The Station: Bird Drama & Zipline Funding - Tech News

The Station: A Weekly Transportation Newsletter

The Station is a newsletter focused on the world of transportation. Subscribe here — simply click The Station — to have it delivered to your inbox each weekend.

Greetings on this 4th of July! For those taking a break to enjoy the sunshine or prepare a barbecue, welcome to The Station. This weekly publication covers all methods of moving people and goods, both currently and in the future, from one location to another.

A Takeover from New Zealand

Kirsten Korosec, the regular host, is currently enjoying time outdoors. Therefore, please accept this edition from Auckland, New Zealand! Despite the cooler temperatures in the Southern Hemisphere and my unique position as an American here, I'm experiencing a strong sense of patriotism today.

It was 245 years ago today that the 13 colonies proclaimed their freedom and independence, gaining the authority to regulate trade and pursue well-being.

Independence and Innovation

As a journalist observing the evolution of technology, it’s clear that the core principle of the Declaration of Independence – the right to act autonomously – is thriving within the startup ecosystem.

Technological advancements, even within the transportation sector, are rapidly progressing, often outpacing the development of relevant rules and regulations. Consequently, governmental bodies are working to adapt.

The Need for Collaboration

Need an example? Today, I spoke with Lacuna CEO Hugh Martin, and a point he raised resonated deeply. Significant venture capital is being invested in startups developing technologies like eVTOL aircraft, air taxis, rockets, and drones.

However, consider this: what is the proportion of startups focused on these advanced technologies compared to the number of transportation departments with aviation divisions? Increased collaboration between the public and private sectors is crucial, and it’s needed urgently.

With that thought expressed, enjoy your celebrations!

Get in Touch

Feel free to email me at rebecca.techcrunch@gmail.com with your thoughts, feedback, or suggestions. You can also find me on Twitter, @rebeccabellan, but please refrain from sending direct messages.

Micromobility Updates

Bird is currently facing operational challenges, having suspended services in San Francisco, Santa Monica, and Zaragoza, Spain. The company’s scooters were absent from the streets of both California cities as of June 30th, coinciding with the launch of new permit regulations on July 1st.

In San Francisco, Bird operates under the name Scoot, a company acquired in June 2019 with a pre-existing decade-long presence in the city. Having been previously removed from San Francisco in 2018 alongside Lime, this represented a re-entry strategy. However, the SFMTA has requested a halt to Bird’s operations as the 2021 permit program commences, and is imposing penalties totaling $105,600.

The fines stem from Bird’s utilization of unauthorized subcontractors within its fleet management program. While the permit allows for subcontracting, prior approval and insurance verification are mandatory – requirements Bird failed to meet for at least three subcontractors. The SFMTA is postponing a decision regarding Bird’s reinstatement pending a thorough investigation.

A Bird spokesperson communicated to TechCrunch: “Scoot is proud of its nearly decade-long partnership with the city, providing shared micro electric vehicles to San Francisco.” They further stated their full cooperation with the SFMTA to resolve a clerical error that arose while supporting local businesses during the pandemic, and expressed eagerness to resume service to residents and visitors.

Lime and Spin, conversely, have received permission to continue operating in San Francisco, and will also be present in Santa Monica. Bird’s exclusion from the 2021 Santa Monica scooter program was largely attributed to deficiencies in safety features, affordability, customer service, and rider experience, as indicated by the city’s selection committee scorecard.

The company lodged an appeal and threatened legal action in May, but this week received a denial, with legal counsel advising a lack of grounds for a lawsuit, according to correspondence shared with TechCrunch. Veo and Wheels will also be providing services in Santa Monica.

Meanwhile, in Spain, the Zaragoza City Council has directed Bird to discontinue operations starting in September due to instances of non-compliance.

Veo has experienced recent success, including securing a New York permit. This week, the company introduced an e-scooter featuring integrated turn signals – a novel safety enhancement anticipated to be adopted by other industry players. These scooters will be deployed in Santa Monica and New York City next week.

Personal Micromobility Options

Rather than relying on shared scooters, consumers can now readily purchase their own light electric vehicles. Ridepanda, an electric micromobility dealership, simplifies the acquisition of scooters, bikes, and mopeds.

Their e-commerce platform showcases vehicles vetted for quality and parts availability. Upon ordering a curated vehicle, it is shipped directly to the customer, with optional assembly services available. The startup recently secured $3.75 million in funding, extending a previous seed round, with investment from Yamaha Motor Company, Porsche Ventures, and Proeza Ventures.

High-Performance Electric Vehicles

For those seeking a more exhilarating micromobility experience, Evolve Skateboards offers a solution. Their new Hadean Series skateboard achieves speeds of up to 31 mph and boasts a range of up to 42 miles on a single charge.

Constructed with a forged carbon composite frame, this skateboard is engineered for increased speeds and advanced maneuvers. Priced between $2,500 and $3,000, it is geared towards dedicated enthusiasts.

— Rebecca Bellan

Recent Investment Highlights

Zipline, a drone delivery company initially focused on medical supply distribution in Africa, has secured $250 million in new funding. This investment elevates the company’s valuation to $2.75 billion and will support the expansion of its logistical infrastructure across both Africa and the United States.

Significant investment is currently flowing into the realm of rapid logistics. While Zipline presently concentrates on healthcare deliveries, the company is poised to broaden its services into additional sectors over time. Strategic partnerships with entities like UPS in Rwanda, the Toyota Group in Japan, and Novant Health and Walmart in the U.S. demonstrate its growing influence.

Notable Funding Rounds…

A combined $25 million has been committed by Microsoft and Sompo Holdings as part of a collaborative effort with Wejo, a connected vehicle data startup. This partnership will facilitate the collection, storage, and analysis of data originating from a vast network of connected vehicles globally. This investment follows Wejo’s planned merger with Virtuoso Acquisition Corp., anticipated to finalize later this year, resulting in a total PIPE financing of $125 million.

Concerning SPAC transactions, EVgo, an electric vehicle charging station network, has finalized its business combination with Climate Change Crisis Real Impact I Acquisition Corp., announced earlier in January. The resulting entity, now operating as “EVgo Inc.,” has been publicly traded on the NASDAQ since July 2.

Turntide Technologies, a developer of sustainable technologies specializing in smart electric motor systems, has announced $225 million in convertible note financing. These funds will be allocated to projects aimed at reducing carbon emissions within the commercial building, agricultural, and transportation sectors.

The funding was provided by the Canadian Pension Plan Investment Board, Monashee Capital, JLL Spark, Breakthrough Energy Ventures, and Suvretta Capital Management, bringing Turntide’s cumulative funding to $400 million.

Ghost Locomotion, a company developing autonomous driving systems, has raised $100 million in Series D funding, led by Sutter Hill Ventures. Founders Fund, a previous investor, also participated, alongside Coatue. The capital will be directed towards research and development efforts as the company progresses in creating its highway self-driving and crash prevention technologies.

Gilmour Space Technologies, an Australian rocket launch startup, has secured $46 million in a Series C funding round. The funds will be utilized to prepare its small launch vehicle, Eris, for its inaugural spaceflight next year. Fine Structure Ventures spearheaded the round, with contributions from Australian venture capital firms Blackbird and Main Sequence, as well as Australian pension funds HESTA, Hostplus, and NGS Super.

Recall that we previously covered Onto, an electric vehicle subscription service based in the U.K. This business model is gaining traction, as evidenced by imove, a similar Norwegian company, which recently raised approximately $19 million in a Series A round. The round was led by AutoScout24, a pan-European online car market, Norselab, a venture capital player, and Nysnø, the Norwegian state climate investment company.

Jetstream, a software company headquartered in Ghana, has raised $3 million in seed funding. The company’s objective is to empower African businesses with visibility and control over their cross-border supply chains. It achieves this by aggregating private sector logistics providers at African ports and borders, integrating them into an online platform.

Investors in this round included Alitheia IDF, Golden Palm Investments, 4DX Ventures, Lightspeed Venture Partners, Asia Pacific Land, Breyer Labs, and MSA Capital.

Enedym, an electric propulsion and powertrain developer, has secured $15 million in funding led by P&A Paletta Giving Inc., TRIO Capital Group Inc., Napino Group, KWG Capital Inc., Pathfinder Asset Management Limited, and others. The Canadian firm intends to use the capital to accelerate the development of its patented motor technology and expand its presence in the electric motor market, encompassing automotive, micromobility, wind energy, and industrial applications.

Policy Updates

Welcome back to Policy Corner. Let's examine recent developments in the realm of transportation and autonomous vehicle regulation.

Mayors representing nine U.S. cities, including Los Angeles and Denver, have jointly appealed to federal legislators. They requested the inclusion of funding for advanced air mobility (AAM) planning grants within the current infrastructure bill under consideration by Congress. This letter, obtained by TechCrunch, emphasizes the necessity of federal grants to facilitate city-level preparation for AAM technologies.

The communication from the mayors is concise regarding specific financial requests. They propose a “modest” allocation of funds, estimated by sources to be in the low tens of millions. This would likely support planning studies in approximately 15 to 20 major metropolitan areas, each potentially costing around $1 million for a year-long assessment.

The gathered insights are intended to inform future regulatory decisions and potentially influence the upcoming Federal Aviation Administration reauthorization bill in 2023. It’s anticipated this data will be crucial for effective oversight.

A noteworthy statement within the letter anticipates the launch of this new transportation technology in 2024 and beyond. While eVTOL developers like Archer Aviation and Joby Aviation have publicly targeted 2024, timelines for emerging technologies are often subject to change.

These developments will continue to be monitored closely. Securing Congressional Republican support for AAM funding may prove challenging, given recent debates surrounding electric vehicle initiatives, but the relatively small funding request could be accommodated within the larger infrastructure package.

Autonomous Vehicle Crash Reporting

The National Highway Traffic Safety Administration issued a mandate on June 29th. This order requires both vehicle manufacturers (OEMs) and drivers to report crashes involving vehicles equipped with automated driving systems within 24 hours of becoming aware of the incident.

The regulation applies specifically to vehicles utilizing SAE Level 2 advanced driver assistance systems, as well as those operating at SAE Levels 3-5 automation. Reporting is mandatory for any crash resulting in hospital treatment, fatality, vehicle tow-away, airbag deployment, or involving a pedestrian or cyclist.

NHTSA intends to leverage the collected data to proactively identify potential safety concerns or defects within these technologies. “Mandatory crash reporting will provide the agency with access to vital data,” stated Dr. Steven Cliff, NHTSA’s acting administrator. “This will enable a swift response to emerging safety issues in automated systems.”

The agency believes that this data collection process will foster greater public trust in the federal government’s oversight of automated vehicle safety.

— Aria Alamalhodaei

Notable reads and other tidbits

Recent developments in the digital landscape have yielded a wealth of interesting articles and observations. Staying informed about these trends is crucial for professionals across various sectors.

Key Articles and Reports

Several publications have released insightful pieces worth noting. These cover a range of topics, from emerging technologies to shifts in consumer behavior.

• Artificial Intelligence (AI) in Marketing: A detailed report explores the increasing integration of AI tools within marketing strategies. It highlights the benefits of automation and personalized customer experiences.
• The Future of Work: An analysis examines the evolving nature of employment, focusing on remote work, the gig economy, and the skills needed for success.
• Cybersecurity Threats: A comprehensive overview details the latest cybersecurity risks and best practices for protecting sensitive data.

Interesting Observations

Beyond formal reports, several noteworthy observations have surfaced recently. These provide valuable context for understanding current trends.

• Voice Search Optimization: The growing popularity of voice assistants is driving a need for optimized content that answers conversational queries.
• Video Content Dominance: Video continues to be the most engaging content format, with platforms like TikTok and YouTube experiencing significant growth.
• The Metaverse and Web3: While still in its early stages, the metaverse and Web3 technologies are attracting considerable attention and investment.

Implications for Businesses

These readings and observations have significant implications for businesses of all sizes. Adapting to these changes is essential for maintaining a competitive edge.

Companies should prioritize investing in AI-powered tools, developing robust cybersecurity measures, and creating engaging video content. Furthermore, exploring the potential of the metaverse and Web3 could unlock new opportunities.

Resources for Further Learning

To stay up-to-date on these topics, consider exploring the following resources:

• Industry Blogs: Regularly read blogs from leading experts in your field.
• Research Reports: Access reports from reputable research firms.
• Online Courses: Enroll in online courses to deepen your understanding of specific technologies.

Continuous learning and adaptation are key to navigating the ever-changing digital world. Remaining informed allows for proactive decision-making and sustained success.

Extra Crunchy

An analysis by Alex Wilhelm delved into the financial aspects of Uber and its competitor in China, Didi, which is preparing for a U.S. stock market launch. While Didi’s initial public offering filing garnered significant attention, its estimated valuation is notably lower – by several tens of billions of dollars – than that of Uber, despite exceeding Uber in size and profitability.

Renaissance Capital has determined Didi’s valuation, based on a fully diluted share count, to be $67.5 billion. In comparison, Yahoo Finance estimates Uber’s value at $95.2 billion. Wilhelm suggests this disparity may stem from Uber’s broader global presence and diversified revenue sources, including its delivery services, whereas Didi primarily focuses on its Chinese ride-hailing operations.

Rimac Automobili recently shared insights with Kirsten Korosec regarding the challenges and successes of independently funding his electric vehicle company. This discussion took place during our TC Sessions: Mobility 2021 event.

GM’s latest venture capital investment, BrightDrop, is developing a comprehensive suite of electric vehicle hardware and logistics software. These products are specifically designed for businesses operating fleets and delivery services.

GM has committed $800 million to repurpose a manufacturing facility in Canada. Currently producing the Chevy Equinox, the plant will be retooled to manufacture the EV600 electric delivery van.

Electric Vehicles

NIO, a Chinese manufacturer of electric vehicles, has announced its delivery figures for June. A total of 8,083 smart electric vehicles were delivered, representing a year-over-year growth of 116%. The company reports nearly 22,000 vehicles were delivered during the second quarter.

Furthermore, approximately 42,000 vehicles were delivered in the first six months of 2021. These figures demonstrate significant progress for NIO in the EV market.

Honda's Electrification Plans

Honda is preparing to launch its inaugural electric SUV in North America during early 2024. The vehicle, named Prologue, symbolizes the commencement of the company’s “new electrified era.”

This launch signifies Honda’s commitment to expanding its presence in the growing electric vehicle sector.

Revel's Superhub Launch

Revel, initially known for its electric moped-sharing service, has expanded into various electric mobility ventures. The company has now officially opened its Superhub in Brooklyn.

This facility boasts 25 charging points in a single, easily accessible location. Revel claims it is the largest universal charging station currently available in North America.

Volvo's Electric Strategy

Volvo Cars recently outlined its strategy to fully electrify its entire vehicle lineup by the year 2030. The company intends to collaborate with partners such as Northvolt, Google, and Luminar to develop its future vehicle offerings.

Volvo also presented the first visuals of the “Concept Recharge,” an electric vehicle concept. This concept features a flat floor, dual interior screens, and rear doors that open from the vehicle’s center – often referred to as “suicide doors.”

Self-Driving Vehicles

Locomotion, an autonomous trucking firm headquartered in Pittsburgh, is proposing a convoy approach. This system involves a primary truck operated by a driver, with a subsequent truck following autonomously, staffed by a human passenger who can act as a backup operator.

The company communicated to TechCrunch that they believe this human-assisted methodology represents the most expedient and streamlined pathway to achieving commercial viability.

Insights from Industry Leaders

Chris Urmson, the CEO of Aurora, recently discussed the advancements his company is realizing in the commercialization of the Aurora Driver.

He also addressed the challenges and strategies involved in deploying this technology on a large scale.

Key Aspects of the Aurora Driver

Urmson highlighted the importance of rigorous testing and validation procedures.

These processes are crucial for ensuring the safety and reliability of the autonomous system.

Furthermore, he emphasized the need for continuous improvement and adaptation based on real-world data.

Locomotion's Convoy System Explained

The Locomotion convoy system aims to leverage the benefits of both autonomous and human control.

By having a human driver lead the convoy, the system can navigate complex scenarios more effectively.

The following autonomous truck benefits from the lead truck’s decisions, enhancing overall efficiency and safety.

Commercialization Strategies

Both Aurora and Locomotion are focused on practical strategies for bringing autonomous trucking to market.

These strategies include phased deployments, strategic partnerships, and ongoing technological refinement.

The Significance of Data in the Modern Business Landscape

Kruze Consulting, a financial and accounting firm specializing in venture-funded startups, has analyzed data from over 450 companies. Their findings, shared with TechCrunch, indicate a recovery in ride-share expenditure within the startup sector.

This analysis also reveals that Uber is strengthening its position as the dominant ride-share provider, surpassing Lyft in market share.

Furthermore, the cost per ride has increased compared to 2020 averages. This rise is likely attributable to a reduced availability of drivers.

Voi’s Research on Integrated Mobility Solutions

Voi, an e-scooter operator headquartered in Stockholm, has published research highlighting the benefits of collaboration between mobility providers and public transit authorities.

The study demonstrates that such partnerships can positively influence public transportation usage.

Case Study: Stuttgart’s Successful Integration

Specifically, a joint project involving Stuttgart’s rail operator, S-Bahn Stuttgart, and Voi, integrated Voi scooters with the Mobility Stuttgart application.

The results showed a notable increase in rail ticket purchases among Voi users, with a minimum rise of 35% observed.

This demonstrates the potential for synergistic effects when different modes of transportation are seamlessly connected.

The integration fostered a more convenient and accessible transportation ecosystem for commuters.

Recent Leadership Changes in Autonomous Vehicle Companies

Nuro, a leading autonomous delivery company, has recently announced the addition of James Owens to its leadership team.

Mr. Owens will be assuming the role of Head of Regulatory, bringing his expertise to navigate the complex landscape of autonomous vehicle regulations.

New Appointments at Cruise

Significant changes have also occurred at Cruise, the autonomous vehicle subsidiary of General Motors.

Anthony Gregory, previously holding the position of Vice President of Ground Operations at Southwest Airlines, has joined Cruise as the new Vice President of Market Development.

Key Personnel Updates

• Nuro: James Owens appointed as Head of Regulatory.
• Cruise: Anthony Gregory named VP of Market Development.

These appointments signal continued growth and strategic positioning within the rapidly evolving autonomous vehicle industry.

Both Nuro and Cruise are actively working to expand their operations and influence in the autonomous technology sector.

Recent Developments in Automotive and Transportation Technology

In 2015, Columbus, Ohio was selected as the winner of the U.S. Department of Transportation’s Smart City Challenge. The Smart City Columbus initiative, active from 2016 through mid-June 2021, focused on enhancing transportation systems and overall mobility through the implementation of cutting-edge technologies.

The city received a $50 million grant; this funding was utilized to explore and integrate a wide range of innovative solutions. Discover all the tech that was incorporated into this Smart City project.

Investment in Sustainable Technologies

BMW i Ventures, the venture capital division of BMW Group, has unveiled a new $300 million investment fund. This fund will be dedicated to supporting technologies that promote sustainability within transportation, manufacturing, and supply chain operations.

The focus extends beyond traditional automotive technology. It encompasses areas like sustainable materials for vehicle interiors and the reduction of carbon emissions in metal production.

Data Sharing for Enhanced Safety

Ford and insurance provider State Farm are collaborating to analyze vehicle data. The goal is to gain deeper insights into the correlation between safety features and insurance claim outcomes.

Ford’s Vehicle Build Data product will provide State Farm with detailed information regarding a vehicle’s features. This will enable a more comprehensive understanding of how advanced driver-assistance systems (ADAS) affect both the frequency and severity of auto claims. Reciprocally, State Farm will share claims data with Ford to inform future vehicle feature development.

Growth in Last Mile Logistics

Onfleet, a company specializing in last mile logistics management software, has recently achieved a significant milestone. They have successfully facilitated their 100 millionth delivery, alongside experiencing substantial company growth.

General Motors' Commitment to Climate Equity

General Motors has announced the establishment of a new $25 million Climate Equity Fund. This fund is designed to support initiatives that promote equitable climate action.

This initiative complements GM’s previously announced $35 billion investment in electric vehicles (EV) and autonomous vehicles (AV) technologies globally, planned through 2025.