The Station: 2021's Biggest Transportation Deal & Executive Moves

The Station: A Weekly Transportation Newsletter

The Station is a newsletter published every weekend, focusing on the world of transportation. To subscribe and receive it directly in your inbox, simply click The Station.

Welcome to The Station, your go-to source for information regarding the evolution of transport – encompassing its history, current state, and future innovations in moving both people and goods.

Recent Developments: Tesla FSD Beta Crash

The National Highway Traffic Safety Administration (NHTSA) recently released details concerning a crash involving a Tesla vehicle operating with the FSD beta software activated. It’s crucial to remember that Tesla vehicles, even those featuring full self-driving (FSD) software, do not achieve full autonomy.

This incident suggests a pattern may emerge, potentially prompting regulatory intervention from NHTSA in the future. Further occurrences are anticipated, which could necessitate action from the agency.

Upcoming Events: Los Angeles

I will be reporting from Los Angeles next week, covering events such as CoMotion and the Los Angeles Auto Show. Expect comprehensive coverage throughout the week.

Stay Connected

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

Micromobility Updates

Wheels, a micromobility provider recognized for its unique sit-down scooters, has established a collaboration with UMass Boston. Further expansion is planned through a partnership with the Massachusetts Bay Transportation Authority.

Free Now, a mobility application supported by BMW and Daimler, has successfully integrated Dott into its platform. This integration allows users to reserve Dott’s electric scooters directly within the app, with e-bikes to be added in the future.

Rider Demographics and Infrastructure

A recent survey of Bird riders in Atlanta revealed that approximately 48% identify as female. This statistic is encouraging for efforts aimed at achieving gender parity within the micromobility sector.

The same survey indicated that 65% of respondents would be more inclined to utilize scooters if protected bicycle lanes were more readily available.

Bird is also expanding its service offerings through a public bikeshare integration with MoGo in Detroit. MoGo’s docked bikes are now accessible through the Bird application.

Expansion and Fleet Updates

Tier is deploying 500 e-bikes within the London Borough of Islington, enhancing environmentally friendly transportation options following the expansion of the Ultra Low Emissions Zone.

In addition, Tier has recently incorporated 10 new, fully electric MAN eTGE vans into its London fleet. These vans will be dedicated to the maintenance of Tier’s e-scooter network.

Cabify is diversifying its services with a new business venture. The company is partnering with Velca, a Spanish e-motorcycle manufacturer, to offer monthly rentals of electric motorcycles to users in Barcelona, Malaga, Madrid, Sevilla, and Valencia.

Electric Motorbikes and New Models

BMW has initiated series production of its CE 04 electric motorbike, a futuristic vehicle that has been showcased through several concept designs. The announcement follows a July declaration of production intent.

Propella, an e-bike manufacturer, has unveiled its Propella Mini, the company’s most compact and lightweight model to date. Weighing only 33 pounds and measuring 59 inches in length, the Mini features 20-inch wheels and a 400W Bafang motor.

The Mini’s specifications make it best suited for relatively flat terrain, capable of handling inclines of around 10%.

Safety Concerns and Battery Fires

Fire departments and safety authorities are urging caution when purchasing and using e-bikes and e-scooters. This follows a rise in incidents involving battery fires related to these micromobility devices.

The New York Fire Department has reported 78 fires this year linked to e-bikes and their lithium-ion batteries. These batteries can overheat and ignite if not charged or disposed of correctly.

 — Rebecca Bellan

Significant Investment Activity in the Automotive and Tech Sectors

The Rivian initial public offering (IPO) marked a particularly noteworthy event, arguably the most impactful deal of the year.

Anticipation surrounding Rivian’s IPO was high, yet the market’s enthusiastic response – with shares trading 37% above the listing price, opening at $106.75 from a $78 listing – exceeded expectations.

Despite currently generating limited revenue and experiencing substantial losses associated with scaling production of the R1T, R1S vehicles, and RCV electric delivery vans for Amazon, investor confidence propelled Rivian’s valuation beyond $110 billion. Its closing share price on Friday reached $129.95, surpassing the market capitalization of established automakers like GM and Ford.

These financial metrics did not deter investment. Amazon, already holding a 20% stake, further increased its holdings, acquiring additional shares as revealed in a Friday regulatory filing. Amazon’s total share count now stands at 158,363,834 shares, representing approximately 17.7% of Rivian’s stock.

Speculation exists regarding Ford’s potential exit strategy, given its approximately 12% ownership. Ford has already realized a significant return on its investment, with its initial $820 million in equity and bond investments now valued at $13.15 billion.

Moving forward, Rivian will face intense scrutiny as it strives to meet production and delivery commitments, particularly concerning the electric delivery vans for Amazon. The first ten vans, part of a 100,000-van order, are slated for delivery in December, a deadline that will be closely monitored.

Other notable investment rounds this week included…

Ample, a startup focused on battery swapping technology for electric vehicles, secured $30 million in funding from The Blackstone Group and Banco Santander.

Applied Intuition, a provider of software development tools for automotive engineers, raised $175 million in a funding round led by Addition Capital, Coatue Management, and Elad Gil, achieving a post-funding valuation of $3.6 billion.

Blackshark.ai, an Austrian mapping startup, completed a $20 million Series A round to further develop and expand its replica-Earth technology. The company is pioneering advancements in planetary “digital twin” technology.

DoorDash, a leading on-demand delivery platform, acquired food delivery company Wolt in an all-stock transaction valued at €7 billion ($8.1 billion).

Embark Trucks, an autonomous vehicle company, completed its merger with a special purpose acquisition company (SPAC) and began trading on the Nasdaq under the ticker EMBK.

Gett, a ride-hailing service, reached an agreement to merge with Rosecliff Acquisition Corp. I, a SPAC backed by Rosecliff Venture Management LLC.

GoTo Group, formed through the merger of Gojek and Tokopedia, secured over $1.3 billion in the first close of its pre-IPO funding round, with participation from prominent investors including Abu Dhabi Investment Authority and Google.

Inspiration, a startup financing commercial electric vehicle operations and building associated charging infrastructure, emerged from stealth with $200 million in initial investment from ArcLight Capital Partners.

Kodiak Robotics, a privately held autonomous trucking company, raised $125 million in new capital. A freight and logistics company provided the lead investment through a special interest financial vehicle.

Additional investors included SIP Global Partners, Muirwoods Ventures, and existing investors Battery Ventures, CRV, and Lightspeed Venture Partners. Bridgestone Americas and BMW i Ventures also converted previous investments into this round.

Lordstown Motors finalized a deal to sell its 6.2-million-square-foot Ohio factory to Foxconn, the Taiwanese hardware manufacturer, for $230 million. The transaction is anticipated to close by the end of April next year.

Plus and Hennessy Capital Investment Corp. mutually agreed to terminate their planned merger, citing changes in the regulatory landscape outside of the United States. However, Plus’s agreement to supply driver-assistance technology to Amazon remains in effect.

Point One Navigation, specializing in precise location technology for robotics and autonomous vehicles, secured $10 million in a Series A round led by UP.Partners.

RabbitMart, operating in the fast-delivery market in Africa, launched with $11 million in pre-seed funding.

TriEye, an Israeli sensing startup, raised $74 million in a round led by M&G Investments and Varana Capital, bringing its total funding to $96 million.

Upstream Security, an automotive cybersecurity firm, received an undisclosed investment from BMW i Ventures.

The United States Postal Service reported a net loss of $4.9 billion for the 2021 budget year, a significant improvement over the previous year’s $9.17 billion loss.

Zoomcar, a Bangalore-based car-sharing startup, raised $92 million in a new financing round led by SternAegis Ventures, bringing its total funding to $207 million.

Industry Shifts in Autonomous Vehicle Leadership

Recent developments indicate a period of personnel changes within key companies operating in the autonomous vehicle sector. Several executive-level transitions have taken place, signaling strategic realignments.

Information has surfaced regarding leadership adjustments at Lyft. Anthony Foxx, formerly the U.S. Secretary of Transportation under President Obama, initially joined Lyft in 2018 as chief policy officer and senior advisor.

It has been discovered that Foxx is relinquishing his role as chief policy officer. Jeremy Bird will assume this position starting in January. Bird previously held the role of deputy CPO at Lyft, having been promoted to that position almost a year ago.

Lyft has verified this information, stating that Foxx will continue to contribute as a senior advisor. A statement from Foxx regarding this transition was also provided.

Another notable change, occurring several months prior, involves Kodiak Robotics.

Kodiak Robotics emerged from stealth mode in 2018, securing $40 million in funding and assembling a noteworthy founding team. Among the co-founders was Don Burnette, the current CEO, bringing extensive experience from the autonomous vehicle field.

Burnette’s background includes his involvement with the Google self-driving project and his subsequent co-founding of Otto, a self-driving truck startup, alongside Anthony Levandowski, Lior Ron, and Claire Delaunay in early 2016. He departed Otto approximately one year after its acquisition by Uber in March 2018.

The second co-founder was Paz Eshel, a former venture capitalist with a focus on autonomous vehicle investments. He previously served as a vice president at Battery Ventures, leading their autonomous vehicle investment initiatives. Battery Ventures also spearheaded Kodiak’s initial funding round, with general partner Itzik Parnafes joining Kodiak’s board.

It has been learned, and confirmed by Burnette, that Eshel is no longer with the company. Burnette indicated the departure occurred earlier this summer but declined to elaborate further. Attempts to reach Eshel for comment have been unsuccessful.

Finally, Gretchen Effgen, a long-standing executive at Motional, has transitioned to a role at Google.

Effgen previously oversaw partnerships and marketing at nuTonomy, the autonomous vehicle startup acquired by Aptiv in November 2018. This entity was later restructured in 2020 as Motional, a joint venture valued at $4 billion with Hyundai. Her LinkedIn profile indicates she joined Google this month as director of global automotive partnerships, platforms and ecosystems.

Policy Updates

Greetings, and welcome back to Policy Corner.

This week, we’ll briefly examine the recently approved $1.2 trillion infrastructure bill by Congress last Friday. Extensive coverage already exists detailing its provisions and implications for roads, ports, and rail networks.

Concerning the electrification of transportation, key provisions include:

• $5 billion allocated for zero-emission public transit options.
• $5 billion designated for expanding electric vehicle (EV) charging infrastructure along major highways, with an additional $2.5 billion potentially available for EV charging or alternative fuels like hydrogen.
• $2.5 billion earmarked for the electrification of school bus fleets.

Furthermore, the bill contains a noteworthy “Advanced Impaired Driving Technology” provision. This mandates the National Highway Transportation and Safety Administration to assess anti-drunk driving technologies over three years and subsequently establish a new safety standard for automakers to implement within two years.

NHTSA’s evaluation will likely encompass driver monitoring systems, including both external vehicle sensors and in-cabin technology tracking driver attentiveness and eye movement. Existing features like lane departure warnings could be leveraged, and companies are already exploring integration of their systems to mitigate drunk driving.

Additionally, NHTSA will receive approximately $110 million annually for “behavioral research on Automated Systems and Advanced Driver Assistance Systems and improving consumer responses to safety recalls.”

This week also saw the passage of another significant bill with potential ramifications for drones and electric vertical takeoff and landing (eVTOL) aircraft: the Advanced Air Mobility Coordination and Leadership Act. This act establishes an interagency working group within the Department of Transportation to coordinate efforts related to the safety, operations, infrastructure, security, and federal investment needed for the development of the AAM ecosystem in the United States.

This development is substantial, extending beyond the Federal Aviation Administration’s role in aircraft certification – which represents only one aspect of launching AAM technologies. The working group will formulate recommendations for all areas where the federal government has a stake, including safety standards for future air traffic management, infrastructure requirements, and public acceptance of the technology.

Ian Villa, COO of Whisper Aero, recently stated to TechCrunch, “Congress dedicating focused attention to infrastructure, operations, and the overall realization of these technologies, ultimately benefiting states and communities, is a significant step.”

Villa further emphasized that the working group’s recommendations will likely foster standardization, benefiting both users and the industry. “A functional system requires consistent operational standards; air taxi services in Miami should function similarly to those in California.”

The working group is obligated to submit a report detailing its findings to Congress.

— Aria Alamalhodaei

Recent Developments and Industry Updates

Here's a summary of noteworthy news and developments within the automotive technology sector.

Self-Driving Technology

Gatik, a startup specializing in autonomous middle-mile delivery, has removed the safety driver from two of its self-driving box trucks operating in Bentonville, Arkansas – the location of Walmart’s headquarters. This signifies the commencement of driverless commercial operations for the company’s vehicles. Initial reports regarding this achievement surfaced in August, as covered by TechCrunch, with Gatik now providing further specifics, including the presence of a support vehicle.

Lyft and Motional are preparing to launch their inaugural fully driverless ride-hailing service in Las Vegas during 2023. The plan involves utilizing Motional’s all-electric Hyundai IONIQ 5-based robotaxis, accessible through the Lyft application, to transport passengers starting in the latter half of the year. Full commercial deployment, with paid rides, is anticipated once regulatory approval is granted by Lyft.

Nvidia has announced the availability of Hyperion 8, a production-ready platform encompassing the sensors, computing power, and software essential for autonomous vehicle development, for integration into 2024 vehicle models. Hyperion 8 represents the newest version of the comprehensive Nvidia Drive platform, allowing automakers to tailor the system to their specific requirements. While initially revealed in April, details regarding the suppliers of the platform’s 12 cameras, nine radars, and single lidar unit were recently disclosed. Luminar is confirmed as the lidar supplier, representing a potential benefit for the publicly traded company. Continental, Hella, Sony, and Valeo are also contributing sensors to Nvidia’s Hyperion 8 platform.

Plus, the autonomous vehicle firm previously mentioned in the “deal of the week” section, has established a partnership with Aeva lidar. Aeva’s technology will be integrated into Plus’s initial production run of 100,000 trucks.

Ouster, a lidar manufacturer, recently held its Q3 earnings conference call. During the call, Ouster indicated an increased investment in research and development, alongside the expansion of a dedicated automotive-focused division, highlighting the necessity for lidar companies to broaden their product portfolios to maintain viability.

Electric Vehicle News

GreenPower and Perrone Robotics are collaborating on the development of the AV Star. This project combines GreenPower’s EV Star, a compact electric bus, with Perrone’s TONY autonomous vehicle retrofit kit.

Workhorse Group, an electric vehicle startup facing challenges, is experiencing financial difficulties – evidenced by its Q3 loss of $81 million. Furthermore, revenue is negative, totaling -$576,600, due to the issuance of refunds to customers following the recall of C-1000 cargo delivery vans over safety concerns. Workhorse CEO Rick Dauch acknowledged that, beyond federal safety regulations, the C-1000 may not be adequately suited for demanding delivery applications.

Other Industry Updates

The U.S. Department of Justice has initiated legal action against ride-hailing service Uber, alleging discrimination against passengers with disabilities, in contravention of the Americans with Disabilities Act.

Dr. Lawrence Burns, an author and former VP of research & development and planning at General Motors, has joined autonomous sensing platforms company Neural Propulsion Systems as an executive advisor. Dr. Burns previously served as an advisor to Waymo.

MotoRefi, an auto refinance platform, has rebranded as Caribou. Alongside the new branding and logo, Caribou has integrated its auto financing product with insurance offerings, with plans to announce specific insurance carrier partnerships in early 2022.