The Station: A Weekly Transportation Newsletter

The Station is a newsletter published every weekend, focusing on the evolving landscape of transportation. Subscribe here — simply click The Station — to have it delivered directly to your inbox.

Greetings to both regular and new subscribers! Welcome to another edition of The Station, a publication committed to exploring the current and emerging methods of moving people and goods.

Expanding Our Transportation Coverage

I’d like to share a quick update regarding The Station. Having recently assumed the role of transportation editor, my primary objective is to expand our team and enhance the depth of our reporting.

My initial step involved welcoming Mark Harris to the team. He will be contributing investigative reports and exclusive content for our Extra Crunch subscription service.

Exclusive Extra Crunch Content

Mark’s inaugural Extra Crunch article, scheduled for release next week, provides an in-depth examination of solid-state batteries.

This marks the beginning of a regular series. Each month, Extra Crunch will feature two “market map” articles. These will concentrate on specific segments within the transportation sector, alongside further mobility-focused analysis.

Strengthening TechCrunch’s Mobility Reporting

Furthermore, we are actively recruiting additional reporters to bolster coverage on TechCrunch. Several new team members possess specialized knowledge in automotive technology.

They are collaborating with me to reimagine the conventional car review, transforming it into a format more aligned with TechCrunch’s style and focus.

Get in Touch

Feel free to reach out with your thoughts, feedback, or any relevant information. You can email me at kirsten.korosec@techcrunch.com.

Alternatively, you can connect with me directly on Twitter — @kirstenkorosec.

Micromobility Diversification

Last week, a question was posed regarding a potential shift towards diversification within the micromobility industry. Increasingly, companies are either broadening their product offerings or implementing technological enhancements.

Lime, for example, has incorporated mopeds into its existing services. Simultaneously, Spin is currently evaluating novel three-wheeled scooters, featuring both remote software control and human-powered operation, developed by Tortoise.

Revel's Expanded Scope

Revel is pioneering this diversification trend to a significant degree. The electric moped sharing company has announced plans to introduce monthly electric bike subscriptions in New York City, representing its second new business initiative in recent weeks.

Up until the end of January, Revel operated solely as a shared electric moped service. However, the company subsequently unveiled a DC fast-charging station for electric vehicles within New York City.

This new facility, dubbed “Superhub,” will house 30 charging points and be accessible to the public around the clock. Revel intends to establish additional Superhubs throughout New York City.

Shortly thereafter, the expansion into monthly electric bike subscriptions was announced. These pedal-assist bikes, produced by WING Bikes, are equipped with a 36-volt battery providing a range of 45 miles per charge.

The bikes are also capable of reaching speeds of up to 20 miles per hour.

Future Developments

Based on statements from Revel CEO and co-founder Frank Reig, further expansion appears likely. Reig indicated that the company has more announcements planned for 2021.

“It is reasonable to anticipate that this will not be our final major announcement this year,” Reig stated.

Further updates will be provided as they become available.

Weekly Investment Highlights

Several years ago, a belief took hold that the development of lidar – the light detection and ranging technology utilizing laser light to create precise 3D maps – was nearing its culmination. At the time, the lidar sector encompassed over 70 burgeoning companies. However, the anticipated widespread adoption of autonomous vehicles, which would have significantly increased demand for these sensors, experienced delays.

Industry consolidation appeared likely. Subsequently, a period of strategic shifts occurred, with lidar firms adopting diverse approaches. Some began marketing their technology to alternative industries, while others emphasized the accompanying perception software. A common tactic involved targeting automotive manufacturers, asserting that their sensors could enhance the robustness, dependability, and safety of advanced driver-assistance systems.

A noteworthy development is currently unfolding within the lidar landscape. Utilizing mergers with Special Purpose Acquisition Companies (SPACs) has become a prevalent strategy for companies seeking access to the capital available through public markets. Numerous lidar companies have embraced this approach in recent months, with AEye being the latest to join the trend.

AEye recently announced its intention to become a publicly traded company through a merger with CF Finance Acquisition Corp. III, resulting in a company valuation of $2 billion. This transaction is expected to generate $225 million in private investment in public equity (PIPE) from institutional and strategic investors, including GM Ventures, Subaru-SBI, Intel Capital, Hella Ventures, and Taiwania Capital. Additional, unnamed investors also participated in the funding. Following the merger, AEye will possess approximately $455 million in cash reserves, including $230 million held in trust by CF Finance Acquisition Corp. III, a SPAC sponsored by Cantor Fitzgerald.

AEye represents the sixth lidar company to announce a SPAC merger since the previous summer. Velodyne Lidar initiated this trend by announcing plans to go public via a merger with Graf Industrial Corp., establishing a market value of $1.8 billion. Luminar, Aeva, Ouster, and Innoviz have since followed suit.

The question remains: which lidar company will be next to pursue this path?

Other notable deals this week …

Dingdong Maicai, a Chinese grocery application supported by Sequoia Capital China, is reportedly considering an initial public offering in the United States within the current year, as reported by Bloomberg.

Li-Cycle Corp, specializing in lithium-ion battery recycling, is nearing an agreement to become a public company through a merger with Peridot Acquisition Corp., according to Reuters. The resulting entity is projected to have a valuation of approximately $1.7 billion.

Metropolis, a Los Angeles-based startup focused on parking payment and management solutions, has secured $41 million in funding from investors. These include real estate managers Starwood and RXR Realty, 01 Advisors (led by Dick Costolo and Adam Bain), Dragoneer, Slow Ventures (founded by Sam Lessin and Kevin Colleran, former Facebook employees), Dan Doctoroff (head of Alphabet’s Sidewalk Labs), and NBA All-Star and early-stage investor Baron Davis. The round was spearheaded by global growth equity firm 3L.

Interestingly, the company’s founder, Alex Israel, previously sold his company, ParkMe, to Inrix in 2015.

Recogni Inc., a startup dedicated to developing an AI-powered vision-recognition system for autonomous vehicles, has raised $48.9 million in a Series B funding round. Investors included BMW i Ventures, Toyota AI Ventures, Robert Bosch Venture Capital, Continental, and existing investors.

Super73, a direct-to-consumer electric bike company, secured $20 million in funding from Volition Capital. The Southern California-based firm intends to utilize these funds to expand its workforce, enhance customer service operations, and broaden its product offerings, as reported by The Verge.

Volkswagen is evaluating the potential separation of its Porsche division, as reported by Bloomberg. The company is currently consulting with financial advisors to assess a possible initial public offering or spinoff of the sports car brand.

Volta Energy Technologies, a firm providing energy investment and advisory services, has secured approximately $90 million towards its targeted $150 million investment fund, according to sources familiar with the group’s plans. This venture investment vehicle complements an existing $180 million commitment from Volta’s corporate partners: Equinor, Albermarle, Epsilon, and Hanon Systems.

Investor Survey 2021

Each year, I conduct a survey of investors to gain insights into their capital allocation strategies. This effort aims to pinpoint developing trends and assess the overall direction of the industry and its various sectors.

For this iteration, I gathered responses from 10 investors, and the complete findings are available within our subscription product, Extra Crunch. Further transportation analysis will be featured there throughout 2021. Subscribing is highly encouraged. However, here’s a preview of the perspectives shared by a selection of those surveyed:

What under-the-radar investment areas are attracting your attention, given the shift in focus by established automakers towards electric vehicles and the impending production launch by new EV companies?

Clara Brenner, Co-founder/Managing Partner, Urban Innovation Fund: Our firm is keenly focused on the evolving landscape of fleet management – a focus demonstrated by recent investments in companies like Electriphi, which provides software for fleet electrification, and Kyte, which optimizes underutilized fleets for a streamlined rental experience. The inherent efficiencies of the fleet model within transportation suggest its growing importance in the years ahead.

Dave Clark, Partner at Expa: Established automotive companies shouldn't be underestimated, but as technology becomes more readily available, we anticipate the emergence of new competitors. These competitors will likely focus on designs better suited for autonomous and shared transportation systems.

Consider these specific areas: EVs are nearing cost equivalence with gasoline vehicles, coupled with advancements in carbon-neutral technologies, energy storage, microgrids, and battery technology. We are on the cusp of significant growth in drone infrastructure and related service models, driven by increasing consumer acceptance and evolving regulations.

Furthermore, as autonomous vehicle technology matures and becomes more accessible, opportunities will arise in the software solutions that optimize routes and manage resources throughout supply chains.

Abhijit Ganguly, Senior Manager at Goodyear Ventures: The ongoing transition to electric vehicles presents opportunities for original equipment manufacturers (OEMs), Tier 1 suppliers, and aftermarket providers. We continue to identify potential in EV fleet management, aftermarket solutions for enhancing uptime and lowering operational costs, and the development of supporting infrastructure – both software and hardware – to facilitate seamless deployment. Envoy, a Goodyear Ventures portfolio company, is actively pursuing these opportunities through its shared mobility EV platform.

Rachel Holt, Co-founder/General Partner at Construct Capital: We recently invested in a company developing the software infrastructure necessary to connect EV hardware manufacturers. The software layer within the EV ecosystem is poised to become a particularly compelling area for investment.

Sasha Ostojic, Operating Partner at Playground Global: A significant opportunity appears to be overlooked in the realm of consumer automotive applications. Given the prevalence of apps for managing our homes – encompassing cameras, speakers, and sensors – it’s logical that our vehicles should integrate into this connected ecosystem. Initially, these apps will likely be specific to each OEM (such as the Tesla app or the GM app), but we foresee a shift towards open APIs, allowing users to integrate any vehicle into a unified “garage” system, similar to adding a device to Google Home.

Sebastian Peck, Managing Director at InMotion Ventures: The market hasn't fully grasped the potential of connected vehicle data, partly due to current access limitations for developers. We anticipate more OEMs will release APIs in 2021, fostering a dynamic environment of innovation that benefits both consumers and commercial fleet operators.

Commission on Future Mobility Q&A

A new global coalition, the Commission on the Future of Mobility, has been formed, uniting leaders from business, industry, technology, and policy. This organization is tasked with a significant undertaking. Recently, key appointments to its board were announced, including Mary Nichols, previously chair of the California Air Resources Board, and Jim Farley, the president and CEO of Ford Motor Co.

Additional commissioners appointed are Bhavish Aggarwal, Chairman of Ola Cabs, Jacques Aschenbroich, Chairman and CEO of Valeo, and Avinash Rugoobur, President of Arrival.

Seeking further insight, I connected with Alisyn Malek, the organization’s executive director and formerly the COO and co-founder of May Mobility, for a discussion.

Below is an edited transcript of our conversation.

ME: The commission’s stated aim is to propose a regulatory framework for the American, European, and Asian markets, one that both reflects and supports the ongoing technological shifts. This represents a substantial ambition.

MALEK: It certainly is a large undertaking. (laughs)

ME: What rationale underlies the decision to adopt a global perspective?

MALEK: A global approach is crucial as it broadens the scope of potential solutions. While focusing on a single region might simplify the challenges, we were concerned about limiting our possibilities. This wider lens allows us to identify and present the most effective strategies from around the world, offering policymakers a clear vision of the future.

ME: Will the proposed framework account for the unique demographic characteristics, cultural nuances, and infrastructural differences present in each region?

MALEK: We acknowledge that a universal solution isn’t feasible. Our intention is to develop a compelling vision and offer a range of options, enabling policymakers to carefully consider the trade-offs inherent in each.

ME: The CFM highlights its reliance on data-driven methodologies. Could you elaborate on the specific types of data that will be utilized?

MALEK: We recognize the existing body of research in this field and will build upon it, incorporating new insights and information. However, we also identify areas where additional data collection is necessary.

For instance, the shifts in freight transportation and the growth of e-commerce accelerated by the pandemic present a data gap. We may investigate new datasets in this area, primarily leveraging existing data sources rather than collecting it directly through vehicle instrumentation. This is a relatively new phenomenon, and comprehensive data is currently limited, making our contribution potentially significant.

ME: Given the number of existing commissions in the transportation sector, what need does this commission address?

MALEK: Many existing mobility commissions either focus on advocating for specific interests or on conducting research and expanding the knowledge base. However, few effectively translate research into actionable advocacy for change.

The Commission on the Future of Mobility distinguishes itself by bringing together industry leaders involved in both the movement of people and goods. This collaborative environment allows us to address complex issues internally as we develop proposals, and then actively advocate for their implementation, driving meaningful progress.

Anthony Levandowski and the Dissolution of Way of the Future

Image Credits: Bryce Durbin

This article details the recent developments surrounding Anthony Levandowski, a former Google engineer who was granted a presidential pardon last month, averting an 18-month prison sentence.

It has come to light that Levandowski has formally disbanded the religious organization he founded, dedicated to the comprehension and veneration of an AI-based deity. The entity, known as Way of the Future, garnered significant attention and debate following its initial public exposure in a November 2017 Wired article.

However, the attention surrounding Way of the Future wasn't solely due to its unique concept. The church’s emergence coincided with a substantial legal conflict between Levandowski and his previous employer, Google.

This timing also placed Levandowski at the center of a high-profile trade secrets litigation involving Waymo, Alphabet’s autonomous driving initiative, and Uber.

Official records from the state of California indicate the dissolution process began in June 2020, with the church being fully dissolved by the end of that year.

All remaining funds held by the organization – a total of $175,172 – were donated to the NAACP Legal Defense and Education Fund.

A conversation with Levandowski revealed that, despite closing Way of the Future, he maintains faith in its core principles.

He continues to believe that artificial intelligence will profoundly reshape human life and labor, potentially offering substantial benefits to society. He also acknowledged that such a positive outcome isn’t assured.

Levandowski affirmed his ongoing commitment to fostering this positive future, even in the absence of Way of the Future.