the station: london scooter winners and ford’s most important ev
The Station: A Weekly Transportation Newsletter
Welcome to The Station, a newsletter focused on the evolving landscape of transportation. It delivers insights into the movement of people and goods, both presently and in the years to come, directly to your inbox each weekend. To subscribe, simply click The Station.
Recent Extra Crunch Content
Before diving into the latest news, attention is drawn to two recent articles published on Extra Crunch. Access to these pieces requires a subscription, but the increased focus on transportation analysis and exclusive features within Extra Crunch is intended to provide substantial value.
Founder Q&A Series
A series of interviews with transportation industry founders is currently being expanded. The inaugural interview featured Frank Reig, founder and CEO of Revel. This week, the spotlight is on Denis Sverdlov, founder of Arrival.
Sverdlov’s entrepreneurial journey began at the age of 22 with the establishment of a company specializing in IT consulting software for large businesses. He has since successfully founded and sold several companies, including the telecommunications firm Yota Group, and was also the originator of Roborace.
Upcoming Interviews
Two further interviews are scheduled for release. These will feature Candice Xie, co-founder and CEO of Veo, and Matthew Johnson-Roberson, co-founder of Refraction AI.
Voice Recognition in Vehicles
A recent article explored the growing market for voice recognition technology within automobiles. This space sees competition among major technology companies, such as Google and Amazon, alongside emerging startups and established providers like Cerence.
Stay Connected
Feedback and contributions are always welcome. Feel free to reach out via email at kirsten.korosec@techcrunch.com with any thoughts, critiques, or suggestions. Alternatively, you can connect directly on Twitter – @kirstenkorosec.
Micromobility Updates
Dott, Lime, and TIER have been selected to operate shared e-scooter services in London following a competitive bidding process. The initial pilot program, slated to begin on June 7th, will launch across select London boroughs, including Canary Wharf and the City of London. Further expansion to additional neighborhoods is anticipated throughout the year, as per Transport for London (TfL) plans. Lambeth and Southwark are also currently exploring participation in the scheme.
The rollout will begin with a fleet of between 60 and 150 scooters available within each participating borough. This development is particularly noteworthy as London represents a significant market for micromobility solutions, and TfL is prioritizing the collection of data from these operators.
This data will be instrumental in evaluating the potential integration of e-scooters into a comprehensive and sustainable transport recovery strategy following the pandemic.
Addressing Equity in Micromobility
A report, “Cementing an Equity Framework for Micro Mobility,” published by the Bedford Stuyvesant Restoration Corporation, details subsequent steps for the NYC Better Bike Share Partnership. The report outlines objectives for promoting equity and creating opportunities for communities of color through public transit options.
Laura Fox, general manager of Citi Bike, emphasized the importance of community engagement, stating, “A genuinely equitable bike-share system necessitates more than simply station placement and fare pricing. It demands robust partnerships with the community and the empowerment of voices historically underserved.” She further expressed gratitude for the Bedford Stuyvesant Restoration Corporation’s leadership and ongoing commitment to fostering a cycling culture, particularly through enhanced street safety initiatives.
Accessible mobility is a key factor in wealth creation, and I firmly believe that active transportation methods – encompassing e-scooters, bicycles, and other options – hold the potential to simultaneously reduce urban emissions and improve public health.
The question remains: can startups effectively contribute to these equitable goals while also achieving profitability? This topic will be explored at our TC Sessions: Mobility Event on June 9th, featuring discussions with advocate and consultant Tamika Butler, Tiffany Chu, CEO and co-founder at Remix, and Frank Reig, CEO and co-founder of Revel.
Speculation Surrounding SPACs
Following Bird’s recent SPAC transaction, attention has shifted to identifying the next micromobility company poised for a similar move. Potential candidates include Lime, TIER, or perhaps Spin. Bloomberg reported that Ford is contemplating the divestiture of Spin, citing sources “familiar with the matter.”
Currently, the situation is characterized by conjecture and unconfirmed reports rather than concrete details. Rumors suggest either a spin-off of Spin from Ford or a merger with a special purpose acquisition company. Spin has declined to comment, a reasonable stance given the preliminary nature of this information.
Bird’s Battery Second Life Initiative
Bird is collaborating with IT Asset Partners (ITAP) to extend the lifespan of its scooter batteries. When a scooter reaches the end of its operational life, it is disassembled for component recovery, with the batteries then shipped to ITAP.
ITAP then meticulously deconstructs each battery module to the cellular level, maximizing the recovery of reusable battery components. This approach not only promotes environmental sustainability but is also becoming increasingly vital in a rapidly electrifying world where supply struggles to meet demand.
Robert Mullaney, director of Business Development at ITAP, stated in a Bird blog post, “The circular economy is the direction in which the world is moving, and it will shape how global businesses operate over the next decade.” He added, “As battery technology advances annually, their potential for second-life applications expands, enabling their use in a wider range of sophisticated applications, including computers and chargers.”
— Rebecca Bellan
Recent Investment Activity
Have recent months witnessed a surge in activity within the aviation and eVTOL industries? Over the past four months, we’ve observed significant developments, including funding for Lillium, Archer, Joby, and several other ventures.
Adding to this trend, Beta Technologies, an electric aviation startup, has successfully secured $368 million in Series A funding. This investment includes contributions from Amazon’s Climate Pledge Fund. This new capital represents the company’s second funding announcement of the year, following a $143 million raise in March. Beta Technologies is now valued at $1.4 billion, establishing its position among a select group of electric vertical take-off and landing (eVTOL) companies achieving unicorn status.
Fidelity Management & Research Company spearheaded the funding round, with additional, undisclosed investments originating from Amazon’s Climate Pledge Fund. Established in September 2019 with a $2 billion commitment, the Climate Pledge fund focuses on fostering the advancement of sustainable technologies. Previous investments by the fund include electric vehicle manufacturer Rivian, battery recycler Redwood Materials, and ZeroAvia, a company specializing in hydrogen fuel cell aviation.
Beta Technologies distinguishes itself from many other highly valued eVTOL startups. Based in Vermont, the company’s primary focus extends beyond air taxi services. It is actively pursuing applications in defense, cargo transport, and medical logistics, alongside the development of a rapid-charging infrastructure network throughout the northeastern United States. The ALIA-250c, its initial aircraft, is designed to accommodate these diverse needs, capable of transporting six passengers or a pilot with a payload of up to 1,500 pounds.
Notable Funding Rounds
Mile Auto, an insurance technology startup, has raised $10.3 million in a seed funding round. Investors include Ulu Ventures, Emergent Ventures, Thornton Capital, and Sure Ventures. The company intends to utilize these funds to broaden the availability of its insurance products to cover half of the U.S. auto insurance market by the close of 2021, as well as to expand its team, develop new distribution channels, integrate white-label partners, and grow its network of automotive manufacturers. Mile Auto currently collaborates with Ford Motor to provide insurance options for vehicle owners and launched a similar program with Porsche Financial Services in 2019.
Portside, an aviation startup focused on creating a management platform for corporate flight departments, charter operations, government fleets, and fractional ownership programs, recently announced a $17 million funding round. Tiger Global Management led the investment, with participation from existing investors I2BF Global Ventures and SOMA Capital.
Twaice, a German company specializing in battery analytics software, secured $26 million in Series B funding, led by Chicago-based Energize Ventures. The company, which serves the mobility and energy storage sectors, has now accumulated a total of $45 million in funding.
Virtuo, a Paris-based car rental startup offering vehicles for periods ranging from a few days to several months, has raised $96 million. These funds will be allocated to further develop its technology and expand its operations into new markets beyond France, the U.K., and Spain.
Waybridge, a company that has developed a supply chain platform for raw materials, has raised $30 million in a Series B funding round. Rucker Park Capital and Craft Ventures co-led the round, with participation from Venrock. The platform provides customers with real-time inventory and shipment tracking. Waybridge asserts that its product can assist companies in mitigating the impact of disruptive events, such as the Suez Canal blockage and the COVID-19 pandemic.
WeaveGrid has secured $15 million in a Series A funding round to promote the widespread integration of electric vehicles with the electric grid. Coatue and Breakthrough Energy Ventures have joined existing investors to drive innovation in the software solutions at the intersection of the utility and automotive industries.
Reports indicate that Wejo, a British automotive-data startup backed by General Motors, is exploring a potential public listing through a merger with Virtuoso Acquisition Corp., as reported by Bloomberg.
Regulatory Updates and Autonomous Vehicle Discussions
Welcome to another edition of Policy Corner! This week, a decision from the California Air Resources Board, a key regulator of air quality within the state, has come to my attention. On Thursday, the Board implemented new regulations mandating that 90% of all ride-share journeys be completed using electric vehicles by the year 2030.
It is worth noting that both leading ride-sharing companies, Uber and Lyft, have previously committed to transitioning to fully electric fleets by that same year. However, this marks the first instance of a state-level requirement specifically targeting electric vehicle adoption for ride-share services.
Prior to the hearing, both Uber and Lyft submitted written statements advocating for the creation of EV rebates designed to assist high-mileage drivers and fleet operators. They also emphasized the need for increased EV charger installations in both urban centers and underserved communities.
Lyft’s senior manager of sustainability, Paul Augustine, articulated in his submitted comments that California’s existing EV incentive programs and infrastructure investments have disproportionately benefited a specific demographic – affluent, white homeowners – which does not accurately reflect the composition of Lyft’s driver base.
Simultaneously, in Washington D.C., a hearing was held by the House Committee on Energy and Commerce to explore the potential of emerging automotive technologies, such as autonomous driving, to improve vehicle safety and reduce the substantial number of traffic fatalities occurring annually on U.S. roadways.
Advocates for autonomous vehicles, including the Self Driving Coalition, highlighted the prospective safety advantages offered by AVs. Ragunathan Rajkumar, an electrical engineer who provided testimony at the meeting, encouraged legislators to establish a supportive policy framework that fosters innovation and ensures American competitiveness in the field of AV technology.
However, the committee also received input from individuals who stressed the importance of a cautious and pragmatic approach to AV deployment. Greg Regan, representing the AFL-CIO in his testimony, asserted that transportation workers should be included in discussions regarding AV implementation. He further advocated for government policies that guarantee secure employment opportunities for American workers within the AV manufacturing sector.
Jason Levine, executive director of the Center for Auto Safety, contended that other safety enhancements, design improvements, and stricter vehicle performance standards could yield significant life-saving results in the short term.
“The assumption that deploying tens of thousands of unverified and unregulated AVs rapidly and without adequate oversight will automatically result in greater safety than our current system is a notion that may be suitable for a quarterly earnings report, but it does not constitute sound transportation policy,” he stated in his testimony.
The topic of forced arbitration was also raised during the hearing. The following is an excerpt from a dialogue between Congressman Rush and Jason Levine, the executive director of the Center for Auto Safety.
RUSH: It is concerning that even pedestrians could be deprived of their right to seek legal recourse if forced arbitration clauses continue to proliferate. These clauses are frequently embedded within terms of service agreements, effectively waiving a consumer’s right to file a lawsuit, participate in a class action, or appeal an arbitrator’s ruling. Do forced arbitration clauses pertaining to AVs present a risk to pedestrians, and if so, why?
LEVINE: They certainly pose a significant threat. As we previously discussed, the ability to hold manufacturers – whether of AVs or conventional vehicles – accountable for defects is crucial for safety; it serves as a vital safeguard within our entire system. If a pedestrian unknowingly agrees to binding arbitration, perhaps when downloading an application to order food, and is subsequently struck by a delivery vehicle, they forfeit their right to pursue legal action in court. While this scenario may seem improbable, it is increasingly reflective of the impact of binding arbitration on our ability to hold manufacturers responsible. This is a situation we must avoid in the context of AVs.
Readers, we invite your perspectives on these matters.
— Aria Alamalhodaei
Recent Developments in Automotive and Flight Technology
A significant amount of news emerged this week across the autonomous and electric vehicle sectors, alongside advancements in flight technology.
Autonomous Vehicle Updates
May Mobility has announced the launch of a new autonomous shuttle service in Ann Arbor, Michigan. The complimentary shuttle, known as A2GO, will be accessible to the public beginning on October 11, 2021. The deployment will utilize a fleet of five autonomous, shared, on-demand vehicles.
This fleet will consist of four hybrid-electric Lexus RX 450h vehicles, each capable of transporting three passengers, and one fully electric Polaris GEM vehicle designed to accommodate one wheelchair passenger. The service area will connect Kerrytown, the University of Michigan campus, and the State Street corridor.
In California, Pony.ai has received regulatory approval to pilot its autonomous vehicles without a human safety driver in three cities. This permission is relatively uncommon, as only eight companies have been issued driverless testing permits in the state. These include AutoX, Baidu, WeRide, Cruise, Nuro, Waymo, and Zoox. Currently, only Nuro possesses a deployment permit, allowing for commercial operation.
Electric Vehicle News
The electric vehicle landscape experienced a dynamic week, highlighted by the unveiling of the Ford F-150 Lightning. This reveal was arguably the most significant EV announcement of the period.
Ars Technica published an interesting overview of electric vehicles during the early days of the automotive industry.
Canoo provided further details regarding its electric microbus-style van, which will be available for purchase in 2022 with a starting price of $34,750, excluding taxes and additional features. The Los Angeles-based company, recently listed on the Nasdaq exchange, is now accepting preorders for this “lifestyle” vehicle, as well as its round-top pickup truck and multipurpose delivery van.
While pricing for the pickup and delivery van remains undisclosed, Canoo anticipates deliveries for the pickup to begin as early as 2023, with production of the delivery van following shortly after. Customers can secure a model with a $100 deposit.
A regulatory filing also revealed that Canoo is currently under investigation by the U.S. Securities and Exchange Commission, following its merger with special purpose acquisition company Hennessy Capital Acquisition Corp. The investigation encompasses the initial public offering, the merger, the company’s operations, business model, revenues, revenue strategy, customer agreements, earnings, and recent officer departures. Canoo believes the investigation will not materially impact its business.
ElectReon, specializing in inductive in-road charging for electric vehicles, is participating in the “Arena of the Future” project in Brescia, Italy. The company will integrate its wireless charging technology to power two Stellantis vehicles and an IVECO bus while in motion. This project aims to demonstrate the feasibility of contactless charging for EVs on highways and toll roads, potentially contributing to the decarbonization of transportation.
Ford announced several EV-related developments alongside the F-150 Lightning reveal. The truck itself represents a crucial product for the company and a significant component of its $22 billion investment in electrification. It must deliver the performance and capabilities of the gas-powered F-150, while also offering the benefits of electric propulsion, including torque, towing capacity, and a familiar layout for commercial users.
Initial specifications suggest Ford has successfully met these requirements. A recent poll indicated that 37% of respondents favored the Ford F-150 Lightning, while 19.6% preferred the Rivian R1T, and 43.4% were waiting for the Tesla Cybertruck.
Ford also announced that the F-150 Lightning will be capable of providing power to a customer’s home during outages. Furthermore, a memorandum of understanding was signed with SK Innovation to establish BlueOvalSK, a joint venture for manufacturing batteries for electric vehicles in the United States, with a planned annual production capacity of around 60 GWh starting mid-decade.
An interview with Ford CEO Jim Farley was also conducted by The Verge.
UPDATE: Ford unveiled the 2022 F-150 Lightning Pro on Monday, a version specifically designed for commercial customers.
Kia showcased the Kia EV6, an all-electric crossover that marks the beginning of the automaker’s Plan S strategy, shifting away from internal combustion engines. The EV6, the first of 11 electric vehicles Kia plans to launch globally by 2026, will arrive in the U.S. early next year. It is built on the new Electric-Global Modular Platform, shared within the Hyundai Motor Group with Hyundai and Genesis.
Lamborghini announced its eventual transition to electrification, though it will be a gradual process. The company will first introduce two new V12 luxury sports cars this year before focusing on hybrid vehicles, aiming for a fully hybrid lineup by the end of 2024. An all-electric Lamborghini is planned for the second half of the decade, supported by a 1.5 billion euro ($1.82 billion) investment over four years.
Advancements in Flight Technology
Volocopter introduced the VoloConnect, a new electric vertical take-off and landing (eVTOL) aircraft designed for suburban-to-city commuting. This four-seater aircraft boasts a range of 62 miles, differing from the shorter-range VoloCity, which is designed for intra-city travel and has a 22-mile range.
The VoloConnect’s extended range indicates Volocopter’s ambition to compete with other eVTOL startups, such as Archer Aviation and Wisk Aero, which also have designs with similar range capabilities.
Wisk Aero filed a motion for a preliminary injunction in its lawsuit against Archer Aviation. The injunction, if approved, could disrupt Archer’s operations. Wisk alleges that Archer misappropriated 52 trade secrets stolen by former employees. A Wisk spokesperson stated that these trade secrets cover various aspects of the aircraft and its development processes.
In-Car Technology Developments
The Google I/O developer conference featured several vehicle-related announcements. Google is expanding its Android for Cars App Library, part of Jetpack, to support the Android Automotive operating system. This allows developers to create apps compatible with both Android OS and Android Auto, ensuring seamless functionality across different vehicle models.
Google is collaborating with BMW and other automakers to develop a digital key that will enable car owners to lock, unlock, and start their vehicles using their Android smartphones. This feature will be available on select Pixel and Samsung Galaxy phones later this year. Google anticipates availability in some 2021 and numerous 2022 model vehicles.
HERE Technologies will provide the in-vehicle Human-Machine Interface (HMI) navigation solution for Arrival’s upcoming electric vehicles.
Holoride, an Audi spinoff focused on in-vehicle XR passenger entertainment, is integrating blockchain technology and NFTs to prepare for its 2022 market launch. The integration of Elrond blockchain aims to create a transparent ecosystem for car manufacturers and content creators. NFTs will incentivize developers to create content for the holoride platform and allow passengers to personalize their in-car experience.
Stellantis and Foxconn have formed a joint venture, Mobile Drive, to supply in-car and connected-car technologies. This non-binding agreement aims to accelerate the development and deployment of advanced in-vehicle user experiences.