The Station: Lyft, Uber, Van Moof, and eVTOL News

The Station: A Weekly Transportation Newsletter

Welcome to The Station, a newsletter focused on the evolving world of transportation. It delivers updates on all methods of moving people and goods, from established systems to emerging technologies.

You can subscribe to receive The Station directly in your inbox each weekend by simply clicking The Station.

TechCrunch and Apollo Global Management News

A significant change has occurred within the TechCrunch family. Apollo Global Management has finalized the acquisition of Yahoo from Verizon. This transaction, valued at $5 billion – comprising $4.25 billion in cash and $750 million in preferred interests – marks a new chapter for the digital media landscape.

Verizon will maintain a 10% stake in the newly restructured company. The portfolio now includes prominent brands such as Yahoo Mail, Sports, and Finance, alongside TechCrunch, AOL, Engadget, and RYOT.

This combined entity boasts approximately 900 million monthly active users worldwide, positioning it as the third-largest internet property, according to Apollo’s data.

Upcoming Events and Automotive News

Looking ahead, keep an eye on IAA Mobility in Munich this week for the latest developments in automotive and technology. Several announcements were made on Sunday.

Volkswagen Commercial Vehicles and Argo AI, a leader in autonomous vehicle technology, presented the initial iteration of the ID Buzz AD. Mercedes also revealed several advancements in the electric vehicle sector.

Stay Connected

I welcome your feedback, insights, and tips. Please feel free to reach out via email at kirsten.korosec@techcrunch.com. Alternatively, you can connect with me directly on Twitter – @kirstenkorosec.

Micromobbin’

The micromobbin’ segment was absent from the previous newsletter, but Rebecca Bellan is compensating with an extended report this week. Rebecca, please proceed.

With Auckland, New Zealand, currently under lockdown conditions, a significant highlight has been the opportunity to revisit my evaluation of the electric utility bicycle developed by the New Zealand firm Ubco. I remain receptive to receiving test models from other electric micro-vehicle manufacturers seeking to enhance my week.

In brief: The Ubco bicycle presents the aesthetic of a dirt bike, functions similarly to a moped, and delivers exceptional performance. Key advantages include a comfortable ride, substantial battery duration, and considerable weight and accessory capacity. Potential drawbacks encompass a relatively high price point, regenerative braking that occasionally overrides rider preference during descents, and a sensitive keyfob.

Last-Mile Delivery Services

If you utilize convenient meal kit delivery services such as HelloFresh or Blue Apron, you have likely benefited from the services of AxleHire without realizing it. This is poised to change.

The last-mile logistics provider announced this week an expansion of two pilot programs designed to integrate innovative technologies into the delivery process. For the past year, the company has collaborated with URB-E, employing a network of collapsible containers mounted on e-bikes for deliveries in New York City, and with Tortoise, utilizing remotely operated delivery robots in Los Angeles. These initiatives, which have resulted in reduced emissions and improved traffic navigation, are now being implemented nationwide.

The Emergence of an Indian Powerhouse

Ola Electric, the electric scooter division of the ride-hailing company Ola, is currently engaged in discussions to secure between $250 million and $500 million in new funding to facilitate business expansion within the South Asian market.

Falcon Edge Capital, potentially leading the investment round, assesses the company’s value between $2.75 billion and $3.5 billion, representing a $1 billion increase from its previous funding round in 2019. Notably, Ola, the parent company of Ola Electric, is preparing to submit an application for an initial public offering.

Electric Bicycle Sales in Major Retail Chains

Best Buy is introducing a new selection of electric vehicles available online and in select stores starting in October, including models previously featured, such as the Unagi scooter and the latest Bird bicycle. Prominent brands featured include Segway-Ninebot, SUPER73, and SWFT.

Furthermore, VAAST Bikes has recently unveiled the E/1, the newest addition to its range of sustainable bicycles. This urban e-bike incorporates a superior suspension system that effectively isolates pedaling from suspension movement, ensuring a smoother ride regardless of cargo load. A step-through frame provides a low center of gravity, making it accessible to riders of diverse ages and body types. The E/1 will be available for purchase in the U.S., U.K., and European markets beginning in October, with prices ranging from $7,499 to $9,999.

Fiido, a manufacturer of foldable e-bikes, has successfully raised over $1 million on Indiegogo to support the production and delivery of its new Fiido X model. It features a visually appealing minimalist design, a lightweight yet robust frame, and enhanced pedal-assist and cycling control. Fiido asserts that this bicycle is the first folding e-bike globally with an integrated seat post that transmits battery power. Equipped with a 417.6Wh ternary lithium battery, it offers a range exceeding 130 kilometers (approximately 81 miles) in “moped mode.” Current pricing ranges from $1,098 to $1,601.

Swedish electric motorcycle manufacturer Cake has also recently launched a new, exceptionally lightweight e-moped designed for urban utility, though capable of handling some off-road terrain. The Makka weighs approximately 132 pounds and is offered in two versions: The Makka Range, priced at $3,500 and available exclusively in Europe, has a limited top speed of 15 miles per hour and a range of up to 35 miles. The Makka Flex, available in both Europe and the U.S., costs $3,800 and can reach speeds of 28 miles per hour, with a slightly reduced range of 30 miles.

National Drive Electric Week (Excluding Cars)

This year marks the first National Drive Electric Week event that excludes automobiles! A noteworthy development. This free, two-part expert webinar will explore options for electric two-wheeled transportation and debate the potential for cars to become obsolete (a valid point). Learn how policymakers and advocates envision a future where electric micromobility and public transit take precedence over cars, even electric ones. The event will be held on Saturday, September 25, from 11 a.m. to 1 p.m. PST on Zoom. Registration is available here.

Significant Funding for Van Moof

VanMoof, the Amsterdam-based startup, has secured $128 million in Series C funding, which it intends to utilize in its pursuit of becoming the world’s leading e-bike brand. Its strategy centers on accelerating growth relative to competitors.

The funding round was led by Asia-based private equity firm Hillhouse Investment, with participation from Gillian Tans, the former CEO of Booking.com, and existing investors including Norwest Venture Partners, Felix Capital, Balderton Capital, and TriplePoint Capital.

The Series C represents a substantial increase compared to the company’s previous Series B round, where $40 million was raised last year. In total, VanMoof has raised $182 million.

— Rebecca Bellan

Weekly Investment Highlights

This week’s analysis centers on a potentially jeopardized transaction within the investment landscape.

Influential shareholder advisory firm, Institutional Shareholder Services Inc. (ISS), recently released a report advocating against investors in Ken Moelis’s Atlas Crest Investment Corp. approving a merger with Archer Aviation. ISS suggests investors would benefit more from redeeming their shares in the special purpose acquisition company (SPAC) for cash.

Should investors heed this recommendation, the planned combination of Atlas Crest and Archer – a company pioneering vertical take-off and landing (eVTOL) electric aircraft – could be obstructed. ISS cites Archer’s ongoing legal dispute with Wisk Aero and a declining valuation of the prospective merged entity as key concerns.

As Bloomberg highlighted, ISS has previously scrutinized other SPAC deals involving companies focused on eVTOL technology. Previously, ISS opposed the merger between Reinvent Technology Partners and Joby Aviation, though shareholders ultimately approved the deal. The firm also recommended against investment in Qell Acquisition Corp.’s merger with Lilium GmbH, a transaction that remains unresolved.

While ISS appears generally cautious regarding eVTOL SPACs, the Archer deal is particularly complex due to its present legal challenges with Wisk Aero. To clarify, Wisk Aero, an air mobility company resulting from a collaboration between Kitty Hawk and Boeing, initiated a lawsuit against Archer Aviation in April, alleging patent infringement and misappropriation of trade secrets.

Archer responded with a countersuit, seeking $1 billion in damages from Wisk Aero.

Investors are facing a situation where a definitive resolution isn’t immediately forthcoming. The vote on the SPAC merger will occur well before the legal proceedings reach a conclusion.

Additional deals attracting attention this week …

Carsome Group, a Malaysia-based online platform for used car sales, secured $170 million in funding from investors including semiconductor manufacturer MediaTek, Catcha Group, and Penjana Kapital, as reported by Forbes. This investment brings the company’s post-funding valuation to $1.3 billion.

Cox Automotive has acquired Spiers New Technologies (SNT), an Oklahoma City-based company specializing in the repair, remanufacturing, refurbishment, and repurposing of EV battery packs. Financial details of the acquisition were not disclosed.

Foretellix, a developer of a platform for verifying and validating automated driving systems, completed a $32 million Series B funding round. MoreTech Ventures led the round, with participation from strategic investors such as Volvo Group, Nationwide, NI, and Japan-Israel Ventures. Existing investors, including 83North Ventures, Jump Capital, OurCrowd, and NextGear, also contributed. The company has now raised over $50 million since its founding in 2018.

Gatik AI, an autonomous vehicle startup concentrating on middle-mile logistics, is expanding into Texas – its fourth market – supported by new funding. Gatik announced a $85 million Series B round led by Koch Disruptive Technologies, the venture arm of Koch Industries. Innovation Endeavours, Wittington Ventures, FM Capital, Dynamo Ventures, Trucks VC, Intact Ventures, and other existing investors also participated, bringing the total raised to $114.5 million.

HAAS Alert, a SaaS provider of real-time automotive collision prevention solutions for public safety and roadway fleets, raised $5 million in a seed funding round. R^2 and Blu Ventures led the round, with contributions from TechNexus, Stacked Capital, Urban Us, Techstars, Ride Ventures, and Gramercy Fund. The funds will be used to expand sales and R&D efforts, particularly in vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2X) technologies.

Ideanomics, a New York-based fintech and electric mobility company, acquired commercial electric vehicle manufacturer Via Motors in an all-stock transaction valued at $450 million.

Iconiq Motors, a Chinese electric vehicle company, is exploring a potential public listing in the U.S. through a merger with a blank-check company, according to a Bloomberg report. The potential deal could value the combined entity at approximately $4 billion.

Kevala, a startup specializing in the collection and analysis of energy grid infrastructure data, secured $21 million in a Series A funding round. The company intends to use the funds to expand its team from 60 to approximately 100 employees by the end of 2021 and to broaden the deployment of its grid analytics tools.

Sunday, an insurtech startup headquartered in Bangkok, raised $45 million in a Series B round with participation from Tencent, SCB 10X, Vertex Growth, Vertex Ventures Southeast Asia & India, Quona Capital, Aflac Ventures, and Z Venture Capital. The company reported oversubscribed demand and doubled its revenue growth in 2020.

Yandex, the Russian internet company with a ride-hailing division, acquired Uber’s stake in its Self-Driving Group (SDG) and Uber’s indirect interests in Yandex.Eats, Yandex.Lavka, and Yandex.Delivery for $1 billion, granting Yandex full ownership of all four businesses.

Zeekr, the electric vehicle brand of Geely, secured $500 million in its initial external funding round from investors including Intel Capital, battery manufacturer CATL, and online entertainment platform Bilibili. This funding round values Zeekr at approximately $9 billion, as reported by Reuters.

Road Safety Concerns and Regulatory Scrutiny

Welcome to our latest update on policy matters, focusing on crucial safety issues. Recent data from the National Highway Traffic and Safety Administration indicates a concerning rise in traffic-related fatalities during the first quarter of the current year.

Preliminary estimates reveal a 10% increase in deaths compared to prior forecasts. Specifically, 8,730 individuals lost their lives in motor vehicle accidents, a rise from the previously projected figure of 7,900. This increase occurred despite a reduction in overall vehicle miles traveled.

“A transformative and collaborative approach to safety is essential to address the tragic loss of life witnessed on our roads in 2020,” stated Steven Cliff, the acting administrator of NHTSA. “Road safety is a shared responsibility, encompassing everyone involved in the road system – from designers and operators to builders and users.”

Challenges for NHTSA

The agency is now facing some of its most significant hurdles to date. Rapid technological advancements, particularly in the realm of driving automation and advanced driver-assistance systems (ADAS), are presenting new regulatory challenges.

The ongoing investigation into Tesla’s Autopilot system has the potential to significantly reshape ADAS safety standards. For those unfamiliar, NHTSA initiated this investigation following 11 incidents where Teslas collided with stationary emergency vehicles. An additional crash was recently added to the scope of the inquiry.

In a detailed 11-page communication to the electric vehicle manufacturer, NHTSA requested comprehensive data concerning hardware and software components related to Tesla’s Level 2 autonomous capabilities, including the Autopilot feature. The deadline for this data submission is October 22nd.

Calls for Increased Regulation

This investigation is occurring alongside growing demands from various organizations for NHTSA to assert greater regulatory control over ADAS technologies. These groups include the Insurance Institute for Highway Safety, Advocates for Highway & Auto Safety, and the National Traffic Safety Board.

We will continue to closely monitor the progress of this investigation and its potential implications in the months ahead.

— Aria Alamalhodaei

Recent Developments and Industry Updates

Here's a compilation of noteworthy news and developments across the automotive and gig economy sectors.

Autonomous Vehicle Technology

Motional has unveiled the initial designs of its forthcoming robotaxi, based on the all-electric Hyundai Ioniq 5 SUV. This vehicle is intended to be central to a driverless ride-hailing service, accessible to consumers via the Lyft application beginning in 2023.

The specially engineered vehicle, assembled by Hyundai, incorporates Motional’s autonomous driving technology. This includes a comprehensive array of over 30 sensors – lidar, radar, and cameras – strategically positioned both inside and outside the vehicle. This sensor suite provides a 360-degree field of vision and the capability to detect objects up to 300 meters distant, as stated by Motional.

Electric Vehicle Advancements

ElectraMeccanica Vehicles Corp. showcased a dedicated “cargo” variant of its unique three-wheeled, single-passenger, all-electric SOLO vehicle at the Advanced Clean Transportation Expo in California.

Power Global, a relatively new company established two years ago, aims to revolutionize the auto rickshaw industry. They are offering a conversion kit for diesel-powered vehicles and a swappable battery pack system, transitioning from traditional lead-acid batteries to more efficient lithium-ion technology.

Rivian has confirmed that the initial production run of its all-electric R1T pickup truck achieves an EPA-estimated range of 314 miles. The R1S SUV model offers a slightly extended range, rated at 316 miles.

Siemens is expanding its U.S. manufacturing capacity to support the growing demand for electric vehicle infrastructure. The company intends to open a third facility dedicated to its VersiCharge Level 2 AC series of commercial and residential EV chargers. This expansion, anticipated for early 2022, will enable Siemens to produce over 1 million EV chargers for the U.S. market within the next four years.

TechCrunch editor Mike Butcher provides an in-depth analysis of YASA, a British electric motor startup acquired by Mercedes-Benz in July. Founded in 2009 as a spin-off from Oxford University, YASA developed an innovative “axial-flux” motor design. The company will now focus on developing high-performance electric motors specifically for Mercedes-Benz’s AMG.EA all-electric platform.

Wallbox, a provider of electric vehicle charging solutions, has chosen Arlington, Texas, as the site for its first U.S. manufacturing plant. Production is slated to begin as early as June 2022. The facility will initially produce AC chargers, followed by DC bidirectional and DC fast chargers for public use in the first half of 2023. Wallbox projects an annual production capacity of 290,000 units by 2027, increasing to 500,000 units by 2030.

The Gig Economy Landscape

DoorDash delivery workers in California staged protests outside the residence of DoorDash CEO Tony Xu, following a California Superior Court ruling that deemed 2020’s Proposition 22 unconstitutional. Prop 22, approved by California voters last November, allowed app-based companies like DoorDash, Uber, and Lyft to classify workers as independent contractors rather than employees.

Approximately 50 DoorDash workers, representing advocacy groups We Drive Progress and Gig Workers Rising, are requesting greater transparency regarding tip distribution, a minimum wage of $17 per hour (120% of the state minimum), an end to unfair account deactivations, and provision of free personal protective equipment, alongside adequate compensation for vehicle and equipment sanitation.

Massachusetts Attorney General Maura Healey has authorized a coalition of app-based service providers, including Uber and Lyft, to begin collecting signatures for a proposed ballot measure. This measure seeks to define drivers as independent contractors, mirroring California’s Proposition 22. Tens of thousands of signatures are required to place the measure on the November 2022 ballot.

Uber and Lyft have independently announced plans to cover the legal expenses of drivers utilizing their ride-hailing platforms who may be sued under Texas’s recently enacted abortion law.

The new Texas law prohibits abortions once a fetal heartbeat is detected, typically around six weeks of gestation, and grants any individual the right to sue anyone who assists or facilitates an abortion. This potentially includes ride-hailing drivers who transport women to abortion clinics.

Dara Khosrowshahi, CEO of Uber, and Logan Green, CEO of Lyft, both utilized Twitter to voice their opposition to the new law and pledge support to their drivers.

“TX SB8 threatens to punish drivers for getting people where they need to go — especially women exercising their right to choose,” Green stated on Twitter. “@Lyft has created a Driver Legal Defense Fund to cover 100% of legal fees for drivers sued under SB8 while driving on our platform.”

Khosrowshahi retweeted Green’s message and extended a similar commitment. “Right on @logangreen – drivers shouldn’t be put at risk for getting people where they want to go. Team @Uber is in too and will cover legal fees in the same way. Thanks for the push.”

Green and Khosrowshahi are among a small number of CEOs (including those from Austin-based Bumble and Dallas-based Match Group) with Texas operations who have publicly opposed the law.

In-Vehicle Technology and Manufacturing

GM has announced temporary idling of most of its North American assembly plants due to the ongoing global semiconductor chip shortage. However, production of its high-demand full-size SUVs will continue at the Arlington Assembly plant in Texas. The Flint Assembly facility (heavy-duty GMC and Chevy pickups) and the Bowling Green Assembly plant (Corvette) will also remain operational.

Other Industry News

BMW Group has pledged to reduce global carbon dioxide emissions from its vehicles’ operational phase by 50% from 2019 levels by 2030, and to decrease lifecycle emissions by 40%. These objectives, including a focus on circular economy principles for sustainable vehicle lifecycles, will be implemented through the company’s Neue Klasse platform, expected to launch in 2025.

Department of Transportation Secretary Pete Buttigieg and his husband, Chasten, have announced the birth of their twins.

Buttigieg shared on Twitter: “Chasten and I are beyond thankful for all the kind wishes since first sharing the news that we’re becoming parents. We are delighted to welcome Penelope Rose and Joseph August Buttigieg to our family.”

Nikola Corp. has reached a revised agreement with Bosch for its hydrogen fuel cell modules. These modules will power both the Nikola Tre short-haul and Nikola Two sleeper hydrogen-fueled semi-trucks. Bosch invested over $100 million in Nikola in 2019 but reduced its stake the following year. Bosch also previously committed to supplying fuel cells for Nikola’s European operations.