Tesla FSD Beta, Delivery Deals & Micromobility Updates - The Station

The Station: A Weekly Look at Mobility

Greetings, readers! Welcome to The Station, your go-to source for information regarding the evolution of transportation – encompassing how people and goods are moved from one location to another, both currently and in the future.

Aria and Rebecca have a substantial amount of news to present this week, so I will be brief with my introduction. I would like to draw your attention to my most recent podcast appearance on The Autonocast.

Recent Podcast Discussion

Alongside co-hosts Alex Roy and Ed Niedermeyer, I engaged in a conversation with the newly appointed NTSB Chair, Jennifer Homendy. The discussion centered on automotive safety and the implications of the increasing prevalence of “partial automation” features within vehicles for both the industry and consumers.

The podcast episode has generated considerable discussion, including some critical feedback, due to our analysis of Tesla and the rollout of its Full Self-Driving (FSD) software beta to vehicle owners.

Tesla's FSD Beta and Driver Attention

Notably, Tesla released a software update on Friday enabling owners to apply for access to the Full Self-Driving Beta program. Access is granted to drivers who achieve a high safety score as determined by Tesla.

This development occurs alongside research, such as a recent study from the Massachusetts Institute of Technology, indicating that drivers utilizing Tesla’s advanced driver assistance systems may experience diminished attentiveness.

Beyond Tesla: Uber ATG and Safety

I encourage listeners to consider the broader insights from the podcast conversation. Particularly compelling were Chair Homendy’s reflections on the response of Uber ATG following the tragic incident involving its self-driving vehicle in Tempe several years ago.

Stay Connected

Feel free to reach out with your thoughts, critiques, opinions, or any relevant information. You can email me directly at kirsten.korosec@techcrunch.com. Alternatively, you can connect with me on Twitter – @kirstenkorosec.

I welcome your feedback and engagement with the topics discussed in The Station.

Micromobbin’

The Micromobility America (MMA) conference recently concluded, uniting leading thinkers, businesses, and investors within the micromobility sector. Several key highlights and overarching themes emerged during the event.

Product Innovations

Both Unagi Scooters and Cowboy unveiled new products during MMA. Unagi’s premium $2,440 smart scooter, the Model Eleven, incorporates advanced technology, including audible navigation, GPS tracking via Google, remote disabling in the event of theft, and an advanced driver assistance system (ADAS) sensor. Riders can enjoy their own music or podcasts, alongside turn-by-turn directions, through Bluetooth speakers.

The Model Eleven maintains Unagi’s signature lightweight design and delivers a smooth ride thanks to its dual suspension system. The integrated ADAS system, a first for two-wheeled vehicles, detects nearby objects and alerts riders to potential collisions with both audio and visual cues. Users retain the option to deactivate this feature.

According to a Unagi spokesperson who spoke with TechCrunch, “Unagi prioritized integrating these sensors to enhance safety, recognizing its crucial role in the future of micromobility as a viable alternative to cars in urban environments.” The company intends to leverage future technologies to eventually control both the motor and brakes, but currently, the ADAS system provides only warnings.

Despite its higher price point, Unagi will offer financing options upon launch, with its subscription model becoming available at a later date.

Cowboy’s introduction of the sleek Cowboy 4 also generated significant attention at MMA. Customers can select an aluminum frame with a step-through design for increased accessibility. The integrated “cockpit” – a built-in Quad Lock – securely mounts a smartphone, allowing riders to access real-time data like GPS and fitness metrics through the Cowboy app. The docked phone can also be charged using the bike’s internal battery.

The C4 e-bike boasts a range of up to 20 miles per hour in the United States (limited to 15 mph in the U.K. and Europe) and a single-charge range of approximately 43 miles. While not the fastest or longest-range bike available, its aesthetic appeal is undeniable. Cowboy also highlighted its expanding network of mobile ambassadors providing free repairs across seven countries, with comprehensive coverage in Germany, Belgium, Luxembourg, and The Netherlands.

Expanding Beyond Traditional Forms

“The diversity of products and form factors has significantly increased,” stated Horace Dediu, an analyst, MMA host, and the originator of the term “micromobility,” in an interview with TechCrunch. “We now see monowheels like OneWheel, scooters with two and three wheels, Arcimoto vehicles, bicycles, motorcycles, and even very small automobiles.”

He continued, “Micromobility isn’t confined to a single type or form factor. We require a wider range of options, and more are on the horizon. It mirrors the early stages of personal computers or mobile phones, with ongoing experimentation and startups exploring new possibilities – it’s incredibly exciting.”

As an example, Andrew Yang was observed riding a OneWheel.

Post-Pandemic Growth

Tony Ho, VP of global business development at Segway-Ninebot, shared with TechCrunch, “The pandemic prompted a reevaluation of business models, emphasizing efficiency. The prevailing mindset is that the pandemic instilled a sense of discipline, highlighting the need for sustainable business practices.” He noted a general feeling of optimism and strength as the industry emerges from the pandemic.

Ho explained that micromobility operators are focusing on cost of ownership and operational efficiency. Labor costs associated with vehicle charging and maintenance are critical to achieving positive unit economics, driving innovation in technologies designed to optimize fleet management, including on-demand scooter summoning, remote scooter relocation, and camera-equipped scooters for enhanced rider safety.

A Shift in Perspective

Ed Niedermeyer, director of communication for Partners for Automated Vehicle Education and co-host of the Autonocast podcast, observed a significant cultural shift compared to his attendance at MMA two years prior. The event previously consisted largely of VCs, hardware startups, and sharing companies, with limited public sector representation and potential resentment stemming from rapid scaling and public safety concerns.

“The presence of a presidential candidate (Andrew Yang) as a keynote speaker elevates the event’s cultural positioning and frames micromobility as a systemic solution or an alternative vision for urban mobility,” Niedermeyer told TechCrunch. “The space has matured, with less of a VC bubble and more focus on long-term conversations.”

Collaborative Efforts

Shared micromobility operators highlighted the increase in ridership following the COVID-19 pandemic, driven by reduced public transit usage. Jesse Fittipaldi, chief strategy officer at Arcimoto, noted that initial skepticism surrounding micromobility has diminished as mainstream adoption grows, leading to unexpected increases in ridership.

“There is renewed hope,” Fittipaldi stated to TechCrunch. “Education is crucial, and individuals here are actively working to provide it. The collaboration between legislators, operators, venture capitalists, banks, and software developers – all the components necessary for these systems to function – is key to our current progress.”

Further news from the week…

Bird’s App Integration

Bird announced the integration of local bikeshare providers into its app, creating a single platform for accessing multiple multimodal mobility options. Utilizing the General Bikeshare Feed Specification, an open-source standard, the integration is currently live in Oslo, Austin, Los Angeles, San Antonio, and Milwaukee, featuring operators like Oslo City Bike, Metrobike Austin, Metro Bike, SA Bikeshare, and Bublr Bikes Milwaukee.

This launch is part of Bird’s Smart Bikeshare Program, announced in June alongside the company’s new shared e-bikes. The integration increases visibility for local operators at no cost to them or cities. Riders using the Bird app can now view nearby public bike stations and available bikes, with a tap directing them to the local app for rental initiation.

New Investment

New Zealand-based electric utility bike company Ubco secured an additional $10 million investment from TPK Holdings, a previous investor now leading the startup’s Series B funding round. TPK, a Taiwanese electric components manufacturer, will leverage its network to streamline Ubco’s procurement of parts and supplies for its 2X2 bike, reducing costs. Furthermore, TPK will provide dedicated manufacturing support for Ubco’s FRX1, a recreational off-road bike, and a four-wheel utility vehicle.

Bikeep, a provider of smart commercial scooter and bike parking and charging solutions, closed a $3 million investment round to expand its partnership network and bring Bikeep stations to cities across the U.S. TransLink in British Columbia serves as a real-world example, featuring smart locking systems and Bikeep’s IoT technology for an on-demand bike locker program accessible through a mobile app.

Quadricycles on the Horizon

Eli Electric Vehicles, a compact EV manufacturer, has commenced production of its Eli Zero, a small two-seater vehicle with approximately 160 liters of trunk space. The company plans to roll out initial batches of the electric vehicle across ten European countries over the coming months, with a starting price of $11,999.

New Two-Wheel Options

Rad Power Bikes, a well-funded e-bike company in North America, unveiled the RadCity 5 Plus, the next generation of its commuter e-bike. This model offers a 40% faster hill-climbing capability and an 11% increase in range, attributed to new tires, hydraulic disc brakes with ceramic pads, and a high-step or step-thru frame accommodating riders from 4’8″ to 6’5″. Preorders are now open in the U.S. and Canada for $1,799, with European availability planned for winter.

The founders of London-based e-bike company Analog Motion have launched a new e-bike brand called nothng (intentional lowercase and spelling error). The bike emphasizes minimalism, featuring an electric fixie with integrated head and tail lights, prioritizing fewer parts and reduced maintenance. It can reach speeds of 20 mph in the U.S. and 16 mph in Europe. Funded through Indiegogo, the project has exceeded its funding goal by 559%. Backers who preordered at £905 ($1,233) are expected to receive their bikes in spring 2022. This price represents a 40% discount, with the retail price anticipated to be around £1,500 ($2,050).

Harley-Davidson’s bike division, Serial 1, is offering a limited edition of its MOSH/TRIBUTE e-bike, a vintage-inspired prototype with modern technology, including a 20 mph top speed and a removable battery offering up to 105 miles of range. Only 650 units will be produced, split between the U.S. and Europe, with delivery expected in late Q4 of this year.

Specialized introduced its next-generation e-bikes, the Turbo Vado, Turbo Como, and Turbo Tero, designed for smoothness, comfort, and over-the-air software updates for improved functionality and security. The Vado 5.0 is suited for city riding, the Como 5.0 offers a comfortable step-through design, and the Tero 5.0 is built for all-terrain exploration. All three models are priced at $5,000.

Early-stage NYC-based Pave Motors announced its Pave Bike, an e-moped blending the aesthetics of an e-bike with the engine of a motorcycle, now available for preorder. Following a successful initial limited release, the company is scaling up production. The Pave Bike utilizes a private blockchain network with NFTs to enhance security and enable secure sharing through smart rental contracts.

Each rider receives an NFT accessible through the Pave+ app, granting access to their bike without an internet connection and facilitating secure sharing or rental opportunities. The moped can reach speeds of 30 mph and offers a range of 50 miles per charge. Pricing starts at $3,900, or $108 per month, with preorders secured by a $100 deposit. Shipping is expected to begin early next year.

— Rebecca Bellan

Notable Investment Activity This Week

Rather than a single prominent deal, this week showcases a surge of activity within the delivery and logistics industries. Investment trends in these interconnected sectors have been remarkably consistent. Each week brings speculation about a potential slowdown, yet the trend persists.

Consider the recent developments as an illustration. DoorDash spearheaded a funding round for Berlin-based grocery delivery service Flink SE, with a pre-money valuation of $2.1 billion, as reported by Bloomberg sources. The investment is believed to be in the hundreds of millions of dollars.

Simultaneously, Bloomberg revealed that German food delivery giant Delivery Hero intends to invest approximately $200 million in grocery startup Gorillas Technologies as part of a $1 billion funding round. This new financing will establish Gorillas’ valuation at roughly $3 billion following the deal’s completion. Earlier this summer, DoorDash explored a potential investment in Gorillas, but negotiations ultimately ceased.

Furthermore, Best, a Chinese logistics firm supported by Alibaba Group Holding Ltd., is evaluating the potential sale of its express delivery division. The business is reportedly aiming for a valuation of up to $1 billion. Additionally, Project44, a provider of real-time supply chain visibility, was acquired by last-mile technology platform Convey for $255 million. The combined entity will offer comprehensive supply chain visibility, encompassing everything from raw materials to final delivery.

Alongside these substantial investments, several smaller funding rounds were secured by companies specializing in same-day delivery and logistics. This includes a $7 million investment in Mexico City-based last-mile logistics platform Cargamos, and a $28 million round for Jiffy, a London-based grocery delivery service utilizing a network of dark stores for fulfillment.

Additional Deals of Interest…

Battery Resourcers, a company pioneering a closed-loop system for lithium-ion battery materials, secured $70 million in a mid-round funding that included participation from Hitachi Ventures, alongside existing investors like Orbia Ventures and Jaguar Land Rover’s InMotion Ventures.

Cars24, a platform for buying and selling used cars and motorcycles, has raised $450 million in a Series F round, comprising $340 million in equity and $110 million in debt. This investment values Cars24 at $1.84 billion post-money, establishing it as a leading privately held used car startup globally. The round was co-led by DST Global, Falcon Edge, and SoftBank Vision Fund 2, with participation from Tencent and other investors.

CDK Global, a provider of automotive retail technology, has reached an agreement to acquire insurance platform company Salty Dot. The financial terms of the acquisition remain undisclosed.

Daiwa Securities Group Daiwa PI Partners Co. has completed the acquisition of Tokyo-based bicycle retailer Y International.

General Motors will invest $300 million in Chinese autonomous driving startup Momenta to accelerate the development of AV technology for future GM vehicles in China. This follows Momenta’s recent $500 million funding round, which included investments from SAIC, Toyota, Mercedes-Benz AG, and Bosch. As Rita Liao of TechCrunch observed, “mega-fundraising has become commonplace in the capital-intensive autonomous vehicle sector.” Momenta anticipates mass production of vehicles equipped with its software by year-end.

Iron Ox, an autonomous farming startup based in the San Francisco Bay Area, raised $53 million in a Series C round led by Breakthrough Energy Ventures, bringing its total funding to $98 million.

Just Insure, a pay-per-mile insurance technology company, secured $8 million in a funding round co-led by CrossCut Ventures, ManchesterStory, and Western Technology Investments. The company has raised a total of $15.3 million since its inception in January 2019.

Kavak, a Mexico City-based pre-owned car marketplace operating in Latin America, raised $700 million in a Series E round led by General Catalyst, more than doubling the company’s valuation to $8.7 billion. Tiger Global, Spruce House, D1, SEA, Founders Fund, Ribbit Capital, SoftBank, and others also participated in the financing.

This follows a $485 million Series D round just five months prior, at a $4 billion valuation. Kavak has now doubled its valuation twice this year. It is currently the second most valuable startup in Latin America, trailing only Brazilian fintech Nubank, which was valued at $30 billion earlier this year.

Mercedes-Benz will acquire a 33% stake in battery cell manufacturer Automotive Cells Company, becoming an equal shareholder alongside Stellantis and TotalEnergies. This move supports Mercedes-Benz’s transition to an all-electric portfolio, requiring over 200 Gigawatt hours of battery production capacity by the end of the decade.

National Express is in discussions to acquire Stagecoach in an all-share deal, combining the U.K.’s largest coach and bus operators, according to The Guardian. The deal values Stagecoach at approximately £445 million ($608.9 million), representing an 18% premium over its share closing price on the day of the announcement.

Spotnana, a software-as-a-service platform for travel buyers and suppliers, emerged from stealth with $41 million in funding. This includes a $34 million Series A, co-led by ICONIQ and Madrona Venture Group, and a previously undisclosed $7 million seed round from 2020.

Policy Updates

Greetings, and welcome to another edition of Policy Corner. A comprehensive overview of recent developments will be presented today.

The global semiconductor shortage, which has significantly impacted numerous industries for the last year and a half, persists without signs of easing. AlixPartners, a leading consulting firm, now projects that this scarcity will result in $210 billion in losses for the automotive sector this year. This figure represents an increase from their previous mid-year estimate of $110 billion.

Addressing the continuing disruptions to supply chains, the White House convened a second meeting with key companies operating within the semiconductor industry. This followed a prior meeting covered by TechCrunch, and included representatives from Ford, Stellantis, Taiwan Semiconductor Manufacturing Company, General Motors, Intel, and Apple. The specifics of the discussions remain unclear, but the session likely facilitated information exchange between government officials and industry leaders, as well as among the companies themselves.

Prior to Thursday’s meeting, Press Secretary Jen Psaki communicated that the Biden administration will continue advocating for Congressional approval of legislation designed to bolster domestic chip manufacturing capabilities. Currently, the Chips for America Act, which proposes allocating $52 billion to enhance such capacity, is under consideration in the House, though no vote has yet been scheduled.

Shifting focus to autonomous vehicles and advanced driver-assistance systems, it’s important to note they are distinct technologies. The tech industry advocacy group Chamber of Progress recently addressed a mischaracterization of these systems by Senator Dianne Feinstein (D-CA) in a letter to the National Highway Transportation Safety Administration, specifically criticizing Tesla’s marketing of “Full Self Driving.”

Ariel Wolf, the general counsel for the Self Driving Coalition, shared in a recent interview that the organization also observes frequent confusion between ADAS and AVs.

“This misunderstanding hinders public comprehension of these separate technologies,” he stated. “The conflation is demonstrably occurring and is contributing to safety concerns. Misuse of ADAS systems, stemming from this confusion, poses a risk, and it also potentially undermines the future of AV development as public perception is influenced by ADAS failures.”

The Self Driving Coalition, alongside more than a dozen other organizations, including the Alliance for Automotive Innovation, has sent a letter to Secretary of Transportation Pete Buttigieg. This communication urges the Department of Transportation to establish regulations and a framework for the secure deployment of AVs. Key areas of concern include establishing a clear timeline for limitations on the number of AV models eligible for regulatory exemptions from federal motor vehicle standards, and defining the Department’s approach to novel vehicle designs.

Further developments this week include…

California Governor Gavin Newsom has signed legislation mandating that all autonomous vehicles operating within the state be electric by the year 2030. This bill received support from AV developers Cruise, Nuro, and Zoox, as well as the Union of Concerned Scientists. A detailed analysis of the legislation and its implications can be found here.

The German environmental organization Deutsche Umwelthilfe has initiated legal action against Daimler and BMW, alleging insufficient efforts to reduce carbon emissions by the end of the decade. The case, initially reported by Handelsblatt, is significant for two reasons: it represents a climate change lawsuit brought by private citizens against a corporation, and it will require the automakers to demonstrate their commitment to meeting Germany’s established climate targets.

— Aria Alamalhodaei

Recent Developments and Industry Updates

Self-Driving Technology

FedEx is currently implementing self-driving trucks for transporting goods between Dallas and Houston as part of a collaborative pilot program. This initiative involves autonomous vehicle technology firm Aurora and heavy-duty truck manufacturer Paccar. Paccar trucks, outfitted with Aurora’s advanced systems, will complete the approximately 500-mile journey along Interstate 45 multiple times weekly, with a safety driver present.

Motional is scaling its Las Vegas operations and increasing its workforce. This expansion includes a tripling of the size of its testing grounds, in preparation for the anticipated 2023 commercial launch of its robotaxi service.

Battery Technology

Ford Motor has partnered with Redwood Materials to establish a closed-loop battery system for its expanding range of electric vehicles. This collaboration will encompass the recycling of both production scrap and end-of-life EVs, as well as supplying Ford with essential raw battery materials. Furthermore, Ford has made a $50 million investment in Redwood.

General Motors is set to begin replacing battery modules in recalled Chevrolet Bolt EV and Bolt EUV vehicles next month, following the resumption of cell production by supplier LG Chem at its Michigan facilities. These replacement modules, comprised of lithium-ion battery cells, will be distributed to dealerships starting in mid-October, allowing Bolt EV owners to schedule module replacements.

Tesla has commenced construction on its “Megafactory” in California, a facility dedicated to the production of its large-scale battery system, the Megapack. The existence of this previously undisclosed factory was confirmed by Lathrop Mayor Sonny Dhaliwal. Situated near Tesla’s Fremont automotive plant, the Lathrop facility is also close to Tesla’s 870,000-square-foot distribution center.

Electric Vehicle Market

Audi has introduced the Q4 e-tron, an entry-level electric SUV and the fifth electric model in its growing lineup. The vehicle is priced starting at $44,995, including destination charges. Notably, the Q4 e-tron is approximately $1,000 less expensive than the 2022 gas-powered Q5 SUV.

Eli Electric Vehicles, a nascent compact EV manufacturer, has initiated production of its flagship Eli Zero. This micro “neighborhood electric vehicle” is designed for urban commuting and will be distributed to distributors across ten European countries in small batches, with a starting price of $11,999.

Foxconn and oil supplier PTT PLC are progressing with plans to establish an electric vehicle manufacturing facility in Thailand. Vehicle production is projected to commence by 2023. Under the agreement, PTT will hold a 60% stake in the joint venture, while Foxconn will own the remaining 40%. The initial production capacity will be around 50,000 units, with plans to triple this by 2030.

Mercedes-Benz has announced pricing for its flagship EQS electric vehicle. The EQS is approximately $8,700 more affordable than its gasoline-powered S-Class equivalent. The EQS, scheduled to arrive in U.S. dealerships in fall 2021, will have a starting price of $103,360, including destination charges, and is eligible for a $7,500 federal tax credit.

Rivian is establishing a service and support operations facility in Plymouth, Michigan, to support vehicle owners prior to the delivery of the initial R1T pickup trucks. This facility will generate 100 new jobs and involve a $4.6 million investment, including a $750,000 business development grant from the state.

Workhorse Group has recalled 41 of its C-1000 cargo delivery vehicles and suspended further deliveries of the model, citing the need for “additional testing” to ensure compliance with Federal safety standards. All automakers are required to certify their vehicles under the Federal Motor Vehicle Safety Standards, which are minimum safety performance requirements set by the National Highway Transportation and Safety Administration.

The Gig Economy

Uber anticipates achieving profitability, measured by one metric, in the third quarter, earlier than previously projected. This improvement is attributed to gains in both its delivery and ride-hailing businesses. The company informed regulators of an expected increase in gross bookings and stronger adjusted EBITDA for the quarter.

In-Car Technology

GM and Amazon are expanding their partnership to enable owners of Alexa devices to access GM’s OnStar emergency services from their homes. OnStar previously expanded its Guardian service with the introduction of a mobile app, and this latest development extends access to voice-enabled home devices.

Numerous new features are being integrated into Google’s Android Auto experience, and the company’s Automotive OS will be implemented in more vehicles, including Honda models starting in 2022.

Personnel Updates

Cruise co-founder, president, and CTO Kyle Vogt has been appointed to the board of Upside Foods, a company focused on cell-cultured meat. Vogt’s advocacy for a plant-based diet and his involvement with the BAIA restaurant may explain this appointment.

Sagar Sanghvi, the former chief financial officer of Instacart, has joined Accel as a partner, focusing on global growth-stage consumer and enterprise investments after nearly six years with the on-demand grocery delivery company.