TuSimple S-1 Breakdown: The Station

The Station: A Weekly Transportation Newsletter

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

Greetings to both regular subscribers and new readers, and welcome to The Station. Let’s quickly cover a few updates before we delve into the latest news.

Rebecca Bellan, who recently joined the TechCrunch writing team, will now be contributing to the micromobility segment. Her coverage will center on e-bikes, scooters, and other forms of personal transportation. Contact her at rebecca.techcrunch@gmail.com to submit micro-mobility related news or provide a helpful lead.

Market Maps and Exclusive Analysis

Previously, a new market maps article was announced. This in-depth exploration of specific transportation sectors has now been released. Penned by Abigail Bassett, it investigates the commercial landscape of augmented and virtual reality technologies within the automotive industry.

Please note that this particular article is available exclusively to Extra Crunch subscribers.

We are expanding our transportation-focused analysis within Extra Crunch. To date, Mark Harris has published an article concerning solid-state batteries, and Jason Plautz has explored the business models surrounding MaaS (Mobility as a Service) transit. Next week will feature an analysis of the market for repurposed batteries.

Stay Connected

My inbox is always accessible. Feel free to email me at kirsten.korosec@techcrunch.com with your thoughts, feedback, perspectives, or any relevant information. Alternatively, you can reach out via direct message on Twitter — @kirstenkorosec.

Lime's New Features and Micromobility Updates

Lime has recently introduced a series of new functionalities within its application, aimed at increasing the utilization of its expanding fleet of electric scooters. The company is now offering e-scooter access to individuals who haven't downloaded the app or prefer not to, addressing concerns related to storage space or simply a reluctance to install another application.

This is achieved through the integration of Apple’s App Clips and Android’s Instant App, allowing users to scan a QR code on the scooter to facilitate payment. Lime reports that this subtle approach is already demonstrating significant success in attracting new riders.

Furthermore, Lime has eliminated the reservation fee for securing a vehicle for up to 10 minutes. Feedback from developers indicated this charge was both superfluous and a deterrent to usage.

Testing revealed a marked increase in reservation feature adoption once the fee was removed. To enhance convenience for public transit users, the Lime app will now display a direct route to the nearest available scooter.

Additional App Enhancements

Riders can now activate a dark mode within the app, improving visibility and reducing eye strain during nighttime use. This feature aligns with the growing trend of dark mode options in other popular applications.

Micromobility News from Around the Globe

British Columbia has given the green light to e-scooter pilot programs in four cities within the Metro Vancouver area, alongside Kelowna and Vernon. Local governments were invited to express interest last year, and these regions have been selected to participate.

The specific companies that will be deploying dockless e-scooters on Canadian streets remain to be determined, though it is anticipated that established industry leaders will be involved.

E-Bike Tax Break Considered in Washington State

In Washington state, legislators are considering a bill that would provide a sales tax exemption for e-bikes. A state Senate committee is scheduled to hold a hearing this week to discuss the proposed legislation.

This bill aims to exempt e-bikes from the state’s existing 6.5% sales tax.

— Rebecca Bellan

Recent Investment Activity in the Automotive and Logistics Sectors

TuSimple completed its initial public offering (IPO), concluding months of anticipation regarding the autonomous vehicle company’s entry into public markets. Rather than pursuing a merger with a special purpose acquisition company (SPAC), the firm opted for the conventional IPO process.

The S-1 filing submitted by TuSimple presents a compelling overview of the company’s status. Several key details within the document are particularly noteworthy.

1. A significant portion of TuSimple’s equity is held by investors based in China. Principal stockholders of Class A shares include Sun Dream Inc. (holding 20%), Composite Capital Master Fund (7.28%), and Navistar (6%). Notably, Navistar is currently under the ownership of Volkswagen Group’s Traton Group. Co-founders Mo Chen and Xiaodi Hou possess 9.1% and 8.5% respectively, in Class A shares, and jointly control 100% of the Class B shares.

Sun Dream is controlled by Charles Chao, a board member and the chairman of Sina, the parent company of Weibo.

Despite a substantial presence and partnerships within the United States, TuSimple maintains strong connections to Chinese investors.

2. The Committee on Foreign Investment in the United States (CFIUS) is currently reviewing investments made by at least one of TuSimple’s investors. Specifically, CFIUS is examining shares held by Sun Dream, an affiliate of Sina Corporation, as detailed in the S-1 filing. The review process will involve a 45-day assessment period.

3. TuSimple reported a loss from operations totaling $177.9 million in 2020, exceeding the $84.8 million loss recorded in the prior year. The company experienced net losses from operations of $45 million in 2018, with an accumulated deficit of $405.2 million as of December 31, 2020.

The net loss attributable to common stockholders reached $198.8 million in 2020, an increase from $145 million the previous year. However, revenue increased to $1.8 million in 2020, up from $710,000 in the preceding year.

This demonstrates that TuSimple has incurred losses exceeding $307 million over the last three years, highlighting the substantial capital investment required for the commercialization of autonomous vehicle technology.

This observation strengthens the expectation that other autonomous vehicle companies, such as Aurora, will soon initiate processes to become publicly traded, potentially through traditional IPOs or SPAC mergers.

Additional deals attracting attention this week …

Automotus, a startup focused on curb management utilizing video analytics, secured $1.2 million in a seed funding round last month, spearheaded by Quake Capital, Techstars Ventures, Kevin Uhlenhaker (co-founder and CEO of NuPark, acquired by Passport), and Baron Davis. Further investment from Ben Bear, Derrick Ko, and Zaizhuang Cheng of micromobility firm Spin, brought the total funding to $2.3 million, as reported by CEO Jordan Justus to TechCrunch.

Baraja, an Australian lidar manufacturer, raised $31 million in a Series B round led by Blackbird Ventures. Main Sequence Ventures, Hitachi Construction Machinery, Regal Funds Management, Perennial Value Management, and InterValley Ventures also participated in the round.

The acquired funds will facilitate the continued deployment and refinement of the company’s “unique and ingenious” imaging system. As Devin Coldewey details, Baraja’s lidar technology, known as Spectrum-Scan, leverages physics to simplify light direction. A prism separates laser light by wavelength, and the same path is used for return transmission. His coverage from CES last year provides a more detailed explanation.

Baton, a San Francisco-based company aiming to establish drop zones for long-haul trucking, secured $10.5 million in a Series A funding round, co-led by 8VC and Maersk Growth, the corporate venture arm of logistics leader AP Moller-Maersk. The company’s post-money valuation now stands at $50 million, according to co-founders Nate Robert and Andrew Berberick in a statement to TechCrunch.

Investors in this round included Prologis, Ryder, Lineage Logistics, Project44 CEO Jett McCandless, KeepTruckin’ CEO Shoaib Makani, Clarendon Capital operating partner John Larkin, and Cooley LLC.

Blacklane, a Berlin-based startup offering on-demand black-car chauffeur services, completed a funding round of €22 million (approximately $26 million). Following a majority stake acquisition in Havn in February, Blacklane intends to utilize these funds to expand its sustainable travel initiatives and enhance its service offerings with more flexible options.

Flapper, a Brazilian on-demand private aviation company, raised $2 million in a Series A round led by Confrapar, an aerospace-focused fund. Crowdfunding platform SMU, angel investor group Investidores.VC, and several undisclosed air taxi companies also contributed. The company previously secured $1 million in seed funding, also led by Confrapar and ACE, Brazil’s largest accelerator.

Gorillas, a Berlin-based grocery delivery startup, secured $290 million in Series B funding, achieving a valuation exceeding $1 billion. The round was led by Coatue Management, DST Global, and Tencent, with participation from Green Oaks, Fifth Wall, and Dragoneer. Atlantic Food Labs, a previous investor, also contributed.

Hoppin, a Canadian travel startup, raised $170 million in a Series F round led by Capital One. The U.S. bank and credit card company will also serve as a strategic partner, launching Capital One Travel, the initial application of Hopper’s new B2B platform, Hopper Cloud.

Woven Capital, the investment division of Toyota’s innovation subsidiary Woven Planet, initiated its new $800 million strategic fund with an investment in autonomous delivery startup Nuro. The investment amount was not disclosed. However, it was part of Nuro’s $500 million Series C funding round announced last November, which also included investments from Chipotle, funds managed by T. Rowe Price Associates, Inc., Fidelity Management & Research Company, LLC, and Baillie Gifford.

Recent Developments and Industry Updates

This week’s newsletter has accumulated a substantial length, therefore, only a selection of noteworthy items will be highlighted below.

Self-Driving Technology

Cruise, the GM-owned autonomous vehicle company, is attempting to engage a younger demographic through the creation of a digitally-native persona for one of its vehicles. Known as “Poppy,” and identifying with she/her pronouns on Twitter, the vehicle debuted with a TikTok video showcasing a drive through San Francisco. Testing of Cruise’s self-driving technology on Bay Area roads commenced in December.

Plus is participating in a pilot program alongside SF Express, designed to demonstrate the benefits of automated driving systems in enhancing logistical efficiency. Currently, Plus is operating its supervised autonomous trucks on two key long-haul routes within China.

Yandex has released a detailed blog post outlining the progress of its autonomous vehicle development program in Russia. The company reports exceeding 6 million miles of testing, with a significant portion – approximately one-third – completed under Russian winter conditions. The post details the utilization of neural networks to mitigate the impact of snow on lidar data and address condensation issues from vehicle emissions and heating systems.

Electric Vehicle News

BMW Group, in collaboration with Pacific Gas & Electric, is initiating the next stage of a pilot project focused on evaluating how electric vehicles can contribute to the integration of renewable energy sources into the power grid.

Electric vehicle manufacturers are voicing opposition to the National Highway Traffic Safety Administration’s decision to postpone increases in penalties for automakers failing to meet fuel efficiency standards. Tesla has been particularly vocal, filing a petition with the Second Circuit U.S. Court of Appeals to review the ruling, asserting that the delay causes “ongoing, irreparable injury” and creates an “uneven playing field” by lessening the consequences of non-compliance.

Geely Automobile Holdings is introducing a new brand dedicated to premium electric vehicles, named Zeekr. Production of these vehicles will be managed by Zhejiang Geely Holding Group, the parent company. Initial deliveries of Zeekr vehicles are anticipated in the third quarter of 2021.

Jeep has established a partnership with Electrify America to develop the Jeep 4xe Charging Network. Branded EV charging stations will be strategically located at or near the trailheads of Jeep Badge of Honor off-road trails over the coming year. The first Jeep 4xe charging stations are slated to open this spring at popular off-road destinations: Moab, Utah, and the Rubicon Trail and Big Bear, both in California. (This initiative bears resemblance to the Rivian adventure network.)

Rivian is currently facing a lawsuit filed by car dealerships in Illinois, challenging its direct-to-consumer sales approach.

Tesla has begun accepting bitcoin as a form of payment, at least for customers located within the United States.

Ride-Sharing and Mobility Services

Uber is facing scrutiny in the U.K. regarding its implementation of facial recognition technology within its driver identity verification system. The App Drivers & Couriers Union and the Worker Info Exchange are urging Microsoft to suspend Uber’s use of the technology, citing instances of driver misidentification leading to license revocations by Transport for London.

Via has partnered with SMART, the public transit authority serving southeast Michigan, to launch an on-demand public transit service in the Detroit Metro area. SMART Flex, the new on-demand service, is intended to complement and extend the existing public transportation network in the region.