The Station: Bird, Tesla AI Day, and Nuro - TechCrunch
The Station: A Transportation Newsletter Update
The Station functions as a regularly distributed newsletter, focusing entirely on the realm of transportation. Interested individuals can subscribe by simply clicking The Station, ensuring delivery to their inbox each weekend.
Greetings to our readership! The Station serves as your primary resource for information concerning all methods of transporting individuals and goods, both current and emerging. This week, I am passing editorial control to reporters Aria Alamalhodaei and Rebecca Bellan.
A Deep Dive into Nuro
However, before my departure, I want to highlight the Nuro EC-1 series. This comprehensive investigation into the autonomous vehicle technology company was spearheaded by investigative science and tech reporter Mark Harris, with valuable contributions from myself and our editorial staff.
This in-depth analysis of Nuro represents a key component of Extra Crunch’s premium editorial content.
Nuro is at the forefront of developing driverless technology for local goods delivery.
Stay Connected
Feedback and suggestions are always welcome. Please feel free to reach out via email at kirsten.korosec@techcrunch.com.
Alternatively, you can connect directly through Twitter – my handle is @kirstenkorosec.
We value your input and strive to provide the most relevant and insightful transportation news possible.
Micromobility Updates
The city of New York has initiated its anticipated e-scooter pilot program within the Bronx. Over ninety designated parking areas for e-scooters have been established throughout the borough. Riders are also permitted to park on sidewalks, provided it doesn't create an obstruction.
Bird, Lime, and Veo have been selected as the operators for this pilot initiative, each contributing unique capabilities and strengths to the program.
Bird intends to address transportation gaps within the Bronx. They will utilize an AI-powered deployment system to ensure equitable distribution of scooters across all neighborhoods included in the pilot zone. Veo prioritizes rider safety and accessibility, introducing the Astro VS4 – the first e-scooter equipped with integrated turn signals – alongside its Cosmo, a seated e-scooter model. Lime is also concentrating on accessibility through its Lime Able program, offering a range of adaptive vehicles on demand. Furthermore, Lime will require all new users to complete a safety assessment before their first ride.
Each of the three companies has committed to collaborating with local community organizations. This collaboration will focus on local hiring practices and the provision of reduced pricing options for vulnerable populations.
Significant Developments for Bird
Bird has not only commenced operations in New York City, but has also secured a twelve-month permit to deploy 1,500 scooters in San Francisco. Technically, the permit was granted to Scoot, a company owned by Bird, effectively serving as Bird’s entry point into the city. Last month, the SFMTA requested Scoot to suspend operations as new scooter permits were being issued. This was due to the company’s implementation of its fleet management program using unauthorized subcontractors.
Following a thorough review of Scoot’s application on Friday, the SFMTA determined that Scoot met the requirements for permit approval. Scoot anticipates resuming services within the coming weeks.
Bird has also officially unveiled its consumer e-bike, named the Bird Bike (a name also used for their shared e-bike service). Given the challenges Bird, and many other scooter companies, have faced regarding profitability, this represents an opportunity to diversify revenue streams. The company aims to capture a portion of the $68 billion e-bike market and enhance brand recognition. The bike is priced at $2,229, and consumer sales are projected to contribute approximately 10% to Bird’s overall revenue, according to the company’s S-4 filing.
Both Bird and Scoot are now integrated with Google Maps. Spin has also recently joined this integration, as announced this week. These integrations, mirroring the recent partnership between Lime and Moovit, highlight the increasing incorporation of shared micromobility into urban transportation planning and navigation. Such integrations are highly beneficial.
Alex Wilhelm recently analyzed new financial data released by Bird. The key takeaway is that the data indicates an improving economic model and a potential pathway to profitability over several years. However, Wilhelm reports that this path relies on the successful coordination of numerous factors without any setbacks.
— Rebecca Bellan
This Week's Notable Funding Rounds
A vision of the future is taking shape, where electric vehicle owners bypass charging stations in favor of quick battery swaps at conveniently located roadside stations. Ample is actively pursuing this concept, and recently secured $160 million in new funding to broaden its operational reach.
This Series C funding round attracted investment from a diverse international group, spearheaded by Moore Strategic Ventures. PTT, a state-owned oil and gas enterprise based in Thailand, and the Disruptive Innovation Fund were also key participants. Furthermore, existing investors including Eneos, a Japanese energy company, and SMRT, Singapore’s public transportation authority, contributed to the round, bringing Ample’s total funding to $230 million.
The success of this model hinges on significant collaboration with automotive manufacturers. This would ideally involve the sale of vehicles equipped with either a standard battery or Ample’s battery system integrated during production. However, Ample’s co-founders, John de Souza and Khaled Hassounah, believe that separating the battery from the vehicle isn’t a complex undertaking for OEMs.
Hassounah explained that marketing teams often emphasize the tight integration of batteries within vehicles, suggesting separation is impractical. He countered this claim, stating that batteries are, in reality, constructed as independent units – a principle applicable to nearly all vehicles, including those manufactured by Tesla.
He further elaborated that Ample’s system is designed for seamless compatibility with various vehicle types, effectively isolating the battery component from the vehicle’s core systems.
Additional investment highlights from the past week include…
AEye, a company specializing in lidar technology, finalized its merger with CF Finance Acquisition Corp. III, a special purpose acquisition company. Following the merger, AEye began trading publicly on the Nasdaq stock exchange.
Canada Drives, an online platform for car shopping and delivery, announced a $79.4 million (CAD $100 million) Series B funding round. These funds will be allocated to expanding service availability throughout Canada, enhancing the platform’s features, increasing inventory, and recruiting approximately 200 new employees, with a focus on product development.
Emerging from stealth mode, DigiSure, a digital insurance provider focused on new mobility solutions like peer-to-peer marketplaces, revealed a $13.1 million pre-Series A funding round. The company intends to utilize these funds to expand its team by hiring over 50 professionals, including engineers, data scientists, and insurance specialists, and to extend its reach into new markets, including Europe.
High Definition Vehicle Insurance Group, a commercial auto insurer initially concentrating on the trucking industry, secured $32.5 million in Series B funding. Weatherford Capital led the round, with participation from Daimler Trucks North America, McVestCo, Munich Re Ventures, 8VC, Autotech Ventures, and Qualcomm Ventures LLC.
RepairSmith, a mobile auto repair service delivering mechanics directly to customers, raised $42 million in funding to facilitate expansion into major metropolitan areas by the end of 2022. The company aims to modernize the traditionally slow-to-change auto servicing and repair industry.
REE Automotive received a $17 million grant from the UK government, as part of a larger $57 million investment managed through the Advanced Propulsion Centre. This investment supports the UK government’s commitment to accelerating the adoption of zero-emission vehicles.
Swvl, a Dubai-based transit and mobility company, is extending its operations into Europe and Latin America following the acquisition of a controlling stake in Shotl. Shotl operates in 22 cities across 10 countries, connecting passengers with shared shuttle and van services. The company collaborates with local governments to provide transportation options for communities underserved by conventional public transit. While Swvl did not disclose the financial details of the acquisition, a spokesperson indicated that the company’s operational scope has effectively doubled.
Xos Inc., a manufacturer of electric commercial vehicles ranging from Class 5 to Class 8, completed its business combination with NextGen Acquisition Corporation. This transaction resulted in Xos’s debut on the Nasdaq exchange as a publicly traded company.
Recent Developments in Automotive Technology
Several noteworthy events and updates have emerged within the automotive sector, spanning advanced driver-assistance systems, autonomous vehicles, electric vehicle production, and in-car technology.
Advanced Driver Assistance Systems
Investigations surrounding Tesla are multiplying. The National Highway Traffic and Safety Administration has initiated a preliminary investigation into Tesla’s Autopilot system, following 11 reported incidents where vehicles impacted stationary emergency responder vehicles while the system was active.
Documents from the investigation reveal that the Tesla vehicles involved either had Autopilot or Traffic Aware Cruise Control engaged. The majority of these collisions occurred during nighttime conditions, even with established scene control measures like emergency lights and traffic cones in place.
Furthermore, Senators Edward Markey and Richard Blumenthal have requested that the Federal Trade Commission examine Tesla’s claims regarding the autonomous capabilities of its Autopilot and Full Self-Driving systems.
The senators voiced concerns that Tesla may be misleading consumers about the true level of autonomy offered by these systems. They urged the FTC to investigate potentially deceptive practices and enforce safety standards for all road users.
Autonomous Vehicles
Waymo, the autonomous driving division of Alphabet, is significantly expanding its autonomous trucking operations throughout Texas, Arizona, and California.
The company is establishing a dedicated trucking hub in Dallas and collaborating with Ryder for fleet management solutions. This hub will serve as a central point for testing both the Waymo Driver and a transfer hub model, optimizing routes for automated and manual driving segments.
Electric Vehicles
Canoo anticipates production of 25,000 units from its manufacturing partner, VDL Nedcar, by the year 2023, as stated by CEO Tony Aquila during the company’s earnings call.
The company has increased its workforce from 230 to 656 employees, with 70% dedicated to hardware and software engineering. Operating expenses have risen year-over-year from $19.8 million to $104.3 million, largely due to increased investment in research and development.
Ford, Stellantis, Toyota, and Volkswagen have all announced production cuts this week in response to the continuing global semiconductor shortage, marking a challenging period for the industry.
Toyota projects a production decrease of 60,000 to 90,000 vehicles in North America during August. Ford will temporarily suspend production at its F-150 plant in Kansas City. Volkswagen indicated potential for further production adjustments. Stellantis is halting production at a French facility.
Tesla introduced the “D1” computer chip, designed to power its Dojo supercomputer for advanced AI training, during its AI Day event on Thursday.
According to Tesla’s Ganesh Venkataramanan, the D1 chip delivers GPU-level performance with CPU connectivity and enhanced I/O bandwidth. A “training tile” integrating multiple chips achieves 9 petaflops of computing power and 36 terabytes per second of bandwidth.
Moreover, CEO Elon Musk revealed the development of a humanoid robot, with a prototype planned for 2022. This robot is envisioned as a non-automotive application for the company’s neural network technology and the Dojo supercomputer.
It’s important to note that Tesla is not alone in exploring humanoid robotics; Honda’s Asimo, Toyota, GM, and Hyundai’s Boston Dynamics have all pursued similar projects.
A comprehensive overview of Tesla’s AI Day can be accessed here.
In-car Technology
General Motors and AT&T are preparing to deploy 5G connectivity in select Chevy, Cadillac, and GMC vehicles starting with the 2024 model year.
This upgrade aims to provide more reliable software updates, faster navigation and downloads, and improved coverage. While 5G technology promised rapid advancements, network deployment has been slower than anticipated, suggesting AT&T anticipates a mature 5G network capable of supporting millions of connected vehicles by 2024.
Ride-Hailing
RubiRides, a new ride-hailing service specializing in transporting children, has launched in the Washington D.C. metropolitan area.
Designed for children aged 7 and older, the service also caters to seniors and individuals with special needs. The company was founded by Noreen Butler, who sought a reliable transportation solution for her children’s busy schedules.