Argo AI shuts down, Tesla under fire, Lyft firing, Mobileye & Uber are on fire and a new DRT map

Argo AI shuts down and sends shock waves throughout the autonomous industry; Tesla under criminal investigation over self-driving claims; Uber Q3/22 report sends stock up; Uber to pay UK £615M in VAT; New On-Demand Transit map by Foljanty; Lyft lays off 13% of workforce; zTrip SPACs; Free Now integrates public transit; Miles Mobility acquires WeShare from VW; Helbiz completed the Wheels acquisition and the market is unimpressed; Voi cut ties with Russian shareholders; Saudi invests in Lilium & in Volocopter; NIO might sell cars; and Mobileye IPO rocks! This and more in this two week recap of #movingpeople news. Let’s start. 

Argo AI and the autonomous industry 🤖

Ford and VW, the main backers of Argo AI, autonomous vehicle maker, closed the company. Of the 2,000 employees, some will join Ford and VW. Why close? Autonomous technology is taking longer than expected; commercial profitability is not even on the horizon; companies all over the world are scaling down due to the macroeconomic conditions; and getting new investments, for Argo AI, was challenging. 

Ford will be shifting its focus to ADAS technology to build Level 2+ / Level 3 autonomous driving (human oversight still required), which is expected to have commercial benefits in the short (and certain) term. VW will refocus on its autonomous driving software subsidiary, Cariad, and could start working more with Mobileye, on ADAS. 

Argo AI had multiple cities in the US and Europe on which it tested its autonomous vehicles, partnership with the likes of Walmart and Lyft (a minor shareholder) and had just last month launched a new ecosystem of products & services which caught the industry’s attention. 

That’s why the shut-down sent shock waves throughout the autonomous industry. It re-raised questions about ADAS versus Level 4 autonomous (especially with ADAS-player Mobileye conveniently IPOing at the same time); on whether Level 4 autonomous (L4) is at all reachable in the next decade at profitable commercial scale; and whether there is enough capital right now to spend on the needed L4 R&D.  

Some think Self driving cars aren’t going to happen in our lifetime; some that we just need to lower expectations - the autonomous opportunity isn't in cars, it's in construction, farm vehicles. autonomous warehouse equipment, trucks (on highways) and buses (in closed routes). Less sexy, more plausible. Aurora stresses its long-haul trucking strategy. And some say that eventually Autonomous will be a commodity but right now the technology is far from even dreaming about profitability; and that differentiation would be in the customer experience. 

Meanwhile, the industry keeps moving forward, even if it is in uncharted waters. Waymo’s robotaxis are now making passenger trips to the Phoenix airport (for now with a safety driver). Cruise to expand robotaxi service to Austin and Phoenix this year. The company has opened a waitlist for the service. Xpeng to begin autonomous tests on public roads in Guangzhou, China. IKEA teams with self-driving truck company Kodiak Robotics to test middle-mile deliveries in Texas. Beep selected to operate driverless buses for Treasure Island’s (SF, California) driverless shuttles pilot program. Aurora says it has enough cash ($1.2bn on close of Q3) to commercialise autonomous trucks in 2024, sending the stock up by almost 6%.

And Tesla - reluctantly gave a Full Self-Driving Beta demonstration to the California DMV and some FSD critics that the automaker didn’t want present. The company is under criminal investigation by the DoJ over self-driving claims. More on Reuters, TechCrunch, The Guardian, The Verge. The investigation is still in its early days, so don’t hold your breath for an outcome just yet. 

Text within this block will maintain its original spacing when publishedRide-Hailing & Taxi, Buses & DRT 🚙🚐

Uber reported strong revenue growth for Q3: Revenue is $8.34bn, net loss $1.2bn, free cash flow a positive £358M. Uber’s stock rose by nearly 13% on the news. And, Uber to pay £615M (±$700M) in VAT to the UK government (HMRC). Why? In February 2021 the UK Supreme Court provided workers’ rights to drivers, making it impossible for Uber to claim that VAT liability lies with drivers, who the company treated as independent contractors. This £615M bill resolves all past disputes between HMRC and Uber. 

The ‘Uber whistleblower; Mark MacGann, Uber’s Head of Public Policy, Europe, Middle East & Africa from 2014 to 2016, spoke to the EU parliament, calling on European lawmakers to take on the “disproportionate” and “undemocratic” power held by tech companies. In the background, almost every country in Europe, and the world, is trying to figure out what to do with the independent contractors vs. employee debate. MacGann is concerned with the power tech companies have and their ability to use it to serve their causes. More on The Guardian. 

Lukas Foljanty’s On-Demand Transit Market Report Q3/2022. Q3 was strong with 53 new services, bringing annual new services to 140. In total, there are ±550 DRT services running worldwide; Via is still the strong #1 player. For more excellent in-depth market analysis and new maps, click the links above. 

Lyft lays off 13% of staff, close to 700 employees. In July, Lyft cut ±60 jobs, mostly from its rental unit, and in September announced a hiring freeze. 

zTrip, the largest taxi fleet operator in the U.S. with 2,700 vehicles in 26 cities and a positive EBITDA of $16M in 2021, is SPACing on the NYSE. zTrip, owned by WHC Worldwide, was established in 2018 and to date has completed 28 acquisitions to reach the title of the “largest taxi fleet”. SPAC Money will be used to continue expansion across the US.

Uber news: Uber enhances safety, expanding its audio and video recording capabilities, removing fake accounts and having drivers take less left turns, which make up 22% of accidents. Uber launched a taxi service in Limerick, Ireland, its 2nd city in Ireland. In New Zealand, Uber drivers won a legal battle in employment court, granting them employee status. The ruling only applies to the four drivers who filed the lawsuit, but implications could be wider. Uber plans to appeal. In Mexico, Uber removes face mask requirements and allows passengers to sit in the front seat. I hadn’t realised that those restrictions were still in place. In Saudi, Qatar and Egypt, Uber expands ‘Reserve’, pre-booked rides up to 30 days and until 2 hours in advance. Uber tests push notification ads; the ones that pop up on your screen uninvited. 

Lyft relaunches monthly subscription plan, Lyft Pink, at half the price, at $9.99 per month or $99 annual. Members receive priority pickups, ride discounts, free cancellations and one micromobility unlock for a month, Sixt car rental upgrades, roadside assistance (four times a year) and Grubhub+ discounts. 

FreeNow integrates public transport into its app, allowing it to offer anymode from micromobility to public buses and trains. This specific agreement was made with Rheinbahn, Germany. HQ, corporate mobility platform, partners with Bolt to offer ride-hailing as a pillar in corporate mobility. Padam launches urban DRT in Brussels, bringing people to the national theatre and saving on car rides. In Ghana, Bolt introduced ‘Call-A-Bolt’ service, to enable riders without a smartphone to order a ride. Little App Kenya received regulatory (NTSA) approval. Uber and Bolt, both operating in the country, ignore the NTSA, also because it wants to cap commission at 18%. SWVL Egypt begins advertising on buses. Data on the Japanese taxi market. Since 2007 decreased by 20.3%, avg. revenue by 23%, and more, indicating a troubled market that has just got its first taxi fare hike in 15 years. 

Text within this block will maintain its original spacing when publishedCar-sharing/renting 🚗

Miles Mobility acquires WeShare, a VW company. WeShare has 2,000 electric vehicles in Berlin and Hamburg. Miles will now have a fleet of over 11,000 vehicles, and VW sheds more weight. Share Now launches its first ever station-based car-sharing service in Munster, Germany. Stellantis partners with Casi to create Drivenjoy, a car subscription service. Enjoy, Eni’s car sharing service, is going electric in Florence, Italy. 

Text within this block will maintain its original spacing when publishedMicromobility 🚲🛴

Helbiz completed the Wheels acquisition. The market, which values Helbiz at ±$0.3 a share, wasn’t impressed and let the stock slide. The company faces delisting in January on account of its share price being below $1 for an extended time, but is certain it has a road to profitability. 

California passed A.B. 371, imposing insurance requirements on shared e-scooter companies, making these companies liable for the behaviour of riders. Will we see micromobility companies leaving the state on account of the bill?

Voi cuts ties with Russian shareholders, two men who held ±4% of the company. At least in the UK, the company was facing criticism from decision makers. More UK: London's e-scooter hire trial extended until 2023. Lime invests £6M more in London e-bike infrastructure. Solent region’s e-scooter trial approved to continue until May 2024. In Bristol, Voi failes to expand to the southern part of the city. Voi launches new rental e-bike fleet in Liverpool. 

A long read on how Stockholm bike schemes are very cheap, with a day-pass at under $1. In short:  advertising, use of virtual stations, smart balancing, and use of e-cargo bikes for logistics. More libraries in the US offer bikes next to books. 

Text within this block will maintain its original spacing when publishedDelivery 🍽🧺

Indian Delhivery shares tumbled, from ₹560 (Indian Rupee) on the 19th to ₹355 on the 28th, a >33% drop, caused by low revenue figures. Getir partners with Nisa retail, the wholesale arm of the Co-op, to deliver Co-op’s brand. Ireland pushes through a €3,000 cargo bike tax incentive. DoorDash is testing restaurant in-app reservations, in partnership with SevenRooms. It is not clear in which cities this feature is being tested. Zypp Electric, EV delivery in India, partners with Gogoro to use its electric vehicles and battery swapping system. 

Text within this block will maintain its original spacing when publishedFlying cars 🚁

Saudi Arabia is putting money on flying eVTOLS. Saudia to buy up to 100 Lilium electric aircraft for the country’s domestic network. Certification is expected in 2025, pricing has not been set. Volocopter raises $182M to, adding to the $170M raised in March, at a $1.87bn valuation.The current raise was led by NEOM, the Saudi smart city, which invested $175M. 

Text within this block will maintain its original spacing when publishedIn other news 📰

Mobileye. There were low expectations of its IPO, with Intel valuing the company at $17bn, $21 a stock, a third of what was hoped for last year, and pretty much what Intel paid for Mobileye back in 2017 ($153bn). The market had a different opinion, sending the stock 37% high to close  on debut day at close to $29, and today, a week later (Friday, 10am CET), at a strong $26. 

Nio launched in Germany, the Netherlands, Denmark and Sweden - with a lease only business model, from one month to five years - and got negative feedback from potential customers, who, wait for it, wanted to be able to buy the car. The company is now considering that. 

Thank you for reading Moving People. This post is public so feel free to share it.