Before diving into the latest headlines, I’d like to bring your attention to a recent episode of the TechCrunch Equity podcast featuring a conversation with Raquel Urtasun, the co-founder and CEO of Waabi. This insightful discussion explores the intricacies of artificial intelligence in the realm of autonomous driving.
A little bird
Image Credits:Bryce Durbin
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Deals!
Image Credits:Bryce Durbin
The monumental Rivian-Volkswagen Group joint venture has officially been finalized, growing approximately 16% larger before the agreement was solidified. This updated deal will provide Rivian with an infusion of up to $5.8 billion, with an initial $1 billion already allocated through a convertible note.
Specific terms of the contract remain unclear, but it is significant to highlight that this venture will operate as an independent company, co-led by Rivian’s software head Wassym Bensaid alongside Carsten Helbing, Volkswagen Group’s chief technical engineer. The new team, bolstered by Rivian engineers, will be stationed in Palo Alto, California, with plans to establish additional sites in North America and Europe.
A pressing question arises about the fate of VW’s beleaguered software division, Cariad. During a recent press conference, VW Group CEO Oliver Blume asserted that Cariad will continue to play a “central role.” However, this assertion is met with skepticism as challenges persist.
Currently, Rivian is grappling with supply chain issues that have hampered production and adversely impacted revenue. In its third-quarter earnings report, Rivian disclosed a revenue of $874 million, representing a more than 34% decline compared to the same period last year. Moreover, a significant disparity exists between production numbers (13,157) and actual deliveries (10,018), unveiling underlying demand challenges.
The support from Volkswagen is increasingly vital as Rivian seeks to navigate these turbulent waters.
Other deals that caught my eye include …
Just Eat Takeaway has made the decision to offload its U.S. branch, Grubhub, to New York-based Wonder Group in a transaction valued at $650 million. This figure represents a staggering 91% reduction from the $7.3 billion that Just Eat Takeaway invested in Grubhub just four years ago, highlighting a significant shift in market dynamics.
Silicon Valley-based battery startup Lyten is making strides by acquiring manufacturing assets from Northvolt, a Swedish battery manufacturer currently facing financial hurdles. While specific financial terms were not disclosed, it’s noteworthy that Northvolt will sell manufacturing equipment acquired from its 2021 purchase of Cuberg, another startup in the battery sector.
NASA awarded five substantial research grants totaling $11.5 million to various companies developing sustainable aircraft technologies, with notable inclusions like JetZero.
Vatn Systems, an innovative company based in Portsmouth, Rhode Island, that specializes in underwater autonomous vessels, successfully raised $13 million in a seed funding round led by DYNE Ventures. This round also saw participation from prominent firms including Lockheed Martin Ventures, RTX Ventures, and In-Q-Tel, bringing Vatn’s total funding to $16.5 million.
Vecna Robotics, a startup focused on warehouse robotics and specialized in the creation of autonomous forklifts, has successfully secured $14.5 million in funding. However, the standout aspect of this funding round is the appointment of Karl Iagnemma, the former president and CEO of Motional. With decades of experience in the autonomous vehicle sector, Iagnemma’s leadership comes at a crucial time for Vecna, which already boasts commercial clientele.
Notable reads and other tidbits
Image Credits:Bryce Durbin
Autonomous vehicles
Monarch Tractor, an innovator in autonomous electric tractor technology, has begun layoffs as part of a strategic restructuring aimed at shifting its focus towards non-agricultural markets, licensing its autonomous technology, and enhancing sales of its AI-driven farm management software.
Yelp has confirmed its acquisition of RepairPal, a platform offering car repair estimates, for a total of $80 million in cash. This agreement is expected to finalize by year’s end, following standard closing conditions.
Waymo has made headlines by removing its waitlist in Los Angeles, allowing the public to access its innovative robotaxi service. The expanded service area now encompasses approximately 80 square miles across Los Angeles County.
In a related development, Zoox, co-founded by Jesse Levinson, recently announced that its custom-designed robotaxi, backed by Amazon, has launched operations in both San Francisco and Las Vegas. Currently, these vehicles are exclusively available to employees, with plans to eventually include invited guests.
Electric vehicles, charging, & batteries
Canoo continues its struggle for survival; the EV startup that transitioned to a SPAC is emphatically communicating to shareholders that it must undertake vigorous measures to streamline operations, cut costs, and realign with its strategic plan. Executive leaders, including chairman and CEO Tony Aquila and new CFO Kunal Bhalla, are even taking short-term pay cuts for long-term incentives as part of this effort.
In other Canoo news, the company tested its electric vans for Walmart without airbags, igniting concern as employees raised warnings.
Lucid has kicked off the ordering process for its highly anticipated Gravity SUV, an offering that could be pivotal for the company’s future trajectory in the competitive EV market.
Tesla has issued a recall affecting more than 2,000 Cybertrucks, marking the sixth recall since the vehicle’s debut last year. This particular issue cannot be rectified with a software update, showcasing the challenges the automaker faces in maintaining quality controls. Tesla’s market cap remains impressive, having re-entered the trillion-dollar club, partly due to investor confidence that a potential Trump presidency could prove beneficial for the electric vehicle leader.
Future of flight
Exosonic, a startup aiming to revolutionize supersonic commercial air travel and UAV technology, has ceased operations after failing to secure the necessary funding to sustain its ambitions.
This week’s wheels
Image Credits:Waymo
This week, I have a pair of compelling Waymo robotaxi experiences shared by TechCrunch staff members who embarked on their inaugural rides while attending Disrupt 2024 in San Francisco. Given my extensive history with autonomous vehicles, including driverless Waymos, I’ve compiled their unique perspectives for your enjoyment.
Reporter Paul Sawers shared, “Although I’ve been writing about the autonomous vehicle industry for many years, taking my first ride in an actual self-driving car was pretty mind-blowing — it felt like I’d been catapulted into the future. I couldn’t help but stare at the empty driver’s seat and marvel at the fact that we were maneuvering through the streets of San Francisco. I suspect if I was on the highway in that thing, it might be a little more hairy.”
Reporter Rebecca Bellan noted: “I rode in as many Waymos as I could during the week of Disrupt, and it felt sort of like a ride at Disneyland. It moved slow and cautiously, and I wasn’t really worried about crashing.” However, she expressed some frustration that vehicles frequently started to drive away before passengers could board, likely due to limited access to city curbsides, leading to a memorable chase down some blocks.
Senior reporter Sean O’Kane reflected: “I’ve covered AVs long enough that I expected my first taste of Waymo’s careful rollout to go super smoothly — and it did. I did not expect to feel so viscerally just how expensive these current vehicles are, from the whirring lidars to the high-price I-Paces.”
What is “This week’s wheels”? It’s a chance to learn about the different transportation products we’re testing, whether it’s an electric or hybrid car, an e-bike, or even a ride in an autonomous vehicle.
How are companies like Waymo and Zoox innovating in the field of autonomous driving?
O. The experiences highlighted the ease of use and efficiency of the service, along with the advanced technology that allows the vehicles to navigate complex urban environments autonomously. The feedback emphasized the potential of robotaxi services to reshape urban mobility, reducing congestion and providing accessible transport options.
As autonomous driving continues to evolve, it’s clear that companies like Waymo and Zoox are at the forefront of this movement, showcasing innovative solutions that leverage artificial intelligence to enhance road safety and vehicle performance. With more players entering the market and advancements in related technologies, the future of autonomous driving holds exciting prospects for both consumers and the broader automotive ecosystem.
In the coming weeks, we can expect further developments as other companies unveil their strategies and technologies in response to growing trends and consumer demands. Companies are not only focusing on the technology itself but also on user experience, regulatory hurdles, and sustainable practices, which will be crucial to their success in this competitive landscape.
the current state of autonomous driving reflects a dynamic sector characterized by rapid advancements, strategic partnerships, and a growing recognition of the profound impact that AI can have on transportation systems worldwide.