Copy
Apple strategy teardown. Lyft raises extension. Auto commerce market map.
Not on our list?
Sign up to this newsletter.
CB Insights celebration
No strings attached

Hi there,

As 2017 draws to a close, momentum in auto commerce financing has only continued to accelerate. Used-car marketplaces have been especially hot, with $100M+ financings going to Chinese (SouChe, Chehaodao) and European (Auto1 Group) players. InstaCarro also raised $22M this week to expand its Brazilian marketplace.

To help you wrap your head around the auto commerce landscape, we mapped out 70 private companies working in the space:



OEMs have raced to experiment with new retail and go-to-market models. The car-subscription concept has been gaining traction for some time, and automakers are now announcing all-inclusive subscription programs at a furious pace.

Below are just a few recent developments, with the Volvo and Lincoln news both coming from the L.A. Auto Show:
Subscriptions are distinct from traditional leasing, with a commitment-free model bundling in services like insurance and maintenance. Most programs also offer members flexibility to rotate between vehicles at certain intervals.

There are notable divides between the OEMs and startups experimenting with these models; automakers obviously have access to a deep pool of the latest vehicles off their line. By contrast, subscription startups like Fair and Carma have built their fleets with (or partnered with dealerships for) used vehicles.

Though lacking new-car smells and the freshest tech, this model does present the opportunity to capitalize on the used car glut (especially in the US). Vehicles coming off post-recession leases have flooded the market, depressing valuations:

Although new car sales have plateaued in this saturated market, startups and automakers are banking that subscription models will carve out a new niche for the future.

Tearing down Apple

Our latest strategy teardown focused on the world's most valuable company: Apple.

We sifted through a trove of data from patents and acquisitions to job listings and earnings calls for hints on Cupertino's forward-looking strategy. (A PDF version is also available for download.)




The full Expert Research edition is also available for clients, where we dive into the state of Apple's Titan vehicle project and battery tech research.


Conference time

At our A-ha! conference next month, we're looking forward to conversations with mobility figures from Cruise's Kyle Vogt to Careem's Mudassir Sheikha and Waze's Noam Bardin.



Check out the full lineup here, and grab a $500 discount off your ticket with the code jetme.

Have a great weekend!

Kerry
@kerrygwu

Market map: 70 auto commerce startups 

Startups in the auto commerce space are changing the way cars are sold, leased, and financed. Check out the market map.
Tweet this
 

Apple strategy teardown: Where the company is focusing in AR, AI, cars, and more

Apple is looking for its next big thing in spaces like healthcare, AR, and autonomous cars. Can Apple reinvent itself for a third time? See the teardown.
Tweet this
 

Autonomous vehicle tech grabs majority of auto tech deals, dollars

The autonomous vehicle ecosystem saw 76% of 2017's nearly $4B in funding to date. Check out the data.
Tweet this
This Week in Auto Tech
A curated mix of recent articles on auto tech financings, exits, announcements, hirings, partnerships & perspectives.

Deals & Funds
Lyft sees another $500M. CapitalG, the investment arm of Alphabet, is investing another $500M in the ride-hailing company, an extension to last month's planned $1B. Lyft also received a permit to test self-driving cars in California. 
Axios (CapitalG) / Axios (AV permit)

Mojio raises $23M. Kensington Capital led the Series B round into the Canadian connected car platform.
Globe Newswire

InstaCarro inks $22M. FJ Labs and Lumia Capital led the round into Brazilian used car marketplace for expansion. 
TechCrunch

TuSimple takes $55M. Composite Capital led the Series C into the China-based autonomous trucking company for expansion abroad.
Fortune

Point One Navigation gets $7.5M. The navigation startup raised from IA Ventures.
TechCrunch

Diverging paths in auto manufacturing. O Luxe Holdings led a $65M round into auto-focused 3D printing startup Divergent, which is working with several OEMs. Meanwhile, BMW exited its carbon fiber joint venture with SGL Carbon (established in 2009).
Forbes (Divergent 3D) / Reuters (BMW SGL Carbon exit)

Yunmanman, Huochebang merge. The two top Chinese truck marketplace companies combined to form a $2B company. Yunmanman also picked up another $120M from Tiger Global Management. 
Bloomberg (merger) / CB Insights (Yunmanman)

Here buys ATS. The mapping company bought a Berlin-based telematics and over-the-air (OTA) technology provider to improve its OTA update capabilities. 
TechCrunch

NIO Capital targets $500M. The investment arm of EV maker NIO is raising a fund to invest in the Chinese auto sector. The fund has led a $195M Series B investment in Shouqi Limousine & Chauffeur. 
Reuters (fund) / TechCrunch (Shouqi)

Porsche and Axel Springer. Porsche Digital and Axel Springer Digital Ventures have set up a joint startup accelerator.
Porsche

News
AV trials and rides. Optimus Ride will deploy self-driving vehicles in a new development within Boston. Zoox also gave a first look at its AV system.

Cruise took journalists for rides in its AVs through San Francisco, with mixed results and a taco truck run-in. GM also announced a 2019 target for deploying its robotaxi services in several cities.
TechCrunch (Optimus Ride) / Auto News (Zoox) / Fortune (GM Cruise)

Aviation electrification. Rolls-Royce joins Siemens and Airbus in their efforts to develop a 100-seat hybrid-electric aircraft. They join several startups also working to electrify aircraft.
Bloomberg

Apple's AV. Apple researchers published a paper on AV pedestrian and cyclist spotting. The company may also lease a former FCA-owned Arizona proving ground to test its AVs.
Reuters (research) / Jalopnik (proving grounds) 

Softbank-Uber negotiations continue. SoftBank aims to buy shares of Uber at a 30% discount. It disclosed that early Uber backers Benchmark and Menlo Ventures have committed to the deal; Sequoia Capital and other investors are looking to invest alongside SoftBank.
Recode

Uber losses, data breaches, suit. The rideshare company's losses grew to $1.46B in Q3. The Uber-Waymo trial has been delayed the due to withheld evidence. Uber's cover-up of the 2016 data breach has led to further investigations.
Bloomberg (Q3 losses) / Reuters (Waymo suit) / Recode (data breach)

Waymo hits 4M. The Alphabet company drove its last million miles in 6 months, and has also driven 2.5B miles in simulation over the last year.
Medium

Bike rental shutdowns. 6 of China's bike rental companies have now shuttered in the last 5 months.
Technode

Euro EV buildout grows. BMW will invest nearly $250M in a new battery tech facility. Shell partnered with European OEMs' Ionity project for fast-charging stations
The Drive (BMW) / VentureBeat (Shell)

Tesla expands R&D. The EV maker is setting up a Beijing R&D center, and completed the installation of the world's largest lithium-ion battery in Australia.

Tesla also received a number of preorders for its Semi truck, but reports point to continued defect woes along the production line for current models.
Caixin (Beijing) / Reuters (Australia) / Reuters (Semi preorders) / Auto News (defects)


VR in the car. Intel and Warner Bros are developing immersive in-car VR and AR experiences for AVs. 
The Verge

Articles, Perspectives, & Studies

Open-source AV simulators. Intel Labs and TRI researchers have developed CARLA, an open-source driving simulator. Microsoft has also extended its AirSim project to include AV simulation.
MIT Tech Review (CARLA) / Microsoft (AirSim)

Female investors in mobility. Kathryn Schox of Trucks shares a list of female leaders in transportation and mobility investment.
Medium

Deep learning for driver behavior. Researchers at MIT used deep learning to study how drivers interact with automation.
ArXiv
If you loved this newsletter, send it to a friend.
If you hated it, send it to an enemy.
All the data in this newsletter comes from CB Insights. Join NEA, Cisco & hundreds of other clients and get access to the industry's best private company data.

Sign up for access.
Copyright © 2017 CB Insights, All rights reserved.