July 29, 2024
Drive Shift | July Edition: AVs, Digital Auto Repair, and the Used EV Market's Rise
Which industry is being updated from week to week and how can we keep up?
We just recently published our report on the autonomous vehicle industry that focused on the development of the robotaxi field and it seems that a lot has happened since then, with unlike the automotive industry, significant headlines almost emerged weekly.
Waymo and Cruise, the more established names in the robotaxi market, continue their journey amidst strict regulatory environments, each facing unique challenges. After a major accident last year, which led to significant deterioration, Cruise is starting over with a fresh perspective. General Motors, its parent company, is investing $850 million into the company as it gradually tries to resume testing its robotaxi, first with a human driver, in Phoenix and Dallas. In contrast, Waymo is taking steps to avoid a similar fate. In February, Waymo voluntarily issued a software recall for all of its Jaguar I-Pace robotaxis after one of them collided with a telephone pole. Additionally, in the past few months federal safety regulators are investigating over 30 incidents involving Waymo vehicles, as the company tries to cooperate with any examination.
Along with this, Waymo also generates quite a few positive headlines, first of all the announcement from last month about an additional multi-year investment of $5B by its parent company, Alphabet, that will allow it to expand its activities significantly. This announcement came after the company recently removed its waitlist for its San Francisco robotaxi service and announced that it is planning to start testing an autonomous minivan, based on the design of the Chinese EV-maker, Zeeker in the streets of San Francisco.
While Waymo and Cruise navigate the complexities of commercializing their technology, the next generation of autonomous driving companies has experienced remarkable growth in recent months. These next-gen companies use end-to-end AI models that learn to drive directly from raw sensor data, unlike Waymo and Cruise, which employ a more traditional and hardware-based modular approach with separate systems for perception, planning, and control.
Leading this new wave is Wayve, a UK-based company that recently raised $1.05 billion from top investors, including SoftBank, Nvidia, and Microsoft in the largest AI fundraise ever in the UK. Additionally, Waabi, a company pioneering generative AI for the physical world, announced it has raised $200 million to further develop its self-driving technology for the trucking industry. Even though Waymo and Cruise remain significant players, recent fundraising trends indicate that some investors believe these innovative approaches have greater potential for the future.
Meanwhile in China, the self-driving trend continues to soar. While it seems that the Chinese companies will have a hard time breaking into the West, and especially the US, in China their deployment is expanding. The latest jurisdiction to join the autonomous revolution is Shanghai. Last month, China announced that Shanghai will join the cities where autonomous vehicles can operate without a driver and will allow 4 providers (Baidu, AutoX, Pony.ai and SAIC AI Lab) to operate in the city and offer their robotaxi services.
In the meantime, the industry eagerly awaits the launch of Tesla's robotaxi, originally expected on August 8th. However, as often happens with Tesla’s ambitious timelines, the launch has been postponed. The new disclosure date was set for October 10th, with Elon Musk citing necessary design changes as the reason for the postponement.
With so many dramatic headlines and technological, regulatory and commercial developments so frequent, it will be fascinating to follow what the coming months bring.
What does the next generation look like for repair shops?
Walking into a traditional car repair shop, you're greeted by the familiar sights and sounds: the scent of motor oil, the hum of work tools, and rows of cars in various states of disassembly. These kinds of shops have long relied on mechanical expertise and manual labor, serving as a crucial lifeline for vehicle owners. However, the creation of advanced automotive technologies has significantly transformed the landscape of car repairs.
Modern vehicles are increasingly equipped with sophisticated systems like Advanced Driver Assistance Systems (ADAS), complex software, and integrated electronic components. Repairing these digitized systems requires repair shops to adopt a new level of expertise and specialized tools. To fulfill the new needs and challenges, innovative startups are developing the next generation of car repair systems. For example, last month the startup company Kinetic, which describes itself as a “modern vehicle repair” company, raised $21M. With this funding, the company plans to further develop its digital maintenance systems, which offer repair services to digital components in EVs and AVs (such as sensors, radars and others), using advanced technologies such as AI, computer vision and robotics.
Innovation extends beyond the physical repair processes to the management of repair shops themselves. Auto repair shop management software solutions streamline operations, from digital vehicle inspections ,through scheduling appointments and managing inventory, to tracking customer histories and processing payments. Implementing these tools allow repair shops to improve efficiency, reduce administrative burdens, and enhance customer satisfaction.
Companies like AutoLeap or Shopmonkey, each of which raised funding of tens of millions of dollars in recent years, are examples of companies that have developed such software. Serving multi-shop owners, as well as independent shops or franchises, these kinds of companies allow repair shops to take their business to the next level.
For individual customers, new car repair platforms provide an easy way to find local repair shops and finance repairs. These platforms typically feature user-friendly interfaces where customers can search for repair shops based on location, services offered, and customer reviews. Additionally, many of these platforms partner with financial institutions to offer financing options, enabling customers to spread the cost of expensive repairs over time. One of the prominent companies that do this is the UK-based Bumper that offers its customers assistance in financing car repairs by connecting them to about 4,000 service providers across the country. The company, which says it has provided its services to up to half a million drivers, raised funding of $48M at the beginning of the year, which joined early fundraisings of about $100M. By the way, marketplaces are not only offered to private drivers but also to fleets. For example, Fixico offers businesses a car repair platform that helps find a suitable repair shop and manage the repair journey digitally.
As automotive technology continues to evolve, repair shops and fleets must adopt cutting-edge tools and techniques to stay competitive. The digital transformation of car repairs isn’t just about keeping pace—it’s about leading the way in an ever-more connected and smart automotive landscape.
How are tech innovations supercharging the used EV market?
The market for used electric vehicles is experiencing remarkable growth. Recent data from Recurrent, a firm specializing in used EVs evaluations, highlights this trend. According to their January market forecast, the number of used EVs sold in the U.S. surged from 283,000 in 2022 to about 400,000 in 2023, with projections suggesting this figure will reach nearly 560,000 in 2024. This dramatic trend indicates a significant shift in consumer behavior and market dynamics.
Several factors have contributed to the increasing availability and demand for used electric vehicles. Generous tax incentives have made EVs more financially attractive, while price reductions, notably those initiated by Tesla, have made them more accessible to a broader audience. Additionally, the expansion of the EV supply chain and the growing affordability of charging infrastructure have further driven this trend. According to some estimates, the average price of a used EV has dropped by about 30%, making them an increasingly viable option for many consumers.
Despite the positive trends, buying and selling used EVs still presents significant challenges. One of the main issues is accurately assessing the condition of the vehicle, particularly its battery. As the core component of an EV, the battery's health is crucial to the vehicle's performance and longevity. However, expertise in evaluating battery condition and predicting its lifespan under various conditions remains limited, making the purchase of a used EV somewhat of a gamble without thorough testing.
In response to these challenges, several innovative companies have emerged in recent years to address these issues. For example, Recurrent, which was mentioned earlier, developed a system for analyzing data from batteries, which allows learning about the health of the battery and comparing it to other electric vehicles. Thus, using data based on battery performance of tens of thousands of EVs, it can provide a score for a specific battery and give a score that will be used for its pricing in the second-hand market. To illustrate the relevance of these types of systems, the company has so far raised about $24 million, 16 of which at the beginning of 2024.
Additionally, the creation of digital platforms that streamline the buying and selling process is contributing to the market's development. For instance, platforms developed by companies like the Germany-based Cardino which raised €4 million seed last June, offer solutions that optimize the sales process, making it easier for sellers and buyers, whether private or business, to navigate the used EV market. In the case of Cardino, its platform allows sellers to sell their EV easily, when the company covers all selling processes from real time evaluation of the vehicle, to pick up, auction to dealers and payment process.
In conclusion, as the adoption of electric vehicles continues to expand, the used vehicle market is expected to become more sophisticated. Technological startups that can address the current challenges and optimize the market will likely attract significant investment and partnerships. The future of the used EV market looks promising, with ongoing innovations paving the way for more informed and confident purchasing decisions.
Which industry is being updated from week to week and how can we keep up?
We just recently published our report on the autonomous vehicle industry that focused on the development of the robotaxi field and it seems that a lot has happened since then, with unlike the automotive industry, significant headlines almost emerged weekly.
Waymo and Cruise, the more established names in the robotaxi market, continue their journey amidst strict regulatory environments, each facing unique challenges. After a major accident last year, which led to significant deterioration, Cruise is starting over with a fresh perspective. General Motors, its parent company, is investing $850 million into the company as it gradually tries to resume testing its robotaxi, first with a human driver, in Phoenix and Dallas. In contrast, Waymo is taking steps to avoid a similar fate. In February, Waymo voluntarily issued a software recall for all of its Jaguar I-Pace robotaxis after one of them collided with a telephone pole. Additionally, in the past few months federal safety regulators are investigating over 30 incidents involving Waymo vehicles, as the company tries to cooperate with any examination.
Along with this, Waymo also generates quite a few positive headlines, first of all the announcement from last month about an additional multi-year investment of $5B by its parent company, Alphabet, that will allow it to expand its activities significantly. This announcement came after the company recently removed its waitlist for its San Francisco robotaxi service and announced that it is planning to start testing an autonomous minivan, based on the design of the Chinese EV-maker, Zeeker in the streets of San Francisco.
While Waymo and Cruise navigate the complexities of commercializing their technology, the next generation of autonomous driving companies has experienced remarkable growth in recent months. These next-gen companies use end-to-end AI models that learn to drive directly from raw sensor data, unlike Waymo and Cruise, which employ a more traditional and hardware-based modular approach with separate systems for perception, planning, and control.
Leading this new wave is Wayve, a UK-based company that recently raised $1.05 billion from top investors, including SoftBank, Nvidia, and Microsoft in the largest AI fundraise ever in the UK. Additionally, Waabi, a company pioneering generative AI for the physical world, announced it has raised $200 million to further develop its self-driving technology for the trucking industry. Even though Waymo and Cruise remain significant players, recent fundraising trends indicate that some investors believe these innovative approaches have greater potential for the future.
Meanwhile in China, the self-driving trend continues to soar. While it seems that the Chinese companies will have a hard time breaking into the West, and especially the US, in China their deployment is expanding. The latest jurisdiction to join the autonomous revolution is Shanghai. Last month, China announced that Shanghai will join the cities where autonomous vehicles can operate without a driver and will allow 4 providers (Baidu, AutoX, Pony.ai and SAIC AI Lab) to operate in the city and offer their robotaxi services.
In the meantime, the industry eagerly awaits the launch of Tesla's robotaxi, originally expected on August 8th. However, as often happens with Tesla’s ambitious timelines, the launch has been postponed. The new disclosure date was set for October 10th, with Elon Musk citing necessary design changes as the reason for the postponement.
With so many dramatic headlines and technological, regulatory and commercial developments so frequent, it will be fascinating to follow what the coming months bring.
What does the next generation look like for repair shops?
Walking into a traditional car repair shop, you're greeted by the familiar sights and sounds: the scent of motor oil, the hum of work tools, and rows of cars in various states of disassembly. These kinds of shops have long relied on mechanical expertise and manual labor, serving as a crucial lifeline for vehicle owners. However, the creation of advanced automotive technologies has significantly transformed the landscape of car repairs.
Modern vehicles are increasingly equipped with sophisticated systems like Advanced Driver Assistance Systems (ADAS), complex software, and integrated electronic components. Repairing these digitized systems requires repair shops to adopt a new level of expertise and specialized tools. To fulfill the new needs and challenges, innovative startups are developing the next generation of car repair systems. For example, last month the startup company Kinetic, which describes itself as a “modern vehicle repair” company, raised $21M. With this funding, the company plans to further develop its digital maintenance systems, which offer repair services to digital components in EVs and AVs (such as sensors, radars and others), using advanced technologies such as AI, computer vision and robotics.
Innovation extends beyond the physical repair processes to the management of repair shops themselves. Auto repair shop management software solutions streamline operations, from digital vehicle inspections ,through scheduling appointments and managing inventory, to tracking customer histories and processing payments. Implementing these tools allow repair shops to improve efficiency, reduce administrative burdens, and enhance customer satisfaction.
Companies like AutoLeap or Shopmonkey, each of which raised funding of tens of millions of dollars in recent years, are examples of companies that have developed such software. Serving multi-shop owners, as well as independent shops or franchises, these kinds of companies allow repair shops to take their business to the next level.
For individual customers, new car repair platforms provide an easy way to find local repair shops and finance repairs. These platforms typically feature user-friendly interfaces where customers can search for repair shops based on location, services offered, and customer reviews. Additionally, many of these platforms partner with financial institutions to offer financing options, enabling customers to spread the cost of expensive repairs over time. One of the prominent companies that do this is the UK-based Bumper that offers its customers assistance in financing car repairs by connecting them to about 4,000 service providers across the country. The company, which says it has provided its services to up to half a million drivers, raised funding of $48M at the beginning of the year, which joined early fundraisings of about $100M. By the way, marketplaces are not only offered to private drivers but also to fleets. For example, Fixico offers businesses a car repair platform that helps find a suitable repair shop and manage the repair journey digitally.
As automotive technology continues to evolve, repair shops and fleets must adopt cutting-edge tools and techniques to stay competitive. The digital transformation of car repairs isn’t just about keeping pace—it’s about leading the way in an ever-more connected and smart automotive landscape.
How are tech innovations supercharging the used EV market?
The market for used electric vehicles is experiencing remarkable growth. Recent data from Recurrent, a firm specializing in used EVs evaluations, highlights this trend. According to their January market forecast, the number of used EVs sold in the U.S. surged from 283,000 in 2022 to about 400,000 in 2023, with projections suggesting this figure will reach nearly 560,000 in 2024. This dramatic trend indicates a significant shift in consumer behavior and market dynamics.
Several factors have contributed to the increasing availability and demand for used electric vehicles. Generous tax incentives have made EVs more financially attractive, while price reductions, notably those initiated by Tesla, have made them more accessible to a broader audience. Additionally, the expansion of the EV supply chain and the growing affordability of charging infrastructure have further driven this trend. According to some estimates, the average price of a used EV has dropped by about 30%, making them an increasingly viable option for many consumers.
Despite the positive trends, buying and selling used EVs still presents significant challenges. One of the main issues is accurately assessing the condition of the vehicle, particularly its battery. As the core component of an EV, the battery's health is crucial to the vehicle's performance and longevity. However, expertise in evaluating battery condition and predicting its lifespan under various conditions remains limited, making the purchase of a used EV somewhat of a gamble without thorough testing.
In response to these challenges, several innovative companies have emerged in recent years to address these issues. For example, Recurrent, which was mentioned earlier, developed a system for analyzing data from batteries, which allows learning about the health of the battery and comparing it to other electric vehicles. Thus, using data based on battery performance of tens of thousands of EVs, it can provide a score for a specific battery and give a score that will be used for its pricing in the second-hand market. To illustrate the relevance of these types of systems, the company has so far raised about $24 million, 16 of which at the beginning of 2024.
Additionally, the creation of digital platforms that streamline the buying and selling process is contributing to the market's development. For instance, platforms developed by companies like the Germany-based Cardino which raised €4 million seed last June, offer solutions that optimize the sales process, making it easier for sellers and buyers, whether private or business, to navigate the used EV market. In the case of Cardino, its platform allows sellers to sell their EV easily, when the company covers all selling processes from real time evaluation of the vehicle, to pick up, auction to dealers and payment process.
In conclusion, as the adoption of electric vehicles continues to expand, the used vehicle market is expected to become more sophisticated. Technological startups that can address the current challenges and optimize the market will likely attract significant investment and partnerships. The future of the used EV market looks promising, with ongoing innovations paving the way for more informed and confident purchasing decisions.
