Kia and Uber partner to give drivers in 20 European markets discounts to EVs

Uber and Kia Europe are teaming up to offer drivers in 20 European markets deals on buying, leasing, financing or renting Kia’s e-Niro and e-Soul, the latest move by the ride-hailing giant to achieve its emissions goals. 

Uber has committed to being a zero-emission mobility platform across Europe by 2030, and hopes to get up to 30,000 Uber drivers into Kia’s BEV range by the same year. Kia is the latest in Uber’s collection of automakers offerings its drivers discounted rates on electric cars. In May, Uber also announced a partnership with EV manufacturer Arrival to create a purpose-built electric car for ride-hail drivers, and in September 2020, Uber partnered with GM to give Canadian and American drivers discounts to the all-electric Chevrolet Bolt. 

Recent legislation adopted by the European Union aims to cut carbon emissions by at least 55% by 2030, compared to 1990 levels. Uber’s partnership with Kia anticipates increasingly strict emissions regulations around the continent. To keep up, Uber is also targeting to have more than 100,000 electric vehicles across its European platform by 2025 and 50% of miles driven in Amsterdam, Berlin, Brussels, Lisbon, London, Madrid and Paris to be in zero-emissions vehicles. 

For its part, Kia hopes to use this partnership to popularize its BEVs as it prepares to launch 11 new electric models by 2026. The e-Niro crossover has 239 miles of range and a lithium-ion battery that charges in 54 minutes up to 80% on a DC fast charger. The e-Soul subcompact crossover, with a cute and boxy exterior, offers up to 243 miles of range on a full charge.

But even with the discounts, the Kia models that are currently on offer on PartnerPoint, Uber’s portal for London-based drivers shopping around for EVs, are still quite pricey. Kia is giving drivers a discount of around 8% on its vehicles to finance, as opposed to an average of 13% from Nissan and even 22% with Hyundai. That means Kia’s vehicles a cost between £29,877.40 ($42,15432) and £36,471.40 ($51,457.86), which is around the same price as, if not more than a London driver’s annual salary.

Despite this, it seems drivers are taking advantage of the discounts and other incentives, like 5% financing interest rates and the the Clean Air Fee, which collects 3 pence (4 cents) per ride to put towards the cost of an EV and has saved London drivers an average of £3,000 ($4,233), according to the company.

In London, more than 3.5 million trips have taken place in fully electric vehicles since the launch of the Clean Air Plan in 2019, according to Uber. Some 50% of new cars joining the platform in London are now fully electric, compared to 8% of new vehicles in wider markets. Over the past year, the number of EVs on Uber’s platform has jumped from 700 to 2,100, and Uber wants to double that by the end of the year. 

With this announcement, Uber also said it plans to continue expansion of Uber Green, which allows riders to request a lower emissions vehicle and drivers to get a reduced 15% service fee for each Uber Green trip, across Europe to 60 cities by the end of the year. This feature is currently only available for any London rider starting their trip inside Zone 1, but Uber says now is a good time for drivers to take advantage of lower running costs and greater earning potential through the program.

Uber drivers in Europe can find information about EV offers through the driver app, direct mail and driver webinars, the company said. Prices for vehicles won’t vary depending on driver location. 

 

#electric-vehicles, #hyundai-motor-group, #tc, #transportation, #uber

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Waabi’s Raquel Urtasun explains why it was the right time to launch an AV technology startup

Raquel Urtasun, the former chief scientist at Uber ATG, is the founder and CEO of Waabi, an autonomous vehicle startup that came out of stealth mode last week. The Toronto-based company, which will focus on trucking, raised an impressive $83.5 million in a Series A round led by Khosla Ventures. 

Urtasun joined Mobility 2021 to talk about her new venture, the challenges facing the self-driving vehicle industry and how her approach to AI can be used to advance the commercialization of AVs.


Why did Urtasun decide to found her own company?

Urtasun, who is considered a pioneer in AI, led the R&D efforts as a chief scientist at Uber ATG, which was acquired by Aurora in December. Six months later, we have Waabi. The company’s mission is to take an AI-first approach to solving self-driving technology. 

I left Uber a little bit over three months ago to start this new company, Waabi, with the idea of having a different way of solving self-driving. This is a combination of my 20-year career in AI as well as more than 10 years in self-driving. Thinking about a new company was something that was always in my head. And the more that I was in the industry, the more that I started thinking about going away from the traditional approach and trying to have a diverse view of how to solve self-driving was actually the way to go. So that’s why I decided to do this company. (Timestamp: 1:21)

#adas, #artificial-intelligence, #aurora-innovation, #autonomous-driving, #mobility-2021, #raquel-urtasun, #self-driving-vehicles, #tc, #transportation, #uber, #waabi

0

What does Uber and birth control have in common?

Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast where we unpack the numbers behind the headlines.

This is Equity Monday, our morning coffee chat with you that is all about the weekend, what to expect this week, and some funding rounds you may have missed. I’m subbing in for Alex Wilhelm today, who is deservedly out on vacation. You can find me on Twitter @nmasc_, and Equity on Twitter (turn on those notifications!) @equitypod. 

Biden and world leaders are congregating at the NATO summit, which kicks off this week. Also, the Dublin Tech Summit is happening on Thursday with yours truly, other TC folks, and many entrepreneurs making a virtual appearance.

Now, onto the news!

  •  The weekend: The seat next to Jeff Bezos as he launches into space just got filled for $28 million. Also, Elon Musk tweeted about how Tesla might start accepting Bitcoin as a payment once at least half of it can be mined using clean energy. The comment sent Bitcoin up more than a few percentage points, hovering at $39,173 at the time of the recording.
  • This morning: The FT reports that Flagship Pioneering, which is responsible for incubating and launching Moderna, has raised a new venture capital fund at $3.4 billion. Flagship isn’t your traditional VC. It forms teams around problem areas and brainstorms solutions, incubates the most promising ones, and then eventually spins out and finances those companies.
  •  Funding rounds: Byju’s got a check from UBS and Zoom founder Eric Yuan, making it the most valuable startup in India. The company is now valued at $16.5 billion post-money. Plus, The Pill Club has raised an extension Series B round with former Uber exec Liz Meyerdirk newly at the helm of the company.
  • Finally, please take the Equity Listener Survey. We want to make the show better for you, so spending a few seconds filling out our survey and we will be very grateful.

And that’s all. Be kind with yourself this week, and take more than a 5-minute lunch because true glamour is being present and chewing slowly.

Equity drops every Monday at 7:00 a.m. PST, Wednesday, and Friday at 6:00 AM PST, so subscribe to us on Apple PodcastsOvercastSpotify and all the casts!

#bitcoin, #byjus, #edtech, #elon-musk, #equity, #equity-pod, #eric-yuan, #flagship-pioneering, #health-tech, #jeff-bezos, #moderna, #space, #tc, #tesla, #the-pill-club, #truepill, #uber, #zoom

0

Despite flat growth, ride-hailing colossus Didi’s US IPO could reach $70B

Didi filed to go public in the United States last night, providing a look into the Chinese ride-hailing company’s business. This morning, we’re extending our earlier reporting on the company to dive into its numerical performance, economic health and possible valuation.

Didi is approaching the American public markets at a fortuitous moment. While the late-2020 IPO fervor, which sent offerings from DoorDash and others skyrocketing after their debuts, has cooled, valuations for public companies remain high compared to historical norms. And Uber and Lyft, two American ride-hailing companies, have been posting numbers that point to at least a modest recovery in the ride-hailing industry as COVID-19 abates in many parts of the world.

As further grounding, recall that Didi has raised tens of billions worth of private capital from venture capitalists, private equity firms, corporations and other sources. The size of the bet riding on Didi is simply massive. As we explore the company’s finances, then, we’re more than vetting a single company’s performance; we’re examining what sort of returns an ocean of capital may be able to derive from its exit.

In that vein, we’ll consider GMV results, revenue growth, historical profitability, present-day profitability, and what Didi may be worth on the American markets, given current comps. Sound good? Into the breach!

Inside Didi’s IPO filing

Starting at the highest level, how quickly has gross transaction volume (GTV) scaled at the company?

GTV

Didi is historically a business that operates in China but has operations today in more than a dozen countries. The impact and recovery of China’s bout with COVID-19 is therefore not the whole picture of the company’s GTV results.

COVID-19 began to affect the company starting in the first quarter of 2020. From the Didi F-1 filing:

Core Platform GTV fell by 32.8% in the first quarter of 2020 as compared to the first quarter of 2019, and then by 16.0% in the second quarter of 2020 as compared to the second quarter of 2019.

The dips were short-lived, however, with Didi quickly returning to growth in the second half of the year:

Our businesses resumed growth in the second half of 2020, which moderated the impact on a year-on-year basis. Our Core Platform GTV for the full year 2020 decreased by 4.8% as compared to the full year 2019. Both our China Mobility and International segments were impacted, but whereas the GTV for our China Mobility segment decreased by 6.6% from 2019 to 2020, the GTV for our International segment increased by 11.4% from 2019 to 2020.

Holding to just the Chinese market, we can see how rapidly Didi managed to pick itself up over the last year. Chinese GTV at Didi grew from 25.7 billion RMB to 54.6 billion RMB from the first quarter of 2020 to the first quarter of 2021; naturally, we’re comparing a more pandemic-impacted quarter at the company to a less-affected period, but the comparison is still useful for showing how the company recovered from early-2020 lows.

The number of transactions that Didi recorded in China during the first quarter of this year was also up more than 2x year over year.

On a whole-company basis, Didi’s “core platform GTV,” or the “sum of GTV for our China Mobility and International segments,” posted numbers that are less impressive in growth terms:

Image Credits: Didi F-1 filing

You can see how quickly and painfully COVID-19 blunted Didi’s global operations. But seeing the company settle back to late-2019 GTV numbers in 2021 is not super bullish.

Takeaway: While Didi managed an impressive GTV recovery in China, its aggregate numbers are flatter, and recent quarterly trends are not incredibly attractive.

Revenue growth

#carsharing, #china, #didi, #ec-mobility, #ec-news-analysis, #fundings-exits, #lyft, #startups, #tc, #uber, #unicorn, #united-states, #venture-capital

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SoftBank, Uber, Tencent set to reap rewards from Didi IPO

After years of speculation, Didi Chuxing, China’s ride-sharing behemoth, finally unveiled its IPO filing in the U.S., giving a glimpse into its money-losing history.

Didi didn’t disclose the size of its raise. Reuters reported the company could raise around $10 billion at a valuation of close to $100 billion.

Cheng Wei, Didi’s 38-year-old founder owns 7% of the company’s shares and controls 15.4% of its voting power before the IPO, according to the prospectus. Major shareholder SoftBank Vision Fund owns 21.5% of the company, followed by Uber with 12.8% and Tencent at 6.8%.

The nine-year-old company, which famously acquired Uber’s China operations in 2016, is more than a ride-hailing platform now. It has a growing line of businesses like bike-sharing, grocery, intra-city freight, financial services for drivers, electric vehicles and Level 4 robotaxis, which it defines as “the pinnacle of our design for future mobility” for its potential to lower costs and improve safety.

Didi set up an autonomous driving subsidiary that banked $500 million from SoftBank in May last year. The unit now operates a team of over 500 members and a fleet of over 100 autonomous vehicles.

For the twelve months ended March, Didi served 493 million annual active users and saw 41 million transactions on a daily basis.

Didi had been operating in the red from 2018 to 2020, when it finished the year with a $1.6 billion net loss, but managed to turn the tide in the first quarter of 2021 by racking up a net profit of $837 million, which it recognized was primarily due to the investment income from the deconsolidation of Chengxin, its cash-burning grocery group buying initiative, and an equity investment disposal.

Revenue from the quarter also more than doubled year-over-year to $6.6 billion. China accounts for over 90% of Didi’s revenues as of late. The company has tried to expand its presence in a dozen overseas countries like Brazil, where it bought local ride-hailing business 99 Taxis.

Of its mobility revenues in China, more than 97% came from ride-hailing between 2018 and 2020. Taxi hailing, chauffeur and carpooling, a lucrative business that was revamped following two deadly accidents, made up a trifling share.

Didi plans to spend 30% of its IPO proceeds on shared mobility, electric vehicles, autonomous driving and other technologies. 30% will go towards its international expansion and another 20% will be used for new product development.

#asia, #automation, #carsharing, #china, #didi, #didi-chuxing, #funding, #robotaxi, #robotics, #softbank, #softbank-group, #transport, #transportation, #uber

0

AI pioneer Raquel Urtasun launches self-driving technology startup with backing from Khosla, Uber and Aurora

One of the lingering mysteries from Uber’s sale of its Uber ATG self-driving unit to Aurora has been solved.

Raquel Urtasun, the AI pioneer who was the chief scientist at Uber ATG, has launched a new startup called Waabi that is taking what she describes as an “AI-first approach” to speed up the commercial deployment of autonomous vehicles, starting with long-haul trucks. Urtasun, who is the sole founder and CEO, already has a long list of high-profile backers, including separate investments from Uber and Aurora. Waabi has raised $83.5 million in a Series A round led by Khosla Ventures with additional participation from Uber, 8VC, Radical Ventures, OMERS Ventures, BDC, Aurora Innovation as well as leading AI researchers Geoffrey Hinton, Fei-Fei Li, Pieter Abbeel, Sanja Fidler and others.

Urtasun described Waabi, which currently employs 40 people and operates in Toronto and California, as the culmination of her life’s work to bring commercially viable self-driving technology to society. The name of the company —  Waabi means “she has vision” in Ojibwe and “simple” in Japanese —  hints at her approach and ambitions.

Autonomous vehicle startups that exist today use a combination of artificial intelligence algorithms and sensors to handle the tasks of driving that humans do such as detecting and understanding objects and making decisions based on that information to safely navigate a lonely road or a crowded highway. Beyond those basics are a variety of approaches, including within AI.

Most self-driving vehicle developers use a traditional form of AI. However, the traditional approach limits the power of AI, Urtasun said, adding that developers must manually tune the software stack, a complex and time-consuming task. The upshot, Urtasun says: Autonomous vehicle development has slowed and the limited commercial deployments that do exist operate in small and simple operational domains because scaling is so costly and technically challenging.

“Working in this field for so many years and, in particular, the industry for the past four years, it became more and more clear along the way that there is a need for a new approach that is different from the traditional approach that most companies are taking today,” said Urtasun, who is also a professor in the Department of Computer Science at the University of Toronto and a co-founder of the Vector Institute for AI.

Some developers do use deep neural nets, a sophisticated form of artificial intelligence algorithms that allows a computer to learn by using a series of connected networks to identify patterns in data. However, developers typically wall off the deep nets to handle a specific problem and use a machine learning and rules-based algorithms to tie into the broader system.

Deep nets have their own set of problems. A long-standing argument is that they can’t be used with any reliability in autonomous vehicles in part because of the “black box” effect, in which the how and the why the AI solved a particular task is not clear. That is a problem for any self-driving startup that wants to be able verify and validate its system. It is also difficult to incorporate any prior knowledge about the task that the developer is trying to solve, like, oh, driving for instance. Finally, deep nets require an immense amount of data to learn.

Urtasun says she solved these lingering problems around deep nets by combining them with probabilistic inference and complex optimization, which she describes as a family of algorithms. When combined, the developer can trace back the decision process of the AI system and incorporate prior knowledge so they don’t have to teach the AI system everything from scratch. The final piece is a closed loop simulator that will allow the Waabi team to test at scale common driving scenarios and safety-critical edge cases.

Waabi will still have a physical fleet of vehicles to test on public roads. However, the simulator will allow the company to rely less on this form of testing. “We can even prepare for new geographies before we drive there,” Urtasun said. “That’s a huge benefit in terms of the scaling curve.”

Urtasun’s vision and intent isn’t to take this approach and disrupt the ecosystem of OEMs, hardware and compute suppliers, but to be a player within it. That might explain the backing of Aurora, a startup that is developing its own self-driving stack that it hopes to first deploy in logistics such as long-haul trucking.

“This was the moment to really do something different,” Urtasun said. “The field is in need of a diverse set of approaches to solve this and it became very clear that this was the way to go.”

#aurora-innovation, #automotive, #autonomous-vehicles, #khosla-ventures, #raquel-urtasun, #self-driving-cars, #tc, #transportation, #uber, #uber-atg, #venture-capital

0

4 women in engineering discuss harassment, isolation and perseverence

Women engineers often face workplace and career challenges that their male colleagues don’t because they remain a minority in the profession: Depending on how you count, women make up just 13% to 25% of engineering jobs. That inequity leads to a power imbalance, which can lead to toxic working environments.

One of the more infamous and egregious examples is Susan Fowler’s experience at Uber. In a blog post in February 2017, she described her boss coming on to her in a company chat channel on her first day on the job. She later wrote a book, “Whistleblower,” that described her time at the company in detail.

Fowler’s ordeal cast a spotlight on the harassment women engineers have to deal with in the workplace. In a profession that tends to be male-dominated, behavior ranges from blatant examples, like what happened to Fowler, to ongoing daily microaggressions.

Four female engineers spoke with me about their challenges:

  • Tammy Butow, principal software reliability engineer (SRE) at Gremlin
  • Rona Chong, software engineer at Grove Collaborative
  • Ana Medina, senior chaos engineer at Gremlin
  • Yury Roa, SRE technical program manager at ADL Digital Labs in Bogota, Colombia

It’s worth noting that Fowler was also an SRE who worked on the same team as Medina (who was later part of a $10 million discrimination lawsuit against Uber). It shows just how small of a world we are talking about. While not everyone faced that level of harassment, they each described daily challenges, some of which wore them down. But they also showed a strong determination to overcome whatever obstacles came their way.

Feeling isolated

One of the primary issues these women faced throughout their careers is a feeling of isolation due to their underrepresentation. They say that can sometimes lead to self-doubt and an inkling that you don’t belong that can be difficult to overcome. Medina says that there have been times when, intentionally or not, male engineers made her feel unwelcome.

“One part that was really hard for me was those microaggressions on a daily basis, and that affects your work ethic, wanting to show up, wanting to try your best. And not only does that damage your own self-esteem, but your esteem [in terms of] growing as an engineer,” Medina explained.

Roa says that isolation can lead to impostor syndrome. That’s why it’s so important to have more women in these roles: to serve as mentors, role models and peers.

“One barrier for us related to being the only woman in the room is that [it can lead to] impostor syndrome because it is common when you are the only woman or one of few, it can be really challenging for us. So we need to gain confidence, and in these cases, it is very important to have role models and leadership that includes women,” Roa said.

Chong agrees it is essential to know that others have been in the same position — and found a way through.

“The fact that people talk authentically about their own jobs and challenges and how they’ve overcome that, that’s been really helpful for me to continue seeing myself in the tech industry,” she said. “There have been points where I’ve questioned whether I should Ieave, but then having that support around you to have people to talk to you personally and see as examples, I think it has really helped me.”

Butow described being interviewed for an article early in her career after she won an award for a mobile application she wrote.  When the article was published, she was aghast to discover it had been headlined, “Not just another pretty face…”

“I was like, that’s the title?! I was so excited to share the article with my mom, and then I wasn’t. I spent so much time writing the code and obviously my face had nothing to do with it. … So there’s just little things like that where people call it a paper cut or something like that, but it’s just lots of little microaggressions.”

Pushing through

In spite of all that, a common thread among these women was a strong desire to show that they have the technical skill to get past these moments of doubt to thrive in their professions.

Butow said she has been battling these kinds of misperceptions since she was a teenager but never let it stop her. “I just tried to not let it bother me, but mostly because I also have a background in skateboarding. It’s the same thing, right? You go to a skate park and people would say, ‘Oh, can you even do a trick?’ and I was like, ‘Watch me.’ You know, I [would] just do it. … So a lot of that happens in lots of different types of places in the world and you just have to, I don’t know, I just always push through, like I’m just going to do it anyway.”

Chong says she doesn’t give in to discouraging feelings, adding that having other women to talk to helped push her through those times.

“As much as I like to persevere and I don’t like giving up, actually there have been points where I considered quitting, but having visibility into other people’s experiences, knowing that you’re not the only one who’s experienced that, and seeing that they’ve found better environments for themselves and that they eventually worked through it, and having those people tell you that they believe in you, that probably stopped me from leaving when I [might] have otherwise,” she said.

Women helping women

Chong’s experience is not unique, but the more diverse your teams are, the more people who come from underrepresented groups can support one another. Butow recruited her at one point, and she says that was a huge moment for her.

“I think that there is a network effect where we know other women and we try to bring them in and we expand on that. So we can kind of create the change or we feel the change we want to see, and we get to make our situation more comfortable,” Chong said.

Medina says that she is motivated to help bring Latinx and Black people into tech, with a focus on attracting girls and young women. She has worked with a group called Technolachicas, which produced a series of commercials with the Televisa Foundation. They filmed six videos, three in English and three in Spanish, with the goal of showing young girls how to pursue a STEM career.

“Each commercial talks about how we got our career started with an audience persona of a girl younger than 18, an adult influencer and a parent — people that are really crucial to the development of anyone under 18,” she said. “How is it that these people can actually empower someone to look at STEM and to pursue a career in STEM?”

Butow says it’s about lifting people up. “What we’re trying to do is sharing our story and hoping to inspire other women. It’s super important to have those role models. There’s a lot of research that shows that that’s actually the most important thing is just visibility of role models that you can relate to,” she said.

The ultimate goal? Having enough support in the workplace that they’re able to concentrate on being the best engineers they can be — without all of the obstruction.

#developer, #diversity, #diversity-and-inclusion, #labor, #racism, #sexism, #software-engineer, #startups, #susan-fowler, #uber

0

Rideshare drivers gather in NYC in hopes of unionizing

Protesters gathered in bright red t-shirts and matching masks bearing the Independent Drivers Guild logo. Placards bearing slogans like “Freeze Hiring, Reactive Workers Now!” and “Unlock Uber” were being handed out at a table toward the entrance. What the gathering lacked in sheer numbers, it made up with enthusiasm.

A wide range of speakers approached the podium — IDG members, drivers, local and prospective politicians. Nearly every speech was followed by a spirited call and response from the crowd, culminating in pro-union chants.

Previous protests have found drivers opting for other locations — perhaps most notably in 2019, when Brooklyn Bridge traffic toward the mayor’s residence at Gracie Mansion was slowed to a crawl. Today’s location was perfectly suited for such an event.

Image Credits: Brian Heater

The gathering was framed by the Falchi Building, a large office space in Queens, New York, housing some 36,000 square feet of Uber offices. The neighborhood of Long Island City has long served as an epicenter for the city’s ridesharing operations. Lyft has offices nearby, as does the Taxi Limousine Commission (TLC). Walk down a block or two and you’ll almost certainly stumble across rows upon rows of yellow cabs.

The concerns of gig workers are nothing new, of course, but today’s crowd gathered in Long Island City, Queens to add support to a proposed bill currently making its way through the state legislature in Albany. The legislation is designed to make it easy for gig economy workers in the state to unionize.

“Currently, the gig workers have no voice in their workplace. No voice to negotiate pay or benefits of workplace policies,” bill sponsor state Sen. Diane Savino of Staten Island explained in a recent interview. “And I have been talking about this issue for several years now. The world of work is changing, and labor law has not caught up to technology and how it has changed the world of work.”

Image Credits: Brian Heater

Such legislation would have a profound impact on not just ride-hailing apps like Uber and Lyft, but also a wide range of gig economy jobs, including food delivery services like Seamless. The gig economy has experienced explosive growth over the past decade, in many cases accelerated by the pandemic, as more people have relied on delivery and other services amid shutdowns. But the complaints remain the same: As corporations thrive on the backs of contractors, these workers too seldom receive the benefit of that growth.

The already complex math of being a driver in a city like New York is further compounded by a series of regulations that largely exist to support its once-thriving taxi business.

Tamina Ahmed, a member of the NYC Rideshare Club and registered nurse who has also worked as a driver for six years, cites the flexible hours as a net benefit for workers, but notes the rather intensive process required to start driving in NYC.

Image Credits: Brian Heater

“That takes a lot time, funds and energy for the drivers,” Ahmed told TechCrunch after speaking at the event. “They have to sacrifice to get to this point, and it’s not right for them to be deactivated without cause. They don’t give valid reason. They just deactivate them. They’re never on the driver’s side. They’re always on the rider’s side.”

The group present at the protest seems optimistic about Savino’s proposed legislation. The ability to unionize brings certain protections to gig workers, include wages, discrimination protection and unemployment benefits. The latter is even more timely these days, as some one million gig employees in 20 Republican-controlled states will be losing Pandemic Unemployment Assistance (PUA) benefits soon. Prop 22, which passed in California last November, has been seen as another major precedent setting legislation for the industry.

With the legislative session ended this month, many are expecting action on Savino’s proposed bill. But not everyone is thrilled with what it offers. “[T]he biggest concern I have is that workers won’t have employee status,” State Senate Labor Committee Chair Jessica Ramos told NY1. “And more than that, Uber and Lyft drivers’ pay would be slashed in half. It’s very unfortunate that they crafted this bill without the workers at the table.”

We’ve reached out to Savino’s office for additional comment.

Image Credits: Brian Heater

Among those I spoke with at the event, employee status wasn’t high on the list of demands. In fact, a number of drivers told me that the flexibility the current model affords them. Ramos’ name appeared on a number of the protest placards at the event, largely in a negative light. It’s a complex issue, certainly — only exacerbated by the large number of residents any legislation would impact. The rise of the gig economy has brought a number of key questions relating to the connection between worker protections and employee status to the fore.

What seems clear across the board, however, is that these drivers — and other gig economy workers — are seeking what, in many other industries, have become fairly fundamental protections. Of late, unionization has become a major talking point for blue and white-collar workers, alike. Efforts have seen a number of wins over the past few years, though April’s failure to unionize employees at Amazon’s warehouse in Bessemer, Alabama has been seen as a major setback for the cause.

Like those workers, the list of complaints among drivers is long. When a speaker at today’s event asked the crowd how many in attendance had had their accounts deactivated, the response was overwhelming. Many believed the decisions were made fairly arbitrarily.

Image Credits: Brian Heater

“A lot of drivers are falsely being accused, deactivated, thrown out of all these rideshare companies that they invested so much money on,” Ahmed said.

The Independent Drivers Guild — which organized today’s event along with the NYC Rideshare Club and the Chinese Delivery Association — isn’t mincing words.

“By helping drivers through deactivated systems, we realized only a true union can solve that problem,” Aziz Bah, IDG organizing director, told TechCrunch. “We decided to unionize. We will let the companies know what our plans are. They had better be behind our proposal. Because this is no negotiation. If this is what drivers and delivery workers want, they had better be behind it.”

#apps, #labor, #lyft, #ridesharing, #transportation, #uber, #union

0

Synctera raises $33M Series A to pair fintechs with banks

Synctera, which aims to serve as a matchmaker for community banks and fintechs, has raised $33 million in a Series A round of funding led by Fin VC.

The raise comes just under six months after the fintech raised $12.4 million in a seed round of funding.

New investors Mastercard and Gaingels also participated in the latest round, which included follow-on investments from Lightspeed Venture Partners, Diagram Ventures, SciFi Ventures and Scribble Ventures. Several angel investors put money in the Series A including Omri Dahan, Marqeta’s Chief Revenue Officer, Feedzai Chairman and CEO Nuno Sebastiao and Greenlight co-founder and CEO Tim Sheehan. 

Alongside the Series A, Synctera is also announcing its commitment to the new Cap Table Coalition – which includes funding from Gaingels, Neythri Futures Fund, Plexo Capital and over 20 angels – alongside other startups by allocating 10% of all funding rounds to “traditionally marginalized,” or underrepresented, investors via an SPV. (Fellow fintech Finix led the initiative earlier this year before forming this coalition but more on that later).

“This has exposed us to find great folks who we otherwise might not have known,” said Synctera’s co-founder and CEO Peter Hazlehurst. “That’s why we pledge to reserve 10% of this round and all future rounds to diverse investors.”

In a nutshell, San Francisco-based Synctera has developed a platform designed to help facilitate partnership banking. It was founded on the premise that some community banks and credit unions are actually turning down deals with young fintechs because the relationships can be too complicated or time-consuming to manage. Synctera’s goal is to connect community banks and fintechs to streamline the process with its “Banking-as-a-Service” (BaaS) platform.

TechCrunch recently caught up with Hazlehurst, who most recently served as former head of Uber Money and previously also led development of Google Wallet and products related to its payments system.

Put simply, Synctera wants to make it easier for community banks and fintechs to partner with each other. It examines banks’ needs and then sets them up with a fintech that is best suited to meet those needs. It claims to “do the work for both parties,” managing the partnership from its back-end platform, while dealing with issues like regulatory compliance, which can be a deterrent for some companies. The process of managing, reconciling and billing banks can result in “a lot of operational overhead and complexity,” according to the company.

The company says it’s built a “diverse” marketplace of banks and fintech companies so that it can apply a “personalized touch to each match” and make sure that the parties “align on geography, brand ethos, and desired business goals.”

So far, Synctera has signed three banks with plans to sign on three more this month. The startup has already paired Coastal Community Bank – a local bank serving the greater Puget Sound community – with One, a new digital banking platform, and Ellevest, a new fintech. 

By using Synctera’s platform, the company claims, banks can more freely allow their fintech counterparts to offer FDIC-insured mobile checking, debit cards, savings accounts or innovations in payments to their prospective customers, the company claims. They can also make more money doing so, Hazlehurst said, by bringing in more revenue beyond interchange fees.

“Like most small businesses, community banks have been hit hard by COVID-19,” he added. “We hope to further diversify community banks’ revenue streams.”

Banks can also more easily manage multiple relationships with various fintechs as the companies agree to adopt Synctera’s tech stack, the company claims.

“We build a single dashboard for a bank, so there’s a consolidated position across all fintechs,” Hazlehurst told me at the time of the company’s last raise. “It’s all about visibility for the bank.”

Currently Synctera has about 50 employees, including about two dozen engineers, most of whom are located in Canada, Hazlehurst said. The company plans to ramp up to 160 employees by year’s end with a focus on engineering, sales, marketing and customer success staff.

Looking ahead, Hazlehurst predicts that the fourth quarter will be “all about support for small business fintechs.”

“We want to create a neobank for gig economy workers, and want to add lending as a service,” he said. “But our next big phase is to onboard a lot of fintechs, and learn from them.”

Logan Allin, managing general partner and founder at Fin VC, believes that Banking-as-a-Service in general will transform legacy national and regional banks, credit unions, fintecs, corporate tech and retailers alike “as these players either seek to vertically integrate financial services or accelerate their digitization process.”

Synctera, he adds, has taken an approach with its tech stack that allows for integration with legacy community banks and their respective cores. This, Allin believes, will help ensure a “cloud native and scalable model” and made it an attractive investment. (Fin VC has also backed the likes of other fintechs such as Pipe and SoFi).

“Synctera’s peers are simply abstracting bank cores and serving as ‘API wrappers’ in a kludgy short-term approach and having come from the legacy bank and modern fintech worlds, we recognized that these players had not built sufficiently strong bridges across the ecosystem,” Allin told TechCrunch.

For his part, Finix Founder Richie Serna is thrilled that other startups are following his lead in the pledge to make their cap tables more diverse.

“After Finix announced our special purpose vehicle for Black and Latinx investors, the response was overwhelmingly positive,” he told TechCrunch. “Startups in every sector and at every stage have asked us how to recreate our SPV. In response, we started the Cap Table Coalition to make it as easy as possible for more high-growth startups, like Synctera, to take control over their cap tables,” said Richie Serna, CEO and co-founder of Finix. “We see this as an inflection point that will completely upend how the VC world functions.”

Meanwhile, Synctera is not the only player trying to help banks and fintechs forge partnerships. Last week, TechCrunch reported on Visa said it has expanded its Visa Fintech Partner Connect program, which is designed to help financial institutions quickly connect with a “vetted and curated” set of technology providers. 

#api, #articles, #bank, #banking-as-a-service, #canada, #diversity, #economy, #fdic, #finance, #financial-services, #financial-technology, #finix, #fintech, #founder, #funding, #fundings-exits, #google, #greenlight, #head, #lightspeed-venture-partners, #marqeta, #mastercard, #peter-hazlehurst, #player, #plexo-capital, #recent-funding, #richie-serna, #san-francisco, #startup, #startups, #uber, #venture-capital

0

Belvo, LatAm’s answer to Plaid, raises $43M to scale its API for financial services

Belvo, a Latin American startup which has built an open finance API platform, announced today it has raised $43 million in a Series A round of funding.

A mix of Silicon Valley and Latin American-based VC firms and angels participated in the financing including Future Positive, Kibo Ventures, FJ Labs, Kaszek, MAYA Capital, Venture Friends, Rappi co-founder and president Sebastián Mejía (Rappi), Harsh Sinha, CTO of Wise (formerly Transferwise) and Nubank CEO and founder David Vélez.

Citing Crunchbase data, Belvo believes the round represents the largest series A ever raised by a Latin American fintech. In May 2020, Belvo raised a $10 million seed round co-led by Silicon Valley’s Founders Fund and Argentina’s Kaszek.

Belvo aims to work with leading fintechs in Latin America, spanning across verticals like the neobanks, credit providers and personal finance products Latin Americans use every day.

The startup’s goal with its developer-first API platform that can be used to access and interpret end-user financial data is to build better, more efficient and more inclusive financial products in Latin America. Developers of popular neobank apps, credit providers and personal finance tools use Belvo’s API to connect bank accounts to their apps to unlock the power of open banking.

As TechCrunch Senior Editor Alex Wilhelm explained in this piece last year, Belvo might be considered similar to U.S.-based Plaid, but more attuned to the Latin American market so it can take in a more diverse set of data to better meet the needs of the various markets it serves. 

So while Belvo’s goals are “similar to the overarching goal[s] of Plaid,” co-founder and co-CEO Pablo Viguera told TechCrunch that Belvo is not merely building a banking API business hoping to connect apps to financial accounts. Instead, Belvo wants to build a finance API, which takes in more information than is normally collected by such systems. Latin America is massively underbanked and unbanked so the more data from more sources, the better.

“In essence, we’re pushing for similar outcomes [as Plaid] in terms of when you think about open banking or open finance,” Viguera said. “We’re working to democratize access to financial data and empower end users to port that data, and share that data with whoever they want.”

The company operates under the premise that just because a significant number of the region’s population is underbanked doesn’t mean that they aren’t still financially active. Belvo’s goal is to link all sorts of accounts together. For example, Viguera told TechCrunch that some gig-economy companies in Latin America are issuing their own cards that allow workers to cash out at small local shops. In time, all those transactions are data that could be linked up using Belvo, casting a far wider net than what we’re used to domestically.

The company’s work to connect banks and non-banks together is key to the company’s goal of allowing “any fintech or any developer to access and interpret user financial data,” according to Viguera.

Viguera and co-CEO Oriol Tintoré founded in May of 2019, and was part of Y Combinator’s Winter 2020 batch. Since launching its platform last year, the company says it has built a customer base of over 60 companies across Mexico, Brazil and Colombia, handling millions of monthly API calls. 

This is important because as Alex noted last year, similar to other players in the API-space, Belvo charges for each API call that its customers use (in this sense, it has a model similar to Twilio’s). 

Image Credits: Co-founders and co-CEOs Oriol Tintore and Pablo Viguera / Belvo

Also, over the past year, Belvo says it expanded its API coverage to over 40 financial institutions, which gives companies the ability to connect to over 90% of personal and business bank accounts in LatAm, as well as to tax authorities (such as the SAT in Mexico) and gig economy platforms.

“Essentially we take unstructured financial data , which an individual might have outside of a bank such as integrations we have with gig economy platforms such as Uber and Rappi. We can take a driver’s information from their Uber app, which is kind of built like a bank app and turn it into meaningful bank-like info which third parties can leverage to make assessments as if it’s data coming from a bank,” Viguera explained.

The startup plans to use its new capital to scale its product offering, continue expanding its geographic footprint and double its current headcount of 70. Specifically, Belvo plans to hire more than 50 engineers in Mexico and Brazil by year’s end. It currently has offices in Mexico City, São Paulo, and Barcelona. The company also aims to  launch its bank-to-bank payment initiation offering in Mexico and Brazil.

Belvo currently operates in Mexico, Colombia and Brazil. 

But it’s seeing “a lot of opportunity” in other markets in Latin America, especially in Chile, Peru and Argentina, Viguera told TechCrunch. “In due course, we will look to pursue expansion there.” 

Fred Blackford, founding partner of Future Positive, believes Belvo represents a “truly transformational opportunity for the region’s financial sector.”

Nicolás Szekasy, co-founder and managing partner of Kaszek, noted that demand for financial services in Latin America is growing at an exponential rate .

“Belvo is developing the infrastructure that will enable both the larger institutions and the emerging generation of younger players to successfully deploy their solutions,” he said. “ Oriol, Pablo, and the Belvo team have been leading the development of a sophisticated platform that resolves very complex technical challenges, and the company’s exponential growth reflects how it is delivering a product that fits perfectly with the requirements of the market.” 

#alex-wilhelm, #api, #argentina, #bank, #banking, #barcelona, #belvo, #brazil, #ceo, #chile, #co-ceo, #colombia, #cto, #david-velez, #driver, #editor, #finance, #financial-services, #fj-labs, #founders-fund, #funding, #fundings-exits, #kaszek, #kibo-ventures, #latin-america, #mexico, #mexico-city, #nubank, #online-food-ordering, #open-banking, #open-finance, #peru, #rappi, #recent-funding, #sao-paulo, #startup, #startups, #tc, #technology, #twilio, #uber, #vc, #venture-capital, #wise, #y-combinator

0

See what’s new from Wejo, CMC, iMerit, Plus, oVice, & Michigan at TechCrunch’s mobility event

We’re in the final run-up to TC Sessions: Mobility 2021 on October 9, and the great stuff just keeps on coming. We’ve stacked the one-day agenda with plenty of programming to keep you engaged, informed and on track to build a stronger business. You’ll always find amazing speakers — some of the most innovative minds out there — on the main stage and in breakout sessions.

Dramatic pause for a pro tip: Don’t have a pass yet? Buy one here now for $125, before prices go up at the door.

“I enjoyed the big marquee speakers from companies like Uber, but it was the individual presentations where you really started to get into the meat of the conversation and see how these mobile partnerships come to life.” — Karin Maake, senior director of communications at FlashParking.

We have another exciting bit of news. We’re hosting pitch session for early-stage startup founders who exhibit in the expo at TC Sessions: Mobility. Each startup gets five minutes to pitch to attendees in a breakout session. Remember, this conference has a global reach — talk about visibility! Want to pitch? Buy an Early Stage Startup Exhibitor Package as we only have 2 packages left.

Alrighty then…let’s look at some of the breakout & main stage sessions waiting for you at TC Sessions: Mobility 20201.

Innovating Future Mobility for Global Scale

Wednesday, October 9, 10:00 am -10:50 am PDT

Learn how the CMC’s model of bringing their Clients’ new technologies to market is new and innovative, going beyond a typical demonstration or pilot program, to the point of product launch and sustaining market viability. Hear from an expert panel about how the CMC’s programming is unique, innovative, and game-changing.

  • Neal Best, Director of Client Services, California Mobility Center (CMC)
  • Bill Brandt, Business Development Advisor, Zeus Electric Chassis
  • Mark Rawson, Chief Operating Officer, California Mobility Center (CMC)
  • Scott Ungerer, Founder and Managing Director, EnerTech Capital

Public-Private Partnerships: Advancing the Future of Mobility and Electrification

Wednesday, October 9, 10:45 am -11:05 am PDT

The future of mobility starts with the next generation of transportation solutions. Attendees will hear from some of the most innovative names on opportunities that await when public and private entities team up to revolutionize the way we think about technology. Trevor Pawl, Michigan’s Chief Mobility Officer, will be joined by Nina Grooms Lee, Chief Product Officer of May Mobility.

  • Nina Grooms Lee, Chief Product Officer, May Mobility
  • Trevor Pawl, Chief Mobility Officer, State of Michigan

How Edge Cases and Data Will Enable Autonomous Transportation in Cities Across the U.S.

Delivering Supervised Autonomous Trucks Globally

Wednesday, October 9, 12:40pm – 1:00pm PDT

Plus is applying autonomous driving technology to launch supervised autonomous trucks today in order to dramatically improve safety, efficiency and driver comfort, while addressing critical challenges in long-haul trucking — driver shortage and high turnover, rising fuel costs, and reaching sustainability goals. Mass production of our supervised autonomous driving solution, PlusDrive, starts this summer. In the next few years, tens of thousands of heavy trucks powered by PlusDrive will be on the road. Plus’s COO and Co-Founder Shawn Kerrigan will introduce PlusDrive and our progress of deploying this driver-in solution globally. He will also share our learnings from working together with world-leading OEMs and fleet partners to develop and deploy autonomous trucks at scale.

  • Shawn Kerrigan, COO and Co-Founder, Plus

How Edge Cases and Data Will Enable Autonomous Transportation in Cities Across the U.S.

Wednesday, October 9, 11:00 am – 11:50am

Data will play a vital role in solving the critical edge cases required to gain city approval and deploy autonomous transportation at scale. Pilot projects are underway across the U.S. and cities such as Las Vegas are leading the way for progressive policies, testing and adoption. But, how do these projects involving a limited number of vehicles gain city approval, expand to larger geographic areas, include more use cases and service more people? Join our expert panel discussion as we examine the progress, challenges and road ahead in harnessing data to enable multiple modes of autonomous transportation in major cities across the U.S.

  • Chris Barker, Founder & CEO, CBC
  • Radha Basu, Founder & CEO, iMerit
  • Michael Sherwood, CIO, City of Las Vegas

Making Mobility Data Accessible to Governmental Agencies to Meet New Transportation Demands

Wednesday, October 9, 1:45pm – 2:05pm

Wejo provides accurate and unbiased unique journey data, curated from millions of connected cars, to help local, state, province and federal government agencies visualize traffic and congestion conditions. Unlock a deeper understanding of mobility trends, to make better decisions, support policy development and solve problems more effectively for your towns and cities.

  • Brett Scott, VP of Partnerships

Will Remote Work Push Japan’s Rural Mobility Forward?

Wednesday, October 9, 1:45pm – 2:05pm

With remote work becoming the new normal and the mass movement from the city to the Japanese countryside, the trend of private car ownership is growing day by day. During this session, we’ll be hearing from Sae Hyung Jung, serial entrepreneur, founder and CEO of oVice. oVice is an agile communication tool that facilitates hybrid remote and virtual meetups. Most notably, a hope that can trigger a sudden expansion in the Japanese mobility and vehicle infrastructure.

  • Sae Hyung Jung, Founder & CEO, oVice

#automation, #california, #car-ownership, #ceo, #chief, #chief-operating-officer, #driver, #flashparking, #may-mobility, #michigan, #mobility, #nina-grooms-lee, #officer, #plus, #robotics, #science-and-technology, #self-driving-cars, #self-driving-truck, #tc, #technology, #transport, #uber, #vp

0

Lyft, Uber kick off free COVID-19 vaccine rides program

Uber and Lyft have officially started to offer free rides to anyone traveling to get a COVID-19 vaccine, two weeks after the ride-hailing companies announced an agreement with the White House to offer the program.

The free rides will last through July 4, the date when President Joe Biden wants 70% of U.S. adults to be vaccinated. Lyft and Uber have previously told TechCrunch the companies will cover the costs of the free rides. The White House advised on the development and launch of the product. The White House also shared data on the more than 80,000 vaccination sites in the country, an Uber spokesperson told TechCrunch.

Uber is giving riders four one-way rides up to $25 off each. Each of these two round trips must be three weeks apart between Monday and July 4, Uber said in a blog post. Riders can access the program by opening up the Uber app and tapping “vaccine” and then “get your free ride.” The free rides are offered between 6 am and 8 pm. Riders must enter the zip code of their appointment to find the location they are going to or coming from. The rider then selects the provider location and the ride option.

Lyft Vaccine Rides Gif

Image Credits: Lyft

Lyft is offering two roundtrip rides up to $15 each trip. Lyft said if either ride costs more than $15 or if the rider tips their driver, those additional charges will hit their personal form of payment. Lyft is also requiring these free rides be three weeks apart.

The vaccine access program follows efforts by both companies to provide free and discounted rides to underserved communities as well as roll out features to make it easier to access vaccine information and point-of-distribution sites. Uber first rolled out a COVID-relief program in March to offer free rides and deliveries. In December, the company said it would give an additional 10 million free or discounted rides.

Uber announced in April that it was launching more than a half-dozen new features, including one that will let users book vaccine appointments at Walgreens and reserve a ride to get their jab.

Lyft kicked off in December a universal vaccine access campaign, a coalition of partners that includes JPMorgan Chase, Anthem and United Way, to provide 60 million rides to and from vaccination sites for low-income, uninsured and at-risk communities.

#automotive, #covid-19, #lyft, #ride-hailing, #transportation, #uber

0

Emitwise raises an extra $3.2M from ArcTern Ventures for its greenhouse gas emissions platform

Emitwise, a startup that claims its AI platform can measure greenhouse gas emissions from companies and their supply chains, has added to its seed funding round by $3.2 million, bringing its total seed funding raised to $6.6 million. ArcTern Ventures led the $3.2m raise. Also participating were Angel investors including Peter Harrison, the CEO of Schroders; Magnus Rausing; and Saltwater (Uber Co-Founder Ryan Graves’ investment firm). Other investors include True Ventures, Social Impact Capital, Lightbird Ventures, and others.

The company claims its platform will automate carbon accounting across a supply chain; identify emissions hotspots; integrate with ERP systems; and complies with auditing and disclosure systems like CDP, GHG and TCFD.

Mauro Cozzi, Emitwise Co-Founder and CEO, said in a statement: “With leaders set to ratchet up global climate ambition at the upcoming COP26 climate summit, there’s never been more certainty amongst corporates and investors: carbon equals cost and risk. A net zero-aligned model is a proxy for profit, efficiency and resilience and we’re committed to helping firms realize the major economic upsides of the transformation.”

Marc Faucher, ArcTern Ventures, said: “Enterprises face mounting pressure from customers, investors, and regulators to disclose accurate environmental data. Emitwise gives a clear line of sight to supply chain carbon which is critical for instilling effective mitigation strategies and incentives. Here at ArcTern Ventures, we believe Emitwise’s software platform is a game-changer that sets new standards in universal carbon footprint reporting.”

Emitwise competes to some extent with other startups in this space including Watersheds and Plan A, which also recently raised a round of funding.

#articles, #artificial-intelligence, #carbon-footprint, #ceo, #co-founder, #europe, #greenhouse-gas-emissions, #magnus-rausing, #ryan-graves, #social-impact-capital, #software-platform, #supply-chain, #supply-chains, #tc, #true-ventures, #uber

0

Esper raises $30M Series B for its IoT DevOps platform

There may be billions of IoT devices in use today, but the tooling around building (and updating) the software for them still leaves a lot to be desired. Esper, which today announced that it has raised a $30 million Series B round, builds the tools to enable developers and engineers to deploy and manage fleets of Android-based edge devices. The round was led by Scale Venture Partners, with participation from Madrona Venture Group, Root Ventures, Ubiquity Ventures and Haystack.

The company argues that there are thousands of device manufacturers who are building these kinds of devices on Android alone, but that scaling and managing these deployments comes with a lot of challenges. The core idea here is that Esper brings to device development the DevOps experience that software developers now expect. The company argues that its tools allow companies to forgo building their own internal DevOps teams and instead use its tooling to scale their Android-based IoT fleets for use cases that range from digital signage and kiosks to custom solutions in healthcare, retail, logistics and more.

“The pandemic has transformed industries like connected fitness, digital health, hospitality, and food delivery, further accelerating the adoption of intelligent edge devices. But with each new use case, better software automation is required,” said Yadhu Gopalan, CEO and co-founder at Esper. “Esper’s mature cloud infrastructure incorporates the functionality cloud developers have come to expect, re-imagined for devices.”

Image Credits: Esper

Mobile device management (MDM) isn’t exactly a new thing, but the Esper team argues that these tools weren’t created for this kind of use case. “MDMs are the solution now in the market. They are made for devices being brought into an environment,” Gopalan said. “The DNA of these solutions is rooted in protecting the enterprise and to deploy applications to them in the network. Our customers are sending devices out into the wild. It’s an entirely different use case and model.”

To address these challenges, Esper offers a range of tools and services that includes a full development stack for developers, cloud-based services for device management and hardware emulators to get started with building custom devices.

“Esper helped us launch our Fusion-connected fitness offering on three different types of hardware in less than six months,” said Chris Merli, founder at Inspire Fitness. “Their full stack connected fitness Android platform helped us test our application on different hardware platforms, configure all our devices over the cloud, and manage our fleet exactly to our specifications. They gave us speed, Android expertise, and trust that our application would provide a delightful experience for our customers.”

The company also offers solutions for running Android on older x86 Windows devices to extend the life of this hardware, too.

“We spent about a year and a half on building out the infrastructure,” said Gopalan. “Definitely. That’s the hard part and that’s really creating a reliable, robust mechanism where customers can trust that the bits will flow to the devices. And you can also roll back if you need to.”

Esper is working with hardware partners to launch devices that come with built-in Esper-support from the get-go.

Esper says it saw 70x revenue growth in the last year, an 8x growth in paying customers and a 15x growth in devices running Esper. Since we don’t know the baseline, those numbers are meaningless, but the investors clearly believe that Esper is on to something. Current customers include the likes of CloudKitchens, Spire Health, Intelity, Ordermark, Inspire Fitness, RomTech and Uber.

#ambient-intelligence, #android, #cloud, #cloud-computing, #developer, #device-management, #enterprise, #esper, #hardware, #healthcare, #internet-of-things, #iot, #madrona-venture-group, #microsoft-windows, #mobile-device-management, #operating-systems, #recent-funding, #retail, #root-ventures, #scale-venture-partners, #smartphones, #software-automation, #software-developers, #startups, #tc, #technology, #uber, #ubiquity-ventures

0

Chasing hype is human nature: The tyranny of startup trends

I think it’s important that we explicitly discuss something that every VC instinctively knows: The hype around a given business or category has become a form of bias for investors and founders when vetting ideas to pursue. At any point in time, you can find FOMO-flavored bad business decisions based on false market signals somewhere in tech. It’s human nature for excitement to be contagious, but treating it as a leading factor when considering a new opportunity is not a good idea.

It’s human nature for excitement to be contagious, but treating it as a leading factor when considering a new opportunity is not a good idea.

Take the 17th century tulip-mania, when, at one point, Dutch speculators drove tulip futures so high that one bulb of a particularly rare species was valued at more than a fully furnished luxury house1. We can look at this and collectively lampoon anyone who could possibly have bought into that absurd trend.

But that’s the rule with mega-hyped markets. The dot-com apocalypse was inevitable in hindsight. So was the consumer lending bubble that set off the global financial crisis. But major market catastrophes aside, newly hyped sectors in tech seem to pop up, like Moore’s Law clockwork, every year or so.

In the last 15 years, giant bonfires of cash have turned to ash financing companies in hyped up sectors like SoLoMo (I bet many people reading this have never even heard of this trend), clean tech, VR gaming, daily deals, crypto (which spawned flashy undercard entries like PotCoin, BurgerKing’s WhopperCoin, and yes, TrumpCoin), the sharing economy, scooters (in which Bird, Lime, Lyft and Uber competed around little more than the color scheme of the otherwise identical Segway Ninebots), and SPACs (through which the aforementioned white-colored scooter company is going public).

Usually, these bubbles start when a breakout company creates a discontinuity in the market — a technology that changes how we live (Apple’s iPhone), or delivers an exceptional solution to a ubiquitous pain point better and more cost effectively than before (Uber’s ride-sharing). Rational speculators look to apply lessons from these breakouts to identify other massive winners. If a few seem to take off, irrational FOMO takes over.

The hype-driven race to the bottom

The hype-driven race to the bottom. Image Credits: Victor Echevarria

What does that look like? Here’s an actual example, per data sourced from PitchBook:

0

Uber, Lyft to give free rides to COVID-19 vaccine sites in deal with White House

Uber and Lyft will provide free rides to any user traveling to get the COVID-19 vaccine through an agreement reached with the White House.

The free rides will last through July 4, the date when President Joe Biden wants 70% of U.S. adults to be vaccinated, according to the WSJ, which was the first to report on the partnership between the ride-hailing companies and the White House.

Lyft and Uber separately told TechCrunch the companies will cover the costs of the free rides. The White House will help advise on the product and how it is rolled out as well as share data on the more than 80,000 vaccination sites in the country, an Uber spokesperson told TechCrunch.

Uber didn’t provide a specific launch date for the program, only noting that it is expected to become available in the coming weeks. Lyft riders will be able to get a free ride code beginning May 24 via the app or website.

“Vaccines are our best hope to beat this pandemic and soon everyone in America will be able to take a free Uber to get their shot,” Uber CEO Dara Khosrowshahi said in a statement. “We are honored to deepen our previous global commitments, and partner with the White House and Lyft to provide free rides to vaccination sites across the US. This is a proud moment for me, for Uber, and for our country. More and more Americans continue to get vaccinated every day — let’s keep moving forward, together.”

Uber hasn’t released further details about how its program will work. Lyft said its ride codes will cover $15 each way and noted that based on previous rides given to vaccination sites, the company expects that figure will cover most, if not all, fares. Ride codes can be used for Lyft ride-hailing, bike or scooter rides during standard pharmacy operating hours of 6:00 a.m. to 8:00 p.m.

“The vaccine is the key to getting us all moving again, and we’re proud to do our part to move the country forward,” John Zimmer, co-founder and president of Lyft, said in a statement. “We’ve always believed transportation has the power to improve people’s lives, and this initiative makes that truer than ever. Helping more Americans get vaccinated helps the Lyft community of drivers and riders, and we’re grateful to the Biden Administration for prioritizing access.”

The announcement builds off of efforts by Lyft and Uber to provide free and discounted rides to underserved communities as well as roll out features to make it easier to access vaccine information and point-of-distribution sites. Uber first rolled out a COVID-relief program in March to offer free rides and deliveries. In December, the company said it would give an additional 10 million free or discounted rides.

Last month, Uber said it was launching more than a half-dozen new features, including one that will let users book vaccine appointments at Walgreens and reserve a ride to get their jab.

Lyft kicked off in December a universal vaccine access campaign, a coalition of partners that includes JPMorgan Chase, Anthem and United Way, to provide 60 million rides to and from vaccination sites for low-income, uninsured, and at-risk communities.

#automotive, #lyft, #president-joe-biden, #ride-hailing, #tc, #transportation, #uber, #white-house

0

If 12% is the new 30%, 4% is the new 12%

Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast, where we unpack the numbers behind the headlines.

The whole team was aboard for this recording, with Grace and Chris behind the scenes, and Danny, Alex, and Natasha on the mics. We had to cut more than we included this week, which should give you a good idea of how busy the startup and VC worlds are of late.

Make sure that you are following the podcast on Twitter, where we post all sorts of memes and cuts and, perhaps, the occasional video here and there. That aside, here’s the rundown:

  • Investing legend David Swenson passed away.
  • Twitter is buying Scroll (neat, very cool) as part of its subscription push, but also killing Nuzzel in the process (bad, very uncool). Natasha and Danny fill us in on why Nuzzel will be missed. Alex has thoughts on why Twitter-Scroll is good.
  • Epic bought ArtStation and cut its marketplace take rate. This is the future, says Danny, who throws his own estimates in, too.
  • Sony and Discord are tying up after the Microsoft-Discord deal fell apart.
  • Edtech is doing the edtech thing in which it raises money and consolidates, as shown by Kahoot’s latest scoop.
  • A friend of the pod, Jomayra Herrera, is joining Reach Capital as its first ever outside-partner hire.
  • Uber is teaming up with Arrival for ride-hailing designed electric vehicles. We’re pretty bullish on the idea. Also Alex likes to say “microfactories.”
  • IVF startups are raising venture capital, and this time its Alife Health that we’re talking about. 
  • WorkBoard raised again. Alex once again made us talk about OKR-focused startups. He needs to get a life, and so does the rest of the Equity team which fought to do the transition into this segment.
  • To end, we spoke about Leda Health, a new startup focused on at-home rape kits for sexual assault survivors. It’s a controversial company, and we discuss critiques and opportunities,

And that’s our show! No private equity deal can slow the Equity team down, so we’ll see you Monday!

Equity drops every Monday at 7:00 a.m. PST, Wednesday, and Friday at 6:00 AM PST, so subscribe to us on Apple PodcastsOvercastSpotify and all the casts!

#alife-health, #arrival, #clever, #discord, #early-stage, #edtech, #electric-vehicles, #epic, #epic-games, #equity, #equity-podcast, #ev, #kahoot, #leda-health, #microsoft, #nuzzel, #okr, #reach-capital, #scroll, #sony, #tc, #twitter, #uber, #venture-capital, #workboard

0

Figure raises $7.5M to help startup employees better understand their compensation

The topic of compensation has historically been a delicate one that has left many people — especially startup employees — wondering just what drives what can feel like random decisions around pay and equity.

Last June, software engineers (and housemates) Miles Hobby and Geoffrey Tisserand set about trying to solve the problem for companies by developing a data-driven platform that aims to help companies structure their compensation plans and transparently communicate them to candidates.

Now today, the startup behind that platform, Figure, announced it has raised $7.5 million in seed funding led by CRV. Bling Capital, Better Tomorrow Ventures and Garage Capital also participated in the financing, along with angel investors such as AngelList co-founder Naval Ravikant, Jason Calacanis, Reddit CEO Steve Huffman and other executives based in Silicon Valley.

The startup has amassed a client list that includes other startups such as fintechs Brex and NerdWallet and AI-powered fitness company Tempo. 

Put simply, Hobby and Tisserand’s mission is to improve workflows and transparency around pay, particularly equity. The pair had both worked at startups themselves (Uber and Instacart, respectively) and ended up leaving money on the table when they left those companies because no one had properly explained to them what their equity, which changed at every valuation, meant.  

Figure co-founders and co-CEOs Miles Hobby and Geoffrey Tisserand. Image Credits: Figure

So, one of their goals was to create a solution that would provide a user-friendly explanation of what a person’s equity stake really means, from tax implications to whether or not they have to buy the stock and/or hold onto it.

“I’ve gone through the job search process many times before and there’s all these complex legal documents to understand why you’re getting 10,000 stock options, but obviously we knew the vast majority of people have no idea how that works,” Tisserand told TechCrunch. “We saw an opportunity there to help companies actually convey the value to their candidates while also making them aware of the potential risks of owning something that’s so illiquid.”

Image Credits: Figure

Another goal of Figure’s is to help create a more fair and balanced process about decisions around pay and equity so that there’s less inequality out there. Pointedly, it aims to remove some of the biases that exist around those decisions by systematizing the process.

“We saw a void in this kind of context around equity…and knew that there had to be a better way for companies to structure, manage and explain their compensation plans,” Hobby said.

To Hobby and Tisserand, Figure is designed to help stop instances of implicit bias.

“Compensation should be based on the work that you’re doing, and not gender or ethnic background,” Tisserand told TechCrunch. “We’re trying to give that context and remove biases. So, we’re trying to help at two different stages –– to surface inequities that already exist and make sure there are no anomalies, and then to help stop them before they can exist.”

Figure also aims to give companies the tools to educate candidates and employees on their total compensation — including equity, salary, benefits and bonuses — in a “straightforward and user-friendly” way. For example, it can create custom offer letters that interactively detail a candidate’s compensation.

“Our goal is for Figure to become an operating system for compensation, where a company can encode their compensation philosophy into our system, and we help them determine their job architecture, compensation bands and offer numbers while monitoring their compensation health to provide adjustment suggestions when needed,” Hobby said.

Post-hire, Figure’s compensation management system “helps keep everything running smoothly.”

Anna Khan, general partner of enterprise software at CRV, is joining Figure’s board as part of the funding. The decision to back the startup was in part personal, she said.

“I’d been investing in software for eight years and was alarmed that no one was building anything around pay equity when it comes to how we’re paid, why we’re paid what we’re paid and on how to build equity long term,” Khan told TechCrunch. “Unfortunately, discussions around compensation and equity still happen behind closed doors and this extends into workflow around compensation — equally broken — with manual leveling, old data and large pay inequities.”

The company plans to use its new capital to expand its product offerings and scale its organization.

#angellist, #anna-khan, #artificial-intelligence, #better-tomorrow-ventures, #bling-capital, #crv, #economy, #enterprise-software, #entrepreneurship, #figure, #finance, #funding, #fundings-exits, #hiring, #instacart, #jason-calacanis, #naval-ravikant, #operating-system, #private-equity, #recent-funding, #reddit, #silicon-valley, #startup, #startup-company, #startups, #steve-huffman, #talent, #uber, #venture-capital

0

Investors cheer as Lyft’s Q1 revenue didn’t fall as much as expected

Investors gave Lyft’s value a small bump Tuesday after the American ride-hailing company reported results that weren’t quite as bad as the company, and Wall Street had expected. Shares of the Uber competitor rose as much as 4.5% in after-hours trading following the disclosure of its financial performance from the first three months of the year. As of the time of writing those gains have fallen to a smaller 2.5% gain.

Turning to its results, Lyft’s revenue fell 36% to $609 million in the first quarter of 2021 compared to the same period last year before the COVID-19 pandemic upended the economy, and, more specifically the ride-hailing industry. That disparity in revenue can be directly tied to fewer active riders using its app. The company said it had 13.49 million active riders in the first quarter, down more 36.4% from the 21.2 million riders on its network in the same period last year.

But while the company’s ride base and revenues did fall, the drops were not as extreme as the company, or its backers feared. As Lyft trumpeted at the top of its quarterly results deck, its revenue in the period was $59 million greater than the midpoint of its guidance. That’s investor speak for overshooting the mean, which apparently is an A+ in today’s market.

The company reported an adjusted EBITDA loss totaling $73 million in the first quarter, which was far better than anticipated. The company had expected a sharper $135 million adjusted EBITDA deficit for the period.

In addition to beating its own Q1 2021 goals to some degree, Lyft posted 7% percent revenue growth over what it recorded in Q4 2020, a detail that Lyft pointed to as a sign that the company was on the road to recovery. Lyft said ridership also improved some 8% from the previous quarter.

The company remains deeply unprofitable, despite its partial recovery. Lyft reported a net loss of $427.3 million in the first quarter, a 7.3% worsening from the $398.1 million net loss it recorded during the same period last year. Those losses included $180.7 million of stock-based compensation and related payroll tax expenses and $128.0 million related to changes to the liabilities for insurance required by regulatory agencies attributable to historical periods.

Despite the losses, Lyft executives said they were buoyed by stronger rider demand, which has picked up in recent months.

The company also emphasized the sale of its self-driving unit called Level 5, which was announced last week. Lyft sold the autonomous vehicle unit to Toyota’s Woven Planet Holdings subsidiary for $550 million, the latest in a string of acquisitions spurred by the cost and lengthy timelines to commercialize autonomous vehicle technology. Uber also sold its self-driving tech, work that was once seen as existential to the ride-hailing game.

Lyft’s so-called Level 5 division will be folded into Woven Planet Holdings once the transaction closes in the third quarter of 2021. Lyft will receive $550 million in cash, with $200 million paid upfront. The remaining $350 million will be made in payments over five years. About 300 people from Lyft Level 5 will be integrated into Woven Planet. The Level 5 team, which in early 2020 numbered more than 400 people in the U.S., Munich and London, will continue to operate out of its office in Palo Alto, California.

Lyft reported $2.2 billion of unrestricted cash, cash equivalents and short-term investments at the end of the first quarter of 2021.

Considering the company’s quarter in aggregate it’s easy to make the bearish and bullish case regarding its performance. On the bearish side of things, Lyft is smaller, and losing even more money than it did in the year-ago period. And the road to recovery for its operations will prove winding as COVID-19 declines to fuck off, even in the face of rising global vaccination levels.

On the bullish side of things, the following chart from the Lyft earnings deck is perhaps the best single-image argument that could be made for Lyft’s recovery being deeply underway:

Lyft Q1 2021

Image Credits: Screenshot/Lyft

More when Uber reports its own Q1 2021 performance tomorrow.

#automotive, #earnings, #electric-vehicles, #lyft, #ride-hailing, #rideshare, #transportation, #uber

0

Uber and Arrival partner to create an EV for ride-hail drivers

Arrival, the electric vehicle manufacturer that’s attempting to do away with the assembly line in favor of highly automated microfactories, is partnering with Uber to create an EV for ride-hail drivers. 

Arrival expects to reveal the final vehicle design before the end of the year and to begin production in the third quarter of 2023. Uber drivers have been invited to contribute to the design process to ensure the vehicles are built to suit their needs.

Uber is trying to make good on a promise it made last year to become a fully electric mobility platform by 2025 in London, 2030 in North America and Europe and platform-wide by 2040. The company recently launched Uber Green, which gives passengers the opportunity to select an EV at no extra cost and drivers a chance to pay a lower service fee, part of an $800 million initiative to get more drivers in EVs

To reach its aims of doubling the number of EV drivers by the end of 2021, Uber is kicking its incentives for drivers into gear by helping them purchase or finance new vehicles. The Arrival Cars might be among those recommended to Uber drivers who want to make the switch to electric, especially drivers in London who are eligible for “EV Assistance” via the company’s Clean Air Plan, which launched in 2018, but an Uber spokesperson declined to confirm how the Arrival Cars will be made available. Last September, Uber partnered with General Motors in a similar deal to provide drivers in the United States and Canada discounted prices for the 2020 Chevrolet Bolt. 

“Uber is committed to helping every driver in London upgrade to an EV by 2025, and thanks to our Clean Air Plan more than £135m has been raised to support this ambition,” Jamie Heywood, Uber’s regional general manager for Northern and Eastern Europe said in a statement. “Our focus is now on encouraging drivers to use this money to help them upgrade to an electric vehicle, and our partnership with Arrival will help us achieve this goal.” 

London, where Arrival is based, aims for its entire transport system to be zero emission by 2050, and will create zero emissions zones in central London and town center from 2025, expanding outward to inner London by 2040 and city-wide by 2050. If Uber drivers want to be able to work in the hottest parts of the city, they’ll have no choice but to go electric. 

The partnership with Uber marks Arrival’s first foray into electric car development. Because Arrival focuses on the commercial space rather than commercial sales, its existing vehicle models are vans and buses. The British EV company already has an order from UPS for 10,000 purpose-built vehicles.

Arrival wants to change the way commercial electric vehicles are designed and manufactured. By designing its own batteries and other components in-house and building vehicles through multiple microfactories, which are much smaller than traditional manufacturing facilities, Arrival says it produces vehicles quicker, cheaper and with far fewer environmental costs.

The company began publicly trading in March following a SPAC merger with CIIG, one of many EV companies to hit the markets via the SPAC route as opposed to the traditional, and slower, IPO route.

#arrival, #electric-vehicles, #ride-hail, #tc, #transportation, #uber

0

The Station: Lyft sells its self-driving unit, Uber makes a big product push and Revel jumps into ride-hailing

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 there, new and returning readers. This is The Station, a weekly newsletter dedicated to all the ways people and packages move (today and in the future) from Point A to Point B.

We took a week off and now we’re back. Whoop. Let’s catch up on all things transportation.

My email inbox is always open. Email me at kirsten.korosec@techcrunch.com to share thoughts, criticisms, offer up opinions or tips. You can also send a direct message to me at Twitter — @kirstenkorosec.

Micromobbin’

JOCO, a new docked e-bike service in New York City, has launched and is already facing some headwinds. The service started with 300 e-bikes at 300 stations in private parking garages and plans to expan to about 1,000 e-bikes at 100 stations by June. That is, unless the NYC Department of Transportation has anything to say about it.

The city has exclusive rights with Citi Bike for docked bikeshares, which has somewhat stunted NYC’s shared micromobility growth. The city has sent JOCO a cease and desist letter. Assistant commissioner of the DOT, Michelle Craven, wrote:

It has been brought to our attention that [JOCO] commenced bicycle share operations in the City of New York. Please be advised that you do not have the authorization or permission, pursuant to a concession, franchise, permit, contract or otherwise, required for such operations. Additionally, the City of New York will actively enforce all laws and its police powers, including but not limited to those that protect its rights of way and ensure the safety and service provided by the city’s rights of way.

Accordingly, you are hereby directed immediately to cease and desist from any such bicycle share operations.

JOCO’s lawyers maintain that the company is doing nothing illegal because it parks the bikes on private property, not city streets, like Citi Bike. The city did not respond to requests for more information about whether or not the DOT’s power extends to private property.

A turning point for micromobility at scale?

Within the past month, there’s been the e-scooter pilot in the Bronx, JOCO’s e-bike launch and now Lime’s decision to compete with Revel for the e-moped market. These moves suggest that New York is finally opening the doors to electric micromobility.

Lime announced the release of 100 electric mopeds in Brooklyn, with planned expansions in Queens and lower Manhattan. A little competition will hopefully do the micromobility industry good, and that needs to happen if NYC is going to achieve carbon neutrality by 2050. Let’s not forget, making e-mobility the norm is absolutely essential to reducing carbon emissions in cities.

Another company is working on making it easier to scale up micromobility. Wunder Mobility, a company that sells software to shared mobility startups, has launched a new subsidiary called Wunder Capital, which will help micromobility operators finance fleet. On top of that, the company has partnered with consumer micromobility vehicle manufacturer Yadea to refit its e-mopeds for sharing purposes. German shared e-moped company emmy is the first to publicly take advantage of all three Wunder Mobility offerings — the software, the loans and the Yadeas.

Meanwhile in the U.K., Wind has reported success in its e-scooter trial in Nottingham. Since the launch of the trial last October, city residents have taken more than 240,000 rides. According to Wind’s city manager in Nottingham, more than 100 users in the city download the Wind app every day, and there are rates of five to six daily rides on each scooter.

Vaccine efforts

Superpedestrian has announced it will offer one million free rides on its LINK e-scooters to help citizens get to vaccination centers in communities in Italy and Spain. The company is giving away up to €10 million in free rides. The company said these rides will be made available in all European cities served by LINK scooters, including Rome, Madrid, Turin, Palermo, Málaga and Alcalá de Henares.

Ready to outdoor e-bikes

Retrospec, the brand that makes fun toys like paddle boards, skateboards and bikes is now adding electric bikes to the mix. There’s the Beaumont Rev City ($1,999.00) for swift city rides, the Beaumont Rev Step Through for an easy-to-mount swooped frame ($1,999.00) and the Jax Rev Folding e-bike ($1,399.99) with fat tires and good suspension so you can take it off road.

 — Rebecca Bellan

Deal of the week

money the station

The march of consolidation continued this week with ride-hailing company Lyft agreeing to sell its autonomous vehicle unit to Toyota’s Woven Planet Holdings subsidiary for $550 million. The agreement shakes out with Woven Planet forking over $200 million in cash upfront, and then paying off the remaining $350 million over a five-year period. About 300 people from Lyft Level 5 will be integrated into Woven Planet. The Level 5 team, which in early 2020 numbered more than 400 people in the U.S., Munich and London, will continue to operate out of its office in Palo Alto, California.

The transaction, which is expected to close in the third quarter of 2021, officially ends Lyft’s nearly four-year effort to develop its own self-driving system.

In the 24 hours or so after this deal was reported I received a number of texts and DMs from folks in the industry — investors and AV developers — all who said something like “wow, Lyft is giving this away,” or “this is a steal.” It reminded me of comments I received after Uber sold off its own self-driving subsidiary to Aurora.

Lyft is also making some structural organizational changes to reflect this renewed focus. The company said it will retain its team of engineers, product managers, data scientists and UX designers that have been working on the consumer experience of hailing and then riding in an autonomous vehicle, which will be headed up by Jody Kelman. This team, now known as Lyft Autonomous, will be folded into the company’s fleet division that manages more than 10,000 vehicles via its rental and express drive programs. Lyft Fleet, which was founded in 2019 and is led by Cal Lankton, is also the group spearheading the company’s transition to 100% electric vehicles on the network by 2030. The idea is to bring all of these efforts — shared, electric and self-driving — under one roof.

So, who is left in the AV developer industry? Not many. There are the big well-capitalized players like Aurora, Argo AI, Cruise, Motional, Waymo and Zoox, then a smattering of other startups and companies pursuing self-driving trucks, logistics and delivery. Who do you think is going to get gobbled up next?

On a side note: The Autonocast, that is the podcast I co-host with Alex Roy and Ed Niedermeyer, just taped an episode discussing the sale. We brought on Lyft co-founder and CEO John Zimmer to learn more on the why? and what’s next? Stay tuned for the episode to drop this week.

Other deals that got my attention …

EasyMile, a Toulouse, France-based autonomous vehicle company that builds shuttles for transporting both people and goods, closed a Series B of €55 million ($66 million) round led by Searchlight Capital Partners. McWin and NextStage AM along with previous investors rail industry heavyweight Alstom, Bpifrance and auto giant Continental also participated.

Hello, the Ant Financial-backed Chinese ebike-sharing company, filed for an IPO. The company, which has raised more than $3 billion, plans to list on the Nasdaq. A few interesting items from its S-1, the company reported $926.3 million in revenue in 2020, a 25% increase from the previous year. Hello is not yet profitable, however. The company reported a net loss of $173.7 million in 2020.

IRP Systems, a maker of powertrains for electric vehicles, raised a $31 million Series C funding round, bringing its total funding to $57 million. The financing was led by Clal Insurance and Altshuler Shaham, which are Israeli institutional investors. Also participating was Samsung Ventures, Renault-Nissan importer Carasso Motors and Shlomo Group, as well as existing investors such as Entrée Capital, Fosun RZ Capital and JAL Ventures.

Manna, the Irish drone startup planning to launch delivery services in the UK and US, raised $25 million Draper Esprit, Team Europe, the venture capital firm of Delivery Hero founder Lukasz Gadowski, and DST Global. The founders of online payments group Stripe also backed the group as private investors, the Financial Times reported.

Plus, the self-driving truck startup, is in talks to merge with special purpose acquisition company Hennessy Capital Investment Corp. V, Bloomberg reported citing people familiar with the matter. The deal would reportedly put the valuation of Plus at more than $3 billion.

Zomato, the Indian food delivery startup, filed for an initial public offering. The company, which counts Info Edge and Ant Group among its largest investors, plans to raise $1.1 billion from the IPO (about $1 billion from issuing new shares), according to the filing. The startup intends to list on Indian stock exchanges NSE and BSE. Zomato has been on a tear and now operating in 24 markets. It’s also raised more than $2.2 billion (according to research firm Tracxn), and was valued at $5.4 billion in its most recent fundraise round. The company said it may consider raising an additional $200 million ahead of public listing.

Policy corner!

the-station-delivery

It was a busy week in Washington. First up: Rep. Bobby Rush (D-Illinois) introduced legislation that calls for earmarking more than $7 billion each year in grants and rebates to scale up America’s electric vehicle charging network and accelerate domestic manufacturing of EVs. Rep. Rush introduced a similar bill last year that didn’t end up going anywhere, but with President Biden’s recent push for big spending on green infrastructure, we may see a different result this time around.

Meanwhile, a Senate Democrat sent a letter to the Environmental Protection Agency calling for stricter policies on greenhouse gas emissions that exceed those outlined in Biden’s climate plan. The letter, which was obtained by the Associated Press, says the EPA should introduce incrementally tighter fuel economy standards until 2035, at which point there would be a ban on the sale of new gas-powered cars.

“If the U.S. does not establish a robust policy that leads to zero emission vehicle deployment, combined with appropriate incentives, we will be at risk of losing our automotive jobs and industry leadership to other nations, as well as enduring unnecessary public health impacts from pollution,” the AP reported Carper wrote in the letter.

Notice Carper’s invocation of jobs? He’s not the only one that’s arguing for (or against) a speedy transition on the basis of how it will affect workers. At a recent hearing at the U.S. Senate Committee on Commerce, Science, & Transportation, a representative from the Motor & Equipment Manufacturers Association told lawmakers that a fully electric vehicle fleet could put at risk up to 30% of the auto supplier industry’s workforce.

Biden, of course, has said that the shift to EVs will not cost Americans jobs — but that’s hard to see how that’s the case without his plan passing. Bosch executives told me recently that only one employee is needed to manufacture an electric powertrain system, versus 10 for a diesel powertrain. Although Bosch is referring to operations in Europe, it’s an instructive example.

— Aria Alamalhodaei

Notable reads and other tidbits

the-station-delivery

Welp, lots happened. Shall we attempt to squeeze it all in? OK, let’s proceed.

Electric vehicles

GM revealed a four-part plan meant to handle all the steps of charging an electric vehicle, including finding a public charger and paying for the power, as the automaker seeks ways to attract customers to the 30 EVs it plans to launch by 2025. The Ultium Charge 360 plan — named after the underlying electric vehicle platform and batteries of its upcoming EVs — aims to handle the access, payment and customer service components of charging an electric vehicle at home and on the road. Importantly, GM has signed agreements with seven third-party charging network providers, including Blink Charging, ChargePoint, EV Connect, EVgo, FLO, Greenlots and SemaConnect.

This is more than just locking up partnerships though. If GM hopes to convert drivers to EVs it has to think about how to integrate real-time information about EV charging stations into the vehicle’s infotainment system. It appears the company is making an attempt at that through. Using their GM vehicle brand mobile app, EV drivers will be able to see real-time information, including location and whether a charger is being used, from nearly 60,000 charging plugs throughout the U.S. and Canada, the company said.

Tesla reported first quarter earnings. Tesla generated revenues of $10.389 billion, gross profit of $2.215 billion and net income of $438 million. The upshot: regulatory credits and bitcoin combined with volume growth and some gross margin improvement buoyed results and helped offset additional supply chain costs, R&D investments, the costs associated with changing over Model S and Model X and lower ASP (average selling price). Revenue jumped some 75% from the same period last year — certainly notable growth. Regulatory credits brought in $518 million and bitcoin made a $101 million “positive impact” to the company’s profitability in the first quarter, according to Tesla CFO and “master of coin” Zach Kirkhorn.

Tesla invested $1.5 billion in bitcoin this quarter and then trimmed its position by 10%. The company believes in the longevity of bitcoin, despite its volatility, Kirkhorn said during an earnings call. He noted that Tesla turned to bitcoin as a place to store cash and still access it immediately, all while providing a better return on investment than more traditional central bank-backed safe havens. Of course, the higher yields provided by the volatile digital currency comes with higher risk.

One more piece of Tesla news … CEO Elon Musk wants to turn every home into a distributed power plant that would generate, store and even deliver energy back into the electricity grid, all using the company’s products, according to comments he made during last week’s earnings call.

While the company has been selling solar and energy storage products for years, a new company policy will only sell customers solar coupled with the energy storage products. In short: it’s a package deal only. Musk’s pitch is that the grid would need more power lines, more power plants and larger substations to fully decarbonize using renewables plus storage. Distributed residential systems — of course using Tesla products — would provide a better path, in Musk’s view.

Volkswagen’s “Voltswagen” stunt is being investigated by the United States Securities and Exchange Commission, according to Der Spiegel.

Future of flight

Luminar Technologies said it is expanding its lidar business beyond automotive and into aviation through a partnership with Airbus. Until now, Luminar has exclusively focused on applying its light detection and ranging radar to automated vehicles on the ground — not in the skies. The partnership won’t immediately bring lidar into commercial aircraft. Unlike Luminar’s deal with Daimler, Mobileye and Volvo this is not a production contract, although the aim is that it will lead to one. Instead, the partnership is with Airbus’ UpNext subsidiary, which is focused on developing and eventually applying new technological breakthroughs to aviation.

The effort will be folded into Airbus Flightlab, an ecosystem that offers access to flight test platforms across Airbus’ business lines, including commercial aircraft, helicopters, defense and space. Luminar and Airbus will develop and test how lidar can be used to enhance sensing, perception and system-level capabilities to ultimately enable safe, autonomous flight, the companies said.

Wingcopter launched a new autonomous delivery drone designed to remove a technical bottleneck hindering the growth of drone transport services. The Wingcopter 198 is capable of making three separate deliveries per flight, the company said. Wingcopter has couched this multi-stop capability as a critical feature that will allow it to grow a cost-efficient — and hopefully profitable — drone-delivery-as-a-service business.

In-car tech

Volkswagen Group CEO Herbert Diess told Handelsblatt newspaper that the company plans to design and develop its own chips and software for autonomous vehicles. To be clear, VW doesn’t plan to manufacture these chips. Instead, it wants to own the patents and intends to have its software division Cariad develop the chips.

Sharing

Revel, the company that made its name by planting dockless blue e-mopeds in Brooklyn and then expanded swiftly this year into monthly subscription e-bikes and a “Superhub” EV charging station, is now rounding out its strategy to own electrification in cities. Last week, Revel announced it will be launching an all-Tesla, ridehail service in Manhattan below 42nd Street. To add a bit of drama to the launch, NYC’s Taxi & Limousine Commission has come out with a statement saying the company has no right to operate a for-hire taxi service. The TLC has issued a cap on for-hire vehicles because supply exceeds demand, according to TLC Commissioner Aloysee Heredia Jarmoszuk. Revel says its actions are perfectly legal because its service falls under the electric battery exemption, which Jarmoszuk says “exists to encourage already-licensed cars to go green, not to flood an already saturated market or to disenfranchise the Yellow Taxi sector in Manhattan.”

Stellantis has a short-term vehicle service called Free2Move that is expanding into the United States. The car on-demand subscription service will first launch in Los Angeles before opening in five other American markets by the end of the year. The service has been deployed in several European countries since 2019.

Uber is launching more than a half-dozen new features, including one that will let users book vaccine appointments at Walgreens and reserve a ride to get their jab, as the company homes in on a business model that will finally deliver profitability. The features fall under what Uber is describing as its “go get” strategy and is meant to mark a return to more “normal” business operations following 14 months of shutdowns caused by the COVID-19 pandemic. The numerous features that include vaccine booking, a valet service that will drop off a rental car, reserved rides at airports that offer up to an hour of wait time and options to pick up food during a ride-hailed route are all centered around Uber’s core services of delivery and ride hailing. Side note: Earnings alert! We will be listening in May 5.

TC Sessions: Mobility 2021

The TC Sessions: Mobility 2021 event, which is scheduled for June 9,  will be virtual again — as I have mentioned before. We released a “mostly” final agenda. There may be a surprise or two more.

Early Bird tickets to the show are now available — book today and save $100 before prices go up.

Other guests to TC Sessions: Mobility 2021, includes Joby Aviation founder and CEO JoeBen Bevirt, investor and LinkedIn founder Reid Hoffman, whose SPAC merged with Joby, investors Clara Brenner of Urban Innovation Fund, Quin Garcia of Autotech Ventures and Rachel Holt of Construct Capital, as well as Starship Technologies co-founder and CEO/CTO Ahti Heinla. We also plan to bring together community organizer, transportation consultant and lawyer Tamika L. Butler, Remix co-founder and CEO Tiffany Chu and Revel co-founder and CEO Frank Reig to talk about equity, accessibility and shared mobility in cities.

#automotive, #electric-vehicles, #ford, #gm, #lyft, #revel, #tc, #toyota, #uber, #woven-planet

0

Equity Monday: TechCrunch goes Yahoo while welding robots raise $56M

Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast where we unpack the numbers behind the headlines.

This is Equity Monday, our weekly kickoff that tracks the latest private market news, talks about the coming week, digs into some recent funding rounds and mulls over a larger theme or narrative from the private markets. You can follow the show on Twitter here and myself here.

This morning was a notable one in the life of TechCrunch the publication, as our parent company’s parent company decided to sell our parent company to a different parent company. And now we’re to have to get new corporate IDs, again, as it appears that our new parent company’s parent company wants to rebrand our parent company. As Yahoo.

Cool.

Anyway, a bunch of other stuff happened as well:

We’re back Wednesday with something special. Chat then!

Equity drops every Monday at 7:00 a.m. PST, Wednesday, and Friday at 6:00 AM PST, so subscribe to us on Apple PodcastsOvercastSpotify and all the casts!

#apollo, #china, #cloud, #dell, #earnings, #equity-podcast, #flywire, #fundings-exits, #lyft, #path-robotics, #paypal, #square, #startups, #uber, #verizon, #wealthsimple, #yahoo

0

Uber, Lyft stocks plunge after Biden official says drivers are employees

Uber, Lyft stocks plunge after Biden official says drivers are employees

Enlarge (credit: lechatnoir / Getty)

Stock in Uber is down more than 6 percent after President Joe Biden’s new labor secretary, Marty Walsh, told Reuters that drivers are employees under US labor law.

Stock in Lyft, whose business is more concentrated in the United States, is down 11 percent. DoorDash, which heavily uses contract workers for food deliveries, saw its stock fall by 8 percent. The S&P 500 stock index is up slightly.

The legal status of workers driving for these companies has become a controversial issue around the world. Uber, Lyft, and DoorDash argue that the contractor model allows them to not only operate more efficiently but also offer drivers increased flexibility. The companies argue that if they were forced to pay drivers by the hour, they’d have to not only raise fares but also restrict drivers’ hours to make sure drivers only work at times when there are enough customers to keep them busy.

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#cars, #driver-status, #lyft, #policy, #uber

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The gig is up on 21st-century exploitation

Today’s app-based or “gig” economy is frequently dressed up in talk about “modern innovation” and the “21st century of work.” This facade is a wolf in sheep’s clothing.

Precarious, contingent work is nothing new — we’ve always had jobs that are low-paying, insecure and dismissed as “unskilled.” Due to systemic racism and a historically exploitative economy, workers of color have always been, and continue to be, heavily concentrated in the most exploitative industries.

The only difference is that today, companies like Uber, DoorDash and Instacart claim they don’t have to play by the rules because they use digital apps to manage their workforce. Even as many of these tech giants remain unprofitable, they have been allowed for far too long to shirk responsibility for providing safe and just working conditions where workers can thrive on and off the job.

Even as many of these tech giants remain unprofitable, they have been allowed for far too long to shirk responsibility for providing safe and just working conditions where workers can thrive on and off the job.

Workers’ rights in the so-called gig economy are often positioned as a modern problem. But when we think about the problems faced by gig and app-based workers, who are predominantly people of color, we must learn from the past in order to move forward to a just economy.

The federal government has long failed to address widespread worker exploitation. Since the passage of the National Labor Relations Act, jobs like agricultural and domestic work, which were largely performed by workers of color, were carved out of labor rights and protections. The “independent contractors” of today, who are largely workers of color, fall into this same category of workers who have been excluded from labor laws. Combined, Black and Latinx workers make up less than 29% of the nation’s total workforce, but they comprise almost 42% of workers for app-based companies.

Gig companies argue that the drivers, delivery people, independent contractors and other workers who build their businesses, take direction from them and whose pay they set are millions of tiny businesses that do not need baseline benefits and protections. They do this in order to shield themselves from taking responsibility for their frontline workforce. Corporations then avoid paying basic costs like a minimum wage, healthcare, paid sick leave, compensation coverage and a litany of other essential benefits for their employees. For many workers, these conditions only serve to proliferate inequality nationwide and ultimately uphold a deeply flawed economy built upon worker exploitation and suffering.

App-based companies are the face of a larger, sinister trend. Over the last four decades, federal policies have greatly eroded the bargaining power of workers and concentrated more power in the hands of corporations and those who already have substantial wealth and power. This has perpetuated and worsened the racial wage and wealth gaps and contributed to the ever-increasing degradation of working conditions for too many.

It’s clear that, in order to build an economy that works for all people, “gig” and app-based companies cannot be allowed to exploit their workers under the guise of “innovation.” These companies claim their workers want to remain independent contractors, but what workers want is good pay, job security, flexibility and full rights under federal laws. This is a reasonable and just demand — and necessary to close generational gender and racial wealth gaps.

App-based companies are pouring significant resources into promoting government policies that prop up their worker exploitation model. Uber, Lyft, DoorDash Instacart and other app-based companies are loudly peddling misinformation in state legislatures, city councils and federal offices. Elected leaders at all levels need to recognize these policies for what they are — corporate efforts to rewrite the laws to benefit them — and reject the corporate interests behind the policies that carve out workers from universal protections.

Congress must also reject exclusions that lock people of color out of basic employment protections and pass legislation to extend protections to all workers, including app-based workers. The PRO Act is a great first step, which extends bargaining protections to workers who have been wrongly classified as “independent contractors” by their employers.

Across the country, app-based workers have organized to protect their health and safety and demand that their rights as workers be recognized and protected. Elected leaders cannot keep falling for corporate propaganda claiming a “21st-century” model. Work in the 21st century is still work; work that is organized on an app is still work.

We call on Congress to recognize the labor rights and protections of all workers and act boldly to ensure that app-based companies cannot block workers from equal rights in the name of “flexibility” and “innovation.”

#column, #congress, #doordash, #economy, #employment, #future-of-work, #gig-workers, #instacart, #labor, #lyft, #uber

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