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Enough with my typical small talk. Let’s jump into the news right away this week. And there’s plenty of it, including Lyft’s entry into Europe, AV startup Nuro heading to Japan, the first drive of the Lucid Gravity SUV, a few New York International Auto Show highlights, and a SPAC.
Yes, the SPAC is back. Or did this financial instrument really ever fade away?
Let’s go.
A little bird
A little bird told us that some people are hoping to get ahead of the many, many hurdles eVTOLs need to jump before there can be “highways in the skies.” This includes working with real estate owners in rural areas to set up vertiports and charging infrastructure. The pitch? Adding that infrastructure has the potential to increase your property value in the future.
We’re digging into this to find out more!
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Deals!
I expected a few more IPOs in 2025 than the prior year, but SPACs? Say it ain’t so. And yet, here we are with a fresh merger between autonomous vehicle technology startup Kodiak Robotics and special purpose acquisition company Ares Acquisition Corporation II.
The transaction values Kodiak, which has raised around $243 million to date, at about $2.5 billion pre-money. New and existing Kodiak institutional investors, like Soros Fund Management, ARK Investments, and Ares, have funded or committed over $110 million in financing to support the transaction, as well as about $551 million of cash held in trust.
I spoke to Kodiak founder and CEO Don Burnette and asked the obvious question: A SPAC? Now? Why?
“Kodiak, now that we have launched driverless, we have our vehicles on the road, we have driverless revenue coming in,” Burnette told me. “We think now is the time for growth. We want to take advantage of the tailwinds we’re seeing in the markets.”
Tailwinds? I asked him to explain, and Burnette meant tailwinds in the autonomy sector as opposed to the broader economic markets.
“Obviously, we’re seeing short-term volatility — that’s an understatement,” he said. “But we’re really thinking about this as a long-term thesis of transforming the transportation markets, using AI, using technology, and through automation. It’s something I’ve always believed in.”
Other deals that got my attention …
Conifer, a startup developing electric hub motors that are free of rare earth elements, raised a $20 million seed round from investors, including True Ventures, MaC Ventures, MFV Partners, and others. True Ventures’ Rohit Sharma has joined Conifer’s board.
Kavak, a Mexico-based online used car dealer, raised $127 million in an equity round, cutting its valuation to $2.2 billion from $6.5 billion. The round was co-led by SoftBank Group Corp and General Atlantic. The company also secured $400 million in new debt.
Lyft agreed to acquire FreeNow, a German multi-mobility app with ride-hail at its core, from BMW and Mercedes-Benz Mobility for about $197 million in cash. The acquisition opens up the European market to Lyft for the first time.
Nyobolt, a British EV charging startup, raised $30 million in funding, led by IQ Capital and Latitude. Strategic partners, including Scania Invest and Takasago Industry, also participated.
Notable reads and other tidbits
ADAS
China is cracking down on how automakers advertise driver-assistance features, banning terms like “autonomous driving,” “self-driving,” and “smart driving.” If you immediately thought of Tesla and its “Full Self-Driving” software, it’s worth noting the automaker has changed the branding. But Tesla and others will be affected by rules around over-the-air software updates for ADAS, which requires testing and government approval.
Autonomous vehicles
Nuro will begin mapping and collecting data in Japan using autonomous vehicles (retrofitted Prius cars) from its U.S. fleet.
Waymo and Uber are preparing to launch their joint robotaxi service in Atlanta this summer. Uber opened up an “interest list” this week to customers in Atlanta. The two companies launched the “Waymo on Uber” service in Austin in March. Data from market analytics firm YipitData shows Waymo robotaxis made up about 20% of rides offered by Uber in Austin in the last week of March.
Zoox has partnered with Stingray Music, which will offer a curated selection of 16 stations via the touchscreen inside the robotaxis. Yet another sign Zoox is getting ready to launch commercially.
Electric vehicles, charging, & batteries
Lime will send batteries used in its scooters and e-bikes to Redwood Materials, which will extract and recycle critical minerals such as lithium, cobalt, nickel, and copper.
Kia debuted its 2026 EV4 sedan at the New York International Auto Show. This is the company’s first global electric sedan and one designed for customers looking for an affordable EV. Will Americans buy it?
TechCrunch contributor Abigail Bassett spent a day driving the new all-electric Lucid Gravity SUV. Read the full review and find out why she wrote that the Gravity is “over-engineering at its best.”
Rivian’s first non-Amazon van customer is HelloFresh.
Subaru unveiled its second EV, a wagon-like SUV called the Trailseeker that, like its predecessor the Solterra, includes a bit of Toyota handiwork.
Future of flight
Archer Aviation unveiled its proposed air taxi network for New York City in partnership with United Airlines, which would allow passengers to tack on an Archer ride to their traditional airline tickets.
Ride-hailing
India’s market regulator launched an investigation into Gensol Engineering after finding alleged misuse of electric vehicle loans. BluSmart, a ride-hailing startup connected to Gensol that was once seen as an emerging Uber rival in the South Asian market, has also been swept up into the investigation. And now it seems BluSmart has suspended services in some Indian cities.
Security
Hertz customers have been notified of a data breach that included their personal information and driver’s licenses. Hertz attributed the breach to a vendor, software maker Cleo, which last year was at the center of a mass-hacking campaign by a prolific Russia-linked ransomware gang.
