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GM‘Her decision not to fund her self-driving car company Cruise came as a surprise to many — and made me think of this startup I’ve known over the years.
About nine years ago, I learned about a startup called Cruise automation. The San Francisco-based startup, which he co-founded Kyle Vogt and Dan was In 2013, it just shifted its business plan away from developing direct-to-consumer product portfolios into modified cars and instead turned its attention and efforts to self-driving software.
The world of self-driving vehicles was a small, dynamic place in 2015. Cruise had a few dozen employees, and they were working in this space Waymo It did not exist yet, as it was still described as Google’s self-driving project. People who will continue to be found Aurora, Nuru, and Argo AI She was still at another company, namely Google. Zoox It had just been established the previous year.
The hype had not yet swept the industry. But that would come soon enough, and for me, the moment this journey really began was March 2016 General Motors acquired Cruise for $1 billiona story that Dan Primack and I broke when we were still working at Fortune.
There’s a lot of history that could be shared in this brief newsletter, but it’s safe to say that self-driving vehicle technology has been on the minds of automaker executives everywhere, and tech startup founders have suddenly become darlings of the venture capital world. Investment. (I see a lot of similarities to what’s happening with AI now, but on a larger scale.)
Fast forward through a wave of consolidation and numerous failed startups, and by 2023 only a handful of well-funded giants remain, including GM’s Cruise, Alphabet’s Waymo, Hyundai-backed Motional, and Amazon-owned Zoox. In August 2023, Cruz finally obtained the last permit required to operate commercially in San Francisco. Hopes were high when… I interviewed Vogt In Disrupt 2023, even as criticism of bots grows.
Everything changed on October 2 after an accident left a pedestrian stuck below and then dragged away by a robotaxi. By the end of the year, Vogt resigned, 24% of Cruise’s workforce was laid off, regulators suspended her permit, and the company decided to cease operations elsewhere.
Recent moves by GM have indicated that Cruze will return — albeit as a leaner, more tightly controlled organization. But the Chairman and CEO of General Motors Mary Barra He has different plans for a cruise.
This story will be ongoing. There’s a lot to dig into. But some of our initial articles cover GM’s decision, how Cruise employees learned of the change (the term “blind shock” was used), and the financial impact on Microsoft, and HondaA logical step to reduce funding for a joint program in Japan.
Stay tuned. Now to other news.
birdie
A small bird dropped aviation information regarding HyundaiStart of urban air mobility in urban areas, supernatural, Which we were able to confirm with the company.
The gist of it: Supernal is moving its global headquarters from Washington, D.C., to Irvine and asking about three dozen of its workers to relocate. While that number represents only about 5% of the total workforce, it appears to represent the majority of workers based in Washington, according to data from LinkedIn and a source who spoke to TechCrunch on the condition of anonymity.
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Offers!
It appears that investors are still keen to pour money into special purpose acquisition companies (SPACs) in the future.
takes Archer Aviation and Gobi Aviationtwo companies that went public through mergers with private acquisition companies.
Archer It raised $430 million from existing and new institutional investors to fund a new business unit dedicated to building aircraft for defense applications. In an interesting development, part of that is moving toward an exclusive partnership with Anduril to build a VTOL hybrid.
Meanwhile, Gobi It launched a public offering to sell up to $300 million of its shares of common stock. This should not be confused with $222 million Joby raised in October from insurance companies. This latest filing adds to that offering and will give Joby the opportunity to raise a total of $522 million as it prepares for its commercial launch in 2025.
Other deals that caught my attention…
NicolaAmazon, a producer of hydrogen electric batteries and trucks, has taken several steps to pay down its debt and raise equity, including offering up to $100 million in a common stock sale.
WeaGrida San Francisco-based startup that has developed electric vehicle charging software, It raised $28 million In a round led by Toyota’s Woven Capital. Existing investors Activate Capital, Collab Fund, Emerson Collective and Salesforce Ventures participated, with debt provided by HSBC Innovation Banking.
Notable Readings and Other Stories
Self-driving vehicles
San Francisco It is the city most prepared for new transportation technologies such as artificial intelligence, autonomous vehicles and air taxis, according to the new Urban Mobility Readiness Index.
Uber and We are riding Launched a robotaxi service in Abu Dhabi.
Electric cars, charging and batteries
Fisker It has resolved another federal safety investigation, this time into the risk of its SUV moving unexpectedly.
You may remember an article I wrote in 2022 about him Floating lighthousea startup that is building an all-electric travel trailer. Well, the company has officially launched its production model, which is AE.1 Universe Editionformerly known as Lightship L1. The company plans to produce only 50 units at a cost of $250,000. Three additional trim levels are expected in the future.
the An SUV with obvious appeal It is officially produced at the company’s factory in Casa Grande, Arizona, and has received an estimated range of 450 miles from the Environmental Protection Agency (EPA).
RivianEVs ranked last on Consumer Reports’ reliability list.
Random moving things!
Amazon It expanded into online auto sales with the launch of Amazon Autos, an e-commerce company that allows customers to find, order, and purchase new cars, trucks, and SUVs from dealerships.
Salvatore Palella He resigned from the position of CEO and Director of the Board of Directors Micromobility.comthe startup formerly known as Helbiz that had been heading toward bankruptcy for some time. Oddly enough, Palella’s holding company bears all of the company’s debts, according to A Regulatory filing.
Spotify It has officially discontinued Car Thing, its in-car streaming device, with all units now disabled.
Uber It has 30 days to require certain drivers to get fingerprinted if the ride-hailing giant intends to continue transporting unaccompanied teens in California, according to a ruling by the state Public Utilities Commission.
Wheels this week
This newsletter is a bit too long this week, don’t you think? This week’s wheels will be back next week!
What are “This Week’s Wheels”? It’s an opportunity to learn about the different transportation products we’re testing, whether it’s an electric or hybrid car, an e-bike or even a ride in a self-driving vehicle. Includes future vehicles Clear air,More time in the next generation Rivian R1S, and Volkswagen Buzz ID. Stay tuned.
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