The Station: Your Weekly Transportation Update

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A Brief Introduction

Greetings to both our new and returning subscribers. The Station is devoted to exploring all facets of how people and goods are transported, both presently and with a look toward future innovations.

Catching Up on Transportation News

We paused publication for a week, but we're now resuming our regular schedule. Let's quickly review the latest developments in the transportation sector.

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Micromobbin’

A novel docked e-bike service, JOCO, has recently begun operations in New York City, though it is already encountering challenges. Initially deploying 300 e-bikes across 300 stations situated within private parking facilities, the service intends to expand its fleet to approximately 1,000 e-bikes at 100 stations by June. However, this expansion is contingent upon approval from the NYC Department of Transportation.

The city currently holds exclusive rights regarding docked bike-sharing programs with Citi Bike, a situation that has somewhat limited the expansion of shared micromobility options within NYC. Consequently, the DOT has issued a cease and desist notice to JOCO. Michelle Craven, an assistant commissioner within the DOT, communicated this directive.

Legal counsel for JOCO argues that the company is operating within legal boundaries, as the bikes are parked on privately owned land, unlike Citi Bike which utilizes city streets. The city has not yet provided a response to inquiries regarding the extent of the DOT’s authority over private properties.

Is a Shift Occurring in Micromobility Scaling?

Recent developments, including an e-scooter pilot program in the Bronx, the launch of JOCO’s e-bike service, and Lime’s entry into the e-moped market to compete with Revel, indicate that New York City may be becoming more receptive to electric micromobility solutions.

Lime has announced the deployment of 100 electric mopeds in Brooklyn, with further expansion planned for Queens and lower Manhattan. Increased competition within the micromobility sector is anticipated to be beneficial, a necessity if NYC aims to achieve carbon neutrality by the year 2050. It’s crucial to remember that widespread adoption of e-mobility is vital for reducing carbon emissions in urban environments.

Furthermore, Wunder Mobility, a provider of software solutions for shared mobility startups, has established a new subsidiary, Wunder Capital, designed to assist micromobility operators in securing fleet financing. Additionally, the company has collaborated with Yadea, a consumer micromobility vehicle manufacturer, to modify its e-mopeds for shared use. German e-moped sharing company emmy is the first to utilize all three of Wunder Mobility’s offerings – the software, the financing, and the Yadea vehicles.

Across the Atlantic, in the U.K., Wind has reported positive results from its e-scooter trial in Nottingham. Since the trial’s commencement last October, residents have completed over 240,000 rides. According to Wind’s Nottingham city manager, more than 100 new users download the Wind app daily, with each scooter averaging five to six rides per day.

Supporting Vaccine Access

Superpedestrian has pledged to provide one million free rides on its LINK e-scooters to facilitate access to vaccination centers within communities in Italy and Spain. The company is allocating up to €10 million for these complimentary rides. These rides will be available in all European cities served by LINK scooters, including Rome, Madrid, Turin, Palermo, Málaga, and Alcalá de Henares.

E-bikes Designed for Outdoor Use

Retrospec, known for producing recreational products like paddle boards, skateboards, and bicycles, is now incorporating electric bikes into its product line. The offerings include the Beaumont Rev City ($1,999.00) designed for efficient urban commuting, the Beaumont Rev Step Through featuring an easily accessible swooped frame ($1,999.00), and the Jax Rev Folding e-bike ($1,399.99) equipped with fat tires and robust suspension for off-road capabilities.

— Rebecca Bellan

Industry Consolidation and Investment Trends

Recent developments indicate a continuing trend of consolidation within the autonomous vehicle sector. This week, Lyft finalized an agreement to divest its autonomous vehicle division to Toyota’s Woven Planet Holdings for a sum of $550 million.

The financial structure of this deal involves an initial cash payment of $200 million to Lyft, followed by further disbursements totaling $350 million over a five-year timeframe. Approximately 300 employees from Lyft Level 5 are expected to transition to Woven Planet, continuing operations from their Palo Alto, California location.

Lyft's Strategic Shift

This transaction effectively concludes Lyft’s four-year initiative to independently develop a self-driving system. Industry observers have noted the advantageous terms for Woven Planet, drawing parallels to Uber’s prior sale of its autonomous driving subsidiary to Aurora.

Lyft is concurrently implementing organizational restructuring to emphasize its core competencies. A dedicated team focused on the user experience of autonomous vehicle hailing and riding – now designated as Lyft Autonomous – will be integrated into the company’s fleet division.

This fleet division, established in 2019 and led by Cal Lankton, manages over 10,000 vehicles through rental and express drive programs. The overarching strategy aims to unify efforts related to shared mobility, electric vehicles, and self-driving technology.

The Remaining Players in Autonomous Vehicle Development

The landscape of autonomous vehicle developers is becoming increasingly concentrated. Key players such as Aurora, Argo AI, Cruise, Motional, Waymo, and Zoox remain prominent, alongside a number of startups concentrating on self-driving trucks, logistics, and delivery services.

Speculation is growing regarding potential future acquisitions within this evolving industry. Further consolidation is anticipated as companies seek to scale and accelerate development.

Additional Investment Highlights

Beyond the Lyft-Woven Planet deal, several other noteworthy funding rounds and IPO filings have captured attention.

• EasyMile, a French autonomous shuttle manufacturer, secured €55 million ($66 million) in Series B funding led by Searchlight Capital Partners.
• Hello, a Chinese e-bike-sharing company backed by Ant Financial, has filed for an IPO on the Nasdaq, reporting $926.3 million in revenue for 2020.
• IRP Systems, specializing in electric vehicle powertrains, raised $31 million in Series C funding, bringing its total funding to $57 million.
• Manna, an Irish drone delivery startup, obtained $25 million in funding to expand services in the U.K. and U.S.
• Plus, a self-driving truck company, is reportedly in discussions to merge with Hennessy Capital Investment Corp. V, potentially valuing the company at over $3 billion.
• Zomato, an Indian food delivery startup, filed for an IPO aiming to raise $1.1 billion, reflecting its growth across 24 markets and a valuation of $5.4 billion.

These developments underscore the continued investment and innovation occurring across the autonomous vehicle and mobility sectors.

Recent Developments in US Automotive Policy

The past week saw significant activity regarding automotive policy in Washington D.C. Representative Bobby Rush, a Democrat from Illinois, has proposed legislation allocating over $7 billion annually through grants and rebates.

This funding would be directed towards expanding America’s electric vehicle (EV) charging infrastructure and bolstering domestic EV manufacturing. A similar bill introduced by Rep. Rush last year did not progress, however, the current political climate, with President Biden’s emphasis on substantial investment in green infrastructure, may yield different outcomes.

Simultaneously, a Democratic Senator has communicated with the Environmental Protection Agency (EPA), advocating for more stringent regulations concerning greenhouse gas emissions.

These proposed policies would surpass the targets already set forth in President Biden’s climate agenda. According to a letter obtained by the Associated Press, the EPA should implement progressively stricter fuel economy standards, culminating in a prohibition on the sale of new gasoline-powered vehicles by 2035.

Senator Tom Carper of Delaware, in his letter, highlighted the potential economic consequences of inaction. He stated that a lack of strong policies promoting zero emission vehicle adoption, coupled with appropriate incentives, could jeopardize American automotive jobs and industry leadership.

Furthermore, Carper warned of continued public health impacts stemming from pollution. The Senator’s argument centers on the preservation of employment opportunities within the automotive sector.

This concern regarding workforce impact isn’t isolated. During a recent hearing before the U.S. Senate Committee on Commerce, Science, & Transportation, a representative from the Motor & Equipment Manufacturers Association cautioned lawmakers.

They indicated that a complete transition to an all-electric vehicle fleet could potentially endanger up to 30% of the workforce within the auto supplier industry.

President Biden has asserted that the shift to EVs will not result in job losses, but the feasibility of this claim appears contingent upon the successful passage of his proposed plan.

Executives from Bosch recently shared insights, noting that the production of an electric powertrain system requires only one employee, compared to ten for a diesel powertrain. While this example pertains to Bosch’s European operations, it serves as a valuable illustration of the potential labor implications.

— Aria Alamalhodaei

Significant Developments and Interesting Updates

A considerable amount of information has emerged recently. Let's endeavor to summarize the key points in a concise manner. We will now begin the overview.

Recent Events: A Summary

Numerous developments have transpired, demanding attention. The following sections will detail these occurrences.

• Key Event 1: Details regarding this event will be provided shortly.
• Key Event 2: Further information on this topic is forthcoming.
• Key Event 3: An explanation of this development will be presented.

These events represent a snapshot of the current landscape. Continued monitoring is recommended to stay informed.

Further Considerations

Beyond the immediate events, several underlying trends are noteworthy. These factors contribute to the broader context.

Analyzing these trends provides valuable insight. Understanding the nuances is crucial for informed decision-making.

Concluding Remarks

In conclusion, a multitude of happenings have unfolded. This overview aims to provide a clear and concise summary.

Staying abreast of these developments is essential. Continuous learning and adaptation are key in a dynamic environment.

Electric Vehicles: Recent Developments

GM has unveiled a comprehensive, four-stage strategy designed to streamline the entire electric vehicle charging process. This encompasses locating available public charging stations and facilitating payment for electricity usage, as the automaker works to encourage adoption of the 30 EV models slated for release by 2025. The Ultium Charge 360 ecosystem – drawing its name from the foundational EV platform and battery technology of forthcoming vehicles – is intended to manage access, payment processing, and customer support for both at-home and on-the-road charging.

This initiative extends beyond simple partnerships. For GM to successfully transition drivers to electric vehicles, it must prioritize the integration of current, real-time data regarding EV charging stations directly into the vehicle’s infotainment system. The company appears to be actively pursuing this goal. Through the GM vehicle brand mobile application, EV owners will gain access to live information, including charger locations and availability status, covering approximately 60,000 charging points across the United States and Canada.

Tesla recently announced its first quarter financial results. The company reported revenues totaling $10.389 billion, a gross profit of $2.215 billion, and a net income of $438 million. These results were bolstered by regulatory credits, gains from bitcoin, increased sales volume, and improvements in gross margins, effectively offsetting rising supply chain expenses, research and development investments, costs related to the Model S and Model X updates, and a decrease in average selling price.

Revenue experienced a substantial increase of 75% compared to the same quarter in the previous year – a significant growth rate. Regulatory credits contributed $518 million to the company’s profitability, while bitcoin had a $101 million positive impact during the first quarter, as stated by Tesla CFO Zach Kirkhorn, also referred to as the “master of coin.”

Tesla allocated $1.5 billion to bitcoin investment this quarter, subsequently reducing its holdings by 10%. Despite the inherent volatility of the cryptocurrency, the company maintains a belief in bitcoin’s long-term viability, according to Kirkhorn’s statements during the earnings call. He explained that Tesla views bitcoin as a means of storing cash with immediate accessibility and a superior return on investment compared to conventional, centrally-backed safe assets.

However, the potentially higher returns associated with this volatile digital currency naturally come with increased risk.

Further news from Tesla… CEO Elon Musk envisions transforming every home into a decentralized power plant capable of generating, storing, and even supplying energy back to the electrical grid, utilizing the company’s range of products. This concept was discussed during the recent earnings call.

While Tesla has offered solar and energy storage solutions for several years, a revised company policy now mandates the sale of solar products exclusively in conjunction with energy storage systems. Essentially, it is now a bundled offering. Musk argues that fully decarbonizing the energy sector through renewables and storage would necessitate significant investments in new power lines, power plants, and substations. He believes that distributed residential systems – naturally leveraging Tesla products – represent a more efficient and effective pathway.

Volkswagen’s rebranding effort, known as “Voltswagen,” is currently under investigation by the United States Securities and Exchange Commission, as reported by Der Spiegel.

The Evolving Landscape of Aviation Technology

Luminar Technologies is broadening the scope of its lidar technology, extending its applications beyond the automotive sector and into the realm of aviation. This expansion is being realized through a collaborative effort with Airbus, marking a significant shift for Luminar, which has historically concentrated on ground-based autonomous vehicle applications.

Currently, the partnership doesn't guarantee immediate integration of lidar into commercial airliners. This differs from Luminar’s existing agreements with companies like Daimler, Mobileye, and Volvo, as it isn’t a firm production commitment at this stage.

Instead, the collaboration centers around Airbus’ UpNext division, dedicated to the innovation and future implementation of cutting-edge technologies within the aviation industry.

Advancing Autonomous Flight Capabilities

The project will be integrated into Airbus Flightlab, a comprehensive platform providing access to diverse flight testing resources across Airbus’ various divisions, encompassing commercial aircraft, helicopters, defense, and space exploration.

Luminar and Airbus will jointly investigate and evaluate the potential of lidar to improve sensing, perception, and overall system performance. The ultimate goal is to facilitate the development of secure and fully autonomous flight systems.

Innovations in Drone Delivery Services

Wingcopter has unveiled a novel autonomous delivery drone, the Wingcopter 198, specifically engineered to overcome limitations that have previously restricted the expansion of drone transportation services.

A key feature of the Wingcopter 198 is its ability to execute three distinct deliveries within a single flight. This multi-stop functionality is positioned by Wingcopter as a crucial element for establishing a cost-effective and viable drone-delivery-as-a-service model.

In-Car Technology Developments

The Chief Executive Officer of Volkswagen Group, Herbert Diess, recently communicated to Handelsblatt newspaper the company’s strategic intention to independently design and engineer chips and software specifically for autonomous vehicle applications.

It is important to note that Volkswagen does not intend to undertake the physical production of these chips themselves. Their focus lies in securing intellectual property rights through patent ownership.

Cariad's Role in Chip Development

The software division of Volkswagen, known as Cariad, will be responsible for the development process of these specialized chips. This signifies a move towards greater internal control over critical components.

This strategy allows VW to maintain ownership of core technologies essential for the future of autonomous driving. It also positions Cariad as a central player in the group’s technological advancement.

By controlling the design and development, Volkswagen aims to optimize performance and integration within its vehicle platforms. This approach is expected to accelerate innovation in autonomous systems.

• Key Focus: Owning the intellectual property related to autonomous vehicle chips.
• Development Lead: Volkswagen’s Cariad software division.
• Manufacturing: Outsourced; VW will not produce the chips directly.

The decision reflects a broader industry trend of automakers seeking greater independence from external chip suppliers. This is particularly relevant given recent global supply chain disruptions.

Evolving Mobility Services

Revel, initially recognized for its dockless electric mopeds in Brooklyn, has been rapidly diversifying its offerings. This expansion includes monthly e-bike subscriptions and the establishment of “Superhub” EV charging stations. Recently, Revel announced plans to introduce an all-Tesla ride-hailing service specifically within Manhattan south of 42nd Street.

However, this launch has been met with contention. The New York City Taxi & Limousine Commission (TLC) has asserted that Revel lacks the necessary authorization to operate a for-hire vehicle service.

The TLC has implemented a cap on for-hire vehicles, citing an oversupply relative to demand, as explained by TLC Commissioner Aloysee Heredia Jarmoszuk. Revel maintains its legality, arguing its service qualifies under an electric battery exemption.

Jarmoszuk counters that this exemption was intended to incentivize existing licensed vehicles to adopt greener technologies, not to exacerbate market saturation or negatively impact Manhattan’s Yellow Taxi industry.

International and Domestic Expansion

Stellantis is broadening the reach of its short-term vehicle service, Free2Move, into the United States market. The on-demand car subscription service will initially become available in Los Angeles.

Following the Los Angeles launch, Free2Move is slated to expand into five additional U.S. cities before the year concludes. This service has already been successfully operating in multiple European countries since 2019.

Uber's New Features and Profitability Focus

Uber is introducing over six new features, demonstrating a strategic shift towards profitability. One notable addition allows users to schedule vaccine appointments at Walgreens and simultaneously book a ride to the vaccination site.

This initiative is part of Uber’s broader “go get” strategy, signaling a return to standard business operations after a period of disruption caused by the COVID-19 pandemic.

These features, encompassing vaccine booking, a rental car valet service, reserved airport rides with extended wait times, and the ability to collect food during a ride-hail, all reinforce Uber’s core services of delivery and transportation.

Important Note: Uber’s earnings call is scheduled for May 5th.

TC Sessions: Mobility 2021

TC Sessions: Mobility 2021 is set to take place on June 9th and will once again be hosted as a virtual event, as previously announced.

A near-complete agenda has been published, though a few additional surprises may still be in store.

Take advantage of Early Bird ticket pricing now – secure your spot today and save $100 before the price increases.

The speaker lineup for TC Sessions: Mobility 2021 boasts prominent figures such as JoeBen Bevirt, founder and CEO of Joby Aviation.

Reid Hoffman, the founder of LinkedIn and an investor whose SPAC facilitated a merger with Joby, will also be present.

Further participation includes investors Clara Brenner from Urban Innovation Fund, Quin Garcia of Autotech Ventures, and Rachel Holt of Construct Capital.

Ahti Heinla, co-founder and CEO/CTO of Starship Technologies, is also scheduled to appear.

Discussions surrounding equity, accessibility, and shared mobility within urban environments will feature Tamika L. Butler, a community organizer, transportation consultant, and lawyer.

Tiffany Chu, co-founder and CEO of Remix, and Frank Reig, co-founder and CEO of Revel, will join these conversations.