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Welcome back to TechCrunch Mobility — your central hub for news and insights about the future of transportation.
I spent a few days in Austin for SXSW, where I met with founders and CEOs, gave some talks, and moderated a couple of panels. While generative AI was clearly the biggest draw, the future of transportation continues to garner attention from investors, city planners, founders, businesses, and the media. I've heard a lot of conversations about how autonomous vehicles fit into cities, as well as discussions about technology that could help ease traffic and reduce emissions.
I watched an interesting conversation between Austin Mayor Kirk Watson and Uber CEO Dara Khosrowshahi, who predicted the company would be greener and more affordable and challenge Amazon in the future. These goals seem more achievable — and higher on the priority list — now that Uber has finally checked the profitability box.
Waymo co-CEO Tekedra Mawakana was also on hand at SXSW, where she announced that the company will begin offering its robotaxi service to the public in Los Angeles this week and in Austin by the end of the year. Side note: We've heard service in Austin is likely coming sometime this summer. Maybe I'll be back in town sooner than expected!
Okay, let's get to the rest of the week's news!
Little birds
Electric vehicle startup Fisker has spent the past few months courting dealers in an attempt to move away from a Tesla-style direct selling model after it struggled to sell half the cars it made in 2023.
The company appears to have made some progress on this front. However, a little birdie told us that one of the dozen or so agents they had contracted with had already gone out of business. Fisker Ourisman, which was supposed to be the latest extension of the Ourisman Automotive Group, has walked away from the startup and wiped out the website it created to promote Fisker's Ocean SUV just a month after closing the deal.
The agency's loss comes as the Wall Street Journal reported that Fisker has hired outside help to look into a potential bankruptcy filing.
It is not immediately clear whether any other traders have followed suit. Mike Domenicone, owner and operator of Classic of Atlanta, said he has conducted more than 150 test drives and sold the first shipment of Ocean SUVs at his new “Classic of Fisker” subsidiary.
Got a tip for us? Email Kirsten Korosec at kirsten.korosec@techcrunch.com or Sean O'Kane sean.okane@techcrunch.com. If you prefer to remain anonymous, click here to contact us, which includes SecureDrop (instructions here) and several encrypted messaging apps.
Deal of the week
If you're looking for another example of investors' enthusiasm for artificial intelligence, just look at the latest fundraising campaign from self-driving vehicle software company Applied Intuition.
The company raised $250 million in a round that raised its valuation to $6 billion and included a group of high-profile investors. The Series E round was led by Lux Capital's Bilal Al-Zubairi, investor Elad Gil, and Porsche Investments Management, the sports car maker's independent investment arm. Others joining the tour include Andreessen Horowitz, Mary Maker's Bond Growth Fund, and even Formula 1 world champion Nico Rosberg.
Applied Intuition says it seeks to bring more AI to the automotive, defence, construction and agriculture sectors. As reporter Sean O'Kane writes, the company appears to have identified a particular sweet spot for venture capitalists looking for startups with AI products that go into big industries with big budgets — defense is one hot area — with seemingly endless opportunities.
Other deals that caught my attention…
Anaphite, a battery technology startup, has raised £1.6 million ($2 million) through a government-backed investment grant led by Elbow Beach Capital.
inDrive, a mobility app that includes ride-hailing and other urban services, has expanded its financing arrangement with General Catalyst to $300 million, up from an initial $150 million secured in 2023.
Micromobility software provider Joyride has raised $5.2 million in a Series A funding round led by Yamaha Motors and including return investments from Urban Innovation Fund, Proeza Ventures, Two Small Fish Ventures, and Export Development Canada (EDC).
Self-driving vehicle technology startup Motional has secured a bridge loan that provides temporary financial relief while the company searches for a long-term funding source, TechCrunch has learned exclusively.
Telo, the electric vehicle startup aiming to produce a pint-sized pickup truck, has raised $5.4 million in a round from Neo and Spero Ventures. Mark Tarpenning, Spero venture partner and Tesla co-founder, will join the board.
Volvo Cars has invested an undisclosed sum in UK startup Breathe Battery Technologies. Volvo plans to integrate the startup's battery management software into its next generation of electric cars to improve charging time by 30%.
Notable Readings and Other Stories
Self-driving vehicles
Uptronic, an Austin robotics startup, has partnered with Mercedes-Benz. The two companies will collaborate to identify and then test highly advanced robotics applications in Mercedes-Benz manufacturing.
Aurora demonstrated its autonomous vehicle system during a day to analysts and investors at its headquarters in Pittsburgh. The company showed how Peterbilt 579 semi trucks equipped with the latest Aurora Driver system (with no human behind the wheel) handled real-world driving conditions on a closed course.
Phantom Auto, a remote-driving startup that launched seven years ago amid the hype of self-driving vehicle technology, has shut down after failing to secure new funding. The startup has raised $95 million since its founding and has clients. We were told they were about to raise more money before that failed. We'll be watching to see what happens to Phantom Auto's IP.
Zoox has expanded its driverless testing — in terms of hours, conditions and geography — near its headquarters in Foster City, California, and in Las Vegas. Zoox's driverless car, which is not yet open to the public, operates along five miles of road from the southern end of the Las Vegas Strip. Zoox is expected to open to public riders in Las Vegas later in 2024.
Electric vehicles, batteries and charging
Coreshell, a startup that specializes in manufacturing battery materials, has revealed a breakthrough that could reduce the cost of lithium-ion batteries.
Lucid Motors is stuck in a trademark battle over the name of its Gravity SUV. Gravity Inc., backed by Google Ventures, filed a “petition to cancel” with the Trademark Trial and Appeal Board (TTAB) of the US Patent and Trademark Office in December, seeking the cancellation of Lucid’s Gravity trademark.
India plans to cut import taxes on some electric vehicles for companies that commit to investing at least $500 million and setting up a local manufacturing facility within three years, a policy shift that could boost Tesla's plans to enter the South Asian market.
Lordstown Motors emerged from bankruptcy with a new name – Nu Ride Inc. —And an almost singular focus: continuing the lawsuit against iPhone maker Foxconn for allegedly “ruining the business of an American startup.” The reconstituted version of Lordstown Motors will also seek “potential business combinations,” though it did not say what types of mergers it seeks.
Request passenger cars
Uber and Lyft are leaving Minneapolis over minimum wage law.
Wheels this week
Image credits: Kirsten Korosek
While in Austin, I took a test ride on public streets with a self-driving VW ID Buzz prototype. This was not a true driverless ride, as the human safety factor was still behind the wheel. However, it did give me some insight into how VW ADMT – the German automaker's autonomous driving, mobility and transportation business – is progressing. The final and commercial version of driverless ID. Buzz AD, which will be designed for passenger transportation services, is expected to be launched in 2026.
You may recall that Volkswagen's self-driving car ambitions were wrapped up in Argo AI, a startup backed solely by the automaker and its partner Ford. The two companies withdrew financial support for Argo AI, leading to its closure. VW then turned to Mobileye and has since followed a different path toward automated driving that contrasts with Waymo, Cruise, Zoox and Motional.
VW and Mobileye believe in a progressive approach in which technology found in advanced driver assistance systems used in modern cars can evolve into a driverless system used in robotaxis. It's similar to what Tesla argued.
My journey hasn't been entirely smooth, although I didn't expect it. However, she saw the car and suddenly stopped when a vehicle driven by a human unexpectedly came out of the alley. One hiccup occurred as we approached a double-parked emergency vehicle. Personal fulfillment. Buzz sat for a while before a safety worker took control and walked around him.
