Micromobility, Joby Aviation & Sidewalk Bots - The Station

The Station: A Comprehensive Overview of Mobility

Greetings, valued readers! Welcome to The Station, your dedicated resource for all innovations concerning the transportation of individuals and goods, encompassing historical developments, current trends, and future possibilities.

Upcoming Nuro Coverage

This week, anticipate a series of in-depth articles focusing on Nuro. These reports are the result of investigative journalism led by science and technology reporter Mark Harris, with contributions from myself and our editorial team.

This exploration of Nuro forms a key component of Extra Crunch’s premier editorial content.

Understanding the EC-1 Series

The EC-1 series is structured to deliver insightful, comprehensive analysis of rapidly expanding companies.

It aims to provide a broad understanding of a particular business, while also extracting valuable lessons from the experienced professionals within these organizations.

• These professionals include founders, sales executives, product managers, and software engineers.
• Marketing specialists and all other contributors to startup growth are also featured.

As EC-1 series editor Danny Crichton has previously stated, the objective is to equip TechCrunch readers with a thorough grasp of the complexities involved in company building.

Furthermore, the series seeks to provide current market intelligence on leading technology companies experiencing significant growth.

The EC-1 designation is derived from the Form S-1 filing submitted by late-stage startups to the Securities and Exchange Commission (SEC) in preparation for an Initial Public Offering (IPO).

Monterey Car Week Highlights

Unfortunately, I was unable to be present at Monterey Car Week this year.

Fortunately, Tamara Warren attended and will be sharing a summary of the most noteworthy vehicles showcased at the event.

Stay Connected

Feel free to reach out to me with your thoughts, feedback, or suggestions via email at kirsten.korosec@techcrunch.com.

You can also connect with me directly on Twitter — @kirstenkorosec.

Micromobility Trends and Impacts

The North American Rideshare and Scooter Association’s 2020 Industry Report provides valuable insights into the state of shared micromobility. I’m sharing key findings from this report, with a particular focus on how the industry navigated the challenges presented by the COVID-19 pandemic.

Industry Landscape in 2020

Across the United States, Canada, and Mexico, approximately 224 cities featured either a bikeshare or e-scooter system in 2020. Notably, 72 cities offered both modes of transportation. This represents a 22% decrease compared to the number of cities involved in 2019.

All 129 e-scooter systems operated as dockless and electric services. In contrast, the 167 city bikeshare systems utilized a combination of docked, dockless, and hybrid approaches.

Additional key statistics include:

• 44% of cities with bikeshare programs incorporated e-bikes into their fleets.
• Larger metropolitan areas generally deployed a greater number of vehicles per system and on a per capita basis.
• Vehicle density and utilization rates were demonstrably higher within larger cities.

Shifting Transportation Habits

A significant portion of shared micromobility trips directly substitute for automobile travel. Specifically, 36% of these trips replace what would have been a car journey.

The adoption of shared micromobility also contributed to increased physical activity among North Americans, adding nearly 12.2 million hours of exercise through both new trips and the replacement of motorized transportation. Furthermore, these trips resulted in an estimated offset of approximately 29 million pounds of CO2 emissions.

Economic Considerations

Research from Emory University revealed that e-scooter programs stimulate unplanned spending at quick-service restaurants and food/beverage retailers. The study’s findings indicated:

• An increase of $921 in additional spending per scooter over the six-month study period, correlating to a 0.6% rise in overall sales.
• The e-scooter industry directly employs around 5,000 individuals, equating to one employee for every 30 scooters.

The largest operational costs for operators centered around rebalancing and recharging scooters, vehicle maintenance and repair, and general overhead expenses like insurance and fees. Revenue streams were primarily derived from sponsorships (28%), per-ride fees (26%), fixed fees (18%), and subsidies (10%).

Demographic Representation

While rider representation saw some improvement in 2020, disparities persist, with a continued skew towards white individuals and those in higher income brackets. Households with an annual income of $50,000 or more were overrepresented, particularly those earning between $50,000 and $75,000.

The 25-44 age group was significantly overrepresented, as were white individuals and men. Conversely, Black, Latino, and female riders were underrepresented, although the situation reportedly improved from 2019 levels.

Regarding the workforce, there appears to be growing attention to diversity initiatives:

• 71% of operators confirmed that diversity is a consistent topic in their hiring processes.
• 69% reported representation of women and people of color at all organizational levels.
• 57% indicated that their staff demographics reflect the communities they serve.
• 55% stated that employees have participated in cultural competency or diversity training.

Integration with Public Transit

Shared micromobility is increasingly utilized as a complement to public transportation. Half of all riders reported using these services to connect to transit networks.

Specifically, 16% of all shared micromobility trips were undertaken for the explicit purpose of reaching public transportation. Moreover, 71% of all docked bikeshare stations are located within a one-block radius of another public transit option.

Recent Developments in the Micromobility Sector

Ola, a prominent ride-hailing company based in India, made a substantial investment in an electric scooter manufacturing facility last year. The results of this undertaking are now becoming apparent, with the company preparing to unveil its electric scooter on August 15th.

The new scooter boasts several innovative features, including a reverse function, a palette of 10 distinct colors – many featuring pastel shades – and an intelligent charging system. This charging system is designed for complete automation, eliminating the necessity for cards or cash transactions.

Bounce Transitions to Electric Fleet

Staying in India, Bounce, a leading moped-sharing service, has also announced significant news. The company has initiated a comprehensive replacement of its existing fleet of 30,000 gasoline-powered scooters with electric alternatives.

This transition is being facilitated through a partnership with Chara, a startup specializing in “switched-reluctance motors.” This collaboration will enable Bounce to manufacture its own scooters internally.

Skip Files for Bankruptcy

In other news, micromobility provider Skip submitted a petition for Chapter 7 bankruptcy protection last week. This action initiates the process of liquidating assets and settling outstanding debts.

A meeting of Skip’s creditors is scheduled for September 8th to review the company’s financial standing. Liabilities are estimated between $10 and $50 million, while assets are valued between $50 and $100 million.

Helbiz, currently pursuing a public offering through a SPAC merger, acquired Skip in the latter part of the previous year as part of its broader global expansion plans. This marks the first instance of a major scooter company declaring bankruptcy, and potentially foreshadows further developments in the industry.

— Rebecca Bellan

Recent Investment Activity

A surge in public filings continued throughout 2021, with Turo, the peer-to-peer car-sharing platform, being the latest to initiate the confidential process for an initial public offering with the U.S. Securities and Exchange Commission.

Details regarding the number of shares offered and the anticipated price range remain undisclosed at this time, as confirmed by the company in a recent statement.

Established 11 years ago, Turo has evolved beyond the startup phase. Its marketplace facilitates vehicle rentals by connecting car owners with potential renters through its application and website, currently operating in over 5,500 cities across three countries.

Turo's Expansion and Funding

Turo previously expanded into Germany through the acquisition of Daimler AG’s car-sharing subsidiary, Croove, alongside a concurrent investment. However, the company has since exited the German market.

The company secured a substantial $250 million investment in July 2019 during a Series E funding round. This infusion of capital propelled Turo to unicorn status, exceeding a billion-dollar valuation, as stated by CEO Andre Haddad.

A subsequent $30 million extension round in February of the following year brought Turo’s total funding to over $500 million.

Public Debuts and Further Deals

Joby Aviation also recently entered the public market, 12 years after its founding by JoeBen Bevirt in the Santa Cruz mountains. The air taxi developer commenced trading on the New York Stock Exchange under the ticker symbol “JOBY” following a merger with Reinvent Technology Partners, a special purpose acquisition company.

An interview with Bevirt and Joby Executive Chairman Paul Sciarra regarding this milestone and future plans was conducted by Aria Alamalhodaei.

Notable Funding Rounds

Ambri, a battery technology startup located in Marlborough, Massachusetts, secured $144 million in funding. This round was spearheaded by strategic investor Reliance New Energy Solar, a subsidiary of Reliance Industries Limited.

Existing investor Paulson & Co. Inc., Ambri’s largest shareholder, along with Bill Gates, and new investors including Goehring & Rozencwajg Associates, Fortistar, and Japan Energy Fund, also participated. The funds will be allocated to the commercialization of their technology and the construction of a domestic manufacturing facility.

Anchor Yacht Rentals, a Tampa, Florida-based startup connecting yacht owners and licensed captains with riders, raised $2.5 million in seed funding. The round was led by Austin-based Silverton Partners.

Founded in 2016, the company intends to utilize the capital to broaden its reach across key U.S. and international travel destinations.

Strategic Acquisitions

ChargePoint has made two acquisitions since its public listing in March. The company purchased European electric fleet management firm ViriCiti for €75 million ($88 million) in cash.

This acquisition follows the recent purchase of European charging software company has·to·be, further strengthening ChargePoint’s position in the EV charging market.

Gopuff, a U.S. delivery application, acquired London-based on-demand grocery startup Dija, as reported by Sifted. The financial details of the transaction were not disclosed.

Gopuff has been actively expanding through acquisitions, including the $115 million purchase of fleet management startup rideOs and U.K.-based Fancy Delivery.

HopSkipRide secured $25 million in a Series C funding round to support its growth and expansion into 30 new markets over the next year and a half. The funding was provided by Energy Impact Partners, Keyframe Capital, FirstMark Capital, and 1776 Ventures.

Jerry, a car ownership application, raised $75 million in a Series C round, achieving a company valuation of $450 million. This announcement followed a previous $28 million funding round just months prior.

Goodwater Capital led the “oversubscribed” round, increasing its investment in Jerry. Additional participation came from Bow Capital, Kamerra, Highland Capital Partners, and Park West Asset Management, bringing Jerry’s total funding to $132 million since its inception in 2017.

Policy Updates

Welcome to this week’s policy review.

It’s important to remember, despite recent progress, that the $1.2 trillion infrastructure bill – following months of negotiation – has only passed the Senate. Further legislative action is necessary in the House of Representatives before it reaches President Joe Biden for final approval.

This shouldn't diminish the significance of the Senate’s bipartisan achievement, as highlighted by The New York Times. However, Speaker Nancy Pelosi and progressive Democrats have indicated they will postpone consideration of the bill until Congress completes a budget reconciliation process.

This process could allocate up to $3.5 trillion towards a range of domestic programs, designed to broaden the federal safety net. Funding for these programs would be partially derived from increased taxes on high-income earners and corporations.

The proposed budget currently lacks any Republican support, foreshadowing a challenging path forward for both the infrastructure bill and the national budget deliberations.

Senate Majority Leader Chuck Schumer (D-NY) acknowledged the difficulties ahead on Wednesday, stating, “We’ve labored for months to reach this point, and we have no illusions: Maybe the hardest work is yet to come, but we are united in our desire to get it done.”

The infrastructure bill, while approved by the Senate, represents a series of compromises, particularly concerning transportation electrification. Consequently, some House Democrats are viewing the budget proposal as a potential avenue to incorporate provisions excluded from the initial infrastructure legislation.

For example, Rep. Debbie Dingell (D-MI), alongside 27 other Democrats, has sent a letter to Pelosi advocating for the inclusion of $85 billion in the budget for the development of a nationwide EV charging network. This is significantly more than the $7.5 billion allocated for EV charging within the infrastructure bill.

Sustainable Aviation Fuel

Furthermore, President Biden is reportedly considering a 2050 target for airlines to transition entirely to sustainable aviation fuel (SAF). This potential goal would likely be accompanied by incentives to facilitate the industry’s adaptation.

Decarbonizing commercial aviation presents unique challenges. Current battery technology and energy density limitations mean the weight of batteries required for a Boeing 737 to fly transatlantic would exceed the aircraft’s weight capacity.

This necessitates the development and adoption of zero-emissions jet fuels. While some existing aircraft can utilize a 50/50 blend of SAF and conventional fuel, new aircraft capable of running on 100% SAF will be required.

Given the substantial cost of fuel for airlines, the industry is expected to actively seek significant government assistance before endorsing any zero-emission mandate, even if it is initially non-binding.

— Aria Alamalhodaei

Recent Developments in the Automotive and Mobility Sectors

This week saw a strong focus on earnings reports, alongside a number of other noteworthy developments across the autonomous vehicle and broader mobility landscape. A comprehensive overview of these events follows.

Advancements in Autonomous Vehicle Technology

A collaborative effort between Einride and Bridgestone centers on data acquisition and integration. Einride will gather enhanced data concerning safety and operational efficiency from Bridgestone’s intelligent tires. Bridgestone, in turn, will leverage this data to refine its advanced mobility technologies for implementation within Einride’s vehicle platforms.

Kiwibot, specializing in robotic sidewalk delivery, has established a partnership with Sodexo, a leading provider of food and facilities management services. This collaboration will introduce Kiwibot’s robots to multiple U.S. college campuses, beginning this month at New Mexico State University, Loyola Marymount University, and Gonzaga University, offering students and faculty robotic meal delivery options.

Motional, the autonomous vehicle firm resulting from a $4 billion joint venture between Aptiv and Hyundai, is expanding its California operations. This expansion includes a new facility in Los Angeles to support on-road testing, increased engineering personnel, and a new Silicon Valley office.

This investment in California follows a period of significant hiring, bringing Motional’s total workforce to over 1,000 employees. The company has also expanded into Seoul and announced plans to launch fully driverless robotaxi services in major U.S. cities in 2023, utilizing the Lyft ride-sharing network.

Starship Technologies, another company deploying autonomous sidewalk delivery robots, will extend its service to four additional college campuses this fall, supplementing its existing operations on 20 campuses.

Analysis of Recent Earnings Reports

Arrival, a U.K.-based electric vehicle manufacturer, has yet to generate substantial revenue, and its recent earnings report reflects the costs associated with bringing a new vehicle to market. The company reported an EBITDA loss of €29 million ($34 million), with an adjusted EBITDA loss of €35 million ($41 million), representing an increase from the first quarter’s loss of €27 million ($31 million).

Capital expenditures totaled €65 million ($76 million), primarily driven by expenses related to product development and factory equipment. The company projects further capital spending of €175 million to €225 million ($205 million to $264 million) for the remainder of the year, influenced by costs associated with its Bicester, U.K. microfactory and planned facilities in South Carolina, as well as tooling expenses.

The company maintains its confidence in meeting planned product launch timelines, but success hinges on converting letters of intent into actual sales, particularly a significant van order from UPS, potentially worth over $1 billion in revenue.

Hyzon Motors, focused on hydrogen-powered heavy-duty trucks, also remains pre-revenue following its public listing via a SPAC. The company reported a net loss of $9.4 million for the second quarter, including $3.5 million in research and development expenses, and a negative adjusted EBITDA of $9.1 million. Hyzon currently holds $517 million in cash, sufficient to reach free cash flow by 2024 without additional equity sales.

The company anticipates positive cash flow through the $500 million capital injection from its transaction and increasing customer orders, and is preparing to initiate initial customer trials in the United States.

Lordstown Motors reported a net loss of $108 million, a 13.7% improvement compared to the first quarter’s loss of $125 million. However, these losses are more than ten times greater than the -$7.9 million reported in the same period last year.

The company reduced research and development spending by 17% to $76.5 million, while increasing capital expenditures to $121 million from $53 million in the first quarter. Lordstown has also revised its capital expenditure guidance for the year, increasing it from $250 million to $275 million to a range of $375 million to $400 million, largely due to prepayment requirements for equipment.

Executives at Lordstown stated they are on track to begin production of the Endurance electric truck, with initial deliveries to select customers expected early next year.

Luminar, a lidar technology company, reported revenue of $6.3 million, a 19% increase from the previous quarter. The company experienced a net loss of $36.8 million, up from $25.4 million in the same period last year. Luminar raised its full-year 2021 revenue guidance to $30 million to $33 million, compared to prior guidance of $25 million to $30 million. The company’s expanding operating losses reflect its growth initiatives.

Vroom, an online car marketplace, reported a net loss of $65.8 million, including $22.6 million in one-time costs related to its initial public offering, as reported by Automotive News. Vroom went public in June 2020, and also reported increased revenue and vehicle sales.

Further Developments in Electric Vehicles and Flight

Elon Musk voiced concerns via Twitter regarding supply chain disruptions, specifically citing Renesas and Bosch, two major automotive chip suppliers, as hindering Tesla’s production capabilities, as reported by Bloomberg.

Polestar unveiled pricing and specifications for two new versions of its Polestar 2 electric vehicle, according to Car and Driver. A single-motor version will start at $47,200, while a dual-motor version will have a base price of $51,200, representing a reduction from the price of last year’s Launch Edition model.

Innovations in Air Cargo and Urban Mobility

Amazon’s $1.5 billion air cargo hub in Northern Kentucky became operational this week, representing the e-commerce giant’s latest effort to establish a network of 40 sites and control all aspects of delivery to meet increasing demand for speed and convenience.

Located at the Cincinnati/Northern Kentucky International Airport, the Amazon Air Hub will serve as the central hub for its U.S. cargo network, eventually operating a dozen flights daily and processing millions of packages weekly.

Archer Aviation is pursuing $1 billion in damages from Wisk Aero, escalating the legal dispute between the two air taxi competitors, according to court filings.

Archer alleges that Wisk engaged in a “knowingly false extra-judicial smear campaign” that disseminated defamatory statements about Archer. Archer claims this campaign has negatively impacted its ability to secure funding and maintain business relationships, resulting in damages exceeding $1 billion.

Other Notable Mobility News

BlackBerry has partnered with Car IQ to introduce a secure, vehicle-based payment platform within the BlackBerry/AWS IVY ecosystem. This system creates a “digital fingerprint” for each vehicle, connecting it to a bank’s payment network to validate and process payments for services such as fuel, tolls, parking, and maintenance, as well as other “wallet” functionalities.

The Michigan Office of Future Mobility and Electrification and the Michigan Department of Transportation are collaborating to offer grants to companies focused on mobility and electrification seeking to deploy their technologies within the state.

These grants prioritize “sustainable futures” – promoting electric vehicle adoption and charging infrastructure – “equitable futures” – ensuring affordable and reliable transportation options – and multimodal transportation solutions. Further details on the application process are available here.