Quanergy, Embark, Spin & Bird: SPAC Deals and New Launches

The Station: A Weekly Transportation Newsletter

Welcome to The Station, a newsletter focused on the evolving landscape of transportation. It delivers insights into how people and goods are moved, both presently and in the future. Sign up here to have it delivered directly to your inbox each weekend.

Hitting the Road and Yellowstone's Autonomous Shuttle

Currently, preparations are underway for a road trip. Like many, the journey will involve travel by car, truck, or RV across the country. The destination includes both remote wilderness areas and Yellowstone National Park, anticipating a significant number of visitors.

Despite the potential crowds, a surprising statistic suggests that the majority of Yellowstone’s visitors remain concentrated in easily accessible areas. A local guidebook indicates that 98% of tourists stay within one mile of trailheads. Past experiences confirm this, with most preferring established roads, walkways, and viewing platforms.

Introducing T.E.D.D.Y.

An exception to avoiding the crowds will be made to observe a new autonomous technology being tested within the park. Beep, collaborating with Local Motors, is piloting an autonomous shuttle named T.E.D.D.Y. – an acronym for The Electric Driverless Demonstration in Yellowstone.

This shuttle serves as a tribute to President Theodore Roosevelt, a noted conservationist. The project aims to gather valuable data for future implementations of autonomous vehicles in national parks nationwide.

Pilot Program Details

The autonomous shuttle will operate on two designated routes, running seven days a week. Data gathered during this pilot program will be crucial in shaping the deployment of similar technologies in other national parks throughout the United States.

Wishing you safe travels.

Stay Connected

Feel free to reach out with your thoughts, feedback, or suggestions. You can email me at kirsten.korosec@techcrunch.com. Alternatively, connect via Twitter – @kirstenkorosec.

Micromobility Updates

Recent weeks have seen significant developments and financial investments within the micromobility sector. Both leading e-scooter companies, Spin and Bird, have unveiled new initiatives and vehicle models.

Spin has introduced its first internally designed and manufactured electric scooter, designated the S-100T. The “T” signifies “toughness,” reflecting Spin’s emphasis on durability. This scooter is engineered to withstand rigorous street use and testing, with an anticipated lifespan of three years or more. Initial deployment of the S-100T is scheduled for Sacramento in July.

Bird is expanding its offerings to include e-bikes alongside its existing e-scooters, beginning with a launch in Cleveland, Ohio, later this year. This move towards multi-modal transportation aligns with the strategies of its primary competitor, Lime, which already operates both bikes and e-mopeds.

Furthermore, Bird is launching a ‘Smart Bikeshare’ platform. This system will allow local operators of shared e-bikes and e-mopeds – but not e-scooters – to integrate their vehicles into the Bird application. This expands the perceived breadth of Bird’s fleet and provides increased visibility for local operators.

Financial Investments in the Sector

Micromobility software provider Joyride observes a growing number of smaller shared e-scooter and e-bike businesses emerging, particularly in areas previously served by Bird and Lime before their pandemic-related withdrawals. Joyride assists these companies with fleet acquisition, launch procedures, and ongoing management.

Having operated since 2014, the company recently secured a $3.7 million seed funding round to broaden its services and support a larger network of local operators.

New Zealand-based electric utility bike startup Ubco has raised $10 million to facilitate its global expansion, with a specific focus on the U.S. market, and to enhance its commercial subscription services. Currently, a review of one of their bikes is being conducted in Auckland, and initial impressions are highly positive.

The Ubco 2X2, resembling a dirt bike but functioning like a moped, initially aimed to provide transportation for farmers. However, the founders quickly recognized its broader applicability. Ubco now supplies bikes to enterprise fleets, postal services, and logistics companies. The company is developing a subscription model to simplify vehicle access for customers and promote sustainable end-of-life vehicle management.

Prioritizing Safety

Tier Mobility, the Berlin-based e-scooter company that recently secured a London operating permit and $60 million in debt financing from Goldman Sachs, has released a comprehensive e-scooter safety report.

Tier formed the Tier UK Safety Board in collaboration with charitable organizations and transportation specialists. This board advocates for enhanced safety standards throughout the industry to safeguard pedestrians and improve rider protection, especially for individuals with visual impairments.

Is this report a strategic move by Tier to highlight its safety record? It is likely. However, are the safety improvements proposed by this group already implemented by Tier? That is also probable. Key recommendations include:

• Operators should implement more advanced parking technology that moves beyond simple GPS reliance, preventing scooters from becoming obstructions.
• Operators should be mandated to incorporate acoustic vehicle alerts to effectively warn pedestrians of approaching e-scooters.
• The establishment of a 12.5 mph speed limit for all scooters, encompassing both rental and privately owned devices.

Additionally, an interview with Veo CEO Candice Xie is available on Extra Crunch and is recommended reading.

— Rebecca Bellan

Notable Transactions in the Automotive and Mobility Sector

The past week has witnessed significant activity within the realm of special purpose acquisition companies (SPACs). These financial vehicles, offering an accelerated, albeit pricier, route to initial public offerings, have become increasingly prevalent, particularly within the transportation industry.

Throughout 2020, approximately 22 mobility-focused SPAC transactions occurred, largely involving manufacturers of electric vehicles. Companies such as Nikola Motors and Lordstown Motors, alongside Canoo and Fisker, were key participants in this trend.

The momentum continued into 2021, with aviation-related firms, lidar technology companies, and autonomous vehicle startups also leveraging the SPAC mechanism. This week saw both Quanergy, a solid state lidar company, and Embark, a developer of self-driving trucks, finalize SPAC agreements.

Further Investment Highlights from the Week …

BMW’s Silicon Valley venture capital division has made a strategic investment in Kodiak Robotics, a company specializing in autonomous trucking technology. Kodiak clarified to TechCrunch that the investment is purely financial, with no associated technical collaboration planned between the two entities.

The Clean Mobility Options Voucher Pilot Program has distributed $18 million in vouchers to support mobility initiatives in underserved communities. An additional $2 million was specifically allocated to Native American tribal governments. These funds will facilitate projects encompassing on-demand shuttles, microtransit solutions, electric vehicle car sharing, bike and scooter-sharing programs, carpooling, vanpooling, and ride-on-demand services.

Electra Vehicles, a company focused on software optimization for electric vehicle battery systems, secured $3.6 million in seed funding. The investment round was spearheaded by BlackBerry Limited and LIFTT S.p.A, with contributions from Club degli Investitori, Massachusetts Clean Energy Center, Hyperplane Venture Capital, Prithvi Ventures, Launchpad Venture Group, and TiE Boston Angels.

Holy Grail, a Mountain View, California-based startup pursuing a micro-scale approach to carbon capture, has raised $2.7 million in seed funding. Investors included LowerCarbon Capital, Goat Capital, Stripe founder Patrick Collison, Charlie Songhurst, Cruise co-founder Kyle Vogt, Songkick co-founder Ian Hogarth, Starlight Ventures, and 35 Ventures. Deep Science Ventures, Y Combinator, and Oliver Cameron, a former Voyage co-founder, also participated in the round.

IoTecha, a provider of electric vehicle charging solutions, has secured $13.2 million in funding, led by a $7 million investment from BP Ventures. IoTecha’s software platform facilitates communication between EV chargers and the electricity grid, enabling optimized charging for both private and fleet vehicles. The company intends to utilize the investment to expand its technology within BP’s electrification network.

Lendbuzz, an auto finance platform, has obtained $360 million in combined capital and debt financing. A $60 million equity investment was led by Wellington Management, with participation from Goldman Sachs & Co and MUFG Innovation Partners. An additional $300 million in debt financing was provided by Goldman Sachs Bank USA. The company plans to leverage these funds to further its expansion across the United States.

Nikola Corporation is committing $50 million in cash and stock for a 20% stake in a clean hydrogen project spearheaded by Wabash Valley Resources LLC. This project will utilize solid-waste and biomass to generate hydrogen for both transportation fuel and electricity production. Nikola anticipates this initiative will bolster future truck sales and the deployment of hydrogen stations throughout the Midwestern region.

Sendle, a shipping carrier employing carbon offsetting to achieve carbon-neutral operations for small businesses, has raised $35 million in a Series C funding round. The round was led by AP Ventures, with participation from existing investors including Federation, Full Circle, and NRMA. Sendle intends to utilize the funds to broaden its operational footprint within the U.S.

Uber has finalized an agreement to become the sole owner of Latin American delivery startup Cornershop, following its acquisition of a majority stake last year. Uber will acquire the remaining 47% interest in Cornershop in exchange for 29 million shares, with the transaction expected to be completed in July.

Infrastructure Bill Agreement Reached

Welcome back to Policy Corner. This week’s update is concise, yet details a significant development in legislative action.

A substantial infrastructure agreement, valued at $1.2 trillion, has been reached between President Joe Biden and a bipartisan group of Senators following extensive negotiations.

The scope of this agreement encompasses a wide range of conventional infrastructure projects. These include improvements to roads, bridges, and railway systems.

Notably, the bill also allocates funding towards the expansion of electric transportation infrastructure.

Funding for electric vehicle initiatives proved to be a key point of contention during discussions. Consequently, the final allocation is considerably smaller than the initial proposal put forth by President Biden in March.

Specifically, the original plan included direct rebates for electric vehicle purchases, a provision that has been removed from the current agreement.

Despite this reduction, the bill designates $7.5 billion for the procurement of electric buses and an additional $7.5 billion for the development of a national EV charging station network.

Although this figure may fall short of the expectations of some proponents, it represents a marked increase compared to previous years’ investments in these areas.

— Aria Alamalhodaei

Recent Developments and Points of Interest

A considerable amount of information has recently become available. Let's proceed directly to the key updates.

Industry News Highlights

Several noteworthy events have transpired within the industry. These developments warrant attention and analysis.

Ongoing monitoring of current affairs is crucial for staying informed. This allows for proactive adaptation to changing circumstances.

Additional Observations

Beyond the primary news items, several other points are worth noting. These observations contribute to a broader understanding of the landscape.

• Market Trends: Shifts in consumer behavior are influencing product development.
• Technological Advancements: New innovations are emerging at an accelerated pace.
• Regulatory Updates: Changes in legislation are impacting business operations.

Staying abreast of these diverse factors is essential for strategic decision-making. Comprehensive awareness fosters informed responses.

Concluding Remarks

The flow of information remains constant and dynamic. Continuous learning and adaptation are paramount.

Further investigation into these topics is encouraged. Deeper exploration will yield valuable insights.

Autonomous Vehicles: Recent Developments

Aurora has announced the appointment of Brittany Bagley, CFO of Sonos, to its Board of Directors. The company highlighted her expertise in bringing groundbreaking products to market and her commitment to sound financial management.

Plus recently welcomed Lynn Miller as its new General Counsel. Previously, Miller served as Deputy General Counsel at Tesla, overseeing privacy initiatives, managing governmental interactions, and directing litigation efforts. Before Tesla, she contributed to Apple’s legal team.

Pony.ai Explores IPO

Pony.ai is evaluating the possibility of an initial public offering, as stated by CEO James Peng to Reuters. Alongside this consideration, Lawrence Steyn, formerly vice chairman of investment banking at JPMorgan Chase, has been appointed as the company’s new Chief Financial Officer.

The autonomous technology company currently operates robotaxis with safety drivers in both Irvine, California, and within China.

Volvo and Luminar Expand Partnership

Volvo’s upcoming flagship electric SUV, scheduled for release in 2022, will now include Luminar’s autonomous driving system as a standard feature.

Initially, the partnership stipulated an additional cost for Luminar’s technology. However, access to the Highway Pilot functionality, enabling autonomous driving on highways under verified safe conditions, will still require a separate payment.

• This functionality removes the driver from active control.
• Safe operating conditions must be confirmed before activation.

Electric Vehicles: Recent Developments

Electric Last Mile Solutions, a manufacturer specializing in electric vans and trucks for commercial fleets, is set to begin trading on the Nasdaq exchange this Monday.

The company is becoming publicly listed through a merger with Forum Merger III Corporation, a special purpose acquisition company (SPAC), in a transaction valued at $1.4 billion.

Announced last December, this SPAC deal will provide ELMS with approximately $379 million in gross cash proceeds.

This funding includes $155 million secured through a private investment in public equity (PIPE) round, with contributions from investors such as BNP Paribas Asset Management and Jennison Associates.

Following the merger, ELMS shares will be traded on the Nasdaq under the ticker symbol “ELMS.”

Panasonic and Tesla

Panasonic reportedly sold its entire stake in Tesla during the last fiscal year, generating approximately $3.61 billion, according to a report by Nikkei Asia.

As Tesla’s long-standing battery supplier for the Nevada Gigafactory, Panasonic and Tesla have maintained a collaborative relationship for more than ten years.

A Panasonic executive affirmed to Nikkei that this established partnership is expected to continue uninterrupted.

Toyota and VivoPower Collaboration

Toyota has established a partnership with VivoPower, intending to utilize VivoPower’s electric vehicle conversion kits in Toyota LandCruiser vehicles.

This agreement grants VivoPower exclusive rights for the electrification of LandCruisers for a period of five years.

Notably, this marks the first instance of Toyota approving an external drivetrain supplier since Tesla was granted approval in 2011.

The conversion kits will be developed and produced by Tembo e-LV B.V., a subsidiary of VivoPower.

Ride-Hailing Services and Regulatory Challenges

Revel’s ambitions to introduce a ride-hailing service utilizing an all-Tesla fleet have encountered a significant obstacle. The New York City Taxi and Limousine Commission recently decided against approving new for-hire vehicle licenses specifically for electric vehicles.

Impact on Revel’s Expansion

This decision is widely perceived as a setback for the startup, as reported by Andrew Hawkins of The Verge. Revel had been preparing to launch a ride-hailing operation centered around a fleet of Tesla Model Y vehicles.

The Commission’s vote effectively halts the expansion of EV-based ride-hailing services, at least in terms of adding new vehicles to existing fleets. This impacts Revel’s strategy to compete within the New York City transportation landscape.

Details of the Commission’s Decision

The core of the issue revolves around the issuance of new for-hire vehicle (FHV) licenses. The Commission opted not to authorize additional licenses for electric vehicles, thereby limiting the growth potential of companies like Revel.

This regulatory action raises questions about the future of electric vehicle integration into New York City’s ride-hailing market. It suggests a cautious approach from the city regarding the expansion of for-hire vehicle services generally.

Looking Ahead

Revel’s future plans in New York City are now uncertain, pending potential appeals or adjustments to the Commission’s policy. The company may need to reassess its operational strategy in light of these new restrictions.

The situation highlights the complex interplay between innovative transportation services and established regulatory frameworks. Further developments will be closely watched by both industry stakeholders and city residents.

Recent Data Security and Automotive Industry News

Ryder System, a provider of commercial truck rentals, experienced a cybersecurity incident last December. A notification letter published on the website of Vermont’s Attorney General details that 3,563 individuals are being informed about an “unauthorized intrusion.”

The potential compromise of customer data is significant. This includes driver’s license numbers, social security numbers – a particularly concerning element, as noted by TechCrunch’s Zack Whittaker – and other personally identifiable information.

Porsche's Investment in Battery Production

Porsche is expanding its operations into the realm of battery manufacturing. The company has announced a new partnership with Customcells to establish a battery production facility in Germany.

This new venture will focus on creating 100 megawatt-hours of battery capacity. This production level is sufficient to power approximately 1,000 vehicles.

The batteries produced will be specifically designed for Porsche’s high-performance and racing vehicle lines. This represents a strategic move towards greater control over its supply chain and technological development.

• Ryder System experienced a data breach affecting 3,563 individuals.
• Porsche is collaborating with Customcells to build a new battery plant.
• The plant will produce enough batteries for around 1,000 vehicles.

These developments highlight the increasing importance of both cybersecurity and in-house battery production within their respective industries.