Nuro, Rivian, and Ride-Hailing News - The Station

The Station: A Weekly Transportation Newsletter

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SEMA Show Highlights a Notable Trend

The Specialty Equipment Market Association (SEMA) trade show has traditionally been renowned as a showcase for unique and eye-catching vehicle customizations. However, a significant change was observed this year, mirroring a broader national trend.

Although I was unable to attend SEMA in person, reports from those who did indicate an unprecedented number of conversions from gasoline-powered vehicles to electric powertrains. This included classic sports cars and vintage hot rods.

Ford's Electrification Efforts

Automakers were also present, exhibiting their latest electric vehicles. Notably, Ford showcased the F-100 Eluminator concept truck.

This concept is particularly relevant as it previews a product Ford intends to make available for purchase. The Eluminator electric crate motor is currently being sold through Ford Performance Parts, both online and via local dealerships.

Derived from the Mustang Mach-E GT Performance Edition, this motor generates 281 horsepower and 317 lb.-ft. of torque.

Stay Connected

I welcome your feedback, critiques, and insights. Feel free to reach out via email at kirsten.korosec@techcrunch.com.

Alternatively, you can connect with me directly on Twitter – @kirstenkorosec.

Micromobility Updates

Lime has successfully secured $523 million in funding through a combination of convertible debt and term loan financing. This financial maneuver positions the company for a planned public offering in the coming year, as stated by CEO Wayne Ting. The majority of this funding is structured as a convertible note, designed to transition into shares upon Lime’s initial public offering, though specific timing details remain undisclosed.

Approximately $20 million from this funding round is earmarked for initiatives focused on reducing the company’s carbon footprint. Lime has unveiled several strategies aligned with COP26, including a commitment to encourage 80% of its manufacturing and supply chain partners to establish their own carbon emission reduction targets.

Bird, a significant competitor to Lime, recently became a publicly traded company through a special purpose acquisition company (SPAC) merger on Friday. The company’s shares concluded trading at $8.40, exhibiting minimal change. Bird intends to utilize the capital raised through the IPO to broaden its current operations and expand into new urban areas.

Prior to the merger’s completion, following a shareholder vote earlier in the week, shares of Switchback II Corporation, the SPAC involved, experienced a decline of over 20% before partially recovering.

Neuron Mobility, headquartered in Singapore, is enhancing its N3 scooters with a new operating system and supplementary onboard sensors. This upgrade aims to identify and rectify instances of unsafe or inconsiderate scooter operation.

Several companies, including Spin, Voi, Bird, Superpedestrian, and Helbiz, have previously introduced technologies intended to promote responsible riding behavior, but Neuron asserts its solution will deliver results “at scale.” The upgraded scooters will undergo testing with approximately 1,500 units across Australia, Canada, and the U.K. over the next six months.

Integration with Google Maps

Dott, a European micromobility provider, has integrated its services with Google Maps. Users of the Google Maps application in Belgium, Finland, France, Germany, Italy, Norway, Poland, Spain, and the U.K. will now be able to locate and access Dott’s e-scooters and e-bikes directly through the app.

Helbiz has deployed a fleet of 250 e-scooters in Sacramento, California, following the acquisition of a one-year operating permit from the city.

Partnerships and Initiatives

A collaborative effort between the U.K. and Beam has been launched in Australia and New Zealand to promote awareness of electric mobility options. This partnership seeks to reduce carbon emissions associated with transportation by incentivizing individuals to try electric mobility solutions through ride credit offers.

Gojek, an Indonesian mobility platform, and Gogoro, a Taiwanese battery swapping technology company, have announced a partnership to facilitate the electrification of two-wheeled transportation within Indonesia.

Together with Pertamina, Indonesia’s national energy company, they are initiating a pilot program in Jakarta involving battery swapping and the deployment of Gogoro Smartscooters.

Recycling Program

PeopleForBikes and Call2Recycle are collaborating to establish the first comprehensive electric bicycle battery recycling program in the United States. This initiative aims to consolidate battery recycling efforts across the industry under a unified solution.

Recent Investment Activity in the Autonomous Vehicle Sector

Attention is currently focused on an autonomous vehicle company demonstrating a consistent ability to secure substantial funding while maintaining a relatively low public profile.

We are referring to Nuro, the autonomous delivery company established in 2016. The company recently completed a funding round, securing $600 million with Tiger Global Management as the lead investor. Google also participated as a new investor in this financing.

Nuro's Valuation and Funding Details

This latest funding has elevated Nuro’s valuation to approximately $8.6 billion, representing a 72% increase compared to its valuation one year prior, according to sources who requested anonymity. The Series D round saw contributions from a range of investors, primarily existing shareholders.

These included Baillie Gifford, Fidelity Management & Research Company, Gaorong Capital (a China-based venture firm), Kroger (a grocery retailer), SoftBank Vision Fund 1, funds and accounts managed by T. Rowe Price Associates, Inc., and Woven Capital, the venture capital arm of Toyota’s Woven Planet.

A significant portion of these funds will be allocated to the commercialization and scaling of production for its third-generation vehicle. This will occur at a newly constructed facility located in Southern Nevada.

Construction of the manufacturing plant is scheduled to commence in December and is anticipated to be finalized in 2022.

Other Notable Investment Rounds

42dot, a South Korean startup specializing in autonomous transportation-as-a-service, secured $88.5 million (equivalent to 104 billion WON) in a Series A funding round. Investors included Shinhan Financial Group, Lotte Rental, Lotte Ventures, STIC Ventures, We Ventures, DA Value Investment, and others.

Autobrains, an Israeli company developing AI technologies for assisted and autonomous driving, raised $101 million in a Series C funding round. Temasek led the investment, with participation from Knorr-Bremse AG, VinFast, BMW, and Continental (a strategic partner).

Breadfast, an online grocery delivery service aiming for regional leadership, obtained $26 million in Series A financing. Vostok New Ventures and Endure Capital spearheaded the investment, with contributions from JAM Fund, YC Continuity Fund, a Saudi-based fund, Shorooq Partners, 4DX Ventures, and Flexport.

Delimobil, a Russian car-sharing company, has decided to postpone its initial public offering due to prevailing market conditions, as reported by Reuters.

Further Funding and Acquisitions

Momenta, a Chinese autonomous vehicle developer, has added an additional $500 million to its Series C funding round. This follows a $300 million investment from General Motors announced two months prior, bringing the total Series C funding to over $1 billion.

Opibus, a Swedish-Kenyan company focused on electric vehicle conversions, raised $7.5 million in a pre-Series A round. This included $5 million in equity and $2.5 million in grants, led by At One Ventures, with backing from Factor[e] Ventures and Ambo Ventures.

Rivian is targeting $8.4 billion in its initial public offering, as indicated in a recent regulatory filing. The Amazon-backed company plans to offer 135 million shares, priced between $57 and $62. Underwriters have an option to purchase up to 20.25 million additional shares, potentially raising the total to $9.6 billion.

This would value Rivian at approximately $53 billion, based on outstanding shares. Considering employee stock options and restricted shares, the valuation could reach as high as $60 billion.

Additional Deals

Spartan Radar, a biomimetic radar company, completed a $15 million Series A round led by Prime Movers Lab. Additional investors included 8VC and Mac VC. This followed a $10 million raise earlier in the year.

Scale AI has acquired SiaSearch, a spinout from Merantix, a European venture studio. SiaSearch has developed a data management platform functioning as a search engine for the massive datasets generated by advanced driver-assistance and autonomous driving systems.

Zepto, a newly established Indian grocery delivery startup, secured $60 million in a funding round led by Glade Brook Capital. Nexus, Y Combinator, Global Founders Capital, Lachy Groom, Neeraj Arora, and Manik Gupta also participated, valuing Zepto at $225 million.

Policy Corner

Greetings, and welcome back to Policy Corner!

A note from Kirsten: Following the completion of this newsletter, Congress approved President Biden’s infrastructure bill, with voting largely following party lines. A more detailed analysis will be provided in the next edition.

Let's turn our attention to the Hertz-Tesla agreement. It’s understood that Tesla emphasized Hertz’s commitment to paying the full retail price for the 100,000 vehicles ordered, despite the apparent lack of a formal contract.

However, it’s improbable that the full price was actually paid. Lou Bertuca, Turo’s VP of government relations, conveyed to me his firm conviction that Hertz benefited from a tax exemption applicable to rental car companies, allowing them to bypass sales tax obligations.

He estimates that this loophole results in approximately $4 billion in lost tax revenue annually for states. This sales tax exemption was originally intended for vehicle resellers, but rental companies have also been able to utilize this “sale for resale” provision.

“They are acquiring vehicles without paying tax and subsequently generating substantial profits through rentals,” he explained. “Whenever a rental firm claims to be paying the standard rate, it’s crucial to remember they aren’t burdened with the sales tax that other purchasers face, regardless of whether they’re buying a Tesla or a Ford.” (TechCrunch contacted Hertz for a statement.)

Bertuca indicated that around five to six states are currently re-evaluating this tax exemption. Naturally, Turo, a peer-to-peer car rental marketplace, has a vested interest in this matter. It’s also worth noting that state and local governments can impose taxes on rental car companies, while peer-to-peer platforms like Turo may be exempt – a comprehensive overview of this issue can be found here.

In separate developments, Canada has stated it will “respond appropriately” if the U.S. enacts the proposed increase in consumer tax incentives for electric vehicles. Francois-Philippe Champagne, Canada’s Innovation and Industry Minister, informed Reuters that the proposal – offering an additional $4,500 for U.S.-made EVs from unionized facilities and $500 for U.S.-made batteries – would violate the USMCA trade agreement between the U.S., Canada, and Mexico.

He is among a growing number of foreign automotive and auto parts manufacturers, including Toyota and Honda, who are voicing opposition to these additional funds.

I recently heard a compelling interview with Flavio Volpe, president of Canada’s Automotive Parts Manufacturers’ Association, who argued that “American-made” is largely a political phrase that doesn’t accurately reflect the current realities of the industry. He pointed out that $9 billion worth of auto parts are shipped from Michigan to Ontario for assembly – components that would be ineligible for the extra incentive if the proposal is approved.

“In our sector, we essentially function without a border, as has been the case for some time,” he stated.

I recommend listening to the full interview if you have approximately 20 minutes available. It offered a fresh perspective on the complexities of the automotive supply chain.

— Aria Alamalhodaei

Re-emergence in Robotics

A brief update regarding developments in the autonomous vehicle sector is worth noting. Starsky Robotics, a company previously engaged in the development of self-driving trucks, ceased operations in March 2020 amid increasing industry competition and consolidation.

Stefan Seltz-Axmacher, a co-founder and the former Chief Executive Officer of Starsky Robotics, is now involved with a new, currently unpublicized venture. His LinkedIn profile indicates a focus on robotics and autonomy.

New Venture Details

According to Seltz-Axmacher’s professional networking profile, he is currently building a stealth startup. The profile also includes the statement, “More info soon!” suggesting a forthcoming public announcement.

This signals a return to the field for Seltz-Axmacher following the closure of his previous company. Further details regarding the new venture are anticipated in the near future.

Recent Developments in Automotive Technology

This article summarizes key news and updates from the automotive and autonomous vehicle sectors.

Advanced Driver-Assistance Systems (ADAS)

Tesla initiated a voluntary recall impacting approximately 11,704 vehicles. This action followed the identification of a software flaw potentially triggering false forward-collision alerts or unintended activation of the automatic emergency braking system, as reported by the National Highway Traffic and Safety Administration.

Autonomous Vehicle Progress

Cruise dedicated this week to showcasing its advancements. The company hosted a technical event, serving both as a recruitment drive and a platform to detail its development roadmap. Kyle Vogt, CTO and co-founder, shared a video of a driverless journey, and the company subsequently submitted applications for the CPUC Driverless Deployment Permit and the associated Passenger Safety Plan.

Prashanthi Raman, head of global government affairs at Cruise, communicated via email to TechCrunch, stating, “Cruise has achieved a significant milestone by becoming the first entity to apply for the final state permit needed to launch an autonomous ride-hailing service in California. Our Passenger Safety Plan details the safety and accessibility features passengers can anticipate throughout their experience with our AVs – a crucial element of our comprehensive safety strategy.”

Embark established a collaborative partnership with Luminar. This collaboration will integrate Luminar’s long-range radar technology into Embark’s truck fleet, supporting the company’s efforts toward commercial deployment and fulfillment of its 14,200 non-binding truck reservations anticipated in 2024.

Loyola Marymount University has partnered with Kiwibot, an autonomous robot delivery service, to facilitate meal deliveries across its campus through its dining platform.

Waymo is undertaking a project to manually drive its vehicles for mapping purposes in New York City. The collected data will then be utilized to refine and enhance its autonomous technology.

Electric Vehicle Market Updates

Ford Motor has confirmed that reservations for the all-electric F-150 Lightning pickup truck have exceeded 160,000, within just six months of its initial unveiling. However, it’s important to note that these are refundable $100 pre-orders, and actual purchases may differ as the spring launch approaches.

Lucid Group has been focused on delivering its Air electric vehicle to customers this past week. Additionally, the company expanded its retail presence with the opening of its 11th store, referred to as a “studio,” in Washington, DC.

Nikola Corp., the electric truck manufacturer, is currently engaged in discussions with the U.S. Securities Exchange Commission regarding a potential $125 million civil penalty. This stems from an ongoing investigation into allegations that the company may have misled investors.

Rivian, the electric vehicle manufacturer, is facing a lawsuit filed by a former sales and marketing vice president alleging gender discrimination. The lawsuit claims that Laura Schwab, a former executive with extensive experience at Jaguar Land Rover and Aston Martin, was terminated after reporting concerns about gender discrimination to the company’s human resources department.

In-Car Technology and Sensor Developments

Due to the ongoing global chip shortage, BMW will be shipping certain vehicle models without touchscreen functionality. While the infotainment system will remain operational, touch input will be disabled on the central display.

Kneron introduced its inaugural automotive-grade chip, backed by investments from Foxconn, Alibaba, Sequoia, Horizons Ventures, and Qualcomm. The company asserts that this chip has the potential to significantly advance the development of vehicle autonomy.

Velodyne Lidar appointed Theodore Tewksbury as its new CEO, marking the latest in a series of leadership changes within the company since the beginning of the year. Tewksbury previously served as CEO of Eta Compute, a firm specializing in edge vision sensors. The position had been vacant for several months following Anand Gopalan’s departure in July.

Ride-Hailing Industry Performance

This week saw earnings reports released by both Uber and Lyft.

Lyft announced it had achieved adjusted profitability as ridership levels recovered in the U.S. The company reported revenues of $864.4 million for the third quarter, representing a 73% increase compared to the $499.7 million recorded during the same period last year.

Uber reported adjusted EBITDA of $8 million, while still incurring net losses exceeding $2 billion. Gross bookings, representing the total value of transactions on the platform, reached $23.1 billion, a 57% year-over-year increase. This translated to revenues of $4.8 billion, a 72% increase compared to the previous year’s quarter.

It’s important to recognize that adjusted EBITDA is a modified profit metric and doesn’t represent standard GAAP profitability. Nevertheless, it signifies a positive development for these companies.