crucial, it's important to note that Cruise is not yet authorized to charge for rides during these test phases.

DeepMap is introducing RoadMemory, a crowdsourced mapping service. This innovative tool enables automakers to generate maps from data collected by their existing fleets of passenger vehicles and trucks. The company states this will accelerate geographic coverage and enhance support for hands-off autonomous driving capabilities.

Infrastructure and Partnerships

Joby Aviation is collaborating with REEF Technology, a leading parking garage operator, and Neighborhood Property Group, a real estate firm, to develop a network of vertiports. Initial development will concentrate on key metropolitan areas including Los Angeles, Miami, New York, and the San Francisco Bay Area.

Populus, a platform designed to assist cities in managing shared mobility services, streets, and curbside space, has launched a new digital car-sharing parking feature in Oakland. This feature aims to improve data collection related to car-sharing and streamline curbside payment processes. The product was initially introduced in 2018 and is undergoing continued expansion to additional cities.

Robotics and Design Innovation

Starship Technologies, a pioneer in autonomous sidewalk delivery, has appointed Alastair Westgarth as its new CEO. Westgarth previously served as CEO of Alphabet’s Loon, a project that was discontinued earlier this year. His prior experience also includes leadership roles at Quintel Solutions, Nortel, and Bell Mobility.

Yuri Suzuki, a partner at Pentagram, a design consultancy, recently completed research exploring the impact of electric vehicle sounds on user safety, experience, communication, and brand perception. This research culminated in the development of a diverse range of car sounds.