Topic: Ride sharing
Nissan-Renault Plans to Combine Electrification, Automation and Mobility Within 10 Years (Jun 23, 2017)
Uber Adds Tipping and Makes Other Driver-Friendly Changes (Jun 20, 2017)
While ride sharing companies like Uber and Lyft continue to grab the majority of attention in the transportation tech space, with autonomous driving technology companies getting most of the rest, it’s worth remembering that there are various other transportation tech startups out there, not all of them doing all that well. It appears that Uber is in the process of trying to acquire assets and hire staff from valet parking service Luxe, which is one of those services that appears to have struggled to make its business model work. It had recently announced a pivot of sorts to a new model, but it now seems as though all that will remain is a shell once Uber has snapped up the parts it wants. That may or may not mean that Uber expands into the valet parking space – in fact, I’d say it’s at least as likely that Uber simply sees this as a way to get a number of competent staff with relevant skills quickly and easily while also acquiring some relevant technology.
Uber Pool Burned Through Cash for Months in San Francisco (May 31, 2017)
One of the best recent examples of the fragmentation that still exists within Alphabet and even within Google specifically is the fact that Waze, the navigation app acquired by Google a couple of years ago, has been working on what’s effectively a ride sharing service, and that it’s been doing so entirely independently of any other part of Alphabet or Google that’s working on related services and technology. It grew entirely out of Waze engineers’ desire to do something interesting rather than out of any strategic imperative from Alphabet management, which means that Alphabet’s Waymo has launched a test of a self-driving ride sharing service while Waze is expanding its Carpool service and the two have nothing to do with each other. To focus on Waze for a minute, it had previously launched its Carpool service in the Bay Area, and now is expanding it to the rest of California. But it’s still more of a true ride sharing service than most of the other services that get painted with that label – this is intended purely as a way for people to literally share rides to places one of them is already driving to, and to help split the driver’s gas money. As such, it also hasn’t generated revenue for Waze, which has merely passed along the entire IRS mileage rate to the driver, so it needs to find some other way to make money, and it looks like that might at least in part be showing ads to users of its app. It’s ironic, then, that even though the interesting disruptive transportation technology has no connection to the rest of Google or Alphabet, but its business model might end up borrowing quite a bit from its parent.
It might seem odd at first glance that I’m covering an auto industry leadership change, but it’s news that’s very much in keeping with the “Tech Disrupts Transportation” narrative here on the site, and the nature of both the troubles that prompted the move and the move itself are reflective of that trend too. Mark Fields, who has been CEO for the last three years, is being replaced by Jim Hackett, who has been running Ford Smart Mobility. Although this New York Times piece and others this morning are focusing on the fact that FSM and therefore Hackett has owned Ford’s autonomous driving initiatives, that’s only part of its remit, and that’s worth noting. It also owns in-car connectivity, mobility itself (which is the industry term for ride sharing and other new ownership and other business models for cars), and data and analytics, among other things. In other words, with the exception of electrification, it has owned essentially all of what’s next in the automotive industry. That Fields would have put all that in a separate division is perhaps the biggest sign that he underestimated how central these changes would be to the future of the company, and it also makes sense to put the guy who’s been running all that in charge of the company at this point. Hackett will need to bring these initiatives to the forefront of what Ford does, along with electrification, where it’s moved more slowly than other car companies, if he’s to help turn Ford around. But he’s taking over at a really tough time in both the company’s history and the US automotive industry.
Uber’s Relationship with Pittsburgh Worsens (May 22, 2017)
★ Waymo and Lyft Partner Over Self-Driving Cars (May 15, 2017)
The New York Times reported last night that Alphabet autonomous driving unit Waymo and ride sharing company Lyft are partnering around self-driving cars. There aren’t many details, but it’s worth noting that Lyft already has GM as an investor and partner, and GM has its own autonomous driving technology through its Cruise Automation subsidiary. But the brief Lyft statement on the partnership described Waymo’s technology as the best out there, which certainly matches my own perception but likely wasn’t well received at Cruise. But the partnership is a concession by Lyft that it needs its partnerships in autonomy to move much faster to compete in autonomous driving with Uber, which of course is developing its own technology, and a concession by Waymo that it likely won’t be building a ride sharing network at scale on its own. Even though the situation is complicated somewhat by Alphabet’s investment in Uber through GV, Waymo and Lyft certainly have a common enemy in Uber at the moment, and joining forces makes a ton of sense. Waymo has the autonomous technology but not ride sharing expertise or scale, while Lyft has the ride sharing scale but no expertise in autonomy. As I’ve said before, though a number of tech companies are trying to play in one of the three major shifts in transportation – autonomy, electrification, and mobility as a service – few are serious players in more than one of those domains. Partnerships are therefore going to be key for most of them, although acquisitions (including a possible eventual Waymo-Lyft acquisition) would be another eventual outcome.
Weekly Narrative Video – Tech Disrupts Transportation (Apr 29, 2017)
Chinese ride-sharing company Didi Chuxing has raised what Bloomberg says is the largest single funding round ever, apparently to help pay for a long-expected international expansion. Didi now of course owns Uber’s business in China and also received a billion-dollar investment from Apple last year, but has mostly stuck to its home market for now. People in the know have been saying it was going to start trying to build a business outside of China for some time, so this move isn’t that surprising, but it’s almost certain to bump up against its part owner Uber in at least some markets given the latter company’s international reach, which could get interesting. Big Chinese tech companies have mostly failed to expand much beyond China with the exception of those selling cheap electronics, and Didi will face an uphill battle in ride sharing markets internationally unless it partners with local players (possibly including Uber). I’m very curious to see which markets it goes after and how.
Lyft’s Rapid Growth Continues in Q1, While Losses Narrow (Apr 27, 2017)
Following Bloomberg’s exclusive on Uber’s financials for the end of last year, which were provided officially, it now has leaked numbers for Lyft for Q1. Those numbers, like Uber’s, show very strong growth, though the implication that this has come as a result of Uber’s troubles isn’t supported by other recent data. What’s really happening is that the whole space is growing extremely rapidly and these two companies are capturing the vast majority of that growth in the US. The big difference between the two is that Lyft’s numbers show smaller losses in dollar terms, while Uber’s showed growing dollar losses. Lyft’s recent aggressive expansion is probably going to slow its progress towards profitability somewhat, but that goal continues to look quite a bit closer for Lyft than for Uber.