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Hi friends and first-time readers. Welcome back to The Station, a newsletter dedicated to all the present and future ways people and packages move from Point A to Point B. I’m your host Kirsten Korosec, senior transportation reporter at TechCrunch.
In the past two weeks, demonstrators have taken to the streets to protest police brutality following the murder of George Floyd (and many other black men and women who have been killed by police). Newsletters about transportation hardly seem important right now.
I will note that transportation, or the lack of access to it, has played a huge part in continued and systemic racism in the United States. The Station aims to highlight the founders, urban planners, bike advocates, lawmakers, tech companies and venture capitalists who are helping — and hurting — the efforts to make transportation accessible to all.
Reach out and email me at firstname.lastname@example.org to share thoughts, criticisms, offer up opinions or tips. You can also send a direct message to me at Twitter — @kirstenkorosec.
Alright, time to dig in. Vamos.
The scooter and bike scrapping keeps on keepin’ on. Last month, it was Uber tossing more than 20,000 JUMP bikes into a recycling yard following its deal to offload the JUMP brand to Lime.
This week, it’s scooter sharing company Bird. The company shut down scooter sharing in several cities in the Middle East, an operation that was managed by Circ, the micromobility startup it acquired in January. About 100 Circ employees were laid off and as many as 10,000 Circ scooters were sent to a third-party UAE-based company for recycling, TechCrunch learned from multiple sources.
Bird couched the shutdown as “pausing of operations” and was quick to note that it was still in Tel Aviv. This pause comes less than six months after Bird announced it had acquired its European counterpart and touted plans to expand. Bird’s decision to shut down Circ’s entire Middle East business affects operations in Bahrain, UAE and Qatar.
Bird says it will return to the region. But my sources disagree, noting that the company ruined its relationships with transportation agencies in places like Abu Dhabi.
Meanwhile, electric-bike maker Cowboy released a new iteration of its bike, the Cowboy 3. It’s a relatively small update that should make the experience better for newcomers, Roman Dillet reports.
Oh and remember our little snippet last week about Superpedestrian? Megan Rose Dickey noted Superpedestrian, the startup that makes self-diagnosing electric scooters, had teamed up with Zagster and quietly launched a shared electric scooter service called LINK.
Turns out Zagster is Superpedestrian. Growth equity firm Edison Partners said this week it has sold its portfolio company Zagster to Superpedestrian.
Deal of the week
This week, we turn our attention to Volkswagen’s $2.6 billion investment into Argo AI, the Pittsburgh-based self-driving car startup that came out of stealth in 2017 with $1 billion in backing from Ford. The deal, which was announced in July 2019, was finalized this week.
It’s notable for a few reasons. Argo is now a global company with two customers — VW and Ford — as well as operations in the U.S. and Europe. The company’s workforce just popped by more than 40% as Autonomous Intelligent Driving (AID), the self-driving subsidiary that was launched in 2017 to develop autonomous vehicle technology for the VW Group, will be absorbed into Argo AI. AID’s Munich offices will become Argo’s European headquarters.
Argo also has offices in Detroit, Palo Alto and Cranbury, N.J. The company has fleets of autonomous vehicles mapping and testing on public roads in Austin, Miami and Washington, D.C.
This is all very exciting. Of course, now the hard work begins. Argo must juggle two huge, traditional automotive customers and maintain multiple offices with more than 1,000 employees. Welcome to the big time.
An Argo AI autonomous vehicle at Carnegie Mellon University.
Other deals that got our attention:
OTTO Motors, the industrial division of Clearpath Robotics, raised $29 million in funding in a Series C funding round led by led by Kensington Private Equity Fund, with participation from Bank of Montreal Capital Partners, Export Development Canada (EDC) and previous investors iNovia Capital and RRE Ventures. To date, the company has raised $83 million in funding.
Beam, a Singapore-headquartered micromobility firm that offers shared e-scooters, has raised $26 million in a Series A round led by Sequoia India and Hana Ventures. Several more investors from the Asia Pacific region participated, including RTP Global, AppWorks, Right Click, Cherubic and RedBadge Pacific, Beam said. The startup, which has raised $32.4 million to date, plans to use the capital to expand its footprint in Korea, Australia, Malaysia, New Zealand and Taiwan.
Navmatic, a startup that provides high-accuracy positioning for micromobility, robotics and mobile phones, came out of stealth mode earlier this year on $4 million in funding. The round, which was finalized pre-COVID 19, was led by Lear Corporation’s Lear Innovation Ventures, and also includes UpWest, Next Gear Ventures, and several private investors.
Navmatic is aiming to solve one of the stickier problems of micromobility: precise location within centimeters. Navmatic CEO and co-founder Boaz Mamo says the tech, which goes beyond GPS, is the backbone of micromobility that will help cities, customers and scooter companies. Mamo also weighed in on the pandemic and its impact on shared mobility. He expects that while micromobility has been negatively affected by COVID, it will return as people try to avoid public transportation and seek other means of getting around.
Gojek, the five-year-old Southeast Asian ride-hailing startup that also offers food delivery and mobile payments, is attracting more high-profile backers. Facebook and PayPal are the latest to participate in its ongoing Series F financing round, which brings it total raise-to-date to over $3 billion. Google and Tencent have also invested in Gojek.
Softbank announced a new investment vehicle to back entrepreneurs of color called the Opportunity Growth Fund, which “will only invest in companies led by founders and entrepreneurs of color,” according to an internal memo from SoftBank’s COO Marcelo Claure. The fund will initially start at $100 million.
Andreessen Horowitz is launching a fund designed to invest in underrepresented and underserved founders. The Talent x Opportunity (TxO) fund starts with $2.2 million in donations from the firm’s partners. TxO will be invested in a small group of seed-stage startups the first year and expand in size going forward.
Vroom released an updated IPO filing that provides pricing information for a somewhat odd public offering. The company expects to price its IPO between $15 and $17 per share, according to the filing. It hopes to sell 18.75 million shares in its debut, generating gross proceeds of between $281.25 million and $318.75 million. Alex Wilhelm spends some time sorting through the latest financial bits.
There was too much electric vehicle news this week to put under my catch-all at the bottom of the newsletter. Plus lo
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