|
|
|
|
Clearing the lot
Hi there,
CarGurus, a Mass.-based online car research and shopping marketplace, raced out of the gates with its Thursday IPO, as shares traded roughly 75% above the offering price of $16.
The company flew under the radar in tech circles due to its relative dearth of VC funding:
Both new-car and used-car dealers face pressure on many sides: direct sales (Tesla), all-inclusive subscriptions (Cadillac Book, Porsche Passport, Fair), peer-to-peer startups, and more. And of course, beyond these looms the trendy threats of autonomy and MaaS.
Nevertheless, automotive commerce — retailing, financing, renting, and servicing vehicles — remains a formidable business. A 2016 ranking by Automotive News listed three US dealer groups generating over $10B in total revenue, with dozens more over the $1B mark.
Auto commerce startups looking for their share, many by competing directly with or seeking to upend these incumbents entirely. Others (including CarGurus) profit from dealer enablement, helping retailers navigate new territory like building e-commerce solutions or generating leads online.
Although CarGurus grew largely as a bootstrapped company, investor interest in auto commerce startups is hitting all-time highs:
Tackling range and charging anxiety
In our latest research brief in our Next Big Thing series, we examine companies and research groups working on next-generation EV batteries, from StoreDot's "FlashBattery" tech to Toshiba's SCiB.
This week in auto tech: Lidar, AV acquisitions
GM Cruise acquired Strobe this week, a startup working on single-chip lidar sensors claimed to reduce costs by 99%. BMW-backed Ridecell also bought autonomous shuttle startup Auro Robotics.
Both trends are worth watching; on the former, we may well see more AV developers follow Waymo's route of developing both software and hardware (John Krafcik is known for quoting Alan Kay's famous aphorism on the subject).
On the latter point, we may also see further consolidation among all of the scattered startups and teams working across AV stack (Michael Dempsey of Compound has a good note for further reading here).
Have a great week, everybody!
Kerry
@kerrygwu
|
|
From smart luggage to personalized luxury experiences, travel tech startups are spurring innovation beyond booking & search. See the map.
Deals and funding to auto commerce startups have grown steadily since 2012, with this year on track to pass the $3B mark. See the data.
From using novel compounds in batteries to creating more powerful "fuel pumps," innovators are getting closer to 5-minute EV charging times. Check out the research.
We analyzed which jobs are most — and least — at risk, given factors including current technology, patent activity, regulations, and more. See the report.
|
|
This Week in Auto Tech
A curated mix of recent articles on auto tech financings, exits, announcements, hirings, partnerships & perspectives.
Deals & Funds
MapBox gets $164M. The mapping platform's massive Series C included SoftBank's Vision Fund, Foundry Group, and Thrive Capital as investors.
VentureBeat
Hyperloop One backed by Virgin. The hyperloop startup rebranded as Virgin Hyperloop One after backing from Richard Branson's Virgin Group.
TechCrunch
XLHybrids raises $22M. The commercial vehicle electrification company raised from Constellation Technology Ventures and IKEA Group (IKEA has only recently become active in startups, acquiring TaskRabbit two weeks ago).
FinSMEs
Drivezy picks up $10M. The Indian peer-to-peer car and bike rental platform raised a mixture of debt and equity from several funding sources.
Bloomberg
Vehiculum snags $2.37M. The German online auto leasing company raised from Coparion, Oskar Hartmann, and SchneiderGolling.
CB Insights
Lori Systems gets $30K. The African logistics platform won this year's TechCrunch Startup Battlefield Africa.
CB Insights
Diandian Yangche closes $60M. GGV Capital led the round into the automotive aftermarket services platform.
China Money Network
Lalamove inks $100M. Xiang He Capital led the round into the Hong Kong intra-city technology delivery platform.
TechCrunch
CarGuru's $150M IPO. The profitable (!!) online vehicle marketplace raised $150.4M, priced at $16 per share. Axios has an interview with CFO Jason Trevisan.
Axios
Ridecell buys Auro Robotics. Competitor Ridecell acquired the autonomous driving companies in a deal valued at $20M.
The Information
GM-Cruise acquires Strobe. The lidar maker was acquired for an undisclosed amount to lower lidar costs. Cruise CEO Kyle Vogt sounds off on Medium.
Medium
Shell buys NewMotion. The Dutch energy giant has acquired the Amsterdam-based EV charging provider.
BusinessWire
News
Ford leverages Autonomic for open mobility platform. The automaker's future services may be based on the platform. Ford disclosed its Autonomic investment in its investor report last week (the OEM was linked to the company earlier in March).
The Verge
Waymo campaigns for hearts and minds. Alphabet's self-driving division is launching a new campaign in partnership with several nonprofits to educate the public about AVs. Waymo also issued a comprehensive safety report, as the company intensifies PR efforts ahead of a potential robotaxi service launch.
Medium (partnerships) / Waymo (report)
Tesla lays off hundreds. The company laid off between 400 and 700 employees (out of 33,000) following its annual performance reviews, with workers disgruntled over the abrupt dismissals.
Mercury News
Nvidia showcases Pegasus. The chipmaker's new Drive PX platform has 13 times more processing power than the current generation, which Nvidia claims will support Level 5 automation. Pegasus will be marketed to autonomous driving companies in H2'18.
VentureBeat
Mapper unstealth. The San Francisco-based startup is aiming to create crowdsourced 3D maps without lidar.
Wired
Cyngn pivots to AV. The former Android mobile operating system company lost its vowels and is now developing self-driving software, having recently received a testing permit from the California DMV. Recode's research indicates the company is developing autonomous construction equipment.
Axios / Recode
Baidu's plans. The Chinese internet giant is partnering with BAIC Group, aiming to mass-produce autonomous cars by 2021.
TechCrunch
Cadillac expands Book. GM's luxury brand subscription service is expanding beyond its pilot launch in New York.
Automotive News
Uber's reckoning. The rideshare company currently faces 5 probes from the US government. The company suspended its unlicensed rideshare service, UberPOP, in Norway. SoftBank's potential investment in Uber faces one final hurdle: deal price and structure. The company rejected Waymo's demands for $1B and a public apology from Uber to settle their lawsuit.
Bloomberg (US probes) / Reuters (Norway) / The Information (SoftBank) / Reuters (Uber lawsuit)
California DMV allows driverless AV testing. The revised regulations will be made available for a 15-day public comment period before being submitted to the state government. Enforcement will begin in mid-2018, although vehicles will still be mandated to be connected to remote operations centers.
Car and Driver / California DMV
Articles, Perspectives, & Studies
Addressing the totality of the driverless car. C&D takes a comprehensive look at the world of AVs, from hardware and regulations to impacts on car culture.
Car and Driver
How the US generates electricity. An interactive infographic mapping the US's sources of energy.
Carbon Brief
Masayoshi Son's plan for the Vision Fund. A profile on the SoftBank head's investment, mobility ambitions, and $100B tech fund.
NY Times
AVs and fuel efficiency. With AV hardware currently adding 5% or more to a vehicle's total power draw, engineers ponder AV tech's impact given tightening fuel economy regulations and/or limited EV ranges. However, these losses could be offset by overall efficiency gains from widespread AV adoption.
Car and Driver
AV branding and consumer expectations. An MIT study finds low consumer awareness and understanding of automakers' ADAS and partial autonomy offerings.
ResearchGate
Watching the watcher. Other MIT researchers study the use of a secondary system to oversee and predict disengagements from a semi-autonomous system (such as Tesla's Autopilot).
MIT
|
|
|
If you loved this newsletter, send it to a friend.
If you hated it, send it to an enemy.
|
|
All the data in this newsletter comes from CB Insights. Join NEA, Cisco & hundreds of other clients and get access to the industry's best private company data.
Sign up for access.
|
|
|
|
|
|
|
|
|
