The Station: A Weekly Transportation Newsletter

Welcome to The Station, a newsletter focused on the evolving landscape of transportation. This publication delivers insights into the movement of both people and goods, covering current trends and future innovations. You can subscribe here to receive it directly in your inbox each weekend.

Recent Highlights and Opportunities

This week, we’re highlighting a recent Extra Crunch article that provides an in-depth analysis of second-life batteries. Aria Alamalhodaei’s report reveals a growing trend within the automotive industry.

Automakers are increasingly initiating projects centered around battery reuse and repurposing. Further Extra Crunch coverage will explore the business aspects of hydrogen technology, software integration in micromobility solutions, and the role of voice control in vehicles.

Elemental Excelerator Seeks Climate Tech Innovators

Elemental Excelerator is currently seeking applications for its tenth cohort of companies focused on climate technology. The organization aims to accelerate the growth of ventures in sectors such as energy, mobility, agriculture, water management, and the circular economy.

Application Details

• The application deadline is April 16th.
• For inquiries, contact Danielle Harris @innovation_dj.

Elemental recently supported ChargerHelp!, a company participating in their incubator program, as reported by TechCrunch.

Stay Connected

Your feedback and insights are always welcome. Feel free to reach out via email at kirsten.korosec@techcrunch.com with any thoughts, critiques, or information you’d like to share. Alternatively, you can connect directly on Twitter — @kirstenkorosec.

Micromobility Updates

Despite the scheduled timelines having passed, transit authorities in both New York City and London have not yet publicly announced the winners of their e-scooter pilot programs. However, analysis of company websites, professional networking platforms, and job postings indicates which operators are actively preparing for entry into these significant, remaining markets for dockless shared micromobility solutions.

Current indications suggest Lime is positioned to secure contracts in both cities. This assessment is based on the company’s extensive operational footprint and market presence. Dott appears likely to begin operations in London, while Superpedestrian, and potentially Spin, are preparing for deployment in New York City.

Both Bird and Voi have advertised positions in each city, but the available evidence from job listings alone does not definitively confirm successful concession awards.

Lime's Expanding Fleet

In other news, Lime has recently introduced its first fleet of e-mopeds in Washington, D.C., and Paris. This development establishes D.C. as the first city to offer all three of Lime’s transportation modes: e-bikes, e-scooters, and now e-mopeds.

A key safety feature implemented in conjunction with the launch requires riders to submit a helmet selfie before initiating a ride, as mandated by agreements with city officials.

Lime is not the only micromobility provider pursuing expansion opportunities.

Further Expansion and Acquisitions

Dutch e-scooter company Go Sharing is extending its operations beyond the Netherlands with a new launch in Vienna. Meanwhile, Berlin-based Tier has completed the acquisition of Makery, a Budapest-based app development firm.

The financial details of the acquisition remain undisclosed. However, Makery will function as Tier’s technology center for Central and Eastern Europe, supporting planned expansion initiatives later this year.

While the dockless rideshare sector demonstrates positive momentum, successful implementation relies on a complex interplay of factors.

Challenges Remain

Beryl, a U.K.-based operator, recently canceled its planned e-scooter launch in Staten Island after experiencing delays. The cancellation was attributed to logistical challenges and disruptions to the supply chain caused by the ongoing COVID-19 pandemic.

• Supply chain issues continue to impact deployment.
• Logistical hurdles can delay launch timelines.

These factors highlight the ongoing complexities of operating shared micromobility services.

Recent Developments in Electric Vehicle Offerings

Niu, a Chinese manufacturer, has demonstrated strong performance, announcing a substantial increase in electric scooter sales during the initial quarter. Sales figures rose by 273%, reaching nearly 150,000 e-scooters sold.

The company unveiled four new vehicle models on Tuesday, including a novel electric kick scooter. This scooter is slated for international distribution, with a starting price of $599.

Segway's Innovative E-Motorcycle

Alongside Niu’s announcements, Segway has also presented a striking new vehicle. Their recently developed e-motorcycle showcases a futuristic design, marking a significant evolution for the brand.

Since being acquired by Ninebot in 2015, Segway has expanded its focus to encompass advanced electric mobility solutions. The Apex H2 represents a departure from the company’s earlier association with mall security and guided tours.

Notably, the Apex H2 utilizes a unique power source. It combines hydrogen and electricity, converting stored hydrogen into electrical energy via onboard tanks.

This innovative system results in an exceptionally clean emission profile. The sole byproduct of operation is water vapor, released through the exhaust.

• The Apex H2 is powered by a hydrogen-electricity combination.
• Hydrogen is stored in tanks and converted to electricity.
• The vehicle’s exhaust emits only water vapor.

This development highlights the growing trend of alternative fuel sources within the electric vehicle industry.

Revitalizing Public Transportation After the Pandemic

Numerous policy analysts and commentators have proposed strategies for cities to collaborate with micromobility and rideshare services to stimulate a resurgence in public transit usage following the COVID-19 pandemic. Sydney, Australia, is poised to become a pioneering city in implementing such an initiative.

Beginning in the middle of 2021, as many as 10,000 commuters will have the ability to utilize their Opal digital card for payment when using Uber, a Ingogo taxi with a set fare, or a Lime bicycle. A credit of up to $3 will be applied to their Opal account if they subsequently use public transportation within one hour of completing these alternative transport options.

This integrated approach aims to incentivize a seamless transition between different modes of transport.

The program seeks to address the challenges faced by public transit systems as ridership patterns have shifted due to the pandemic.

Details of the Sydney Initiative

The trial program will allow for convenient payment options for a variety of transportation methods. Riders can leverage their existing Opal card, streamlining the payment process.

The financial incentive is designed to encourage the continued use of public transport. By offering a credit for subsequent transit journeys, the program aims to reinforce positive travel behaviors.

— Rebecca Bellan

Notable Transactions of the Week

While not yet finalized, a potential agreement is emerging that warrants recognition as this week’s most significant deal.

According to reports from Bloomberg, referencing anonymous sources, Grab Holdings, a leading ride-hailing and delivery service in Southeast Asia, has secured investment commitments from T. Rowe Price Group Inc. and Temasek Holdings Pte. to facilitate its planned merger with a special purpose acquisition company (SPAC).

Grab has evolved beyond a simple ride-hailing application, integrating a diverse range of services including financial solutions and food delivery options. This expansion may account for the substantial interest from firms seeking to participate in a private investment in public equity (PIPE) supporting Grab’s combination with Altimeter Growth Corp. Discussions are underway with BlackRock Inc. regarding participation in this PIPE, potentially generating approximately $4 billion in capital.

Consequently, the transaction could establish a valuation for Grab exceeding $34 billion, marking it as the largest SPAC deal to date.

It appears the peak of SPAC activity has now been reached.

Additional transactions that garnered attention this week include…

Elior, a provider of corporate catering services, has completed the acquisition of French delivery startup Nestor, with the financial terms of the deal remaining undisclosed.

Kavak, a Mexican startup specializing in the used car market within Mexico and Argentina, secured $485 million in a Series D funding round, resulting in a company valuation of $4 billion. This positions Kavak among the top five most highly valued startups in Latin America.

Kolonial, a Norway-based startup delivering groceries, meal kits, and household essentials on a same-day or next-day basis, has raised €223 million ($265 million) in an equity funding round. The company, which has achieved profitability this year, is undergoing a rebranding to Oda and intends to utilize the funds to expand into new markets, beginning with Finland and subsequently Germany in 2022, as reported by Ingrid Lunden.

LanzaJet, focused on the commercialization of a technology that converts alcohol into jet fuel, has welcomed energy giant Shell as a strategic investor. Additional investors include All Nippon Airways, Suncor Energy, Mitsui, and British Airways. The specific funding amount was not revealed. LanzaJet originated as a spinoff from LanzaTech, a climate tech company that has endured from the earlier cleantech boom.

Nuvocargo, a digital platform streamlining cross-border trade logistics, has raised $12 million in a Series A funding round, led by QED Investors, with participation from David Velez, Michael Ronen, Raymond Tonsing, FJ Labs, and Clocktower. Existing investors NFX and ALLVP also contributed to this funding round.

QuantumScape Corporation has confirmed the successful completion of a technical milestone, triggering the final $100 million investment from VW Group. This milestone involved Volkswagen’s successful validation of QuantumScape’s latest solid-state lithium-metal cell generation within their German laboratories. This represents the second and concluding tranche of the May 14, 2020 stock purchase agreement between VW and QuantumScape, totaling $200 million in investment. (This development was previously unreported).

Spinny, an online used car marketplace operating in India, has secured $65 million in its Series C financing round, spearheaded by Silicon Valley-based venture firm General Catalyst. Feroz Dewan’s Arena Holdings, Think Investments, and existing investors Fundamentum Partnership – supported by tech industry leaders Nandan Nilekani and Sanjeev Aggarwal – and Elevation Capital also participated.

Swyft, a company enabling retailers to compete with Amazon through same-day delivery services, has raised $17.5 million in a Series A round co-led by Inovia Capital and Forerunner Ventures, with participation from Shopify and prior investors Golden Ventures and Trucks VC.

Interesting Articles and Recent Updates

A collection of noteworthy pieces and recent developments has come to our attention this week.

These selections offer a diverse range of insights and information.

Featured Articles

Several articles have particularly captured our interest due to their relevance and quality.

They cover a spectrum of topics, providing valuable perspectives.

Quick Updates

Beyond the featured articles, a number of brief updates deserve mention.

These snippets offer concise information on ongoing events and emerging trends.

Additional Resources

For those seeking further information, a curated list of resources is available.

These resources include links to relevant websites, reports, and publications.

Key Takeaways

• Important developments are constantly unfolding.
• Staying informed requires a consistent review of relevant sources.
• Diverse perspectives enrich our understanding of complex issues.

We hope this compilation of notable reads and updates proves beneficial.

Continued exploration and critical thinking are encouraged.

Ride-Hailing Services and Driver Incentives

Uber has revealed a $250 million incentive package designed to attract drivers back to the platform. This initiative follows a surge in ride requests as vaccination rates climb.

The Driver Shortage

Increased demand for Uber rides is currently outpacing the available driver pool. Many drivers paused their work during the pandemic and have not yet returned.

Details of the Stimulus Package

The $250 million stimulus will be distributed as bonuses. These bonuses are targeted towards current drivers, those returning to the platform, and new recruits.

The goal is to quickly increase the number of active drivers. This will help Uber to reliably meet the growing customer demand for transportation services.

Impact of Vaccination Rates

Rising vaccination rates are directly correlated with an increase in Uber bookings. As more people feel comfortable traveling, the need for ride-hailing services expands.

However, fulfilling this increased demand requires a sufficient number of drivers. The stimulus package is a direct response to this challenge.

Who Benefits from the Incentives?

• Existing Uber drivers will receive bonus earnings.
• Drivers who previously worked with Uber and are returning will be eligible for incentives.
• New drivers joining the platform will also benefit from the stimulus.

Autonomous Vehicles

During a conversation on the “Sway” podcast hosted by Kara Swisher, Apple’s Chief Executive Officer, Tim Cook, strongly suggested the company’s future involvement in the development of a self-driving Apple car.

The potential of autonomous vehicles was a central theme in a recent discussion led by Aurora CEO Chris Urmson.

Urmson, recently appointed chair of the World Economic Forum’s Global AV Council, facilitated a dialogue with leaders from both the industry and governmental sectors.

The conversation focused on the advantages of self-driving trucking, specifically highlighting improvements in safety, enhanced service capabilities, and increased sustainability.

Furthermore, the discussion addressed the anticipated impact of autonomous technology on the future of the workforce.

Following the council meeting, Urmson detailed his perspectives in a LinkedIn post.

Dara Khosrowshahi, CEO of Uber and a member of the Aurora board, previously held the position of chair for this council.

Verizon and Honda revealed a collaborative effort on Thursday to evaluate the integration of 5G technology and mobile edge computing.

The aim of this partnership is to enhance driving safety through technological advancements.

While widespread, reliable 5G network infrastructure is still under development, the long-term goal is to apply these technologies to self-driving vehicles.

This isn’t Verizon’s initial exploration of 5G, MEC, and vehicle integration; testing has been ongoing at Mcity since 2019.

In November of last year, Renovo Auto – a company supported by Verizon – released a demonstration video.

The video showcased how the combination of 5G and MEC, alongside Renovo’s automotive data platform, can index and filter Advanced Driver Assistance System vehicle data in near real-time.

These tests were also performed at the Mcity testing facility.

Electric Vehicles: Advancements and Goals

GM is expanding its electric vehicle offerings with the introduction of an electric Chevrolet Silverado pickup truck.

This move aligns with the automaker’s ambition to distribute over 1 million electric vehicles on a worldwide scale by the year 2025.

Chevrolet Silverado EV Details

The forthcoming Chevrolet Silverado electric full-size pickup will utilize GM’s Ultium battery platform as its foundation.

GM projects a driving range exceeding 400 miles on a single full charge for this new vehicle.

The company intends to cater to both individual consumers and commercial clients with this electric pickup truck.

Polestar's Climate Neutrality Initiative

Polestar has established an ambitious objective: to engineer the first truly climate-neutral automobile by 2030.

This goal will not be met through conventional carbon offsetting strategies, like reforestation projects.

Instead, Polestar is focused on a complete overhaul of its supply chain.

This includes a review of material acquisition, manufacturing processes, and enhancing vehicle energy efficiency.

Wildcat Discovery Technologies Adds BMW Executive

Wildcat Discovery Technologies, a firm specializing in the development of innovative battery materials, has appointed Peter Lamp to its board of directors.

Mr. Lamp previously served as the general manager of the battery cell technology group at BMW AG.

His expertise will be invaluable as Wildcat Discovery Technologies continues its research and development efforts.

eVTOLs

A legal dispute has arisen in the emerging field of electric vertical takeoff and landing (eVTOL) aircraft. Wisk Aero, a company formed through collaboration between Kitty Hawk and Boeing, has initiated a lawsuit against Archer Aviation.

The core of the legal action centers around claims of both patent infringement and the unauthorized use of confidential trade secrets.

Details of the Lawsuit

Wisk Aero asserts that Archer Aviation has violated specific patents held by Wisk. These patents relate to key technologies utilized in the development of eVTOL aircraft.

Furthermore, the lawsuit alleges that Archer Aviation improperly acquired and utilized Wisk’s proprietary trade secrets, potentially giving them an unfair competitive advantage.

Background of the Companies

Wisk Aero represents a significant player in the air mobility sector, benefiting from the resources and expertise of both Kitty Hawk and Boeing. The company is focused on developing autonomous eVTOL aircraft.

Archer Aviation is another prominent company in the eVTOL space, also working towards the commercialization of electric air taxis. They are actively pursuing certification for their aircraft.

Implications for the eVTOL Industry

This legal battle highlights the intense competition and intellectual property considerations within the rapidly evolving eVTOL industry. The outcome of the case could have substantial ramifications for both companies involved.

The dispute may also influence future innovation and development strategies within the broader eVTOL market, as companies prioritize the protection of their intellectual assets.

Key Allegations

• Patent Infringement: Wisk Aero claims Archer Aviation is utilizing patented technology without authorization.
• Trade Secret Misappropriation: The lawsuit alleges the unlawful acquisition and use of confidential information.

The case is currently proceeding through the legal system, and further developments are anticipated as the proceedings unfold.

Wisk Aero is seeking legal remedies to address the alleged infringements and protect its intellectual property rights.

Automotive Technology Challenges

GM has officially announced further production adjustments, including increased plant idlings and extended shutdowns across its North American facilities. This is a direct consequence of the ongoing global scarcity of semiconductor chips.

These chips are critical components, governing a wide range of vehicle functions, from the infotainment system to essential safety features like power steering and brake systems.

Currently, eight GM assembly plants are experiencing temporary closures as a result of this supply chain disruption.

Widespread Industry Impact

It’s important to note that GM isn’t alone in facing these difficulties. The global chip shortage is significantly impacting the entire automotive industry.

Ford, a key competitor, has similarly been forced to halt production at select plants.

Other major automakers, including Subaru and Stellantis – created through the 2021 merger of Fiat Chrysler Automobiles and Groupe PSA – are also grappling with the effects of the chip shortage.

The Semiconductor Shortage Explained

• The demand for semiconductors has surged recently.
• Supply chain disruptions have limited the availability of these crucial components.
• Automakers are prioritizing chip allocation to their most profitable vehicle models.

The situation highlights the automotive industry’s increasing reliance on advanced technology and the vulnerability of complex supply chains.

TC Sessions: Mobility 2021

TC Sessions: Mobility 2021 will once again be hosted as a virtual event. Despite being online, a remarkable lineup of speakers has been assembled. Announcements regarding participants are beginning now, with the event scheduled for June 9.

A significant highlight will be the conversation featuring Joby Aviation’s founder, JoeBen Bevirt, alongside prominent investor and LinkedIn co-founder, Reid Hoffman. My recent discussion with these individuals suggests a highly insightful session is anticipated.

Early Bird tickets for the event are currently on sale — secure your spot today and enjoy a $100 discount before prices increase.

Bevirt and Hoffman will delve into the challenges of building a startup, particularly the complexities of maintaining confidentiality during fundraising. The future of aerial transportation and the role of SPACs will also be key discussion points.

As you may remember, Joby revealed in February its plans to enter the public market through a merger with Reinvent Technology Partners. This special purpose acquisition company was established by Hoffman and Zynga’s founder, Mark Pincus.

Hoffman explained to TechCrunch in February that SPACs represent “venture capital at scale.” He further clarified that this isn’t a temporary trend, but rather a long-term shift spanning the next three, five, and even ten years.

Hoffman maintains a belief in the enduring presence of SPACs within the financial landscape. However, we intend to revisit his perspective during the June event. He stated, “I think that it’s valuable to the market and valuable to society to have multiple, different paths by which companies can go public.”

Additional guests confirmed for TC Sessions: Mobility 2021 include investors Clara Brenner from Urban Innovation Fund, Quin Garcia of Autotech Ventures, and Rachel Holt of Construct Capital. Furthermore, Ahti Heinla, co-founder and CEO/CTO of Starship Technologies, will also be participating.

Further announcements regarding the event’s agenda and participants will be made in the coming weeks. Stay tuned for updates.