Robotaxi Apps, AI Startups & Mobility Trends

The Station: A Weekly Update on Mobility

Greetings and welcome to another edition of The Station, your weekly source for news concerning the movement of people and goods, both presently and in the years to come.

Recent Event Recap

The recent mobility event concluded, offering a wealth of insightful interviews. Subscribers with Extra Crunch access can view these recordings. Notably, Rita Liao led a discussion featuring leaders from three prominent Chinese robotaxi firms – WeRide, AutoX, and Momenta – all of whom are actively testing and refining their technologies in both Europe and the U.S.

A key point regarding regulations highlighted by the panelists is that the approach to autonomous vehicle (AV) policymaking in China originates from local initiatives, rather than directives issued by the central government.

The panel also addressed strategies for international companies seeking to enter the Chinese market.

AutoX's Perspective on China

Jewel Li of AutoX detailed the specific difficulties encountered when operating within China’s regulatory and logistical landscape.

Additional Interviews and Discussions

Further event highlights included a conversation with Mate Rimac, CEO of Rimac Automobili. He revealed how close his company was to potential failure, offered guidance to entrepreneurs, and discussed his focus on electric robotaxis.

The exchange between Karl Iagnemma of Motional and Chris Urmson of Aurora concerning the AV industry also proved to be particularly valuable. Further summaries of the event’s key sessions will be released throughout the week.

Event Coverage Highlights

Mate Rimac’s rationale for developing electric robotaxis
Scale’s introduction of a new mapping product tailored to the evolving requirements of its autonomous driving clientele
Motional’s CEO’s indications regarding an autonomous future within the logistics sector
Joby Aviation’s expansion plans, targeting Asia and Europe alongside North America

Stay Connected

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

Micromobility Updates

As Kirsten Korosec previously highlighted, our recent Mobility event brought together prominent figures from the mobility sector for discussions concerning the evolution of transportation for people, products, and concepts. I moderated a discussion featuring Tiffany Chu, co-founder and CEO of Remix, Tamika L. Butler, a community advocate, transportation advisor, and legal professional, and Frank Reig, co-founder and CEO of Revel. The central theme revolved around the necessity for mobility companies to prioritize equity and accessibility, particularly for vulnerable populations, and the subsequent impact on their financial success.

A noteworthy point arising from the conversation was Reig’s statement regarding Revel’s attainment of profitability. (These details concerning profitability were initially disclosed in May, with Reig offering further clarification during the event.) For a three-month period during the summer of 2020, Revel achieved company-wide profitability, extending “beyond mere market profitability and unit economics,” as Reig explained. He specified this encompassed all operational costs, including his own salary.

This achievement occurred when Revel’s primary offering was e-mopeds, prior to the introduction of its diversified services, such as EV charging stations, e-bikes, and ride-hailing. The precise metrics used to determine profitability – whether EBITDA or gross profit – remain unclear, and a detailed financial analysis wasn’t feasible within the panel’s timeframe. However, this is significant as the company expands into its latest venture: ride-hailing with Tesla vehicles. We will continue to monitor Revel’s progress as it develops its various income streams, and perhaps a future IPO will allow for a more in-depth examination.

Returning to the crucial question of whether mobility companies, such as Revel, can contribute to equitable transportation within cities, it’s important to recognize that access to movement should be considered a fundamental right, not a privilege. Yet, the current landscape often replicates existing inequalities, simply utilizing different modes of transport. Historically, mobility has disproportionately benefited those with greater resources; what justification exists for expecting a different outcome today? Does a commitment to ethical practices genuinely lead to a more just system? What incentive do companies have to invest time and resources in ensuring their services promote equitable access to movement?

“I believe that if your work is intended to serve the public, then serving all members of the public should be a priority,” Butler stated. “Companies often claim that achieving equity is too time-consuming or expensive, but just as retrofitting a house or a business incurs additional costs, integrating equity from the outset can actually save both time and money. Addressing equity proactively is more efficient than attempting to rectify issues later, whether prompted by external pressure or public controversy.”

The complete discussion is available for viewing on Extra Crunch.

Brief Updates…

Leo Riders, an e-scooter service tailored for the hospitality sector, is extending its operations to Athens, Greece, having secured over 20 partnerships with local hotels. Establishments such as Brown Hotel and Colors Urban Hotel will now provide guests with access to e-scooters for exploring the city. This sounds promising, though potential challenges should be considered.

Unagi, a company specializing in e-scooter subscriptions and sales, is broadening the reach of its “All-Access” program to include Chicago, D.C., and surrounding areas.

Lime is prolonging its “Ride to Recovery” program – offering complimentary e-scooter and bike rides to vaccination appointments – through the Fourth of July. Riders can find a promo code for two free 15-minute rides, along with vaccine information, at this link.

Future Motion’s Onewheel, a distinctive and engaging vehicle resembling a skateboard with a central wheel, has collectively logged 52.5 million miles. The company highlighted that this equates to 220 round trips to the moon, 2,100 circumnavigations of the Earth, and approximately 18,000 journeys between Santa Cruz, California, and New York City.

— Rebecca Bellan

Weekly Investment Highlights

Didi, a prominent Chinese ride-hailing service, has successfully secured substantial funding through private investment and is now preparing for a public offering. Analysis of the company’s IPO filing reveals the impact of the COVID-19 pandemic on its operations, with a subsequent recovery aligning with pre-pandemic levels as economies reopened.

Despite achieving a recovery in Gross Transaction Volume (GTV) within China, Didi’s overall figures remain relatively stable, and recent quarterly performance hasn’t been particularly strong. Historically, the company has yet to achieve positive operating income, with Q1 2021 revenues falling below those of Q3 and Q4 2020.

Key stakeholders in Didi include SoftBank, holding a 21.5% share, Uber with 12.5%, and Tencent with 6.8%.

Notable Funding Rounds …

Branch Insurance, an innovative startup focused on bundled home and auto insurance solutions, has secured $50 million in a Series B funding round. Anthemis Group spearheaded the investment, with participation from Acrew, Cherry Creek Holdings, and existing investors like Greycroft and American Family Ventures. To date, Branch Insurance has raised a total of $82.5 million since its founding in 2017.

This week also saw IPO filings from a pair of Chinese grocery delivery companies. Dingdong, having previously raised over $400 million from investors including Sequoia Capital China, reported a net loss of $485 million on revenue of $1.73 billion last year.

Missfresh, with over $2 billion in funding from investors such as Tencent and Abu Dhabi Capital Group, disclosed a $252 million net loss on $956 million in revenue for 2020.

Circulor, a company specializing in supply chain traceability and carbon dioxide tracking, has raised $14 million in a Series A funding round. The Westly Group led the round, with contributions from Salesforce Ventures, BHP Ventures, and others. Circulor’s technology is currently utilized by Volvo Cars and Polestar to monitor the ethical and environmental aspects of sourcing materials for electric vehicles.

Embraer’s Eve Urban Air Mobility is currently exploring a merger with Zanite Acquisition Corp, a special purpose acquisition company. The resulting entity is projected to have a valuation of approximately $2 billion, as reported by Bloomberg.

Hesai, a Shanghai-based lidar technology company established in 2014, has secured over $300 million in a Series D funding round. GL Ventures, Xiaomi, Meituan, and CPE led the investment, with participation from Huatai International Private Equity Fund and Lightspeed China Partners.

Incari, a Berlin-based startup developing Human Machine Interfaces (HMIs), has closed a €15 million ($18.1 million) Series A financing round. Lukasz Gadowski, founder of Delivery Hero, and Team Europe led the funding.

Kitty Hawk, the eVTOL company supported by Google co-founder Larry Page, has acquired 3D Robotics. Chris Anderson, co-founder of 3D Robotics, will assume the role of chief operating officer at Kitty Hawk, according to Forbes. Additionally, a Kitty Hawk engineer, Damon Vander Lind, has been dismissed, as confirmed by CEO Sebastian Thrun.

Nvidia is set to acquire DeepMap, a high-definition mapping startup. This acquisition will enhance Nvidia’s autonomous vehicle technology, specifically Nvidia Drive, and is expected to be completed in the third quarter of 2021.

Trucks Venture Capital, a venture firm focused on early-stage transportation entrepreneurs, is launching two new funds. Trucks Venture Fund 2 has secured $52,525,252, backed by automotive manufacturers and suppliers. A follow-on fund, Trucks Growth Fund, will provide further capital to promising companies within the firm’s portfolio.

Waabi, a new autonomous vehicle startup founded by Raquel Urtasun, a leading AI scientist formerly with Uber ATG, has raised $83.5 million in a Series A round. Khosla Ventures led the investment, with participation from Uber, 8VC, and other prominent investors and AI researchers.

WhereIsMyTransport is poised to raise $14.5 million in a Series A extension round. Naspers Foundry, Cathay AfricInvest Innovation Fund, and SBI Investment are leading the round, with contributions from Capria Ventures and Wuri Ventures.

The Increasing Prevalence of Robotaxi Applications

Recent data, initially shared last week regarding the Waymo One application through insights from Sensor Tower – a leading mobile app market intelligence provider – indicates a growing trend.

Currently, the number of autonomous vehicle (AV) developers offering ride-hailing applications remains limited.

However, this landscape appears poised for change, as evidenced by recent recruitment activities.

Developer Hiring Signals Expansion

Both Argo AI and Zoox are actively seeking Android software engineers to join their teams.

Furthermore, Zoox is also currently advertising for an iOS engineer, suggesting a broadening of their mobile development efforts.

Pony.ai's Global App Presence

Sensor Tower has highlighted the launch of several applications by Pony.ai.

The PonyPilot+ app has accumulated approximately 6,000 installations within China’s App Store.

In the United States, PonyPilot has registered around 2,000 installs, with the majority occurring during the first quarter of 2020, as reported by Sensor Tower.

Pony.ai also maintains two applications available in Russia: PonyExpress+, with roughly 1,500 installs, and PonyFleetGO.

Installation figures for PonyFleetGO are currently unavailable.

AutoX Enters the Food Delivery Space

AutoX has also released a dedicated application, AutoX Food Delivery.

This app has achieved approximately 200 installations within the United States.

Navigating Policy Developments

President Joe Biden is prioritizing the strengthening of supply chains for vital goods and crucial minerals. On June 8th, the White House announced the formation of a task force dedicated to resolving supply chain disruptions, particularly concerning semiconductors and the critical minerals utilized in electric vehicle (EV) batteries.

A key objective for Biden is to accelerate the adoption of electric vehicles among American drivers. However, a significant portion of the essential minerals found in batteries, such as lithium and graphite, are currently sourced and processed internationally.

As detailed in a Fact Sheet released on June 8th, Biden’s administration intends to establish a task force focused on identifying domestic opportunities for mineral production – a move that has previously generated considerable debate within environmental advocacy circles.

The U.S. Department of Energy has unveiled a plan for lithium battery development through 2030, centered on the elimination of two key minerals – cobalt and nickel – from battery compositions. This strategy aims to reinforce the supply chain.

The DOE will provide support for research and development initiatives focused on creating batteries that do not rely on these minerals, which are predominantly located in regions like the Democratic Republic of Congo and Indonesia, and are largely processed in China. Advancements in scientific innovation represent a viable path toward lessening American reliance on potentially adversarial foreign nations for battery components.

Infrastructure Bill Progress

Following an extensive 19-hour deliberation, the House Transportation and Infrastructure Committee approved a comprehensive $547 billion infrastructure package. The vote concluded with a tally of 38-26.

The INVEST in America Act primarily allocates funding towards improvements in roads, bridges, and passenger rail systems. It also designates $4 billion for the development of electric vehicle charging infrastructure and approximately $4 billion for investments in zero-emission transit vehicles.

Only two Republican members of the committee supported the bill’s passage. The INVEST in America Act still faces a lengthy legislative process before potential enactment, requiring further debate in the full House and subsequent review by the Senate. Despite this, its advancement is considered a positive indication, particularly given the successful resolution of over 200 proposed amendments.

GM Shifts Position on Emissions

GM is revising its stance regarding proposed tailpipe emission regulations in California. Previously, the nation’s largest automaker had expressed opposition to California’s stringent emissions standards for passenger vehicles, standards reached in collaboration with Ford, Honda Motor Company, Volkswagen AG, Volvo, and BMW.

According to reports in The New York Times, GM CEO Mary Barra communicated in a letter to EPA Administrator Michael Regan on Wednesday that “GM supports the emissions reduction goals of California through model year ’26.” She further stated, “the auto industry is embarking upon a profound transition as we do our part to achieve the country’s climate commitments.”

However, Barra emphasized that GM “believes that the same environmental benefits can and should be achieved through a high-volume electric vehicle pathway.” In essence, she argued that increasing EV sales through government incentives, rebates, and similar programs is the most effective method for reducing emissions.

The EPA is scheduled to publish its proposed tailpipe emissions reductions and fuel economy standards in July. Regan has been conducting meetings with major automotive manufacturers, including GM, in preparation for this release.

— Aria Alamalhodaei

An In-Depth Look at the Air Taxi Market

Image Credits: Bryce Durbin

Aria Alamalhodaei of TechCrunch recently investigated the ambitions within the rapidly developing electric vertical take-off and landing (eVTOL) sector. The key takeaway is that the industry maintains a strongly optimistic outlook, potentially fueled by a series of collaborative agreements, special purpose acquisition companies (SPACs), private investment, and the attainment of unicorn valuations.

Nevertheless, as is typical in any groundbreaking industry, projections may be less clear than the positive assessments offered by enthusiastic entrepreneurs and investors.

A brief review of discussions on LinkedIn demonstrates disagreements among industry professionals and analysts regarding the actual timeframe for this technology’s widespread adoption and the eventual leaders in the field.

Certain disputes carry significant weight. Wisk Aero initiated legal action against Archer Aviation, claiming the unlawful acquisition of confidential information.

Simultaneously, the valuations of companies currently generating no revenue – and which may not do so for a considerable period – are experiencing rapid increases.

The field of electric air mobility is demonstrably advancing. However, challenges and instability are anticipated.

This content is part of Extra Crunch, a subscription-based service. Enjoy your reading experience.

Key Industry Observations

The eVTOL industry is experiencing significant investment and growth.
Optimism is high, but realistic forecasts are needed.
Legal disputes and valuation concerns exist.

The future of air taxis hinges on navigating these complexities. Successful companies will need to demonstrate not only technological innovation but also sound business strategies.

SPACs and private funding are currently driving much of the growth, but sustained success will require demonstrable revenue generation.