Topic: Cars
Avis Budget Group to Supply Uber Drivers With Zipcars (Feb 8, 2017)
Two alternatives to traditional car ownership come together here, as Avis/Budget provides Zipcars to Uber drivers on an hourly basis. This deal could help expand Uber’s base of potential drivers beyond those who already own a car including among those who only want to drive part time, as well as dealing with the sometimes thorny issue of insurance. The big car rental companies are each trying to figure out how they fit into these new models – Enterprise has been approaching carmakers with offers to help them manage ride sharing fleets, and now there’s this deal between another of the big names and Uber. Meanwhile, some of the big carmakers themselves have been buying or taking stakes in smaller new rental companies as a way of hedging against a future of less car ownership. Though a lot of the disruption in this space has been driven by startups coming in from outside the industry, each of the legacy players has an enormous vested interest in ensuring a strong role in the future models too.
Uber Hires Veteran NASA Engineer to Develop Flying Cars – Bloomberg (Feb 6, 2017)
Amazon is fond of making announcements around cool but generally far-off concepts around the end-of-year holidays as a way of giving its brand a boost just when people are thinking about buying lots of stuff online. The timing here may be a coincidence, but it certainly won’t hurt Uber to have some flying car stories out there at a time when its brand has taken something of a knock in the US from the immigration brouhaha. Flying cars are probably the only thing Uber is working on that’s even further out than its autonomous cars in terms of timelines – hiring a NASA engineer to head the project is a great PR move, but there’s no chance we’re seeing anything like this in any American cities anytime soon. Take all the regulatory hurdles associated with autonomous cars and then put them in the sky and you have some idea of what these VTOL (vertical take off and landing) vehicles would have to overcome to go into production, even with human drivers/pilots. And as with autonomous driving, Uber’s cavalier attitude towards regulation doesn’t give me lots of confidence that they’re the ones I want pioneering this technology.
via Bloomberg
Uber, Daimler Strike Partnership for Self-Driving Vehicles – Bloomberg (Jan 31, 2017)
This is Uber’s second partnership with a carmaker around autonomous driving – it already has one with Volvo, under which Volvo supplies the base vehicle along with redundant power supply and other features which is then plugged into Uber’s autonomous driving “brain”. It looks like the Daimler/Mercedes relationship will be similar. Both Alphabet’s Waymo and Uber have now made clear statements to the effect that they don’t see value in trying to build cars, a topic on which Apple still seems to be somewhat uncertain. What’s less clear is whether Uber, like Waymo, sees a role for itself in designing the hardware to go into cars, such as LIDAR. These tie-ups between carmakers and ride sharing services make plenty of sense: if autonomous driving is going to have a role in the near term, it will likely be as part of ride sharing or ride hailing services, which have narrowly defined geographic areas in which they operate – that’s the same reason Ford’s aggressive 2021 goal is designed for a fleet scenario rather than retail sales. It’s also interesting to see a premium brand like Mercedes associated with Uber here – though limos were an important part of the early value proposition for Uber, the focus has since shifted well down market towards UberX and Uber Pool.
via Bloomberg
The Google Car was supposed to disrupt the car industry. Now Waymo is taking on suppliers – Recode (Jan 28, 2017)
This is a subtle shift, but an important one – one that began to become apparent a few weeks back. Alphabet is fundamentally a software, rather than hardware, company (Google’s recent push into first party hardware notwithstanding) – that’s where its skills have always lain, and where it has been able to add the most value both in its own products and in partnering with others. However, in the car space, it’s increasingly clear that Waymo will pair those software skills with developing hardware skills around things like LIDAR, and potentially attempt to sell packages of hardware and software or even complete systems, rather than just providing the software brains that will leverage hardware from other suppliers in cars. There are pros and cons here – on the one hand, Waymo doesn’t yet have great credibility in hardware in cars, and so trying to bundle the two together may threaten its ability to sell its software. On the other hand, it didn’t have much credibility in self-driving software either a few years back, but has earned it over time and now has partnerships with FCA, among others, so perhaps it can win trust in the same way with hardware as it makes progress here.
via Recode
Proposed state law would require emissions-free autonomous vehicles, and tax them by the mile – The Boston Globe (Jan 20, 2017)
As regulators and governments seek to provide a legal framework for autonomous driving, we’ll see something of a dichotomy between those who try to be as welcoming as possible to experiments and development of the technology, and those who see this as yet another opportunity to drive tax revenue or other separate goals. These lawmakers in Massachusetts seem to be taking the second approach, proposing that autonomous cars pay a per-mile road tax and produce zero emissions. Contrast this with Arizona’s governor, who has been very open to testing of autonomous vehicles and famously invited Uber’s self-driving cars to his state when they were banned from San Francisco. San Francisco, of course, is somewhere in the middle, largely open to testing of the technology, but with reasonable limits. Just as there will be fierce competition between tech companies around autonomous driving, there will be competition between states and cities around the technology too. Policies such as those being advocated in Massachusetts are likely to do little to endear the state to would-be autonomous driving companies.
NHTSA Finds No Fault in Tesla Autopilot With Regard to May 2016 Fatal Crash – NHTSA (Jan 19, 2017)
This is NHTSA’s report on the Tesla Autopilot crash in May 2016, which was investigating whether the Autopilot system was at fault. The headline from Tesla’s perspective is that the Autopilot system wasn’t at fault, because it (a) operated as expected, and (b) wasn’t intended to be able to avoid such cross-traffic collisions. That’s good for Tesla, because it exonerates its system, and also because NHTSA determined that its Autosteer system increases safety by 40%. Incidentally, the report also classifies Autopilot as a Level 2 system, whereas I’ve seen some people incorrectly refer to its as Level 3. The key here is that Level 3 systems allow the driver to stop paying attention, whereas Level 2 systems require full driver attention at all times. The problem in this crash was that the driver treated the system as a Level 3 system (which the term Autopilot somewhat implies), and paid insufficient attention to notice the truck crossing the car’s path. Tesla’s system may not have been at fault, but there’s a reasonable argument to be made that it’s not doing enough to train drivers not to treat its Level 2 system as something more – though NHTSA didn’t address that point in its report.
via NHTSA Finds No Fault in Tesla Autopilot With Regard to May 2016 Fatal Crash – NHTSA (PDF) – see also news coverage of the report on Techmeme
Building the Supercharger Network for the Future – Tesla (Jan 12, 2017)
Tesla announced the outlines of this new approach several months ago, but has now fleshed out some of the details – it will begin charging for using more than 400kWh annually at its supercharging (rapid charging) stations for new cars sold from this month onward, but the rates will be very low – apparently just $120 to drive across the US from New York to Los Angeles. The motivation here is that this charging infrastructure remains absolutely critical to the owner experience for electric cars, and densifying the network is expensive. As such, Tesla wants to recoup some (though apparently not all) the costs from those who actually use it. One of the big challenges for the big auto manufacturers is not just matching the performance of Tesla’s cars but matching its charging infrastructure over time too, and some have partnered in Europe to accelerate this rollout.
via Building the Supercharger Network for the Future | Tesla
U.S. Department of Transportation announces a new committee focused on automation – TechCrunch (Jan 11, 2017)
If there’s one thing that’s become very clear to me this week as I’ve attended the North American International Auto Show in Detroit, it’s that autonomous driving is a vastly more complex proposition than many of the claims from its various proponents would suggest. All autonomous driving technology is not created equal, and governments and regulators have lots of thorny issues to resolve before widespread autonomous driving can become a reality. The good news is that the US Department of Transportation seems to understand that and is taking steps to understand all the implications, working with many of the players likely to make it a reality in the coming years. I hope this work continues under the incoming administration, because it’s critical.
via U.S. Department of Transportation announces a new committee focused on automation | TechCrunch
Alphabet Inc.’s Self-Driving Car Unit Creates Its Own Sensor Package – WSJ (Jan 8, 2017)
Just when we’d got used to the idea that Alphabet was only going to do software when it comes to autonomous driving, it seems it will do some of its own hardware work, specifically on sensors rather than making cars. Not every carmaker that partners with Waymo will want to use its sensors, but it allows Alphabet to own more of the technology and ensure it all works well together.
via Alphabet Inc.’s Self-Driving Car Unit Creates Its Own Sensor Package – WSJ
Volkswagen will be integrating Amazon’s Alexa into its cars – The Verge (Jan 8, 2017)
This is the second of two Alexa car announcements made at this year’s CES, along with Ford’s, and together they’re part of Amazon’s push to get Alexa out of the home. There’s no date yet for this one, so it’ll be a while still before we start to see this, and of course unless you’re buying a new Ford or VW in the near future, you won’t benefit, but this is part of the longer-term push.
via Volkswagen will be integrating Amazon’s Alexa into its cars – The Verge
Nvidia and Mercedes-Benz to bring an AI car to market within a year | TechCrunch (Jan 7, 2017)
Though lots of the fuss about AI in cars relates to autonomous driving, the reality is that we’re many years from broad scale autonomous driving, and so what we’ll get in the meantime is lots of technology that assists human drivers rather than doing the driving itself. This Nvidia-Mercedes partnership is very much in this category, though we don’t know all the details yet, but we’ll see lots more of this kind of thing in the next few years, which in turn will help train AIs to take over the driving later on.
via Nvidia and Mercedes-Benz to bring an AI car to market within a year | TechCrunch
Lyft Co-Founder John Zimmer Drives And Dishes On Automation, Car Subscriptions, And Cash – BuzzFeed News (Jan 6, 2017)
An interesting tidbit in here – Lyft is already profitable on a per-ride basis, and the $150m or less it aims to lose each quarter is down to customer acquisition costs – free rides and so on. In that sense, it’s like many enterprise SaaS companies, and the burn rate is a factor of the rate of growth versus the base of customers. Lyft is much smaller than Uber, but also losing a lot less money. The key question therefore is whether it can at some point shift that balance between growth and profitability despite its smaller scale.
CES 2017: Microsoft Connected Car 2.0 rolls along | ZDNet (Jan 5, 2017)
Given that so many big tech companies are falling over themselves to grab a slice of in-car technology, Microsoft’s strategy is somewhat striking – it doesn’t want a direct role in, say, autonomous driving, but instead wants to provide a set of services to enable others to build that and other in-car technology. That’s a subtle distinction, but a sensible one for Microsoft, and one that will allow it to be seen as less of a threat to the carmakers than either Google or Apple, which each appear to have deeper ambitions in the car.
via CES 2017: Microsoft Connected Car 2.0 rolls along | ZDNet
Autonomous tech supplier Mobileye wants automakers to crowdsource maps for self-driving cars – Recode (Jan 5, 2017)
Given that HERE is already owned by several of the automakers, you could make the argument that there’s a more natural player to aggregate mapping data from them, but Mobileye is making its pitch regardless. On the one hand, it’s easy to see the logic here – all the companies ultimately need basically the same data. On the other, however, these companies are fierce competitors and though they’ve occasionally cooperated too, they’re far less likely to cede control and exclusive ownership of something they consider strategically important. Ultimately, it may well be the premium and niche automakers who need such an approach more than the big guys.
Audi Pushes Toward Fully Autonomous Cars – WSJ (Jan 5, 2017)
Nvidia has been making big strides in the car technology space, and made more news this week at CES with a partnership with Audi. This is one of the most interesting battles among the major chipmakers at the moment, and Nvidia does seem to be doing well, while Intel and Qualcomm also make advances (both also made news at CES this week).
via Audi Pushes Toward Fully Autonomous Cars – WSJ
Lyft’s Ridership Reaches 52.6 Million in Fourth Quarter – WSJ (Jan 4, 2017)
This article highlights two things: first, Uber still dwarfs Lyft, with 78 million rides in December to the latter’s 18.7 million. Secondly, both companies are still growing ridership at a rapid pace. That’s important because although this sometimes feels like a zero sum game, it clearly isn’t, at least not yet. The overall pie is still growing, and even though Lyft’s slice is far smaller, that’s growing too. The question is how long both the overall growth and individual companies’ growth will continue.
via Lyft’s Ridership Reaches 52.6 Million in Fourth Quarter – WSJ
Ford and Toyota Establish SmartDeviceLink Consortium to Accelerate Industry-Driven Standard for In-Vehicle Apps | Ford Media Center (Jan 4, 2017)
This announcement builds on an existing partnership between Ford and Toyota around in-car entertainment systems, and it’s hard to see it as anything but a concerted effort to bypass CarPlay and Android Auto. Ford supports both technologies after being a holdout early on, but Toyota never has. It’s likely that for most of the consortium members those options will be present in addition to their proprietary systems, but it’s clear these carmakers aren’t willing to cede the in-car UI to Apple or Google.
Ford becomes the first automaker to bring Amazon Echo into their cars – The Verge (Jan 4, 2017)
This is an important new domain for Amazon and Alexa, one of the first that gets it out of the house with its voice assistant. Of course, it’s also one of the slowest-moving technology products, with massively long upgrade cycles and very long development cycles too.
via Ford becomes the first automaker to bring Amazon Echo into their cars – The Verge
BMW Group, Intel and Mobileye Will Have Autonomous Test Vehicles on the Roads by the Second Half of 2017 | Intel Newsroom (Jan 4, 2017)
This is a big deal for Intel, which has seemed to be behind some of its big chip competitors in the autonomous driving space, and the fact that real cars will be on real roads later this year means this is delivering actual results today, and not just a loose partnership. This will be a big year for autonomous driving in general, likely the year almost all big automakers run some of their first trials on real roads, and Intel needs to be in the mix like this. I’ll be talking to BMW next week at the Detroit auto show about all this too.
BlackBerry QNX Launches its Most Advanced and Secure Embedded Software Platform for Autonomous Drive and Connected Cars – BlackBerry (Jan 4, 2017)
BlackBerry’s QNX is one of the leading in-car operating systems, acquired by BlackBerry from Harman some years ago. In the context of the demise of BlackBerry’s hardware business, this is one of several software businesses that forms the core of what the company will be going forward. It seems to be moving fast in providing support for some of the new things carmakers are doing, including autonomous driving, and QNX is definitely one of several big tech names to watch in the car tech space.