The Station: Didi Delisting, Chips Act Plea, and In-Car Crypto

The Station: A Transportation Newsletter

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

Greetings, readers! This is The Station, your go-to source for information regarding all forms of transport, both current and emerging, for both people and goods.

Year-End Reflections

Remarkably, we have arrived in the final month of the year. The volume of news has decreased somewhat, providing an opportunity to pause – or at least consider pausing – and assess the events of this year and their implications for 2022.

Later this month, comprehensive year-end summaries and forecasts for the future will be presented. Do you have any perspectives to offer? Feel free to share them, and they may be featured in a future edition.

We are particularly interested in your predictions concerning micromobility, electric vehicles (EVs), in-car technology, autonomous vehicles, and electric vertical takeoff and landing (eVTOL) aircraft.

Get in Touch

You can reach out to me with your thoughts, feedback, opinions, or any relevant information via email at kirsten.korosec@techcrunch.com.

Alternatively, you can send a direct message to me on Twitter – my handle is @kirstenkorosec.

We value your input and look forward to hearing from you.

Micromobility Updates

The Miami City Commission has made the decision to reinstate the e-scooter pilot program, following a temporary suspension prompted by safety considerations. It is possible that previous commentary influenced this outcome. E-scooters are scheduled to return to Miami’s streets on January 15th, accompanied by enhanced safety protocols.

These new measures include a mandatory helmet requirement for riders, a speed limit of 10 miles per hour on sidewalks, a prohibition of side-by-side riding, and a restriction limiting operation to two providers per city block. Potential conflicts between operators are foreseeable.

Segway, a prominent manufacturer of shared micromobility vehicles, is expanding its involvement into the realm of sidewalk delivery robotics. This represents a significant investment, with the company collaborating with Coco, a robotics firm, to provide the robotic platform for their latest delivery vehicles.

Segway is committed to producing 1,000 robots for Coco, with initial deployment planned for the first quarter of 2022.

Luna, a computer vision company currently working with Voi to prevent riders from utilizing sidewalks, has developed a demonstration of a cost-effective, app-based solution for operators.

This system requires riders to submit an “AI parking selfie,” allowing an algorithm to verify proper scooter parking location. While the underlying technology isn't novel, increasing municipal regulations regarding sidewalk usage and parking may make this a valuable, affordable option for many operators.

Gogoro and Gates, a company specializing in belt drive technology, have established a partnership to jointly develop “Flo Drive.”

This drivetrain system for two-wheeled vehicles will utilize Gates Carbon Drive and be exclusively offered to vehicle manufacturers within the Powered by Gogoro Network. The technology was showcased on the Gogoro Viva Mix Smartscooter at ECMA 2021 in Milan.

Equitable Access Initiatives

The Equitable Commute Project recently organized an e-bike distribution and training event at the HOPE Program offices located in the Bronx.

The initiative aims to provide 5,000 frontline workers with e-bikes, supported by subsidies and accessible financing options. Participating vendors at the event included Van Moof, The Hub NYC, Zoomo, Rad Power, and Ridepanda.

Urtopia, an e-bike company based in China, has launched its debut model, described by reporter James Trew as “the most technologically advanced model you’ll see this year.”

The bike features a 250W hub motor with three assist levels, a projected range of 30 to 80 miles, an integrated dot-matrix display, a fingerprint reader, GPS, 4G connectivity, mmWave sensors for vehicle detection, and a built-in alarm system.

Its aesthetic design, created by Mathis Heller – previously associated with BMW and Ikea – is also notably sleek. Pre-orders are available through Indiegogo for $2,000, with the retail price expected to double upon general release.

International Developments

Bounce, a company headquartered in Bangalore, has priced its inaugural electric scooter – a moped-style vehicle – at approximately $480. This positions them as a competitor to Ola in the Indian market.

The Infinity E1 boasts a swappable battery and a robust suspension system designed to withstand the challenging conditions of Indian roadways.

Surprisingly, Tesla is now featured in micromobility news. The company, currently generating anticipation for its Cybertruck, will soon offer a mini Cyberquad for children.

This scaled-down version will be available within the next two to four weeks at a price of $1,900, representing a significant cost for a toy but a relatively modest investment for a Tesla product.

— Rebecca Bellan

Recent Developments in Business and Technology

A significant shift is occurring with Didi, the prominent Chinese ride-hailing service. The company has initiated procedures for delisting from the New York Stock Exchange. This action follows reports indicating a request from the Chinese government, driven by concerns regarding national security.

As Rita Liao observes, this outcome was largely anticipated. Since its initial public offering earlier this year, which valued the SoftBank-supported company at $73 billion, Didi has encountered substantial regulatory scrutiny. This pressure stemmed from failing to adequately demonstrate secure data handling practices to Beijing. Consequently, the company’s market capitalization has decreased to approximately $37.6 billion.

A key challenge for Didi involves access to its application. Following a cybersecurity review in July, the company removed its app from Chinese app stores. Existing users can continue utilizing the app, but acquiring it is now difficult for new users or those with new devices, as Liao points out.

Didi remains committed to maintaining its public listing status, but will pursue this through the Hong Kong Stock Exchange.

Other noteworthy financial activity this week includes…

CloudTrucks, a California-based firm specializing in business management software for the trucking industry, secured $115 million in Series B funding. Tiger Global led the round, with contributions from Menlo Ventures, Flexport, and angel investors Michael Ovitz and Eric Wu, CEO of Opendoor. This brings the startup’s total funding to $141.6 million.

DispatchTrack, a provider of last-mile logistics software-as-a-service, has acquired Beetrack, a Latin American logistics software company. This acquisition will broaden DispatchTrack’s international reach, adding over 850 customers across 20 Latin American nations, including Chile, Peru, Argentina, Colombia, Mexico, and Costa Rica. Financial details of the transaction were not revealed.

Factorial Energy, a company focused on developing solid-state batteries for electric vehicles, has gained two new major automotive investors: Mercedes-Benz and Stellantis. Both companies will collaborate on battery co-development through separate agreements.

JOKR, a New York-based instant grocery delivery service operating throughout the Americas, raised $260 million in a Series B round. This follows a $170 million Series A funding round led by GGV Capital, Balderton Capital, and Tiger Global Management just five months prior. The new funding elevates JOKR’s valuation to $1.2 billion, achieving unicorn status.

Nubrakes, a mobile auto maintenance company offering on-demand services, completed a $9 million Series A funding round led by Canvas Ventures, bringing its total funding to $12 million. The company, currently operating in Texas, Georgia, Florida, and Tennessee, intends to expand its team, broaden its geographic reach, and introduce additional services.

Phoenix Motor is preparing to enter the public market. The company, being spun off from SPI Energy, has filed for a $150 million IPO. It specializes in the design, assembly, and integration of electric drive systems and light-to-medium duty electric vehicles, as well as the marketing and sale of electric vehicle chargers for both commercial and residential applications. EdisonFuture Inc. is among its subsidiaries.

Porsche Ventures has made an undisclosed minority investment in 1Komma5°, a German startup established five months ago. The startup aims to provide comprehensive solutions for carbon-neutral homes, including energy storage, EV charging infrastructure, and solar energy systems.

Upway, a French startup creating a marketplace for pre-owned electric bicycles, secured a €5 million seed round, equivalent to $5.7 million, from Sequoia Capital and Global Founders Capital.

Via, a company specializing in on-demand shuttles and related software, has raised an additional $130 million. This capital injection has increased the company’s valuation to approximately $3.3 billion, driven by growing demand from cities seeking to modernize their public transit systems. Janus Henderson led the round, with participation from BlackRock, ION Crossover Partners, Koch Disruptive Technologies, and existing investor Exor. The company has now raised a total of $800 million.

Policy Corner

Welcome back to Policy Corner, everyone!

Today, we’ll be focusing on state public utilities commissions. While often overlooked by mainstream media, these regulatory bodies significantly influence the future of decarbonization and, crucially for our discussion, the expansion of electric vehicle adoption.

Their power stems from the authority to establish charges for electric utility customers. These funds can then be allocated to incentive programs designed to encourage the use of EV chargers.

Consider this: Evergy Inc., an electric utility based in Kansas City, could initiate a program offering a $500 rebate to customers who install EV charging infrastructure in their homes. Evergy would initially cover these costs, subsequently recovering them through customer rates.

This approach effectively functions as a tax mechanism, bypassing the complexities of new tax legislation. While electric utilities aren't without potential drawbacks, such as possible inflationary effects when programs are funded, thoughtfully designed policies can accelerate EV adoption by reducing initial consumer expenses. (Further details on this can be found in this related article).

Now, let's shift our attention to the continuing semiconductor shortage. This week, Commerce Secretary Gina Raimondo stated that achieving the EV adoption targets set forth in President Joe Biden’s Build Back Better plan is unattainable without increased investment in domestic semiconductor production.

Her proposed solution involves Congressional approval of the Creating Helpful Incentives to Produce Semiconductors for America Act, known as the CHIPS Act. This is part of a larger initiative aimed at enhancing American competitiveness and lessening dependence on China.

The CHIPS Act specifically allocates over $50 billion to U.S. companies involved in semiconductor manufacturing.

Raimondo emphasized the urgency, stating that progress towards EV goals will be hampered without swift passage of the CHIPS Act. She noted that delays in approval represent a loss of valuable time.

Industry leaders concur with this assessment. Over 50 CEOs, representing companies like Apple, Ford, General Motors, Volkswagen America, Toyota North America, and Nvidia, jointly sent a letter to congressional leaders, urging immediate action on the bill.

The letter highlighted the imbalance between semiconductor demand and supply, leading to economic setbacks and job losses. It also underscored the need for a stronger domestic semiconductor manufacturing base to address supply chain vulnerabilities.

— Aria Alamalhodaei

Industry Updates and Notable Developments

Recent advancements and news are shaping the future of automotive technology and transportation services.

Self-Driving Technology

Aurora has published a blog post detailing crucial safety considerations for companies aiming to deploy autonomous vehicles without human safety operators. The post outlines key questions these companies must address.

Daimler Truck is progressing in autonomous Class 8 truck development, collaborating with both Waymo Via and Torc. They’ve created a scalable platform designed for SAE Level 4 autonomy, incorporating redundant systems for braking, steering, power, and communications to ensure operational safety.

A pilot program is underway in Mountain View, California, where 7-Eleven is partnering with Nuro to test autonomous delivery services. Currently utilizing Nuro’s self-driving Priuses, the initiative intends to expand using Nuro’s purpose-built R2 delivery vehicles, designed exclusively for package transport.

Electric Vehicle News

Electrify America has successfully installed over 30 megawatts of energy storage capacity at more than 140 of its ultra-fast DC charging stations across the United States. This achievement fulfills a goal initially set in 2019.

The company’s battery energy storage systems, utilizing Tesla Powerpacks, optimize energy usage by storing power during off-peak times and supplementing it during periods of high demand. This strategy minimizes grid impact and manages demand surges effectively.

Polaris has introduced the RANGER XP Kinetic, the first powersports vehicle resulting from its rEVd up electrification strategy, announced in September 2020. A 10-year exclusive partnership with Zero Motorcycles for off-road vehicles and snowmobiles is also in effect, alongside a collaboration with EV home charging provider Qmerit.

Polestar has revealed its plans for the next three years and offered a preview of the upcoming Polestar 3 SUV. A detailed analysis of the Precept concept highlights its role in visually representing the company’s future direction and goals.

Innovative In-Car Technologies

Reflecting the growing interest in cryptocurrency, Holoride has launched its Ride cryptocurrency token for public sale. Holoride, backed by Audi, is developing an in-vehicle virtual reality entertainment system for passengers.

This cryptocurrency launch is part of Holoride’s strategy to foster an extended reality (XR) ecosystem, encouraging developers to create games and experiences. Passengers will utilize the Ride token to purchase access to these immersive experiences, synchronized with the vehicle’s motion.

While aiming for a 2023 launch in private vehicles, Holoride has not yet specified which brands will integrate the XR system. Previous projections for a summer 2022 launch have been revised.

Executive Appointments

Lucid Group has recently announced several key personnel changes, including the appointment of Ralph Jakobs as vice president of program management. Emad Dlala has been promoted to vice president of powertrain, and Zak Edson now serves as vice president of sales and service.

Zum has appointed Liz Sanchez as its first executive vice president of school transportation. Sanchez will lead the expansion of Zum’s student transportation operations across the U.S., bringing over three decades of experience in school transportation, including a previous role as COO of North America Student Transportation for National Express School.