TechCrunch Mobility: The robotaxi expansion that really matters

Waymo is significantly expanding its commercial robotaxi service to freeways across the San Francisco Bay Area, Phoenix, and Los Angeles, aiming to reduce ride times by up to 50% and enable crucial airport access. Concurrently, the mobility sector sees Swedish autonomous truck startup Einride pursuing a $1.8 billion SPAC merger with Legato Merger Corp., while Lucid Motors is reportedly nearing the appointment of a new external CEO. Notable funding activities include Gopuff raising $250 million at a significantly reduced valuation, Harbinger securing $160 million with a FedEx order, and Toyota initiating production at a new $13.9 billion U.S. battery plant with further investment commitments. However, Rad Power Bikes faces a potential shutdown without new capital, and Via reported a Q3 net loss of $36.9 million despite an 11% revenue increase.

Analysis

Waymo is significantly expanding its commercial robotaxi service to freeways across the San Francisco Bay Area, Phoenix, and Los Angeles, a critical operational development. This move is projected to reduce ride times by up to 50% and is essential for enabling crucial airport access, thereby enhancing efficiency and market reach in key metropolitan areas.

The broader mobility sector exhibits a mixed investment landscape. Swedish autonomous truck startup Einride plans a $1.8 billion SPAC merger with Legato Merger Corp., indicating continued investor appetite for autonomous vehicle technology, particularly for revenue-generating entities. Conversely, rapid-delivery firm Gopuff secured $250 million at an $8.5 billion valuation, a notable markdown from its previous raise, signaling a recalibration of private market expectations and increased investor scrutiny.

Leadership at Lucid Motors appears to be stabilizing with reports of an imminent external CEO appointment. However, other companies face significant headwinds: Rad Power Bikes is on the brink of shutdown without new funding, and Via reported a Q3 net loss of $36.9 million, a 73% increase year-over-year, despite an 11% revenue growth to $713 million, highlighting profitability challenges for some growth-oriented tech transit firms. Meanwhile, Toyota's $13.9 billion battery plant in North Carolina and an additional $10 billion investment commitment underscore substantial capital deployment in EV manufacturing infrastructure.

Key Decisions for Investors

• Investors should closely monitor Waymo's freeway expansion for its impact on operational efficiency and potential path to profitability, Evaluate SPAC opportunities like Einride with scrutiny on sustainable revenue generation and clear market differentiation given the mixed performance of prior de-SPACs, Assess private market valuations, noting Gopuff's significant down-round as a signal of increased investor caution and potential re-pricing across the sector, Scrutinize companies with increasing losses despite revenue growth, such as Via, and be aware of potential distress or acquisition opportunities for firms like Rad Power Bikes facing funding shortfalls.