The Station is a weekly newsletter dedicated to all things transportation. Sign up here — just click The Station — to receive it every weekend in your inbox.
Hi readers: Welcome to The Station, your central hub for all past, present and future means of moving people and packages from Point A to Point B.
Twenty years and one week ago, I was riding the monorail system at the Newark airport and pointed to the twin skyscrapers looming in the distance. “I can’t believe you’ve never been to the top of the World Trade Center,” I said to my then fiancé and now husband. Days later, I would walk into a restaurant in a Slovenian town and see a report on the TV about a plane crashing into one of those towers. Like so many of us, we spent the rest of that day watching the news and wondering what would happen next.
In all, four aircraft were hijacked the morning of September 11, two of which crashed into the World Trade Center, one into the Pentagon and the fourth in a field in Pennsylvania. In all, 2,996 people were killed.
The September 11 terrorist attacks triggered a series of events that would change the world forever, including how we move about it. My September 6, 2001 flight to Newark and then onto to Europe was the last time I would experience what now seems unimaginable: getting to an airport less than 45 minutes before my plane took off.
My trip home from Europe provided a forecast of what air travel would look and feel like, although some measures like when we were separately interviewed two different times prior to boarding, ended up being temporary.
Within months of my arrival home, passenger screening and security at airports would be handled by a new federal agency called the Transportation Security Administration. Security wasn’t the only aspect of air travel that changed.
The airline industry experienced skyrocketing losses that sparked a wave of cost-cutting, new fees for travelers and consolidation. According to the GAO, the U.S. airline industry lost $23 billion between 2001 and 2003 and some of the nation’s biggest airlines including USAir and United Airlines filed for bankruptcy.
The airline industry would suffer financial losses during the Great Recession of 2008, causing more bankruptcies and consolidation. Today, most domestic flights are controlled by four airlines: American, Delta, Southwest and United.
After recovering and stringing together a few years of profitability, the airline industry (and how we travel) would get hit again: this time from the COVID-19 pandemic.
p.s. Thanks to co-worker and cybersecurity editor Zack Whittaker for the photo (featured as the main image for the post) he snapped yesterday.
As always, you can email me at kirsten.korosec@techcrunch.com to share thoughts, criticisms, opinions or tips. You also can send a direct message to me at Twitter — @kirstenkorosec.
Micromobbin’
We’ve talked before about the possibilities of shared micromobility to help cities create more equitable and accessible transit ecosystems. Shared operators have expanded this idea to support activism.
Agencies and operators provided free or discounted trips for demonstrators to get to events, according to the North American Bikeshare and Scootershare Association’s 2020 report on the state of the shared micromobility industry, Many even donated or fundraised for racial justice nonprofits.
Not only are they aiding the fight on the ground, the report also shows that nearly three-quarters of all operators stated that diversity was a part of every hiring decision, and 69 percent reported that women and POC are represented at all levels of the organization.
Operator update
Lime is back in Oakland with 500 scooters and plans to scale up to 1,000 over the coming weeks. The company pulled out of the city last year during the pandemic. This time, it’s focusing on “Communities of Concern” as designated by the city, and will deploy half its fleet to these neighborhoods that have been traditionally underserved by transportation.
Tier is hooking up with Irish computer vision startup Luna. Tier is adding Luna’s cameras and smart city technology to its shared e-scooter fleets across Europe and the Middle East. To handle the increase in work, Luna is hiring 15 new staffers to cover computer vision/AI, hardware, IoT and project management roles in Ireland. Interestingly, the partnership comes from an Ireland trade mission to Germany to better understand how the two countries could work together within the e-mobility and automotive industry. Luna just recently launched a pilot with Voi in England, and Ford-backed micromobility operator Spin is slowly pushing out Drover AI’s similar tech on scooters in the United States.
Speaking of Voi, the Swedish company is working with the UK government’s Kickstart Scheme to help create jobs for people ages 16 to 24 years old on Universal Credit who are at risk of long term unemployment. Voi is recruiting 25 young people across the country to work as Warehouse Operatives and Fleet Specialists. The young ones will be ensured a job for at least six months and will hopefully learn a thing or two about a growing transport industry.
Bird has tweaked its branding. It recently announced its scooters and bikes will now be made in “Electric Sky” blue, as opposed to its black, white and silver color scheme. The color evokes eco-friendly transportation, clear skies and cheerful days. It’s reminiscent of Revel’s blue mopeds and Swapfiets’ bikes.
Taking liberties with the term “micromobility”
Chinese EV maker Xpeng says it’s going to make a robot unicorn for children to ride. The quadruped will navigate multiple types of terrain, recognize objects and provide “emotional interaction.” The robot pulls from Xpeng’s experiences with AI and automated driving development. The rendering looks cute and soft, for a metal beast, but the horn could be a bit longer IMO. Bonus: it’s not creepy-looking like Xiaomi’s robot dog.
Dutch startup Squad Mobility has introduced details for its small, low-cost electric city car that’s equipped with solar panels which drip feed the battery throughout the day. The company hopes to come out with a prototype for the solar-assisted quadricycle by October this year and begin deliveries by the end of next year. While it would be a fun passenger vehicle for city folks, the end game is to get in good with one of the car-sharing or shared micromobility operators and sell fleets of the Squad car for shared use.
At the Munich Motor Show, BMW revealed a couple of electric bike concepts that look pretty wicked. The Motorrad Vision AMBY looks like a motorcycle, but is probably more along the class of off-road motorbike, complete with fat tires and a seat-to-footrest ratio that brings to mind all the shredding that can be had. The i Vision AMBY is more of a traditional road e-bike, but maybe one that’s inspired by Back to the Future, such is its retrofuturistic vibe and, I’ll say it, postal service-beige frame.
ADAS in scooters
The desire to keep shared electric scooters off sidewalks has driven the development of advanced technology in the micromobility industry. Once the province of geofencing, scooter companies are so eager to get a leg up on the competition that they’re now implementing technology similar to advanced driver assistance systems usually found in cars. Check out my story in Extra Crunch that digs into this trend.
Micromobility America event
The folks who write our other favorite micromobility newsletter are going to be hosting a micromobility event in the SF Bay Area. On September 23, a range of experts, founders, investors and builders will be sharing top insights about the world of lightweight electric vehicles and their potential to disrupt transportation, including:
Brazilian racing driver Lucas Di Grassi, American entrepreneur and former presidential candidate Andrew Yang, senior writer at Wired Lauren Goode, analyst and founder of the term “micromobility” Horace Dediu
Register now, if you still can. Space is limited.
— Rebecca Bellan
Deal of the week
Investors continue to sink money into ride-hailing companies. Cao Cao Mobility, the ride-hailing unit of Chinese automaker Geely Automobile Holdings, is the latest example.
The company raised $589 million (RMB 3.8 billion) in a Series B round led by Suzhou Xiangcheng Financial Holding Group, an investment company backed by the Xiangcheng district government of Suzhou. Suzhou High-Speed Rail New City Group and three other state-controlled enterprises also participated.
The raise brings the company’s total funding to around $773.2 million (RMB 5 billion).
As TechCrunch reporter Rebecca Bellan notes, Cao Cao is positioned for further growth and a larger market share, as long as the Chinese government believes the company is operating fairly. Its competitors Didi Global and Amap have come under increased government scrutiny that has hurt their business, while giving Cao Cao a boost.
A cybersecurity investigation prompted the Chinese government to temporarily remove Didi Global from Chinese app stores. As a result, Cao Cao, which is currently available in 62 cities in China, saw ride volume increase 32% in July.
Other deals that got my attention this week …
Accure, the Aachen, Germany-based battery safety software company raised $8 million in a Series A round led by Blue Bear Capital. Capnamic Ventures and 42CAP also participated.
BP Ventures, the investing arm of oil and gas giant BP, made a €10 million ($11.9 million) investment in Ryd, a German in-car digital payments provider. The funds will be used to help Ryd expand its service into international markets and build out its offering.
Delhivery, the Indian logistics firm, courted Lee Fixel’s Addition as an investor before its expected IPO in the next two quarters: The Gurgaon-headquartered firm disclosed in a regulatory filing that Addition invested $76.4 million in the startup as part of a Series I round. Delihivery hasn’t disclosed the total raise or other investors.
Delimobil, the Russian car sharing company, has chosen banks to organize its IPO listing and is seeking to raise around $ 350 million, Reuters reported.
Skydweller Aero, the U.S.-Spanish aerospace startup, received an additional $8 million in oversubscribed funding led by Leonardo S.p.A, Marlinspike Capital and Advection Growth Capital. The funds were added to its Series A round, which had previously reached $32 million. The company said it has also partnered with Palantir Technologies to use its Foundry analytics platform to process information at-scale and onboard the aircraft designed for telecommunications, government operations and emergency services.
Tritium Holdings, the Australian developer of DC fast-charging technology for electric vehicles, raised A$40 million ($29.4 million) from the investment arm of Cigna.
WattE, a company trying to develop a network of truck stops and run a fleet of 12,000 electric trucks to share, will receive a $5 million grant from the California Energy Commission. The grant is for the construction of the state’s first electric truck stop. The company also recently closed a $6 million Series A round led by Canon Equity.
A little bird
I hear things. But I’m not selfish. Let me share what the little birds are telling me.
You likely spotted the widespread coverage, including by TechCrunch, that Ford Motor hired Doug Field, the engineering executive who was VP of Apple’s special projects team and its secret, not-very-secret car program.
Field, who also once worked as senior vice president of engineering at Tesla, was named as Ford’s chief advanced technology and embedded systems officer. Soon after the news broke, reports came out that Kevin Lynch, who led development on the Apple Watch, had taken over Field’s role on the car project.
All of this had TC readers wondering (at least according to my DMs and emails) whether Apple’s car program was at risk. I reached out to some folks and one source told me that Apple employees were in Korea meeting with battery manufacturers as early as last week, which suggests that the game is on. You might recall, The Korea Times reported back in early August a team from Apple was visiting battery manufacturers LG Chem, SK, and Hanwha as part of “early talks.”
It seems those talks are still happening.
Policy corner
Welcome back to policy corner! Big news out of the aviation industry this week, as major airlines pledged to make 3 billion gallons of “sustainable aviation fuel” available to aircraft carriers by 2030, in line with a federal goal of reducing aviation emissions by 20% by the start of the next decade.
The announcement was made by industry group Airlines for America (A4A), whose members include United Airlines, Delta, American Airlines and Southwest. The group had previously set a target of 2 billion gallons by 2030 back in March. (Also yesterday, United made a separate announcement that it would purchase 1.5 billion gallons of SAF from startup Alder Fuels, pending certain conditions are met. Check out my story on the deal here.
A4A stressed the importance of federal action to support the development of SAF, including a “blender” tax credit for SAF mixed with conventional fuel and public-private research partnerships into SAF tech.
But this would be just the beginning, if President Joe Biden has his say; his administration wants a “fully zero-carbon aviation sector by 2050,” according to a White House fact sheet released Thursday. Aviation accounts for 11% of the country’s transportation-related emissions, the fact sheet says. Plus, while 3 billion gallons of fuel certainly sounds like a lot, a United spokesperson told TechCrunch that the airline consumes around 4 billion annually, and the White House says demand overall could be as high as 35 billion gallons per year by 2050.
To meet that demand, Biden said he is seeking that SAF incentives be included in the $3.5 trillion spending bill currently being debated by Congress, including a tax credit and $4.3 billion earmarked for funding SAF projects.
It’s important to note two things: one, as it currently stands, SAF is more expensive than conventional jet fuel, itself a considerable cost for airlines. Two, the above goals on behalf of the airlines are non-binding, voluntary agreements. Taken together, that means (in my humble opinion) that a tax incentive or something like it will be necessary for SAF to achieve cost parity with conventional fuel — and for airlines to actually adopt it.
The other policy items that caught my eye this week come from the great state of New York. The first is out of New York City, which set a target to install 40,000 public Level 2 chargers and 6,000 DC fast chargers by 2030. This buildout, outlined in the Department of Transportation’s EV plan, will be necessary for the city to reach its target of being fully carbon neutral by 2050.
Finally, the New York State House signed a bill into law requiring all passenger vehicles sold in-state to be zero-emission by 2035, making it the second state (after California) to introduce a set deadline to phase out internal combustion engine cars. It’s hard to know whether this is the start of a sea change in state policy or whether NY and California are anomalies, but I can see this type of legislation becoming more popular in the coming years.
— Aria Alamalhodaei
Notable news and other tidbits
Autonomous vehicles
Anthony Levandowski, the controversial and presidentially pardoned autonomous vehicle technology engineer, sat down with The Information for an interview that included details about his company’s pivot from big rigs to dump trucks.
Aurora co-founder Sterling Anderson laid out the autonomous vehicle company’s development process in a blog post this week. Aurora collaborated with half a dozen OEMs and has integrated its self-driving system into eight distinct vehicle platforms. Anderson wrote that the outcome “is a highly refined Driver-vehicle interface and a structured process for the design, development, and launch of vehicles designed for it that we call the Aurora Driver Development Program.” Side note: Aurora has made its Pittsburgh office its official headquarters.
Intel subsidiary Mobileye and rental car giant Sixt SE announced plans to launch a robotaxi service in Munich next year. As I noted in my article, the robotaxi service will leverage all of Intel’s, and more specifically Mobileye’s, assets that have been in development or purchased in recent years, including the $900 million acquisition in 2020 of Moovit, an Israeli startup that analyzes urban traffic patterns and provides transportation recommendations with a focus on public transit.
Through the partnership, riders will be able to access the robotaxi service via the Moovit app. The service will also be offered through Sixt’s mobility ONE app, which gives customers the ability to hail a ride, rent, share or subscribe to vehicles. Caveat: this won’t be a large-scale service in the beginning; it will start small and operate similarly to other early rider programs first modeled by nuTonomy and Waymo.
WeRide, a Chinese autonomous vehicle technology company, unveiled its first cargo van. The company said it will work with Chinese automobile manufacturer Jiangling Motors and Chinese express delivery company ZTO Express to commercialize its first self-driving van at scale. The “robovans” will be based on JMC’s battery electric vehicle model with a fully redundant vehicle platform, combined with WeRide’s full-stack software and hardware autonomous driving (AD) solutions.
Electric vehicles (and batteries)
GM extended a shutdown at its Orion Assembly Plant by another two weeks due to a battery pack shortage related to the widespread Chevrolet Bolt EV and Bolt EUV safety recall. GM said the extended downtime at the Orion plant will last through September 20. Orion Assembly Plant in Michigan has been shut down since August 23.
Ford has hired six senior-level executives to its newly minted commercial vehicles and services business unit as the automaker prepares to bring to market the E-Transit cargo van and the F-150 Lightning Pro pickup truck — two electric vehicles it’s betting will become commercial customers’ new workhorses.
Sila Nanotechnologies’ next-generation battery technology made its commercial product debut in the new Whoop fitness tracker, a milestone that caps a decade of research and development by the Silicon Valley startup. This matters because Sila Nano has joint battery ventures with BMW and Daimler to produce batteries containing the company’s silicon-anode technology, with the goal of going to market in the automotive industry by 2025.
Solid Power, a battery developer backed by Ford and BMW, is preparing to start pilot production of its solid state batteries early next year. A new production facility will be dedicated to manufacturing a sulfide-based solid electrolyte material and pilot production of its commercial-grade, 100 ampere battery cells. Those pouch cells are expected to go to Ford and BMW for automotive testing in early 2022.
Meet Squad Mobility and learn about its vision of the perfect urban vehicle. Here’s a hint: it’s small, cheap, electric and includes solar.
Tesla set the official record for electric vehicles at Nürburgring with a Tesla “Model S Plaid,” that driven by Andreas Simonsen circumnavigated the 20.8-kilometre. (12.9-mile) Nordschleife loop in 7:35.579, according to a statement from the motorsports complex.
Toyota Motor said it will oppose a proposal by Democrats in the U.S. House of Representatives to give union-made electric vehicles in the United States an additional $4,500 tax incentive, Reuters reported. The company said the proposal discriminates “against American autoworkers based on their choice not to unionize.”
Volta Trucks, a full-electric commercial vehicle manufacturer, said its first vehicles will be manufactured in Steyr, Austria, by Steyr Automotive, formerly MAN Truck and Bus Austria.
Delivery and sharing
DoorDash, Caviar, Grubhub, Seamless, Postmates and Uber Eats have sued the City of New York over a law that would permanently limit the amount of commissions the apps can charge restaurants to use their services. The companies are seeking an injunction that would prevent the city from enforcing the legislation, unspecified monetary damages and a jury trial.
Plentywaka co-founder and CEO Onyeka Akumah was interviewed by TechCrunch as part of its ongoing founders Q&A series.
Misc. stuff
Hyundai Motor Group laid out its hydrogen strategy, announcing it will provide hydrogen fuel cell versions for all its commercial vehicles by 2028. Hyundai’s goal is to achieve cost competitiveness comparable to that of EV batteries by 2030. The company also shared details about its high-performance, rear-wheel drive hydrogen sports car, the Vision FK, with a targeted range of 373 miles. Hyundai did not share when the vehicle would go into production.
GM unveiled the 2022 Chevrolet Silverado, a full-sized pickup truck that received a major technology upgrade, including its hands-free Super Cruise advanced driver assistance system and an infotainment system with embedded Google services, as well as an overhauled interior.
David Zipper wrote a piece for Slate examining the growing problem of infotainment systems.