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Hello readers: Welcome to The Station, your central hub for all past, present and future means of moving people and packages from Point A to Point B.
Before you jump into the transportation news of the week, a bit of TechCrunch company news!
Private equity firm Apollo Global Management completed its acquisition of Yahoo (formerly known as Verizon Media Group, itself formerly known as Oath) from Verizon. The deal is worth $5 billion, with $4.25 billion in cash, plus preferred interests of $750 million. Verizon will be retaining 10% of the newly rebranded company. The group, aside from Yahoo properties like Mail, Sports and Finance, includes TechCrunch, AOL, Engadget and interactive media brand, RYOT. All told, the umbrella brand encompasses around 900 million monthly active users globally and is currently the third-largest internet property, per Apollo’s figures.
Looking ahead: be on the lookout for automotive and tech news coming out of IAA Mobility in Munich this week. A bit of news that broke Sunday included Volkswagen Commercial Vehicles and autonomous vehicle technology company Argo AI unveiling the first version of the ID Buzz AD. Mercedes also had a busy day in the world of EVs.
You might have noticed that the micromobbin’ section wasn’t featured in last week’s newsletter. Well, Rebecca Bellan is making up for that with an extra long write up this week. Take it away Rebecca.
Since Auckland, New Zealand is back in a massive lockdown, the highlight of my week has been getting to write about and, and thus relive, my test of the electric utility bike built by Kiwi company Ubco. If any other electric micro-vehicle companies want to send me a tester and brighten my day, I’m always open.
Tl;dr: the Ubco bike looks like a dirt bike and rides like a moped and absolutely shreds. Pros: Smooth ride, good battery life and can carry a lot of weight and accessories. Cons: A bit on the pricey side, regenerative brakes think they know what’s best for me when I’m speeding downhill and a touchy keyfob.
If you’re one of those smart lazy people who orders meal kits through the likes of HelloFresh or Blue Apron, you’ve probably interacted with AxleHire without knowing it. That’s about to change.
The last-mile logistics provider announced this week that it would be expanding two pilot programs to bring cool tech to the delivery scene. Over the past year or so, the company’s been partnering with URB-E and using its network of collapsible containers strapped onto e-bikes to make deliveries in NYC, as well as Tortoise’s remotely controlled adorable delivery bots in LA. Now, those programs, which helped AxleHire reduce emissions and beat traffic, are going national.
An Indian empire arises
Ola Electric, the electric scooter manufacturing arm of ride-hailing giant Ola, is in talks to raise between $250 million to $500 million in new financing as it looks to scale its business in the South Asian market.
Falcon Edge Capital, which is potentially leading the round, values the company between $2.75 billion and $3.5 billion, which is up $1 billion from its previous 2019 raise. Side note: Ola, the initial parent firm of Ola Electric, is currently looking to file for an initial public offering.
Big box bike sales
Best Buy has a fresh lineup of electric vehicles that are available online now and coming to select stores in October, including many we’ve written about here, like the Unagi scooter and the new Bird bike. Other top names include Segway-Ninebot, SUPER73 and SWFT.
Speaking of new swag, VAAST Bikes has just revealed the E/1, the latest in the company’s sustainable bike range. The urban e-bike boasts a top notch suspension system that separates pedaling from suspension movement for a more comfortable ride, no matter how much cargo you’re packing. A step-through frame provides a low center of gravity, making it an easy enough bike to mount for riders of all ages and shapes and sizes. The E/1 will be available to purchase in the U.S., U.K. and European markets starting October, and it costs anywhere from $7,499 to $9,999.
Foldable e-bike maker Fiido has raised over $1 million on Indiegogo to fund the production and delivery of its new Fiido X. It’s got a sweet-looking minimalist design with a light and sturdy body, as well as improved pedal-assist and cycling control. Fiido says this bike is the world’s first folding e-bike with a built-in seat pole that transmits battery power. It’s got a 417.6Wh ternary lithium battery, which means when it’s in “moped mode” the range is over 130 kilometers, or around 81 miles. Not bad at all. Price is anywhere from $1,098 to $1,601 at the moment.
Swedish electric motorbike manufacturer Cake also recently released a new super lightweight e-moped that’s built for city utility riding, but can probably handle some off-road fun. The Makka weighs about 132 pounds and comes in two forms: The Makka Range, at $3,500, which is available only in Europe, has a lower maximum speed of 15 miles per hour and a range of up to 35 miles. The Makka Flex, which is available in Europe and the U.S., costs $3,800 and can hit top speeds of 28 miles per hour. The range of this vehicle is slightly less, at 30 miles.
National Drive Electric Week (sans cars)
This is the first National Drive Electric Week that has nothing to do with cars! Fabulous. At this free, two-part expert webinar, a range of experts will talk about how to get moving on two e-wheels and discuss whether or not cars are overrated (they are). Find out how policymakers and advocates are thinking about how we can get electric micromobility and public transit to dominate the roads, rather than cars, even electric ones. The event takes place Saturday, September 25 from 11am to 1pm PST on Zoom. You can register here.
Van Moof’s big raise
VanMoof, the Amsterdam-based startup, raised a $128 million Series C funding round, fund it plans to use in its bid to become the world’s leading e-bike brand. It’s tactic, scale faster than the rest.
Asia-based private equity firm Hillhouse Investment led the round, with Gillian Tans, the former CEO of Booking.com, also participating. Some existing investors also put some more money on the table, such as Norwest Venture Partners, Felix Capital, Balderton Capital and TriplePoint Capital.
The Series C represents a big jump compared to the company’s Series B. Last year, VanMoof raised a $40 million Series B. The startup has raised $182 million in total.
— Rebecca Bellan
Deal of the week
This week, I want to focus on one deal that appears to be at risk.
Institutional Shareholder Services Inc., an influential shareholder adviser, issued a report this week recommending that investors in Ken Moelis’s Atlas Crest Investment Corp. should vote against a merger with Archer Aviation. The adviser said it would be better for investors if they redeemed their holdings in the blank-check company for cash.
If investors take that advice, it could derail the proposed merger between Atlas Crest and Archer, a startup that is developing vertical take-off and landing electric aircraft. ISS argues that Archer’s legal battle with Wisk Aero puts the company at risk. The firm also points to the falling valuation of the combined company.
As Bloomberg noted this week, ISS has targeted other SPAC deals involving eVTOL companies. ISS opposed the merger between Reinvent Technology Partners and Joby Aviation. Shareholders ignored ISS and vote to approve the merger. ISS also advised against investing in Qell Acquisition Corp.’s merger with Lililum GmbH. That deal is still pending.
While ISS seems to have a general distaste for eVTOL SPACs, the Archer deal is particularly sticky due to its current legal wrangling with Wisk Aero. For those who haven’t been following: Wisk Aero, the air mobility company born out of a joint venture between Kitty Hawk and Boeing, filed a lawsuit in April against Archer Aviation alleging patent infringement and trade secret misappropriation.
Archer didn’t scuttle into a corner. The company countersued in a lawsuit…