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Greetings and welcome to The Station, a newsletter exploring both current and developing methods for moving people and goods from one location to another.

To all of our readers in the United States, I trust you enjoyed a fulfilling Thanksgiving break during this unusual year. My wish for all Station subscribers, regardless of location, is a safe and well-being-filled conclusion to the year (and the years to come!). Even during my time away last week, significant news continued to emerge. One study in particular caught my eye: research from EY investigating how perspectives on public transportation, mobility services, and personal vehicle ownership are evolving as a result of the COVID-19 pandemic. Let’s dive in!

Feel free to reach out to me at kirsten.korosec@techcrunch.com with any feedback, critiques, perspectives, or information you’d like to share. You can also connect with me directly on Twitter — @kirstenkorosec.

Micromobbin’

Lime is deploying an additional 1,000 scooters throughout San Francisco, a move facilitated by the company’s acquisition of Jump’s operating permit within the city. As a reminder, Lime currently owns Jump as the result of a multifaceted agreement involving Uber.

The company has also shared data regarding scooter usage in San Francisco, illustrating a shift in trip origins and destinations away from the central business district and towards areas such as the Mission, Castro, and Hayes Valley. Lime reports that this evolving trend in ridership aligns with observations nationwide, as more journeys now begin and end in residential communities following the onset of the COVID-19 pandemic.

In other news …

CAKE, a Swedish manufacturer specializing in lightweight electric motorcycles, and Northvolt, a leading European battery provider, are collaborating to create innovative battery cells specifically for CAKE’s electric motorcycle lineup. The partnership will focus on research, development, and testing throughout 2021, with the resulting technology expected to be integrated into 2022 models.

Deal of the week

Yet another day brings news of a special purpose acquisition company (SPAC). Is anyone anticipating the release of a comprehensive S-1 filing?

Metromile, a pay-per-mile vehicle insurance provider, has been recognized for addressing certain inefficiencies within the traditional auto insurance industry, particularly in how premiums are calculated. Rather than a conventional fixed rate, the company bases charges on the distance driven by its customers, a figure it accurately tracks through a device connected to the vehicle.

This type of business model appeared well-positioned to attract new customers during the COVID-19 pandemic. This expectation ultimately proved true. However, the period between existing customers driving less and the influx of new Metromile users led the company to reduce its workforce by approximately one-third.

The company has since experienced a recovery and is now pursuing a path to public markets through a SPAC merger. Metromile intends to combine with INSU Acquisition Corp. II, a special purpose acquisition company, resulting in an equity valuation of $1.3 billion. The company secured $160 million in private investment in public equity (PIPE) funding, with the investment round spearheaded by Social Capital, the firm led by Chamath Palihapitiya.

Metromile intends to utilize these funds to decrease its current debt and stimulate expansion, specifically by increasing its employee base to support both its consumer insurance and enterprise divisions. The company also aims to broaden its operational reach from its current eight states to 21 states by the end of the coming year, and to achieve nationwide coverage by the end of 2022.

For further information regarding the Metromile SPAC transaction, please refer to my detailed report. To gain a more comprehensive understanding of the insurance technology sector, consult Alex Wilhelm’s analysis.

Another substantial transaction

Manbang – often referred to as the “Chinese Uber for trucks” – was established in 2017 through the consolidation of competing companies Yunmanman and Huochebang. The company’s application connects truck drivers with merchants needing cargo transportation and offers financial services tailored to truckers.

Investors evidently have a strong appetite for businesses centered around freight-matching applications. Manbang represents the latest instance of this trend, having secured $1.7 billion in funding from a consortium led by Softbank Vision Fund, Sequoia Capital China, Permira, and Fidelity. Additional investors included Hillhouse Capital, GGV Capital, Lightspeed China Partners, Tencent, Jack Ma’s YF Capital, and others.

This investment follows a $1.9 billion funding round completed just two years prior. Manbang reported achieving profitability this year, and its valuation was projected to reach $10 billion in 2018.

It’s raining dollars!

Specifically, for Tesla.

You are likely aware, but for those who may have missed it, Tesla’s market capitalization exceeded $500 billion last week. Currently (as of Monday), it stands at $547 billion – more than a fivefold increase since the beginning of the year.

This value is anticipated to continue rising with the company’s upcoming inclusion in the S&P 500 Index. When Tesla is added to the S&P 500 on December 21, it will rank among the most highly valued companies within the benchmark. Its influence will be so significant that S&P DJI is considering whether to incorporate the stock at its full float-adjusted market capitalization weight immediately or in two phases.

Tesla’s inclusion in the S&P 500 is not merely a symbolic gesture. Joining the S&P 500 provides tangible financial advantages, as investors with index-tracking funds will be required to purchase shares. Given the current increase in share prices, this will necessitate investors selling other holdings to accommodate Tesla.

The rise of the car

As December approaches, I am receiving – and anticipate continuing to receive – numerous year-end reports, analyses, and predictions for 2021.

A recent investigation by EY, analyzing information from nine nations, indicates that the concept of mobility as a service (MaaS) is experiencing a slowdown in growth compared to personal vehicles like cars, trucks, and SUVs.

Millennials are a key factor in this shift. The 2020 EY Mobility Consumer Index, based on responses from over 3,300 individuals across nine countries, revealed that 31% of those who currently do not own a vehicle are planning to purchase one within the next six months, with millennials comprising 45% of these prospective buyers. The research also showed that only 6% of individuals without cars are considering an all-electric vehicle as their next purchase.

Over three-quarters (78%) of those surveyed stated they anticipate relying more on their personal cars for transportation in a post-pandemic environment, with millennials representing over half of this group (52%), as per EY’s findings.

This trend extends beyond the United States. Survey participants from Italy (47%) and Germany (46%) expressed a greater likelihood of buying a new car. Respondents from China demonstrated the highest inclination towards increased car usage (90% of respondents), followed closely by India (85%) and Germany (81%).

Conversely, the utilization of public transportation is projected to decrease by approximately 30%.

John Simlett, EY Global Future of Mobility Leader, presents a series of questions within the study:

Readers: What are your answers? Please share them with me.

Notable reads and other tidbits

Here’s a collection of the latest news items you’ll find interesting.

Ford’s completely electric Mustang Mach-E is projected to travel between 211 and 300 miles on a single charge, contingent on the specific model. Although the Mach-E achieved Ford’s anticipated range, it falls short when compared to the range offered by its competitors.

Gatik, an autonomous vehicle company concentrating on logistical transport, is extending its operations into Canada through a collaboration with the major retailer Loblaw. Alongside announcing $25 million in new investment, the company currently utilizes its self-driving delivery trucks to fulfill Walmart customers’ online grocery orders.

Beginning in January 2021, Gatik will be operating five autonomous box trucks in Toronto to transport merchandise for Loblaw. These vehicles will operate daily, seven days a week, along five designated routes on public roadways. Each vehicle will include a safety driver present as a backup. Following a ten-month trial period in the Toronto region, this initiative represents the first autonomous delivery fleet to be deployed in Canada.

General Motors has altered its position in a legal dispute concerning the authority of states—particularly California—to establish vehicle emission standards and other regulations designed to lessen climate change that exceed federal requirements. The automaker announced it will no longer support the lawsuit initiated by the Trump administration to prevent California from enacting its own regulations.

May Mobility, an autonomous shuttle company with backing from Toyota, has established a new partnership with Via, an on-demand shuttle service provider. (This information was not included in the previous newsletter.) The goal of this collaboration is to leverage each company’s strengths to broaden service availability to additional cities in 2021. May Mobility will integrate Via’s fleet platform for managing bookings, route planning, passenger and vehicle allocation, customer experience, and overall fleet operations for its autonomous vehicles.

In India, Ola, Uber, and other ride-sharing companies will be limited to collecting a commission of no more than 20% of each ride fare. These new regulations represent a challenge for the SoftBank-supported companies, which are currently working to improve their financial performance in this important international market.

These guidelines, which for the first time place contemporary app-based ride-hailing services under a formal regulatory structure within the country, also impose restrictions on “surge pricing”—the increased fares that Uber and Ola apply during periods of high demand, as reported by TechCrunch’s Manish Singh.