Rimac-Bugatti, Tesla FSD Beta & Ola Funding

The Station: Updates on Transportation and Autonomous Vehicles

Welcome to The Station, a resource dedicated to the evolution of transportation, covering methods for moving both people and goods.

I've recently returned from a trip and am currently addressing a backlog of communications. If you've reached out via Twitter, email, or any other means, please allow a few days for a response.

Recent Travels and Yellowstone's Autonomous Shuttle

As previously mentioned, my travels included backpacking and climbing in Grand Teton National Park, followed by a visit to Yellowstone National Park. The anticipated crowds were indeed present, particularly during standard sightseeing hours. I avoided congestion by exploring during the early mornings and late evenings.

This strategy enabled me to experience a ride in T.E.D.D.Y., the autonomous vehicle undergoing trials in Yellowstone this summer. Beep, collaborating with Local Motors, is operating this electric, driverless shuttle. T.E.D.D.Y. stands for The Electric Driverless Demonstration in Yellowstone.

The company intends to run two routes, operating seven days a week. Data gathered during this pilot program will contribute to future deployments within national parks nationwide.

Details of the T.E.D.D.Y. Pilot Program

Currently, two shuttles, each with a human operator capable of manual override, are transporting visitors in the busy Canyons area of the park. Specifically, the route connects the lodging facilities with the central shopping area, which includes a general store, post office, and restaurants.

According to the shuttle operators, approximately 1,240 passengers utilize the T.E.D.D.Y. vehicles weekly. Riders have demonstrated both curiosity and a surprising level of understanding regarding the underlying technology.

My own experience was unremarkable, which is precisely as it should be for an autonomous system. The vehicle did initiate an unnecessary pause due to the self-driving system’s caution. The safety operator had forewarned me about this potential occurrence, noting it had been a recurring issue.

Autonocast and SAE Discussion on Autonomous Vehicle Discourse

The Autonocast, a podcast I co-host with Alex Roy and Ed Niedermeyer, is partnering with SAE for a Zoom discussion. The topic will be the future of transportation and the impact of online conversations – particularly on platforms like Twitter – on public perception of autonomous vehicle technology.

We will be focusing on the concept of “autonowashing,” a term introduced by Liza Dixon.

SAE MidCal, in collaboration with SAE SoCal, is hosting this event. Registration is available here. Please submit your questions in advance to facilitate a productive conversation.

Stay Connected

Feel free to reach out via email at kirsten.korosec@techcrunch.com with any thoughts, feedback, or information. You can also connect with me on Twitter at @kirstenkorosec.

Micromobility Updates

Following the recent Fourth of July holiday, the micromobility sector experienced a relatively quiet week. However, a noteworthy announcement came from Voi, the Stockholm-based e-scooter company, regarding the initiation of what they term the “world’s first large scale pilot of computer vision on e-scooters.” This pilot program leverages the technology developed by Luna, an Irish computer vision startup.

The definition of “at scale” used by Voi remains somewhat unclear, as their press release did not specify the number of scooters included in the Northampton, U.K. pilot, which began this month. Nevertheless, the release indicated that Luna’s AI models will be refined using data gathered from at least 100 cameras installed on e-scooters within the city. It's important to note that Voi was not the first to explore this technology; Spin preceded them in this endeavor.

Spin, owned by Ford, launched Spin Insight Level 2 last month. This system incorporates sensors, cameras, and onboard computing capabilities to identify instances of sidewalk and bike lane riding, as well as to verify proper parking. The technology is a collaboration with Drover AI and was initially deployed on 100 e-scooters in Milwaukee. Spin is also integrating computer vision into its scooters in Santa Monica, with plans to expand to Seattle and Miami in the near future.

BMW Enters Electric Scooter Production

BMW’s newly produced electric scooter boasts a striking design, blending retro aesthetics with futuristic elements and a low profile. However, its price point is substantial. With a cost of $12,000, the question arises whether there will be sufficient consumer demand. The first scooter resulting from the Motorrad Concept Link series is slated for release as part of BMW’s 2022 product lineup.

Further Developments in Electric Scooters

Ola, an Indian ride-hailing service, has announced the completion of its large-scale e-scooter manufacturing facility and anticipates commencing production shortly, with a launch expected this month. The company invested $327 million in the facility late last year, and the results of this investment are now becoming apparent. Ola Electric utilizes 3,000 robots to assemble a scooter every two minutes, and the factory features 10 production lines, enabling a total production capacity of approximately 10 million e-scooters.

A recent report from Acute Market Reports projects that the electric kick scooter market will reach a volume of 1.4 million units by 2028. The analysis highlights the increasing popularity of kick scooters as individuals seek alternatives to public transportation, alongside a growing preference for scooters with extended ranges for frequent use. Key manufacturers identified in the report include Razor USA LLC, GOTRAX, Xiaomi, Segway, Inc., ZERO Electric Scooters, MINIMOTORS Co., Ltd., Kaabo Electric Scooter, Titan Group, Glion and SWAGTRON.

Helbiz, a micromobility operator that recently became publicly traded through a SPAC merger with GreenVision Acquisition Corp., has established a partnership with IrenGo and Telepass to introduce 50 MiMoto electric mopeds to the Italian cities of Portofino, Santa Margherita Ligure, Rapallo, Paraggi and Punta Pedale. Helbiz is currently the sole operator offering this service in the region.

Lime’s Continued Expansion

Lime’s e-bikes are now available in downtown Cleveland, following the issuance of permits by the city earlier this year. The initial deployment consists of 50 bikes, with plans for further expansion. Lime’s bikes will operate alongside offerings from Spin and Bird.

— Rebecca Bellan

Significant Automotive and Tech Investment News

A noteworthy transaction has been finalized – the acquisition of Bugatti by Rimac Automobili, the Croatian electric hypercar manufacturer supported by Porsche. The newly formed entity, Bugatti-Rimac, will see Rimac holding a controlling 55% stake, while VW’s Porsche will retain the remaining 45%.

To facilitate this deal, Rimac is establishing a separate business unit, Rimac Technology, dedicated to the development, production, and supply of battery systems, drivetrains, and other EV components. This new entity will collaborate independently with various global automotive manufacturers.

Mate Rimac, the founder, will maintain a 37% ownership in Rimac Group. Hyundai Motor Group holds a 12% share, with other investors comprising the remaining 27%. Porsche has increased its stake in Rimac to 24%, though this doesn’t grant them a controlling interest in the new EV venture.

Leadership and Location

Mate Rimac is set to lead Bugatti-Rimac, with the company’s headquarters located in Zagreb, Croatia. Importantly, Bugatti’s manufacturing operations will continue at its existing facility in Molsheim, France.

Mr. Rimac previously discussed the company’s future trajectory, including potential collaboration with Bugatti, during a June interview on our virtual platform. A full recording and recap of the discussion are available for Extra Crunch subscribers.

Recent Funding Rounds and Investments

Kurly, a South Korean startup specializing in next-day grocery delivery, secured $200 million in Series F funding, achieving a valuation of $2.2 billion. This represents a substantial increase in valuation compared to its $780 million valuation in April of the previous year, when it closed a $150 million Series E round.

Lacuna Technologies, focused on providing cities with tools for transportation policy creation and enforcement, has raised $16 million in a Series A round, bringing its total funding to $33.5 million. The round was spearheaded by Xplorer Capital Management, with participation from Playground Global, JetBlue Technology Ventures, and Lauder Partners.

International Expansion and EV Transition

MaxAB, an Egyptian startup serving traditional retailers, has obtained $40 million in Series A financing. This investment will support its network of food and grocery retailers throughout Egypt.

Ola, the prominent Indian ride-hailing service, has received $500 million in new capital from Temasek and a Warburg Pincus affiliate. Ola’s co-founder and CEO, Bhavish Aggarwal, also contributed to this investment round, which precedes a planned initial public offering (IPO).

Stellantis, formed from the merger of Fiat Chrysler Automobiles and Groupe PSA, is committing €30 billion ($35.5 billion) to electric vehicles and software development over the next four years. Plans include the introduction of electric Dodge muscle cars and Ram pickup trucks by 2024, alongside an expanded electric or plug-in hybrid lineup for the Jeep brand by 2025.

Volvo Group, Daimler Truck, and the Traton Group (Volkswagen’s heavy-truck division) are collaborating to invest €500 million (~$593 million USD) in establishing 1,700 charging stations across Europe for electric heavy-duty trucks and buses.

IPO and Market Valuation

Zomato, an Indian food delivery startup competing with Swiggy, has increased its IPO target to $1.3 billion. The company is offering shares at 72 to 76 Indian rupees (96 to $1 USD) and aims for a valuation of up to $8.56 billion, with plans to list on Indian stock exchanges.

European Combustion Engine Vehicle Ban

Welcome to this week’s Policy Corner update. Significant developments are unfolding in Europe, as legislators are preparing to enact a prohibition on the sale of new vehicles powered by internal combustion engines starting in 2035.

This transition will occur incrementally. Initial regulations will necessitate a 65% reduction in emissions from all new vehicles sold by 2030, as detailed in a European Commission document obtained by Bloomberg.

This proposed ban is part of a broader strategy to curtail greenhouse gas emissions across various industries, ultimately striving for net-zero emissions throughout the continent by the year 2050.

Discussions regarding a 2035 ban have been ongoing, and the formal proposal is anticipated to be presented on July 14th. Many automotive manufacturers have already proactively announced their own aggressive goals for achieving zero emissions, suggesting they are prepared for this shift.

For instance, both Fiat and Volvo have independently declared plans to discontinue internal combustion engine vehicle sales in Europe before the end of this decade. Furthermore, Volvo, in collaboration with Uber, endorsed the ban through a signed letter in April.

Should the ban be incorporated into the final proposal, it will require ratification by European Commissioners before becoming law. We will continue to monitor the progress of this proposal, with particular attention to potential mandates for EV charger installations and other measures designed to accelerate the adoption of electric vehicles.

While several EU nations have already established independent electrification goals, the automotive industry remains a vital component of the economies of countries like Germany and France. The implementation of these changes is expected to involve substantial financial investment.

— Aria Alamalhodaei

Recent Developments and Industry News

Due to a shorter work week combined with time off, this update will be more concise than usual. Let's proceed with the key highlights.

Self-Governing Vehicles

Yandex Self-Driving Group, a division of the Russian technology company traded publicly, has established a partnership with GrubHub, a food delivery platform, to serve as its robotic delivery provider for multiple years across numerous university campuses in the United States. Dmitry Polishchuk, CEO of Yandex Self-Driving, indicated the intention to extend service to over 250 campuses, initiating with the deployment of dozens of robots this fall.

This collaboration aims to streamline food delivery services utilizing autonomous technology.

Electric Vehicle Sector

Bentley Motors has unveiled its latest hybrid vehicle, which forms an integral component of the company’s Beyond100 strategy. This plan outlines a commitment to achieving carbon neutrality and transitioning to a fully electrified vehicle range by 2023, culminating in a completely electric lineup by 2030. As Rebecca Bellan highlighted, this represents a significant undertaking, particularly considering the anticipated market arrival of Bentley’s first all-electric vehicle is not expected until 2025.

Currently, Bentley’s electrified offerings are limited to this new hybrid model and the Bentayga SUV.

Tesla has begun rolling out the much-anticipated updates for its “Full Self-Driving” Beta v9 software. It’s crucial to note that this is not yet true full self-driving capability, hence its placement within the electric vehicle news. Instead, it functions as an advanced driver-assistance system. However, its importance lies in being the first “feature complete” iteration of the so-called FSD.

Notably, this version relies solely on camera-based vision and excludes radar, a sensor previously integrated into Tesla’s driver assistance systems.

Numerous videos showcasing the beta V9 FSD are already circulating online. While many users express enthusiasm for early access, a recurring observation is the frequency of disengagements documented in these videos. An example can be found demonstrating challenges with unprotected left turns.

Additional Industry Updates

The European Union has imposed substantial fines totaling $1 billion (€875 million) on Volkswagen and BMW due to their participation in an emissions cartel. The EU investigation revealed that Volkswagen, Audi, Porsche, BMW, and Daimler (parent company of Mercedes-Benz) engaged in illegal collusion to limit competition in the development and implementation of emission control technologies for new diesel passenger vehicles.

This effectively hindered the adoption of cleaner emissions technologies.

Halo, a startup based in Las Vegas, is introducing a remotely operated electric vehicle service leveraging 5G connectivity. The initial phase involves a pilot program with only five vehicles. Halo customers can request a vehicle through a dedicated mobile application.

Upon ordering, a remote operator will navigate the vehicle to the customer’s location. The customer then assumes control of the vehicle for their journey. Following trip completion, the remote operator remotely retrieves the vehicle and transports it to the next awaiting customer. This pilot program is being conducted in collaboration with T-Mobile.