TechCrunch Mobility: Zoox Gears Up for Launch While Uber Expands Its Autonomous Vehicle Realm

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In just a few days, Zoox, a subsidiary of Amazon, will begin charging for rides in its robotaxis. Though this may seem minor, given that its unique robotaxis are already transporting passengers in Las Vegas and San Francisco and additionally initiating a rider program in Miami and Austin, the real significance lies in its commercial operation.

Starting August 10, Zoox will navigate this business transition thanks to a recent exemption granted by the National Highway Traffic Safety Administration (NHTSA). Since Zoox’s vehicles lack traditional controls like a steering wheel and pedals, it required this exemption from federal motor vehicle standards to operate commercially. Previously, it had permission to demonstrate the technology, but now it can run a fleet of up to 2,500 vehicles for two years. 

This exemption not only benefits Zoox but also sets a precedent for other developers of autonomous vehicles aiming to launch robotaxis without conventional features unnecessary in a driverless vehicle. For example, a robotaxi does not require a rearview mirror, as its exterior sensors can provide the necessary visibility.

Tesla stands to gain significantly here, especially with its Cybercab project in development, but it won’t be the only one.

In other developments, my in-depth analysis of Uber’s autonomous vehicle initiatives may catch your interest. It explores every collaborative effort Uber has made with other companies, revealing that they have invested around $10 billion in this sector, a figure confirmed by CEO Dara Khosrowshahi during recent earnings calls. This investment aims to deploy 120,000 driverless vehicles in the forthcoming years.

Business Developments

Moove, originally an African fintech specializing in vehicle financing for app drivers, has dramatically expanded its operations. The company has now transformed into a major player in ride-hailing, boasting a fleet of 42,000 vehicles across 13 nations. Moove has also launched a division targeting autonomous vehicles and recently secured its role as the fleet operator for Waymo in Phoenix, Miami, and Las Vegas, with plans to expand to London.

In a notable funding round, Moove garnered $250 million led by the Mubadala Investment Company, alongside Woven Capital and Ion Pacific, elevating its valuation to $2.1 billion. The funds are earmarked to enhance its autonomous vehicle fleet management division and bring on around 350 new employees.

Additionally, Moove aims to acquire Waymo robotaxis and has already acquired robotaxi assets from another undisclosed entity.

Other noteworthy transactions that caught my eye this week include:

Accell Group Holding, the Dutch cycling manufacturer behind brands like Lapierre and Raleigh, has entered an insolvency process following a suspension of payments.

Advanced Electric Machines Group raised £16 million ($21.5 million) to develop eco-friendly electric motors, with investments from various notable venture firms.

Chargepoly, a French firm focused on electrifying commercial vehicle fleets, secured €23 million ($26 million) in new funding.

Hadrian, a defense tech firm specializing in automated manufacturing, raised $1.37 billion, resulting in a valuation of $7.87 billion. Major backers include WCM Investment Management and Valor Equity Partners.

Matel Motion & Energy Solutions raised INR 130 crore ($13.6 million) to support its development of energy-efficient technologies.

Indian EV startup River raised $120 million in a Series C funding round led by Elev8 Venture Partners and other investors.

Notable Insights

Ford has revealed the name and pricing for its upcoming midsize EV, the Fathom, which will retail at $28,350 when it launches in 2027. Some believe Ford needs to step up its game beyond this model.

Joby Aviation announced a revenue increase compared to last year, thanks to its acquisition of Blade Air Mobility. Notably, the company has partnered with Atoms to create transportation hubs for air taxis and ground vehicles across several states.

Lucid Motors expressed a serious commitment during its recent earnings call, outlining a $1.4 billion cost-saving strategy amid its ongoing partnership with Uber and Nuro for robotaxis.

Nvidia has launched the Alpamayo 2 Super AI model for commercial application in the autonomous vehicle market.

Teamsters California has filed a lawsuit against the DMV, claiming inadequate impact assessments concerning self-driving trucks. The Autonomous Vehicle Industry Association responded, criticizing the lawsuit.

TechCrunch collaborated with Hudson Labs to analyze communications from Elon Musk and fellow executives over the past seven years regarding Tesla’s performance and future aims, revealing a significant focus on AI and autonomous driving technologies.

SpaceX shared its first earnings report as a public entity, showing a revenue increase largely linked to its expanding Starlink service. CEO Musk made ambitious claims during the earnings call, while executives provided more grounded insights.

Tesla and SpaceX announced the construction of a jointly developed “Terafab” chip factory in Texas, with a planned investment of $16.8 billion.

Waymo has opened its robotaxi service to all in Dallas, removing previous waitlist restrictions.

In Closing

Former Uber CEO Travis Kalanick and his AI startup Atoms are gaining traction in the industry, recently raising $1.7 billion. Kalanick is actively recruiting former colleagues for his venture, including Gautam Gupta, who has joined as CFO after a successful tenure at Uber.