Rivian, Buttigieg, and Argo: Latest EV News

The Station: A Weekly Transportation Newsletter

The Station is a newsletter published every week, focusing on the world of transportation. Subscribe here — simply select The Station — to have it delivered to your inbox each Sunday.

Greetings to our readers and subscribers. Welcome to The Station, your primary resource for information regarding all methods of transporting people and goods, both current and emerging.

Exciting News: Secretary Buttigieg at Disrupt 2021

Perhaps you may have overlooked the announcement, but we have some significant news to share this week.

Transportation Secretary Pete Buttigieg will be participating in a discussion at Disrupt 2021. During this event, we intend to explore complex issues related to transportation and the goal of making mobility accessible to everyone, rather than a limited benefit.

Essentially, our coverage extends to any technology impacting the movement of people and packages.

We are eager to hear your suggestions for topics to discuss.

Join Us at Disrupt 2021

This also serves as an invitation to purchase a ticket to Disrupt. The event features a diverse lineup of prominent speakers, including:

Seth Rogen, writer, director, actor, and co-founder of Houseplant
Rinki Sethi, Twitter CISO
Tope Awotona, founder and CEO of Calendly
Brynn Putnam, co-founder and CEO of Mirror
Nicole LaPointe Jameson, CEO of Evil Geniuses
Katie Haun, general partner at Andreessen Horowitz
Luis von Ahn, CEO and co-founder of Duolingo
Brian Armstrong, CEO of Coinbase

...and many others.

Get in Touch

Feel free to reach out to me with your feedback, critiques, or insights via email at kirsten.korosec@techcrunch.com. Alternatively, you can send a direct message to me on Twitter — @kirstenkorosec.

Micromobility Trends

For those residing in urban environments with shared electric scooters and bikes, have you ever hesitated to utilize these services despite acknowledging their potential? Perhaps the cost per mile seems excessive, or concerns about hygiene deter you. The idea of personal ownership may have crossed your mind, but the financial commitment and long-term responsibility feel daunting. However, a novel business approach is gaining traction: micromobility subscriptions.

This model centers around offering customers a reasonably priced monthly fee for access to a premium e-scooter or e-bike. The vehicle is delivered directly to the customer’s location and professionally assembled. Should any malfunctions occur, a replacement is promptly shipped. Furthermore, the subscription is cancellable at any time, making it ideally suited for the modern urban lifestyle, complementing existing subscriptions for services like meal delivery, vitamins, streaming entertainment, and digital wellness programs.

Beyond the consumer benefits, investors and companies are recognizing the potential of this subscription model, either by establishing dedicated businesses or integrating it into existing offerings. It’s considered easily scalable, delivers a strong return on investment, and boasts lower per-mile operating costs. Importantly, for environmentally conscious operators, it enables control over the vehicle’s lifecycle, a benefit not afforded by direct sales.

My focus on this emerging trend stems from a recent article I authored for ExtraCrunch. While access requires a subscription, here are key takeaways from the piece:

E-Scooter Adoption in Ireland

This week, Ireland initiated its first e-scooter trial program across five campuses of Dublin City University. Tier, a Berlin-based company, is collaborating with Irish and DCU-based Luna to integrate computer vision technology into the e-scooters. This technology will enable the detection of pavement boundaries and pedestrians. This functionality mirrors developments undertaken by Drover in partnership with Spin, which recently unveiled its redesigned scooters in Santa Monica.

The Insight SFI Research Centre for Data Analytics and Smart DCU, a component of Smart Dublin, will also contribute to the pilot research. Currently, operating e-scooters on Irish roads remains illegal, though legislative changes are being proposed to address this.

Superpedestrian Enhances Scooter Safety

Superpedestrian, an e-scooter company, has acquired Navmatic, a startup specializing in real-time vehicle location and correction for micromobility operators. Leveraging Navmatic’s “super fusion” technology, Superpedestrian has developed an advanced safety system, Pedestrian Defense, capable of identifying and immediately halting unsafe riding behaviors.

Navmatic’s technology allows the scooter to interpret the rider’s subtle movements. Combined with data from onboard sensors, it can accurately determine if the scooter is traveling against traffic flow or operating on pedestrian walkways.

Developments in the E-Bike Sector

This week saw the launch of the Rad Power RadRover 6 Plus, the newest iteration of the company’s popular flagship bike.

This e-bike is designed for individuals transitioning from car dependency, who discover the enjoyment of a smooth, stable ride, a user-friendly design, and an accessible price point. Priced at $1,999, this “rad” bike is engineered for durability.

I spoke with Redwood Stephens, the bike manufacturer’s chief product officer, who explained that Rad Power’s business strategy prioritizes minimizing customer friction – from the ordering process to the packaging and the prominent, easily accessible power button. This approach is proving successful for the company, as evidenced by its $150 million funding round in February, the largest ever secured by an American e-bike company.

— Rebecca Bellan

Recent Investment and Acquisition Highlights

Rivian recently secured $2.5 billion in new funding from existing investors. Leading the round were Amazon’s Climate Pledge Fund, D1 Capital Partners, Ford Motor, and funds managed by T. Rowe Price Associates Inc.

To date, Rivian has amassed a substantial $10.5 billion in funding. While a post-money valuation wasn’t officially announced, reports indicate a valuation of $27.6 billion following a previous $2.65 billion raise.

With increased capital, the expectation is for Rivian to accelerate the delivery of its R1T truck and R1S SUV. Production delays, attributed to pandemic-related supply chain disruptions – specifically the semiconductor chip shortage – have pushed deliveries to September.

Another noteworthy event involved Lucid Motors, whose merger with Churchill Capital IV faced a temporary setback. Insufficient retail investor votes initially threatened the deal’s approval.

The initial voting hurdle centered on a proposal to revise the company’s charter, enabling crucial financing. This proposal required a higher vote threshold and its approval was essential for the merger to proceed. The issue stemmed from unfamiliarity with the SPAC process and technical difficulties with spam filters.

This situation highlights a potential trend as more companies opt for SPAC mergers instead of traditional IPOs.

Significant Transactions in the Automotive and Logistics Sectors

ChargePoint expanded its European presence through the acquisition of has·to·be, a European charging software company, for €250 million ($295 million) in cash and stock. This marks ChargePoint’s first acquisition since becoming a publicly traded entity.

The acquisition provides ChargePoint with over 125 employees and access to software managing more than 40,000 networked charging ports across Europe. It also strengthens their partnership with VW Group and supports expansion beyond North America.

Magna International is set to acquire Veoneer, a former Autoliv spin-off, for approximately $3.8 billion in cash. This acquisition will significantly bolster Magna’s capabilities in driver assistance technologies.

The deal values Veoneer at $31.25 per share, representing an enterprise value of $3.3 billion including debt. Magna anticipates realizing $100 million in annual cost savings by 2024.

Miles, a universal travel rewards platform, completed a $12.5 million Series A funding round led by Scrum Ventures. Participants included TransLink Capital, Japan Airlines (JAL Innovation Fund), and several other investors.

This funding brings Miles’ total raised to $20 million, with previous backing from JetBlue Technology Ventures, Porsche Ventures, and others.

Rodo, an e-commerce platform for vehicle sales, secured $18 million in Series B funding led by Holman Enterprises and Evolution VC Partners. Existing investor IAC and Kevin Hart’s HartBeat Ventures also participated.

Rodo intends to utilize the funds to expand its dealership network and invest in marketing and customer acquisition, having now raised a total of $45 million.

Sonatus, a California-based automotive software company, raised $35 million in a Series A round. Investors included Hyundai Motor Group’s Kia Corporation, SAIC Capital, and LG Electronics.

The round was led by Silicon Valley VC Translink Capital, with additional investment from Marvell Technology, UMC Capital, and Wanxiang Group Company.

Tesla has established a nickel supply agreement with BHP, a major commodity producer. The mineral will be sourced from BHP’s Nickel West mines in Western Australia.

The collaboration extends beyond supply, with both companies committed to enhancing battery supply chain sustainability and reducing carbon emissions through renewable energy and energy storage solutions.

Uber Freight acquired TransPlace for $2.25 billion from TPG Capital. This integration combines Uber Freight’s platform with one of the largest managed transportation and logistics networks.

Uber Freight will maintain independent operation of its brokerage services alongside TransPlace’s offerings. The acquisition supports expansion into Mexico and aims for adjusted EBITDA profitability by the end of 2022.

E-Bike Incentives Gain Momentum

Welcome to another edition of Policy Corner!

While incentives for electric vehicles (EVs), such as rebates and tax credits, are commonplace in the United States, those seeking financial assistance for micromobility options have traditionally found limited support. However, a recently proposed Senate bill aims to address this disparity.

The Electric Bicycle Incentive Kickstart for the Environment (E-BIKE) Act proposes a refundable tax credit of 30% for consumers purchasing an electric bicycle, with a maximum credit value of $1,500.

To qualify for the credit, electric bicycles must have a purchase price below $8,000 and a maximum assisted speed of 28 miles per hour. This criteria encompasses a significant portion of the current e-bike market.

A corresponding bill has already been presented in the House of Representatives earlier this year. Should both legislative bodies approve the legislation, it will be submitted to President Joe Biden for his consideration.

Insights from a Key Legislator

An insightful interview featuring Rep. Earl Blumenauer, a primary sponsor of the House bill, is available. The interview was conducted by The Scenic Route, a publication associated with e-bike retailer Rad Power Bikes.

During the discussion, Blumenauer highlighted the potential synergy between e-bike incentives and the broader objectives of the substantial infrastructure bill currently under consideration by Congress.

“Yesterday, I spoke with the Secretary of Transportation regarding the opportunities presented by this significant infrastructure package, and this initiative is one component that aligns with our efforts to reform the tax system,” Blumenauer stated. “It contributes to reduced traffic, diminished pollution levels, and alleviates parking challenges.”

Personal experience suggests the potential benefits of e-bikes. Living in the hilly city of Austin, I’ve found cycling challenging, despite the fact that most of my car journeys are under 4 miles. An electric bicycle appears to be a viable solution for reducing my reliance on a car.

Many other Americans likely share this sentiment.

— Aria Alamalhodaei

Recent Developments and Key Updates

The past week has been particularly active in terms of noteworthy events. The constant stream of information continues to be substantial.

Industry Highlights

Several significant occurrences have captured attention across various sectors. Keeping abreast of these changes is crucial for informed decision-making.

Staying informed requires diligent monitoring of multiple sources. This ensures a comprehensive understanding of the evolving landscape.

Quick Updates

Here's a concise overview of some recent happenings. These points represent a selection of the most relevant information.

A new report details emerging trends in market analysis.
Discussions are underway regarding potential regulatory changes.
Several companies announced key personnel appointments this week.

Further details on each of these items will be provided in subsequent reports. A more in-depth examination is planned for the coming days.

The pace of developments suggests continued volatility in the near future. Adapting to these shifts will be paramount for success.

Autonomous Vehicles

Argo AI, alongside its supporter and client Ford, recently made a significant announcement in the autonomous vehicle sector. The companies revealed intentions to deploy a minimum of 1,000 self-driving vehicles within Lyft’s ride-sharing network across several cities over the next five years.

Initial deployments will commence in Miami and Austin. A detailed analysis is available, but essentially, Lyft will acquire a 2.5% ownership stake in Argo, resulting in a company valuation of $12.4 billion.

The first Ford vehicles, integrating Argo AI’s autonomous technology, are scheduled to become accessible through the Lyft application in Miami later this year.

Austin will follow in the subsequent year, with further U.S. cities being integrated into the Lyft network in 2023 and beyond. Currently, Argo is conducting tests in Detroit, Palo Alto, Pittsburgh, and Washington, D.C.

Jody Kelman, leading Lyft’s Autonomous division, highlighted the significance of this undertaking. She stated that this represents the largest deployment of its kind, marking a substantial advancement towards widespread commercialization.

Mobileye has broadened its autonomous vehicle testing program to include New York City, as part of its overall strategy for technology development and implementation.

This expansion is noteworthy, even for those who may not fully concur with the company’s methodologies. New York City now joins other key testing locations such as Detroit, Paris, Shanghai, and Tokyo.

Mobileye initially launched its testing fleet in Jerusalem in 2018, followed by an additional fleet in Munich in 2020.

Waymo is establishing a presence in Pittsburgh, a growing hub for autonomous vehicle technology. The company plans to initially recruit approximately twelve engineers.

These new hires will work from Google’s existing offices in the Bakery Square area. While only a few positions were publicly listed on Waymo’s website as of Thursday, more roles are expected to be added soon.

A portion of the new team will be sourced from RobotWits, a Pittsburgh-based startup specializing in autonomous vehicle decision-making. Waymo has acquired RobotWits’ intellectual property and will integrate select members of its engineering and technical teams.

Furthermore, Maxim Likhachev, the founder and CEO of RobotWits, will also be joining Waymo.

Electric Vehicles: Recent Developments

Arrival, a company specializing in commercial electric vehicles, has been selected by the City of Anaheim, California, to manufacture electric buses. A $2 million grant, awarded by the Federal Transportation Administration in 2019, is facilitating this project. Anaheim’s public transit system intends to collaborate with Arrival to realize its objective of operating the first fully electric bus fleet within California by 2025.

Strategic Battery Partnerships

Battery joint ventures are currently a crucial element for automotive manufacturers aiming to produce and deliver substantial volumes of electric vehicles in the coming years. Rebecca Bellan of TechCrunch has analyzed the factors driving this trend and compiled a summary of recent agreements.

GM's Expanding EV Lineup

GM has announced plans to introduce a full-size electric pickup truck as part of its GMC vehicle range. This announcement represents the latest in a series of electric vehicle product reveals from the automaker over the past year, as it strives to deliver over 1 million electric vehicles worldwide by 2025. Further details are limited, but the new truck is anticipated to follow the launch of the GMC Hummer EV pickup, scheduled for release later this year.

Tesla's Charging Network Access

Tesla CEO Elon Musk revealed that the company will extend access to its global network of charging stations to other electric vehicle brands later in the year. While Musk has discussed this possibility for several years, the inclusion of a specific timeframe lends greater credibility to the plan. It is predicted that current Tesla owners may express reservations regarding this change.

Bitcoin and Tesla

Musk, also known as the technoking, stated that Tesla will “most likely” reinstate bitcoin as a payment option once the cryptocurrency’s mining process is powered by 50% renewable energy sources. He shared these thoughts during a virtual discussion organized by the Crypto Council for Innovation. Previously, Tesla began accepting bitcoin in February, coinciding with a $1.5 billion bitcoin purchase, but reversed this decision three months later due to environmental concerns.

Mercedes-Benz's Electric Transition

Mercedes-Benz has unveiled a €40 billion ($47 billion) strategy to transition to an exclusively electric vehicle manufacturer by the end of the decade. The company clarified that it maintains some flexibility within this ambitious goal, stating it will be “ready to go all-electric by the end of the decade, where markets allow.” This suggests that certain Mercedes vehicles with combustion engines, already incorporating 48-volt mild hybrid technology, may continue to be produced and sold beyond this timeframe.

Vertical Integration and Battery Production

This objective is prompting Mercedes-Benz to increase its vertical integration, strengthen its supply chain, and provide retraining opportunities for its employees. Notably, the automaker has acquired YASA, a U.K.-based electric motor company, and has determined a need for battery capacity exceeding 200 gigawatt hours. To achieve this, Mercedes intends to establish eight battery factories in collaboration with existing partners, and one new partnership to focus on cell production.

Advancements in Automotive Technology and ADAS

General Motors is implementing three significant enhancements to its hands-free driving system, Super Cruise. These updates encompass automated lane changing capabilities and support for towing functionalities.

The upgraded Super Cruise system will be deployed across six different vehicle models, notably including the 2022 GMC Hummer EV pickup truck, which represents a completely new generation of the vehicle.

Trademark Dispute Between GM and Ford

Regarding the Super Cruise system, Ford’s designation of its own Advanced Driver Assistance System (ADAS) as BlueCruise has prompted legal action from GM.

GM, along with its autonomous vehicle division Cruise, has initiated a lawsuit against Ford. The claim, as reported by The Hill, centers on the assertion that the BlueCruise name bears an unacceptable resemblance to both the Super Cruise trademark and the Cruise trademark.

The lawsuit alleges that the similarity in names could cause confusion among consumers and potentially infringe upon GM’s established brand recognition within the ADAS market.

Alternative Transportation Services: Regulatory Issues and Getaround

Getaround, a peer-to-peer car rental company, has been issued a substantial fine of approximately $1 million by the Office of the Attorney General in Washington, D.C.

The penalty stems from operating without the necessary licensing and other regulatory breaches. Getaround characterizes the accusations as being driven by political motivations, as part of a broader settlement.

Details of the Settlement

The agreement with the Washington, D.C. Attorney General’s office addresses multiple violations. These include a failure to secure proper operational licenses within the district.

Getaround disputes the claims, asserting that the legal challenges were instigated due to political factors. The company maintains its commitment to compliance with local regulations.

Impact on Ride-Hailing and Car-Sharing

This case highlights the ongoing regulatory scrutiny faced by companies in the ride-hailing and car-sharing sectors. Similar services are frequently subject to legal challenges as they navigate evolving transportation laws.

The situation underscores the importance of obtaining and maintaining all required permits and licenses for operating within specific jurisdictions. Failure to do so can result in significant financial penalties.

Looking Ahead

The outcome of this settlement may set a precedent for how other peer-to-peer car rental and sharing economy businesses are regulated.

It is anticipated that increased attention will be given to ensuring these companies adhere to local laws and licensing requirements.

Executive Appointments and Leadership Changes

Recent personnel shifts have been announced across several key companies in the autonomous and electric vehicle sectors. These movements signal strategic realignments and growth initiatives.

Aurora’s New Engineering Leader

Aurora has appointed Yanbing Li to the position of Senior Vice President of Engineering. This announcement was made via a LinkedIn post. Li joins Aurora from Google, where she previously oversaw the enterprise services platform organization within Google Cloud.

Joby Aviation Assembles Influential Board

Joby Aviation has revealed the composition of its board of directors. The board features prominent figures from the transportation industry.

Aicha Evans, CEO of Zoox
Dr. James Kuffner, CEO of Toyota’s Woven Planet Holdings
Reid Hoffman, LinkedIn Co-Founder and Co-Lead Director of Reinvent Technology Partners
Halimah DeLaine Prado, Google General Counsel
Dipender Saluja, Managing Director of Capricorn Investment Group

Founding members JoeBen Bevirt, CEO, and Paul Sciarra, Executive Chairman, are also included on the Joby Aviation board.

Velodyne Lidar Faces Leadership Transition

Velodyne Lidar is currently operating under interim leadership following the departure of its CEO, Anand Gopalan. This change occurs amidst ongoing challenges and internal restructuring within the sensor manufacturer, particularly since the agreement to merge with Graf Industrial Corp.

Gopalan, who transitioned from the role of CTO, will conclude his tenure at the end of July. A search for a permanent replacement is underway.

During the interim period, a team of executives will manage the company. This team includes COO Jim Barnhart, CFO Drew Hamer, Chief People Officer Kathy McBeath, and Chief Commercial Officer Sinclair Vass.

The reason for Gopalan’s departure has not been publicly disclosed.

Xos Announces Board Nominees

Xos, an electric truck company preparing for a public listing through a SPAC merger, has announced its proposed board nominees for the combined entity.

In addition to co-founders Dakota Semler and Giordano Sordoni, the nominees include:

Burt Jordan, former VP of global purchasing operation and supply chain sustainability at Ford
S. Sara Mathew, former Chair and CEO of Dun & Bradstreet Corporation
George Mattson, co-founder of NextGen Acquisition Corporation
Ed Rapp, former Group President for resource industries and former CFO at Caterpillar Inc.

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