Year: 2021

14 Jun 2021

Supreme Court revives LinkedIn case to protect user data from web scrapers

The Supreme Court has given LinkedIn another chance to stop a rival company from scraping personal information from users’ public profiles, a practice LinkedIn says should be illegal but one that could have broad ramifications for internet researchers and archivists.

LinkedIn lost its case against Hiq Labs in 2019 after the U.S. Ninth Circuit Court of Appeals ruled that the CFAA does not prohibit a company from scraping data that is publicly accessible on the internet.

The Microsoft-owned social network argued that the mass scraping of its users’ profiles was in violation of the Computer Fraud and Abuse Act, or CFAA, which prohibits accessing a computer without authorization.

Hiq Labs, which uses public data to analyze employee attrition, argued at the time that a ruling in LinkedIn’s favor “could profoundly impact open access to the Internet, a result that Congress could not have intended when it enacted the CFAA over three decades ago.” (Hiq Labs has also been sued by Facebook, which it claims scraped public data across Facebook and Instagram, but also Amazon, Twitter, and YouTube.)

The Supreme Court said it would not take on the case, but instead ordered the appeal’s court to hear the case again in light of its recent ruling, which found that a person cannot violate the CFAA if they improperly access data on a computer they have permission to use.

The CFAA was once dubbed the “worst law” in the technology law books by critics who have long argued that its outdated and vague language failed to keep up with the pace of the modern internet.

Journalists and archivists have long scraped public data as a way to save and archive copies of old or defunct websites before they shut down. But other cases of web scraping have sparked anger and concerns over privacy and civil liberties. In 2019, a security researcher scraped millions of Venmo transactions, which the company does not make private by default. Clearview AI, a controversial facial recognition startup, claimed it scraped over 3 billion profile photos from social networks without their permission.

14 Jun 2021

How autonomous delivery startups are navigating policy, partnerships and post-pandemic operations

We kicked off this year’s TC Sessions: Mobility with a talk featuring three leading players in the field of autonomous delivery. Gatik co-founder and chief engineer Apeksha Kumavat, Nuro head of operations Amy Jones Satrom, and Starship Technologies co-founder and CTO Ahti Heinla joined us to discuss their companies’ unique approaches to the category.

The trio discussed government regulation on autonomous driving, partnerships with big corporations like Walmart and Domino’s, and the ongoing impact the pandemic has had on interest in the space.

The pandemic effect

Delivery is one of the countless categories that have been profoundly impacted by COVID-19. Interest in autonomous delivery has compounded, but will this be a permanent sea change? Or will things regress some when life returns to normal?

Kumavat : Even before the pandemic hit, this whole e-commerce trend was already on the rise. No one wants their deliveries to be done after a week or two weeks. Everyone is expecting them to be done on the same day, as well as curbside pickup options. There was already a rise in the expectations of e-commerce and on-demand deliveries even before the pandemic hit. Post-March 2020, what we have seen is a huge increase in that trajectory. (Timestamp: 1:55)

Jones Satrom: When you think about the number of trips the consumer used to take just for shopping, that’s roughly 40% of the trips they would take. They now have habits around that kind of stuff. It’s a timesaver for the consumer. We do see those trends continuing and we do see folks sustaining the online ordering piece and wanting to be able to get things when they want them. (Timestamp: 8:39)

14 Jun 2021

Redwood Materials is setting up shop near the Tesla Gigafactory as part of broader expansion

Redwood Materials, the battery recycling startup founded by former Tesla CTO JB Straubel, has purchased 100 acres of land near the Gigafactory that Panasonic operates with Tesla in Sparks, Nevada as part of an expansion plan that aligns with the Biden Administration’s drive to increase adoption of electric vehicles and boost domestic battery recycling and supply chain efforts.

The company said Monday that its existing 150,000-square-foot facility in Carson City, Nevada will also nearly triple in size. Redwood is adding another 400,000 square feet onto the Carson City recycling facility. As part of its growth plans, Redwood is also hiring hundreds of workers. The company, which is backed by Amazon, employs 130 people today and expects to add more than 500 jobs over the next two years.

Redwood’s expansion announcement follows the Biden Administration’s 100-day review of the U.S. supply chain and the release of a Department of Energy’ document that lays out a plan to improve the domestic supply chain for lithium-based batteries.

“America has a clear opportunity to build back our domestic supply chain and manufacturing sectors, so we can capture the full benefits of an emerging $23 trillion global clean energy economy,” Energy Secretary Jennifer M. Granholm said Monday in a statement. “Private sector investment like this is a sign that we can’t slow down. The American Jobs Plan will unlock massive opportunities for US businesses as it spurs innovation and demand for technologies–like vehicle batteries and battery storage–creating clean energy jobs for all.”

Redwood Materials, which was founded in 2017, is trying to create a circular supply chain. The company has a business-to-business strategy, recycling the scrap from battery cell production as well as consumer electronics like cell phone batteries, laptop computers, power tools, power banks, scooters and electric bicycles. Redwood collects the scrap from consumer electronics companies and battery cell manufacturers like Panasonic. It then processes these discarded goods, extracting materials like cobalt, nickel and lithium that are typically mined, and then supplies those back to Panasonic and other customers. The aim is to create a closed loop system that will ultimately help reduce the cost of batteries and offset the need for mining.

Redwood Materials has a number of customers, and has only publicly disclosed that it is working with Panasonic, Amazon and AESC Envision in Tennessee

Redwood Materials says it recovers about 95% to 98% of the elements from the batteries such as nickel, cobalt, lithium and copper. Today, it receives 3 gigawatt-hours annually, a figure that the company says is equivalent to about 45,000 cars.

14 Jun 2021

The US should welcome refugees on humanitarian terms, not just economic ones

In December 1991, about 20 days before the Soviet Union formally disintegrated, my family landed in San Francisco as religious refugees fleeing persecution. I was a 9-year-old kid who had just experienced his first airplane trip and was utterly mesmerized by the skyscrapers of the city’s skyline as we drove past. It felt like arriving into the future.

My parents had almost nothing to their names. No degrees or specialized skills. Not a word of English. Only a few hundred dollars in cash from selling most of our possessions in Russia. They had just learned that half of our “luggage” — makeshift bags that were hand-sewn by my mother out of used floor rugs — was lost in transit.

Our journey wasn’t made possible by some employer seeking specialized labor, nor by a merit assessment that deemed our family as economically valuable immigrants. Instead, it was made possible by many Americans seeing inherent value in human beings seeking a better life. From people who wrote letters to Congress to increase refugee quotas, to sponsoring families who shared their homes and paychecks and lives to support arriving families, to organizations like World Relief, which funded unsecured loans to pay for airline tickets for those who couldn’t afford them — all did their part with no expectation of economic gain.

I worry that outlier success stories — especially those that are filled with considerable luck and privilege like mine — can send the wrong message.

Integration into life in the United States wasn’t easy. Our family had to rely on welfare for several years as our parents learned English in night classes and attempted many different ways to make a living for our family of eight. Not being able to find a full-time job, my father tried every mail-order contract gig he could learn about — from cutting out thousands of leather pieces for shoes to soldering electronic boards to order to translation of documents from English to Russian. Eventually, he started his own business repairing and maintaining computers.

In every moment, I saw my parents seeking to pay back what others had selflessly done for us. They taught me there’s dignity to doing good work, even if it’s work that others don’t find glamorous. Even a decade later, our family was still barely scraping by financially. As I was applying to colleges as a senior in high school, our entire family would pack up our minivan on most evenings after dinner to clean dental clinics to make ends meet.

This is the point in my tale where it might make the most sense to insert my own story of living out a wildly unbelievable version of the American dream — especially for a refugee.

I could tell you how after college I co-founded Webflow, a no-code software development company that employs nearly 300 people and is now valued at over $2 billion. And how stories like mine are the reason why we should open our doors to more refugees to come to the United States.

However, I worry that outlier success stories — especially those that are filled with considerable luck and privilege like mine — can send the wrong message. These tales can imply that the value and worth of immigrants and refugees are primarily economic. I worry that especially now, at a time when immigration has become a politically polarizing issue in this country, the conversation about the value of immigrants will continue shifting toward being purely merit-based.

Too often, if “merit” is the criterion, human beings are seen as worthy of joining our country if and only if they’re the “best of the best” or the “cream of the crop” in some skill or industry. In such cases, people are judged solely by how much economic value they can create in the short term.

Yes, merit-based immigration has an important place in our economy to solve shorter-term skill gaps in various industries. But if we only focus on that, I believe that our nation will have lost an important part of its character and heritage. We shouldn’t reduce our efforts to offer a safe haven to people whose lives are threatened back home. Turning our backs on the most vulnerable only to focus on the most economically advantageous would betray the spirit of what I believe makes the United States a beacon of hope and opportunity for so many people.

The good news is that you can get outsized economic benefits in the longer term by accepting more refugees. I know this because for every startup founder story like mine, there are hundreds of thousands of hard-working refugees who needed some help at first but are now contributing massively to our tax base as nurses, doctors, lawyers, firefighters and business owners. In fact, refugees have the highest rate of entrepreneurship.

After experiencing hardship and oppression in their originating countries, refugees have unparalleled drive to make a better living for themselves, their families and their communities — which helps lift our entire economy.

My hope is that more people are given this kind of opportunity and that more industry leaders will start to advocate for immigration on humanitarian terms — not just economic ones. It will make our economy stronger in the end.

When given the chance to live freely without fearing for our lives, my family and so many others like us will work harder than most to contribute to society. Why? Because we feel a deep sense of gratitude to a nation that welcomed and accepted us because of, first and foremost, who we are as human beings.

14 Jun 2021

Everyone you know is a Disney princess, which means AR is queen

This weekend, all of your friends morphed one by one into animated, Pixar-inspired characters. This isn’t a fever dream, and you’re not alone.

On Thursday, Snapchat released a Cartoon 3D Style Lens, which uses AR to make you look like a background character from “Frozen.” Naturally, even though TikTok’s own AR cartoon effects aren’t quite as convincing as Snapchat’s, people are turning to TikTok to share videos of themselves as Disney princesses, because of course they are.

This isn’t the first time that a Disney-esque AR trend has gone viral. In August 2020, Snapchat had 28.5 million new installs, which was its biggest month since May 2019, when it got 41.2 million new installs. It might not be a coincidence that in early August 2020, Snapchat released the Cartoon Face lens, which users realized could be used to “Disneyfy” their pets – the tag #disneydog got 40.9 million views across platforms on TikTok. Then, Snapchat struck viral gold again in December, when they released the Cartoon lens, which rendered more realistic results for human faces than the previous iteration.

According to Sensor Tower, Snapchat’s global installs continued to climb month-over-month throughout the rest of 2020, though installs slightly declined in December. Still, Snapchat got 36 million downloads that month. Now, after the newest Cartoon Style 3D lens went viral again, Snapchat hit number 6 on the App Store’s free apps charts, compared to TikTok’s number 2 slot. Still, Snapchat downloads in May were 32 million, down from 34 million in April, while TikTok saw 80.3 million installs in May, up from 59.3 million in April.

Image Credits: Snapchat, screenshots by TechCrunch

But there’s a new app in the number 1 slot that also made an impact on this weekend’s cartoon explosion. Released in March, Voilà AI Artist is yet another platform that turns us into cartoon versions of ourselves. Unlike the AR-powered effects on Snapchat or TikTok, Voilà is a photo editor. Users upload a selfie, and after watching an ad (the ad-free version costs $3 per week), it reveals what you would look like as a cartoon.

Voilà AI Artist was only downloaded 400 times globally in March 2021. By May, the app surpassed 1 million downloads, and during the first two weeks of this month alone, the app has been downloaded over 10.5 million times.

Again, like the repetitive iterations on the “Disneyfy” trend, apps like Voilà aren’t new. FaceApp went viral in 2019, showing people what they’ll look like when they’re old, graying, and wrinkled. The app became the center of a privacy controversy, since it uploaded users’ photos to the cloud to edit their selfies with AI. FaceApp made a statement that it “might store updated photos in the cloud” for “performance and traffic reasons,” but that “most images” are deleted “within 48 hours.” Still, this ambiguous language set off the warning bells, urging us to think about the potentially nefarious implications of seeing what we’ll look like in sixty years. Two years earlier, FaceApp put out a “hotness” filter, which made users’ skin lighter – FaceApp apologized for its racist AI. Voilà, which is owned by Wemagine.AI LLP in Canada, has also been criticized for its AI’s eurocentrism. As these apps grow in popularity, they can also uphold some of our culture’s most harmful biases.

Image Credits: Voilà

Like FaceApp, Voilà requires an internet connection to use the app. Additionally, its terms outline that users grant the company “a non-exclusive, worldwide, royalty-free, sublicensable, and transferable license to host, store, use in any way, display, reproduce, modify, adapt, edit, publish, and distribute Uploaded and Generated content.” Basically, that means that if you upload an image to the platform, Voilà has the right to use it, but they don’t own it. This isn’t abnormal for these apps – when we upload photos to Instagram, for example, we also grant the platform the right to use our images.

Still, it’s a good thing that apps like Voilà force us to consider what we give up in exchange for the knowledge that we’d make a good Disney princess. Earlier this month, TikTok updated its U.S. privacy policy to dictate that the app “may collect biometric identifiers and biometric information” from users’ content. This includes “faceprints and voiceprints,” terms that TikTok left undefined. When TechCrunch reached Tiktok for comment, they couldn’t confirm why the terms now changed to allow for the automatic collection of biometric data, which refers to any features, measurements, or characteristics of our body that distinguish us, even fingerprints.

It’s no wonder that as Voilà climbed to the number one slot on the App Store, Snapchat re-upped their Pixar-inspired AR lens. Facebook’s own Spark AR platform is rolling out new features, and last week at WWDC, Apple announced a major update to RealityKit, its AR software. But these trends reveal more about our growing comfort with face-altering AR than they do about our nostalgia for Disney.

14 Jun 2021

Fraud protection startup nSure AI raises $6.8M in seed funding

Fraud protection startup nSure AI has raised $6.8 million in seed funding, led by DisruptiveAI, Phoenix Insurance, AXA-backed venture builder Kamet, Moneta Seeds and private investors.

The round will help the company bolster the predictive AI and machine learning algorithms that power nSure AI’s “first of its kind” fraud protection platform. Prior to this round, the company received $550,000 in pre-seed funding from Kamet in March 2019.

The Tel Aviv-headquartered startup, which currently has 16 employees, provides fraud detection for high-risk digital goods, such as electronic gift cards, airline tickets, software, and games. While most fraud detection tools analyze each online transaction in an attempt to decide which purchases to approve and decline, nSure AI’s risk engine leverages deep learning techniques to accurately identify fraudulent transactions.

nSure AI, which is backed by insurance company AXA, said it has a 98% approval rating on average for purchases, compared to an industry average of 80%, allowing retailers to recapture nearly $100 billion a year in revenue lost by declining legitimate customers. The company is so confident in its technology that it will accept liability for any fraudulent transaction allowed by the platform.

nSure AI’s founders Alex Zeltcer and Ziv Isaiah started the company after experiencing the unique challenges faced by retailers of digital assets. The first week of their online gift card business found that 40% of sales were fraudulent, resulting in chargebacks. The founders began to develop their own platform for supporting the sale of high-risk digital goods after no other fraud detection service met their needs.

Alex Zeltcer, co-founder and chief executive, said the investment “enables us to register thousands of new merchants, who can feel confident selling higher-risk digital goods, without accepting fraud as a part of business.”

nSure AI, which currently monitors and manages millions of transactions every month, has approved close to $1 billion in volume since going live in 2019.

14 Jun 2021

Commsor buys Meetsy to build community tools for all

Mac Reddin, the co-founder and CEO of Commsor, met the first professional investor for his company’s $16 million Series A on Lunch Club, a marketplace for 1:1 video introductions. Commsor, which sees itself as an operating system for community managers, then experienced first-hand the benefit of matching people within similar industries in an engaging, online setting.

It’s thus quite fitting that, months later, Commsor is adding a company to its tech stack that is focused on private networking within communities. Commsor has scooped up Meetsy, a startup that helps people within communities facilitate creative and spontaneous conversations with each other. Meetsy, a fully-bootstrapped business, was founded by Bradley Tramer and sold for an undisclosed price.

Commsor launched months ago to be the solution that helps community managers prove that they’re not wasting the budget and their work is tied to real, valuable outcomes. Commsor could pull an insight like, “Here are three Google engineers that are using your [insert community platform name here]. so maybe it’s time to approach Google and ask if they want an enterprise contract.”

With the acquisition, Commsor’s ambition appears to be broadening a bit. In order for a community to be outwardly valuable to a business, it has to be inwardly healthy. The members have to connect, riff, and have a chance to debate that shared interest that placed them there in the first place. Meetsy works within companies, matching employees to employees, alumni programs, and with venture capitalists that want their portfolio companies to connect with one another as well.

“If Commsor helps you prove the business value of community, and Meetsy helps you build a better community, those two together compound into an even bigger impact.”

Even as growing vaccination rates in the United States may turn on the faucet for in-person interactions, many think there will continue to be a virtual component to interactions especially with distributed teams. Surely enough, the wave of super-connector apps has grown larger as remote work gets deeper roots. The aforementioned Lunch Club was last valued at $100 million, Workvivo raised $16 million in financing, and Gatheround landed $3.5 million seed round last month.

“Every virtual event tool I’ve seen how some sort of networking built into it, but it’s usually what I’d consider ‘dumb networking’,” Reddin said. He’s alluding to the common “speed dating” strategy of placing random people with each other for a few minutes, and then shuffling to repeat.

Meetsy, he said, has refined a robust matching system so a community manager can come in and define people by their self-chosen attributes. It can then fill out match rules based on guidelines for how they want matches to happen. For example, Meetsy could make sure that fintech VCs only meet fintech startups to spark a future investment, or that employees only can meet without employees outside of their current team to promote cross-collaboration.

“That way it’s not just smashing two rocks together and hoping sparks fly,” Reddin said.

The two companies will continue to exist underneath existing branding, but Meetsy users might be able to get a discount on Commsor or benefit from future bundling features. Meetsy has always been free to use but will experiment with new paid features in the future such as white-labeling capabilities, or a tier-system that requires companies to pay once they hit a certain scale of community members.

Tramer, the founder of Meetsy, said that combining tools with Commsor will help community managers “foster meaningful connection at scale and measure the impact of those connections.”

“In 5 years, I see ‘curated introductions’ as a core pillar of community engagement alongside events and forums,” he said.

14 Jun 2021

How one founder is bringing the global corporate security industry out of the dark ages

When Cory Siskind finished school, she was dropped into a high-stakes job helping large multinational corporations manage their operational security in Mexico City, with almost no relevant lived experience. Eventually, she realized that this was more or less par for the course in the corporate security field, which lagged behind other mission-critical enterprise services, like information security.

The industry still relied on recent grads doing manual work like combing through blogs and local news reports, and on security industry veterans with contacts on the ground to build a sort of ‘whisper network’ of ground truth. Those things are obviously still valuable, but advancements in technology mean that there are many, many more sources of information that can provide valuable insight into the security situation in any particular country, region or even neighborhood, and machine learning has progressed to the point where it can do a lot of the legwork involved in helping analysts parse the data.

Cory tells us all about how she came to the conclusion that Base Operations needed to be built to bring modern tech to bear on the capabilities gap she saw in how companies manage their global security footprint, and how she set out getting the skills needed to build her startup as a sole founder. We talk about the challenges of fundraising in an area where most traditional VCs likely feel out of their depth, and building a sales operation that can handle big clients even very early on tin her startup’s life.

We loved our time chatting with Cory, and we hope love yours listening to the episode. And of course, we’d love if you can subscribe to Found in Apple Podcasts, on Spotify, on Google Podcasts or in your podcast app of choice. Please leave us a review and let us know what you think, or send us direct feedback either on Twitter or via email. And please join us again next week for our next featured founder.

14 Jun 2021

E3 2021 catch up

If you’re like me, you spent the weekend longing for the mixed bag that is downtown Los Angeles during E3. I’ve got fond memories of fish tacos, The Last Bookstore, watching playoff basketball in garishly lit hotel lobbies and, of course, video game press conference after video game press conference.

For a second year in a row, the show’s gone all virtual, owing to…well, you know, that pesky virus that has defined the past year and a half of our lives. Last year’s show was canceled altogether (though a handful of companies still kept to the schedule). Show organizers simply didn’t think they would be able to pull together a digital event — and frankly, it’s probably for the best that they understood those limitations.

The 2021 event, which kicked off on Saturday, marks the first all-virtual version of the event. For the time being, it’s also the last. Mayor Eric Garcetti kicked off the show by announcing that E3 would return to the LA Convention Center in 2022.

Gaming had a banner 2020, and while growth has slowed, as parts of the world look forward to a post-pandemic life, things are still growing. Some well-timed numbers from NPD this morning point to a 3% year-over-year growth for May 2021, as spending on gaming rose to $4.5 billion. Year-to-date, things are up 17%.

The timing of last year’s canceled event was certainly unfortunate from a hardware standpoint. Console refreshes are massive events at E3. 2020 gave us the PlayStation 5 and Xbox Series X. Announcements were relegated to Sony and Microsoft’s own events. That meant the companies were able to draw things out — revealing small details, piece by piece, rather than saving everything for the big show. It’s a strategy that lends itself much better to virtual presentations and blog posts than it does big conventions.

Sony is sitting this one out, too. While it’s entirely possible the company will be holding a big, virtual State of Play event at some point this summer, it won’t be tied to E3. Still, some Sony execs like PlayStation Studios head Hermen Hulst used the opportunity congratulate Microsoft on “a great showcase” on Twitter. So that’s a nice thing.

Thus far, Microsoft is the only one of the big three to present at the event. Nintendo will be holding a Treehouse event tomorrow. The Switch Pro could be on tap for the event, with an upgraded OLED display and internals. That would likely also mean a bunch of upgraded content for the new version of the four-year-old console.

Microsoft, meanwhile, went big on games. Understandable, given the recent launch of the Series X. And, let’s face it, these virtual events are perfectly suited for playing a whole bunch of trailers. The company showcased 30 games (and a fridge) in all. Of those, 27 will be part of the Xbox Game Pass, in case you had any doubt about what the future of gaming on the Xbox will look like. The event was framed as a combination Xbox and Bethesda showcase, having acquired the publisher earlier this year.

“Our growing family of 23 studios is devoted to advancing the medium we all love,” the company writes, “so we were happy to share that now through the end of the year, you can look forward to back-to-back monthly releases coming to Xbox Game Pass on day one, led by a record five new titles from Xbox Game Studios this holiday, including Halo Infinite.”

Highlights include:

Halo Infinite got a trailer and some in-game multiplayer footage. The latest version of the beloved Xbox mainstay is arriving this holiday season.

Starfield will be arriving November 11 [deep breath] 2022. The expansive space title will be an Xbox exclusive at launch.

Forza Horizon 5 will arrive in November. The latest installment of the popular racing series is set in Mexico.

In a no-brainer crossover event, Sea of Thieves will be teaming up with Pirates of the Caribbean for gameplay featuring Captain Jack Sparrow and others.

Age of Empires IV got an extended trailer and release date: October 28.

Battlefield 2042 got its first gameplay, including a sweet new wing suit.

Microsoft’s Flight Simulator will be hitting the new Xboxes on July 27th, along with a Top Gun expansion pack. That’s in honor of Top Gun: Maverick, which is apparently still coming out at some point.

Square Enix also held its customary big showcase on Sunday. The publisher will be releasing a bunch of new Marvel titles. Highlights include:

The long-awaited Guardians of the Galaxy. The adventure title is set to launch this October.

Marvel’s Avenger, meanwhile, will be getting the Black Panther-themed expansion pack, War for Wakanda. That’s arriving in August.

It wouldn’t be a Square Enix event without a Final Fantasy spinoff, right? The perennial favorite RPG is birthing Stranger of Paradise Final Fantasy Origin, which arrives on a slew of different platforms next year.

Ubisoft, meanwhile, made waves on Saturday with a first look at the new Avatar adaptation, Avatar: Frontiers of Pandora.

Tom Clancy’s Rainbow Six: Extraction is due out on September 16. Originally titled Rainbow Six: Quarantine, the name was changed for obvious reasons.

Capcom and Take-Two will showcase tonight, followed by Nintendo Direct and Bandai Namco tomorrow. On Thursday, EA is set to hold its own Play Live event. Meanwhile, here’s some video of that new Xbox fridge. Who said there wasn’t any new hardware?

 

14 Jun 2021

The Station: Robotaxi apps on the rise, an AI pioneer’s new startup and mobility event highlights

Hello and welcome back to The Station, a weekly newsletter dedicated to all the ways people and packages move (today and in the future) from Point A to Point B.

Welp, the mobility event is over and we had loads of interesting interviews and anyone with an Extra Crunch subscription can access the videos. For instance, Rita Liao moderated a panel with executives from three Chinese robotaxi companies — WeRide, AutoX and Momenta — that also test and develop in Europe and the United States.

One interesting takeaway on the regulations front, is that policymaking for AVs in China is driven from the bottom up rather than a top-down effort by the central government, the three panelists explained.  They also spoke about how foreign counterparts can crack open China’s market.

Jewel Li from AutoX laid out the challenges of operating in China.

I think it’s not as simple as opening up an office, right? It’s much more than that, to be able to succeed in the market. You need to build the landscape, you need to build the ecosystem, your own partners. The whole ecosystem chain is quite long. It’s quite complicated, involving government relations. It also involves the data that you have already accumulated. The driving experience has to fit in the local world. Many things comes into play.

Other highlights included my interview with Mate Rimac of Rimac Automobili, who disclosed about how close the company came to failing, provided advice to fellow and aspiring founders and explained his interest in electric robotaxis. Then there was the discussion about the AV industry between Motional’s Karl Iagnemma and Aurora’s Chris Urmson — not an interview to miss. More recaps of the event will be published in the coming week.

Some other coverage from the event:

Email me at kirsten.korosec@techcrunch.com to share thoughts, criticisms, offer up opinions or tips. You can also send a direct message to me at Twitter — @kirstenkorosec.

Micromobbin’

This week, as Kirsten Korosec mentioned above, we had our big Mobility event, where the leaders, upstarts and startups of the mobility world joined us on our virtual stage to talk about the future of moving people, goods and even ideas. I led a panel with Remix co-founder and CEO Tiffany Chu, community organizer, transportation consultant and lawyer Tamika L. Butler and Revel co-founder and CEO Frank Reig. We discussed the importance of mobility companies being equitable and accessible to everyone in a city, especially the most vulnerable, and how that affects profitability.

Something interesting that came out of my questioning was Reig’s comments about Revel achieving profitability.  (The revelations about profitability were first shared in May, although Reig did provide a bit more color during the event). For three months in the summer of 2020, Revel was full-company profitable, “so beyond just market profitability, beyond just unit economics,” said Reig. “I’m talking my salary and everything else that’s involved in running a company.”

This was back when Revel was only an e-moped company and before it added several other business lines, including EV charging hubs, ebikes and ride-hailing. We don’t know exactly how Revel is measuring profitably — are we talking EBITDA? gross profit? — and on the panel we didn’t have time to dig into the money salad. But it is notable as the company settles into its newest business line of ride-hailable Tesla vehicles. We’ll be watching Revel closely as it continues to ramp up its different revenue streams. Maybe, someday they’ll go public so we can have a closer look.

Let’s get back to the important issue of whether or not mobility companies, like Revel, can help cities achieve equitability of movement. Movement should be a right, not a privilege, but it often feels like we’re playing the same game with different vehicles today. Mobility has always benefited those at the top more, so why should it be any different today? Does the moral highway really drive us toward justice? What good reason do companies have to spend their time and money actually making sure their services help cities achieve equity of movement?

“I think if you’re doing the work that theoretically is to serve people then you should want to serve all people,” said Butler. “For companies, I would say that people like to say it takes too much time or costs too much money to do things equitably, but whether or not you’re retrofitting a house or retrofitting your company, whenever you retrofit something it costs more money. So if you think about equity as something you build in from the beginning, it will actually save you money and take less time than if you try to do it later because someone tells you to do it or you’ve had some controversy.”

You can watch the full talk on ExtraCrunch here.

Some micro morsels…

Leo Riders, an e-scooter platform for those in the hospitality industry, is expanding into Athens, Greece, with more than 20 agreements with local hotels. Hotels like Brown Hotel and Colors Urban Hotel will now be able to offer guests e-scooters to ride around the city. Sounds sick. What could go wrong?!

E-scooter subscription and sales company Unagi is expanding its “All-Access” service” to Chicago, D.C., and some other regions around those two great American cities.

Lime is extending its ‘Ride to Recovery’ initiative — which provides free e-scooter and bike rides to vaccine appointments — to the fourth of July. Riders can access a promo code for two free 15-minute rides here, as well as information on vaccines and where to get one.

Future Motion’s Onewheel, the unique and fun-looking vehicle that’s like a skateboard with a giant wheel in the middle of the board, has reached 52.5 million miles. They wanted me to tell you that’s 220 trips to the moon and back, 2,100 times around the earth and nearly 18,000 trips between Santa Cruz, California and NYC.

— Rebecca Bellan

Deal of the week

money the station

Didi, Chinese ride-hailing company, has already raised tens of billions of dollars from the private market. Now it’s ready to tap the public one.

The company filed for an IPO and digging a bit into the filing here’s what we find. As TechCrunch’s Alex Wilhelm notes, the S-1 shows how quickly and painfully COVID-19 blunted Didi’s global operations. As COVID-19 numbers have fallen and economies have opened back up. Didi has settled back to late-2019 gross transaction volume numbers.

Didi manage a GTV recovery in China. However, its aggregate numbers are flatter, and recent quarterly trends are not incredibly attractive. And taking a historical look at its financial figures, it’s clear that Didi has never generated positive operating income. The company’s revenues in Q1 2021 were smaller than its Q3 and Q4 2020 numbers, for example.

A few other items of note, the company reported a $1.7 billion loss on $21.6 billion in revenue for 2020. And some of its largest stakeholders are Softbank with 21.5%, Uber with 12/5% and Tencent with 6.8%.

Other deals that got my attention …

Branch Insurance, a startup offering bundled home and auto insurance, raised $50 million in a Series B funding round led by Anthemis Group. Acrew, Cherry Creek Holdings and existing backers Greycroft, HSCM Bermuda, American Family Ventures, SignalFire, SCOR P&C Ventures, Foundation Capital and Tower IV also participated in the round. The startup has raised $82.5 million in total funding since its inception in 2017.

A couple of Chinese grocery delivery companies filed for IPOs this week. First up is Dingdong, which previously raised more than $400 million from investors including General Atlantic, Sequoia Capital China, Starquest China, Qiming Venture Partners, Bertelsmann Asia Investments and General Atlantic. The regulatory filing shows that Digndong had a net loss of $485 million on $1.73 billion in revenue last year. Then there’s Missfresh, which has raised more than $2 billion from investors including a fund under state-backed China International Capital Corporation,  ICBC International Securities, Tencent, Abu Dhabi Capital Group, Tiger Global and a fund managed by the government of Changshu county. Missfresh reported a $252 million net loss on $956 million in revenue in 2020, according to the filing.

Circulor, a supply chain traceability and CO2 tracking company, raised $14 million in Series A funding round. The Westly Group led the round with participation by Salesforce Ventures, BHP Ventures, Future Positive Capital, 24Haymarket and Sky Ocean Ventures, alongside existing investors in the company. Circulor’s product is used by Volvo Cars to  trace the cobalt used in its all-electric XC40 Recharge and by Polestar to assess the environmental and human rights risks of sourcing cobalt, lithium, nickel, lithium and mica for its electric cars.

Embraer’s electric vehicle takeoff and landing unit Eve Urban Air Mobility is in talks to merge with special purpose acquisition company Zanite Acquisition Corp. The deal would value the combined entity at about $2 billion, Bloomberg reported.

Hesai, a Shanghai-based lidar maker founded in 2014, raised more than $300 million in a Series D funding round led by GL Ventures, the venture capital arm of private equity firm Hillhouse Capital, smartphone maker Xiaomi, on-demand services giant Meituan and CPE, the private equity platform of Citic. Huatai International Private Equity Fund, the USD investment arm of Huatai Securities, Lightspeed China Partners and Lightspeed Venture Capital as well as Qiming Venture Partners also participated.

Incari, Berlin-based HMI startup, closed a €15 million ($18.1 million) Series A financing round led by Lukasz Gadowski, the founder of Delivery Hero and Team Europe.

Kitty Hawk, the eVTOL company backed by Google co-founder Larry Page, acquired 3D Robotics. Under the deal, 3D Robotics co-founder Chris Anderson will become chief operating officer at Kitty Hawk, Forbes reported. The article also revealed that Kitty Hawk engineer Damon Vander Lind, who built the initial versions of Heaviside, was dismissed, CEO Sebastian Thrun confirmed to Forbes.

Nvidia is acquiring DeepMap, the high-definition mapping startup announced. The company said its mapping IP will help Nvidia’s autonomous vehicle technology sector, Nvidia Drive. Nvidia is expected to finalize the acquisition in Q3 2021.

Trucks Venture Capital, the venture firm that backs early-stage entrepreneurs in transportation, is launching two new funds. Its new core fund, known as Trucks Venture Fund 2, was raised over the last year and recently closed on $52,525,252. The fund is backed by three auto OEMs and three auto suppliers that make everything from bicycles to Class 8 big rig trucks, as well as one communications company, according to Trucks VC. The VC’s new follow-on fund, Trucks Growth Fund, will provide later-stage capital to some of the most promising companies already in Trucks’ portfolio.

Waabi, a new autonomous vehicle startup founded by AI pioneer and chief scientist at Uber ATG Raquel Urtasun, raised $83.5 million in a Series A round led by Khosla Ventures, with additional participation from Uber, 8VC, Radical Ventures, OMERS Ventures, BDC and Aurora Innovation, as well as leading AI researchers Geoffrey Hinton, Fei-Fei Li, Pieter Abbeel, Sanja Fidler and others. Urtasun said she is taking what she describes as an “AI-first approach” to speed up the commercial deployment of autonomous vehicles, starting with long-haul trucks.

WhereIsMyTransport announced it is set to raise $14.5 million in Series A extension round led by Naspers Foundry, Cathay AfricInvest Innovation Fund, and SBI Investment. Other participants confirmed in the extension are Capria Ventures and Wuri Ventures, Mission Gate, B&Y, and KDDI Open Innovation Fund managed by Global Brain.

Robotaxi apps on the rise

the station autonomous vehicles1

Last week, I shared the Waymo One app information courtesy of Sensor Tower, the mobile app market intelligence firm. There are not many other AV developers that have launched ride-hailing apps, although that might be changing.

Argo AI and Zoox have job listings for Android software engineers. Zoox is also looking for an iOS engineer as well.

Sensor Tower did note to TechCrunch that Pony.ai has launched a few apps. PonyPilot+ has hit about 6,000 installs on China’s App Store. PonyPilot has seen about 2,000 in the U.S., most of which happened in the first three months of 2020, according to Sensor Tower. The company also has two apps available in Russia called PonyExpress+, which has seen about 1,500 installs, and PonyFleetGO. There are no download estimates for PonyFleetGo.

AutoX also has an app available, AutoX Food Delivery, which has reached about 200 installs in the United States.

Policy corner

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President Joe Biden has set his sights on hardening the country’s supply chains for essential goods and critical minerals. The White House said on June 8 it had created a task force aimed at addressing supply chain bottlenecks, including in semiconductors and critical minerals used in EV batteries.

Biden wants to get many more Americans driving electric vehicles, but the majority of key critical minerals in batteries, like lithium and graphite, are mined and processed abroad. As part of a Fact Sheet also released on June 8, Biden’s administration said it would create a task force to identify opportunities to produce minerals domestically — something that until now has kicked up a lot of controversy amongst environmental groups.

The U.S. Department of Energy released a blueprint for lithium batteries through 2030 that calls for eliminating two key minerals from batteries — cobalt and nickel — as a way of fortifying the supply chain. The DOE says it will support R&D efforts to develop batteries without these minerals, which are largely found in places like the Democratic Republic of Congo or Indonesia, and are processed mainly in China. Scientific innovation is certainly one way to reduce America’s dependence on foreign adversaries for its batteries.

The House Transportation and Infrastructure Committee passed a sweeping $547 billion infrastructure package after a whopping 19 hours of debate (pour one out for the Congressional interns). The final vote was 38-26. As a reminder, the INVEST in America Act would largely fund improvements to roads, bridges and passenger rail, but earmarks $4 billion in electric vehicle charging infrastructure and around $4 billion to invest in zero-emission transit vehicles.

Just two Republicans on the committee voted in favor of the bill. The INVEST in America Act is still very, very far from becoming law: it now advances to the full House for further debate, then would be sent to the Senate for further rehashing, etcetera etcetera… but nevertheless it’s an encouraging sign, especially as legislators managed to work out over 200 proposed amendments to the legislation.

GM is changing its tune on proposed tailpipe emission rules in California. The country’s largest automaker had previously opposed California’s tough emissions limits for passenger vehicles, which it reached in concert with five other automakers: Ford, Honda Motor Company, Volkswagen AG, Volvo and BMW. The New York Times reported that GM CEO Mary Barra said in a Wednesday letter to EPA Administrator Michael Regan that “GM supports the emissions reduction goals of California through model year ’26,” and that, “the auto industry is embarking upon a profound transition as we do our part to achieve the country’s climate commitments.”

However, she said that GM “believes that the same environmental benefits can and should be achieved through a high-volume electric vehicle pathway.” That is to say, she said the best way to reduce emissions is to boost EV sales through government incentives, rebates and other programs.

The EPA will be publishing its proposed tailpipe emissions reductions and fuel economy standards in July. Regan has been meeting with major OEMs, including GM, in advance of that release.

— Aria Alamalhodaei

Extra Crunch: Air taxi market analysis

Image Credits: Bryce Durbin

TechCrunch’s Aria Alamalhodaei dug into the aspirations of the burgeoning electric vertical take-off and landing industry. The upshot: the industry is bullish on its future, a view perhaps augmented by the string of partnership deals, SPACs, private funding and newly achieved unicorn statuses.

However, as in any disruptive industry, the forecast may be cloudier than the rosy picture painted by passionate founders and investors. A quick peek at comments and posts on LinkedIn reveals squabbles among industry insiders and analysts about when this emerging technology will truly take off and which companies will come out ahead. Other disagreements have higher stakes. Wisk Aero filed a lawsuit against Archer Aviation alleging trade secret misappropriation. Meanwhile, valuations for companies that have no revenue yet to speak of — and may not for the foreseeable future — are skyrocketing.

Electric air mobility is gaining elevation. But there’s going to be some turbulence ahead. This is an Extra Crunch article, which means it requires a subscription. Happy reading.