Tesla FSD Under Scrutiny, Turo IPO, Local Motors Closure

The Station: A Weekly Transportation Newsletter

The Station is a newsletter published every week, focusing on the diverse world of transportation. To subscribe and receive it directly in your inbox each weekend, simply click The Station.

Welcome to The Station

Greetings, readers! This newsletter serves as your primary resource for information regarding all methods of transporting individuals and goods, both current and emerging.

A Change in Hosts

I am assuming hosting duties this week while Kirsten Korosec, our regular host, is engaged in other commitments. (Kirsten adds: ‘Indeed, I am, though I do have a brief update to share further down.’)

Get in Touch

Your feedback is valuable. Feel free to reach out with any comments, suggestions, or insights you may have by emailing me at rebecca.techcrunch@gmail.com.

Micromobility Updates

Recent developments in the micromobility sector include significant changes for Spin, a company owned by Ford. A quarter of its workforce has been let go, and the company is preparing to cease operations in numerous cities globally.

This includes winding down services in select U.S. locations, Germany, and Portugal, with a projected closure in Spain by February 2022. According to a company blog post, CEO Ben Bear stated this restructuring aims to expedite the path to profitability, as challenges exist within open-permit market dynamics.

These shifts weren't entirely unexpected. Earlier in June, analysis suggested Spin was adjusting its approach to prioritize exclusive agreements with cities and campuses. This occurred alongside a change in leadership and speculation regarding a potential divestment from Ford. Ford has affirmed its continued support for Spin’s profitability goals.

It remains uncertain whether Bear anticipated these market closures as a necessary component of the new strategy. Previously, he indicated ambitious hiring plans and growth projections. It’s possible Spin anticipated cities would favor limited vendor permits, a trend potentially gaining traction in smaller cities crucial for micromobility expansion.

Micromobility World 2022 Highlights

This week also hosted Micromobility World 2022, a global gathering for enthusiasts and industry professionals. Several key discussions and announcements emerged from the event.

A conversation with Horace Luke, CEO of Gogoro, revealed insights into the company’s success in Taiwan. Luke emphasized the importance of convenient and rapid charging solutions, such as battery swapping, for increasing the adoption of micro-electric vehicles. He also highlighted the value of partnerships with local businesses for quicker market expansion.

Bird CEO Travis VanderZanden engaged in a discussion with Horace Dediu, focusing on leveraging the pandemic-driven micromobility momentum. The conversation centered on addressing climate change and urban congestion, demonstrating the viability of micromobility to cities, and exploring new vehicle designs for bike lanes.

Caroline Samponaro, VP of micromobility at Lyft, participated in a discussion with The Verge’s Andrew Hawkins regarding public-private partnerships. Samponaro discussed how Lyft’s docked bike-sharing programs contribute to public transit systems through reliable stationing.

She also addressed the challenges of operating a shared mobility business, including the need for city exclusivity, like CitiBike’s arrangement with New York City, and the substantial costs of insurance. Samponaro advocated for cities to move beyond vehicle-centric planning and embrace the synergy between bikes and scooters.

Additional Industry News

Electric vehicle manufacturer Rivian has filed a trademark application for the production of electric bikes. While the company declined to provide further details, this move indicates a growing interest among OEMs in the micromobility sector.

Lime is finally releasing its new Gen4 e-bike, beginning in Washington, D.C. This new model features a swappable battery compatible with the company’s scooters, potentially improving Lime’s financial performance through streamlined vehicle charging.

Trek Bicycle and World Bicycle Relief have collaborated on a philanthropic initiative, donating $1.8M to communities in developing regions. The funds were raised through consumer donations linked to Trek’s 2021 Bike of the Year, the WBR Buffalo Bicycle, designed for challenging terrains.

Helbiz is partnering with Wheels to deploy 2,500 seated e-mobility vehicles across four U.S. cities and two Italian innovation hubs next month, with plans for further expansion.

Cake is integrating Dometic’s temperature-controlled DeliBox onto its :work series bikes, creating an innovative delivery solution.

Seattle-based e-bike company Propella has launched its new model, the Mini, currently priced at $899 (plus $50 for U.S. shipping). This ultra-lightweight (33 lbs) single-speed, pedal-assist e-bike features 20-inch wheels, a range of 20-35 miles, and a top speed of 18 mph.

Retrospec has introduced its Koa Rev fat tire e-bike, equipped with shock absorbers, a range of up to 46 miles, a top speed of 20 mph, and a throttle, starting at $1,799.99.

This Week's Notable Deals

Turo, a peer-to-peer car-sharing platform, has submitted its documentation for an initial public offering in the United States. However, the details regarding the offering’s terms remain undisclosed at this time.

Founded in 2010, Turo facilitates vehicle rentals directly between car owners and renters via its website and mobile application – functioning as a car-focused equivalent to Airbnb. Rising car rental costs, driven by ongoing supply chain disruptions, are contributing to Turo’s increasing market presence and potential for growth.

The company’s S-1 filing reveals potential risks, including possible liability for illegal activities undertaken by its hosts. Instances of individuals utilizing Turo and similar platforms for human smuggling near the U.S. border have been reported. Furthermore, Turo may face legal challenges from airport authorities concerning the necessity of obtaining rental car operating permits.

Despite these challenges, significant opportunities exist for expansion both within the U.S. and on an international scale.

Additional investment activity of interest…

Arive, a rapid delivery service specializing in a broad range of consumer products, has secured $20 million in Series A funding. Balderton Capital spearheaded the investment, with participation from Global Founders Capital, Burda Principal Investments, La Famiglia, and 468 Capital.

Aptiv, a leading manufacturer of automotive components, is set to acquire Wind River, a software development company, for $4.3 billion in cash. This acquisition aims to enhance Aptiv’s capabilities in serving the rapidly evolving automotive industry, which is increasingly focused on autonomous and electric vehicles and reliant on software-defined systems.

Bolt, a provider of on-demand transportation and delivery services – encompassing ride-hailing, car and scooter sharing, and restaurant and grocery delivery – has raised $709 million, achieving an $8.4 billion valuation. These funds will be used to expand into new geographic markets and develop additional business lines, such as its 15-minute grocery delivery service through the establishment of more “dark stores.”

Delivery Hero, a German food delivery company, has divested $150 million of its stake in Rappi, a Latin American delivery service. This sale represents nearly the entirety of Delivery Hero’s initial investment in Rappi, as reported by Reuters.

EVage, an Indian startup specializing in all-electric commercial vehicles, has raised $28 million in a seed funding round led by RedBlue Capital, a U.S.-based venture capital firm. The company intends to utilize these funds to finalize construction of its production facility near Delhi in the first quarter of 2022 and to increase production capacity to meet growing demand.

HeyCharge, a German startup concentrating on charging solutions for underground parking facilities, has secured $4.7 million in seed funding. BMW i Ventures, the venture capital arm of BMW Group, led the investment round, with participation from Statkraft Ventures, the venture capital arm of Statkraft, a major European renewable energy provider.

Magna has completed the acquisition of the technology, intellectual property, and assets of Optimus Ride, a Boston-based developer of electric autonomous shuttle technology. While the financial details of the transaction were not revealed, Magna has onboarded over 120 Optimus Ride employees. The acquired technology will be integrated into Magna’s Advanced Driver-Assistance Systems (ADAS) offerings.

StoreDot, an Israeli company pioneering next-generation battery technology with its “extreme fast charging” (XFC) battery for electric vehicles, has secured the initial tranche of its latest funding round, led by VinFast, a Vietnamese electric vehicle manufacturer. The Series D round is projected to close with up to $80 million in funding.

Optimus Ride: A Historical Perspective

This article provides background information regarding Optimus Ride, the autonomous shuttle provider that recently concluded its operations and transferred its assets and intellectual property to Magna. Notably, approximately 120 engineers from Optimus Ride have also transitioned to Magna, bolstering the company’s capabilities in advanced driver-assistance systems.

Initial Plans for Public Offering

Information indicates that Optimus Ride explored the possibility of becoming a publicly traded company through a merger with a special purpose acquisition company (SPAC). Discussions surrounding this potential merger were initiated in early 2021.

The company aimed to secure between $400 million and $500 million in funding through this process. A completion of the deal was initially targeted for the end of the second quarter of 2021.

Challenges and Outcome

However, these plans ultimately did not materialize. Sources reveal that difficulties in securing investor commitment led to the failure of the proposed merger.

A shift in investor sentiment, specifically a decreased interest in mobility-focused SPACs, is cited as a key factor contributing to the deal's collapse. This ultimately led to the company’s decision to cease independent operations and sell its assets.

Magna’s acquisition of Optimus Ride’s assets and personnel signifies a strategic move to enhance its position in the autonomous vehicle technology sector.

Recent Developments and Industry Updates

Significant happenings are unfolding across the automotive technology landscape, impacting autonomous and electric vehicle sectors, as well as broader industry trends.

Autonomous Vehicle Technology

The California Department of Motor Vehicles is re-evaluating its regulatory framework concerning Tesla’s “Full Self-Driving” (FSD) beta software. This review stems from substantial evidence indicating the technology can lead vehicles into precarious scenarios, coupled with concerns raised by a state legislator.

For years, Tesla has been permitted to test its autonomous vehicle technology on public roadways without adhering to the same crash and system failure reporting requirements as other autonomous developers, such as Waymo, Cruise, Argo, and Zoox.

Interestingly, the DMV’s scrutiny coincides with the release of FSD update 10.3, which reintroduces driver profiles. These profiles are characterized by somewhat unconventional names like “Chill,” “Average,” and “Assertive.” The “Assertive” setting may allow for rolling stops, reduced following distances, more frequent lane changes, and a reluctance to yield passing lanes.

Ford is reportedly considering Dallas, Texas, as the location for its next autonomous vehicle development facility. City council members recently voted on an economic incentive package—a $3 million tax break and a $250,000 grant—to attract the OEM, potentially diverting investment from sites in California.

Local Motors, known for the Olli autonomous shuttle and the Rally Fighter, has ceased operations. Multiple employees have announced their job search on LinkedIn. This closure represents a further consolidation within the autonomous shuttle industry and marks the loss of an early pioneer.

Nuro, a leading autonomous delivery company, has unveiled its next-generation electric self-driving vehicle, developed in collaboration with BYD North America. The new “Nuro” vehicle, designed for cargo transport and not passenger carrying, boasts double the cargo capacity of its predecessor, customizable storage, temperature-controlled compartments, and enhanced safety features, including exterior airbags.

Serve Robotics, originating as an Uber spinout specializing in sidewalk delivery robots, is implementing its latest robots capable of Level 4 autonomy—operation without human intervention—for deliveries within designated geofenced areas of Los Angeles.

Waymo is solidifying its partnership with J.B. Hunt through a long-term agreement. This collaboration designates J.B. Hunt as Waymo Via’s initial launch partner for autonomous freight transportation when fully autonomous operations commence in Texas within the coming years.

Electric Vehicle News

Roberto Baldwin provided a First Drive review of the all-electric 2022 Mercedes AMG EQS and the V8-powered SL Roadster. Both vehicles represent the latest offerings from Mercedes’ high-performance division, delivering a blend of performance, luxury, and comfort.

Rivian announced the production of 1,015 vehicles in 2021, with 920 delivered by year-end. This figure falls short of the company’s initial target of 1,200 vehicles. Rivian currently holds over 71,000 pre-orders for its R1T pickup trucks.

General Motors has formally acknowledged California’s authority, under the Clean Air Act, to establish its own vehicle emissions standards. This recognition positions GM among the OEMs eligible for consideration for state fleet vehicle purchases.

Industry Observations

Jim Motavilli’s featured article this week explored the root cause of the ongoing automotive chip shortage: “feature bloat.” This refers to the industry’s tendency to equip vehicles with an ever-increasing array of technologies driven by competitive pressures.

The proliferation of auto tech showcased at CES—including systems that monitor driver behavior, schedule maintenance, integrate with smart home devices, and stream entertainment—demonstrates an overreliance on software-defined vehicles. The inherent unreliability of software and the potential for bugs raise concerns about the dependability of these features.

Motavilli notes that this trend has resulted in a challenging market reality for consumers, characterized by higher prices and limited availability of desired features.