Steve Thomas - IT Consultant

Didi Chuxing’s autonomous driving unit is now an independent company, the Chinese ride-sharing and transportation giant said today. Didi’s autonomous driving team was created in 2016 and now has more than 200 employees in China and the United States. Didi’s announcement comes about a month after The Information reported that Didi was in talks with investors including SoftBank, its largest shareholder, to raise money for the unit.

In its announcement, Didi said the new company “will integrate the resources and technological advantages of Didi’s platform, continue to increase investment in R&D of core innovative technologies, and deepen collaboration with upstream and downstream auto industry partners” and also promote self-driving technology to transportation authorities.

The Financial Times reported last year that Didi had been approved to test self-driving vehicles in California, where it has a research facility in Mountain View. But Didi has to catch up with other companies that have been testing autonomous cars both in the U.S. and China. In California, it was the 53rd company to get a permit to test self-driving vehicles, behind technology rivals like Uber and Waymo.

Didi has already been testing autonomous vehicles, developed in partnership with car manufacturers and suppliers, in China, but its testing lagged far behind Baidu last year, which registered 140,000 kilometers in Beijing, or about 91 percent of the 153,600 miles test-driven by autonomous fleets owned by eight companies, including Didi, Pony.ai, Tencent and automakers NIO, Audi, Daimler AG and BAIC Group.

Aside from being able to license its technology to other transportation and vehicle companies, the launch of robo-taxis may help Didi’s ride-sharing service make up for a shortage in drivers. Stricter screening criteria was put into place after two female passengers were murdered by drivers on Didi’s ride-sharing platform and Didi said last month that it had removed more than 300,000 drivers who didn’t meet its standards since its safety overhaul began last year.

The CEO of the new autonomous driving company will be Zhang Bo, who is also the CTO of Didi. Meng Xing, former executive director of Shunwei China Internet Fund, is its COO, while software engineers Jia Zhaoyin, the head of its technical efforts for Didi’s smart-driving project, and Zheng Jianqiang will head its research and development teams in the U.S. and China.

Elon Musk wants to drill holes in China. The Tesla founder has tweeted to reveal that his tunnelling and transportation startup, The Boring Company, will be launch in China later this month.

Musk is due to speak at an AI conference, called the World Artificial Intelligence Conference, taking place in Shanghai on August 29-31. Replying to a tweet about the event he announced: “Will also be launching The Boring Company China on this trip.”

Another Twitter user chipped into the conversation to ask whether the company would also do underwater tunnels — to which Musk replied simply “yes“.

A securities filing last month revealed that the The Boring Company had raised its first outside investment via the sale of $120M in stock. So the company has some extra cash sloshing around to plough into new ventures.

It also recently landed its first commercial contract: $48.7M to build and operate an underground “people mover” in Las Vegas, focused on the Las Vegas Convention Center.

This underground ‘people mover’ is not, as you might imagine, a tried and tested metro train system. The plan apparently involves building two tunnels: One for vehicles (Musk does also sell electrics cars) and a second tunnel for pedestrians who will be carried in (modified) Tesla cars. The latter fully autonomous, under the plan.

Current generation Teslas are not capable of driving themselves, merely offering driving assistance features to humans. But autonomous driving inside a tunnel is about as much of a controlled environment you could hope for — without, y’know, sticking cars together on rails and making a driverless train (like the one that’s been serving London’s Docklands area since 1987).

The Las Vegas contract specifies three months of safety testing before Musk’s modified Teslas will be allowed to whisk people through the tunnel.

Another design that The Boring Company has proposed — for an ambitious Loop system from Washington, D.C. to Baltimore — is still on the drawing board, having attracted major safety concerns by failing to meet several key national safety standards, including lacking sufficient emergency exits and not taking note of the latest engineering practices.

So perhaps, in looking to expand The Boring Company by taking his spade to the Far East, Musk is hoping for a more accommodating set of building standards to drive an electric truck through.

SpaceX has prepared a draft environmental assessment around its plans for the new Starship and Super Heavy spacecraft launches it intends to begin, in a test capacity, very soon. Preparing and finalizing this environmental assessment is a key ingredient in actually launching both Super Heavy, the first stage for SpaceX’s forthcoming fully reusable, high-capacity launch system, and Starship, the second stage spacecraft component of said system.

Already, SpaceX is working towards getting a prototype of Starship in the air, with planned launches coming in just “2 to 3 months,” if SpaceX CEO Elon Musk manages to meet his optimistic timeline. It completed an untethered ‘hop’ low-altitude test flight of StarHopper, a sub-scale demonstration version of the Starship design meant to help it test that craft’s Raptor engine. But SpaceX must also show that it has fully considered the potential consequences that its planned launch operations will have on the surrounding environment.

Starship and Super Heavy will launch from Florida, with the current plan to build a second launch mount at its current LC-39A launch pad at Kennedy Space Center, which it leases from NASA and currently uses for Falcon 9 and Falcon Heavy launches. After launching from LC-39A, the current plan is to have Starship return back to Landing Zone 1 (LZ-1), which is SpaceX’s current landing area for Falcon first-stage boosters at nearby Cape Canaveral Air Force Station. Super Heavy would land downrange, aboard a drone barge ship, like the twin ‘Of Course I Still Love You’ and ‘Just Read The Instructions’ ships that SpaceX uses now depending on mission conditions on both its East and West coast launches.

Eventually, SpaceX hopes to also be able to build a landing zone within the existing confines of its LC-39A launch pad area, with the intent of landing Starship back much closer to where it launches – this will require more study to determine its viability and impact, however, so SpaceX has left that consideration for future investigation for now.

SpaceX says in the draft assessment that it also considered potentially launching and landing Starship and Super Heavy from its SLC-40 and SLC-4 launch sites, which are at Cape Canaveral Air Force Station and Vandenberg Air Force Base respectively, but these would not offer enough space in the case of SLC-40, or would require too long a trip back to the launch site in the case of SLC-4 (which would be an overland cross-country U.S. road trip for a huge rocket).

Finally, SpaceX also notes that it may, in future, “develop and launch the Starship/Super Heavy from its facility in Cameron County, TX.” A Texas-based launch site would have benefits in terms of proximity to one of SpaceX’s key rocket/engine development facilities, and if it’s successful in making its reusable launch and landing system extremely consistent in performance, the downsides of not being near a large body of water could be mitigated. These plans, however, will also merit separate consideration, so don’t expect full-scale launches for Starship from Texas in the near future.

Plans to open a new spaceport in Sutherland in Scotland have moved closer to final approval: The real estate companies working on the deal have signed a 75-year lease for the land to be used for Space Hub Sutherland, which will look to launch small satellites via private launch services from companies including startup Orbex, a micro-launch startup founded in 2015, and Lockheed Martin.

The land lease is still dependent on final approval being given for the spaceport to be built, which is in process as the groups behind its development, including the UK Space Agency, are in process of working out the designs, funding and environmental impact studies. All of this will contribute to an overall planning application, which the partners are hoping will pave the way for construction to begin in 2020.

Sutherland isn’t the only spaceport the UK is looking to open in an effort to open up its commercial launch capabilities: There are also plans in the works to open one in Cornwall, with support and funding from both the UKSA and Richard Branson’s Virgin Orbit.

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1. Lyft pulls e-bikes in light of apparent battery fires

Lyft recently won the right to launch its pedal-assist bikes in San Francisco, but now it’s pulling those bikes from the city and other parts of the Bay Area after two of those bikes experienced apparent battery fires.

A spokesperson told us, “Out of an abundance of caution, we are temporarily making the ebike fleet unavailable to riders while we investigate and update our battery technology.”

2. For the next month, the Impossible Whopper will be available at Burger Kings across the country

The world’s second largest fast food chain is rolling out the Impossible Whopper nationwide at all of its 7,200 U.S. locations, testing demand for the meaty tasting meatless patty.

3. With the acquisition closed, IBM goes all in on Red Hat

These announcements further IBM’s ambitions to bring its products to any public and private cloud — which was the reason IBM acquired Red Hat in the first place.

4. Asana launches Workload to help prevent burnout

Workload provides a central view of how much more work any given team can currently handle. Team members can customize their own workload based on criteria like points or hours, and even set capacity limits.

5. Amazon-backed food delivery startup Deliveroo acquires Edinburgh software studio Cultivate

Cultivate is a software development and user experience design house that has worked with a number of big names, including Deliveroo itself.

6. Smartphone sales expected to drop 2.5% globally this year

New numbers from Gartner forecast a drop of 2.5%, down to 1.5 billion, with the biggest hits to the industry in Japan, Western Europe and North America.

7. The Exit: The acquisition charting Salesforce’s future

With Salesforce’s $15.7 billion acquisition of Tableau closing, we talked to investor Scott Sandell of NEA. (Extra Crunch membership required.)

Ride-sharing and transportation platform Didi Chuxing announced today that it has formed a joint venture with BP, the British gas, oil and energy supermajor. to build electric vehicle charging infrastructure in China. The charging stations will be available to Didi and non-Didi drivers.

The news of Didi and BP’s joint venture comes one week after Didi announced that it had received funding totaling $600 million from Toyota Motor Corporation. As part of that deal, Didi and Toyota Motor set up a joint venture with GAC Toyota Motor to provide vehicle-related services to Didi drivers.

BP’s first charging site in Guangzhou has already been connected to XAS (Xiaoju Automobile Solutions), which Didi spun out in April 2018 to put all its vehicle-related services into one platform.

XAS is part of Didi Chuxing’s evolution from a ride-sharing company to a mobility services platform, with its services available to other car, transportation and logistics companies. In June, Didi also opened its ride-sharing platform to other companies, enabling its users to request rides from third-party providers in a bid to better compete with apps like Meituan Dianping and AutoNavi, which aggregate several ride-hailing services on their platforms.

Didi says it now offers ride-sharing, vehicle rental and delivery services to 550 million users and covers 1,000 cities through partnerships with Grab, Lyft, Ola, 99 and Bolt (Taxify). The company also claims to be the world’s largest electric vehicle operator with more than 600,000 EVs on its platform.

It also has partnerships with automakers and other car-related companies like Toyota, FAW, Dongfeng, GAC, Volkswagen and Renault-Nissan-Mitsubishi to collaborate on a platform that uses new energy, AI-based and mobility technologies.

In a press statement, Tufan Erginbilgic, the CEO of BP’s Downstream business, said “As the world’s largest EV market, China offers extraordinary opportunities to develop innovative new businesses at scale and we see this as the perfect partnership for such a fast-evolving environment. The lessons we learn here will help us further expand BP’s advanced mobility business worldwide, helping drive the energy transition and develop solutions for a low carbon world.”

Porsche Digital, the subsidiary of carmaker Porsche, is opening its second U.S. location, after launching its first in 2017 in Silicon Valley. The second North American office for this software and digital product-focused wing of Porsche will open in Atlanta, which is also the seat of Porsche’s North American cars business. Porsche Digital cited proximity to their auto business headquarters as one reason why they picked Atlanta, but also pointed to Atlanta’s “local tech talent” and “robust and constantly growing startup and tech sector” as key factors in its selection.

The need for a second office is specifically about serving the U.S. market, Porsche Digital notes and the company expects to have 45 employees total in the U.S. across both offices within the next year. The subsidiary overall has 120 employees worldwide, with offices in Berlin, Shanghai, and Tel Aviv as well as the U.S.

Porsche Digital does focus on creating software and digital products for the automaker’s customers, but it’s actually probably more valuable to its parent company as a sort of distributed tech talent scouting and business development arm of the company. Its offices definitely occupy global hotspots when it comes to startup tech companies, and having a permanent presence in this locations has got to come in handy when looking to attract engineering talent and potential acquisitions of complimentary early-stage companies.

Ford has acquired a small robotics company based in Michigan called Quantum Signal, which has produced mobile robots for a number of clients, including the U.S. military. The company’s speciality has been building remote control software for robotic vehicles, specifically, and its also responsible for a very highly-regarded simulated testing and development environment for autonomous and remotely-controlled robotic systems.

All of the above is useful not only when developing military robots, but also when setting out to build and deploy self-driving cars – hence Ford’s interest in acquiring Quantum Signal. Ford said in a blog post that while others might’ve been sleeping on Quantum Signal and the work its done, it has been following the company closely, and will employ its experience in developing real-time simulation and algorithms related to autonomous vehicle control systems to help build out Ford’s self-driving vehicles, transportation-as-a-service platform, and both hardware and software related to both.

Reading between the lines here, it sounds like Ford’s main interest was in picking up some experienced talent working on autonomy, and very specific challenges that are needed to develop road-worth self-driving vehicles, including perception systems and virtual testing environments. Ford does however explicitly lay out a desire to “preserve” Quantum’s own “unique culture” as it brings the company on board, pointing out that that’s the course it took with similar acquisition SAIPS (an Israeli computer vision and machine learning company) when it brought that team onboard in 2016.

SAIPS has now more than doubled its team to 30 people, and relocated to a new headquarters in Tel Aviv, with a specific focus among its latest higher on bringing in specialists in reinforcement learning. Ford has also invested in Argo AI, taking a majority stake in the startup initially in 2017 and then re-upping with a joint investment with Volkswagen in July of this year in a deal that makes both major equal shareholders. It’s Ford is happy to both acquire and partner in its pursuit of self-driving tech development, and this probably won’t be the last similar deal we see made en route to actually deploying autonomous vehicles on roads for any major automaker.

Tesla is getting ready to deliver the in-car video streaming services that CEO Elon Musk suggested would eventually come to the automaker’s cars ‘soon.’ Musk shared this (somewhat vague) updated timeline on Twitter over the weekend, after noting earlier in June at E3 that Tesla’s infotainment displays would eventually be getting YouTube and streaming video support.

This is also the first time Musk has specifically said that both YouTube and Netflix would be coming, after previously noting that version 10 of the in-car software would support video streaming generally in reply to a question from a fan on Twitter. Musk added that these would be available to stream video only while the vehicle is stopped – but the plan is to change that once full self-driving becomes a reality.

Once full autonomous driving capabilities are “approved by regulators,” Musk said, the plan is to turn on the ability to stream video in the vehicle while it’s in motion. This plan likely extends to Tesla’s in-car gaming features, too – though that’s a separate level of distraction since you’re actually interacting with what’s happening on the screen, which may not be the best idea for initial roll-out of autonomous features where a driver might be required to take over manual control in case of any incidents.

The Tesla CEO said that the experience of watching video on Netflix and YouTube in a Tesla vehicle is akin to “an old school drive in movie experience, but with much better sound” and that it has an “immersive, cinematic feel” thanks to the surround audio available via the Tesla’s audio system and its “comfy seats.”

It may seem like a weird software update priority for a car, but it’s entirely possible Tesla owners spent so much on their vehicles that they don’t have spare cash for a fixed address, in which case an entertainment system for their tiny apartment actually makes a lot of sense.

Grab — the on-demand transportation app that is the Uber of Southeast Asia — today announced yet another investment on top of the $7 billion that it has raised to date. SoftBank is putting another $2 billion into the business, earmarked for a specific use: Grab is going to invest $2 billion into its operations in Indonesia — the biggest economy in Southeast Asia — over the next five years.

Specifically, it will be using the money to modernise the country’s transportation infrastructure with the development of an electronic vehicle “ecosystem”, new geo-mapping solutions, and the establishment of a second headquarters for Grab in Jakarta focused on R&D for Indonesia and the wider region, to sit alongside its existing HQ in Singapore.

“With our presence in 224 cities, Indonesia is our largest market and we are committed to long-term sustainable development of the country,” said Anthony Tan, CEO of Grab, in a statement. “We are delighted to facilitate this SoftBank investment, as we believe by investing in digitizing critical services and infrastructure, we hope to accelerate Indonesia’s ambition to become the largest digital economy in the region and improve the livelihoods of millions in the country.” Indonesia accounts for the lion’s share of Grab’s business in terms of total footprint: its in 338 countries overall, meaning this country accounts for two-thirds of the whole list.

The deal will put Grab head to head with another big on-demand transportation startup Gojek: the two were already rivals in the region, but GoJek is based out of Jakarta and has been the dominant player in that specific market up to now.

Indeed, the deal is notable not just for the size of the funding, but for how it casts both Grab and SoftBank as allies of the government, not just accepted as businesses but endorsed as key players in helping improve the Indonesian economy and how the country is able to deliver critical services like healthcare and transportation, as well as give more services to drive the growth of “micro-entrepreneurs” by way of Grab-Kudo, the payments startup in the country that Grab acquired in 2017 for less than $100 million.

Given the track record that companies like Uber have had in locking horns with regulators, this puts Grab immediately into a strong position in terms of introducing and running with new services in the future. Its restaurant delivery business, GrabFood, is already the largest in the region, it claimed today.

Grab said the investment was the result of a meeting between Indonesia’s President Joko Widodo, Masayoshi Son, Chairman & CEO of SoftBank Group, Anthony Tan, CEO of Grab and Ridzki Kramadibrata, President of Grab Indonesia, at the Merdeka Palace in Jakarta.

“Indonesia’s technology sector has huge potential,” said Masayoshi Son, Chairman & CEO of SoftBank Group, in a statement. “I’m very happy to be investing $2 billion into the future of Indonesia through Grab.”

Indonesia’s Coordinating Minister for Maritime Affairs Luhut Binsar Panjaitan also had words supporting the deal: “Supported by the growing economy, Indonesia has a good investment climate where we are working together to boost the ease of investment in Indonesia,” he said. “This investment is evidence that Indonesia has been on the radar of investors, especially in the technology sector. We look forward to working with Grab, the fifth unicorn in Indonesia, and SoftBank to empower SMEs, accelerate tourism, and improving health services.”

We have asked Grab how and if this investment affects the company’s valuation. It last raised money just four weeks ago, $300 million from Invesco as part of a larger, ongoing Series H that it wants to use in part for acquisitions. That round is already at around $4.5 billion, with SoftBank having already put in just under $1.5 billion. This $2 billion is on top of that previous round, the company said today.

The company’s last reported valuation from a couple of months ago was around $14 billion.

This deal is a win on a couple of levels for Grab.

Most obviously, it’s giving the company a huge injection of capital to continue expanding its business aggressively in what is the biggest economy in Southeast Asia, with GDP of around $1 trillion annually.

A well-worn strategy by on-demand transportation companies — typified by others like Uber, Lyft and Didi — is to go big and go fast in order to establish a market presence among drivers and passengers, which can be used as a foothold to expand into other areas like food or package delivery and to then increase prices to improve margins.

Given that Indonesia is Gojek’s home country, and given that Indonesia is one of the biggest markets in the region, this makes it one of the most important territories for Grab to — err — grab.

“Grab is an Indonesia-focused company,” said Ridzki Kramadibrata, president of Grab Indonesia, in a statement today. “Having our second headquarters in Jakarta will allow us to better serve the needs of all Indonesians and those from emerging economies in the region. As a technology decacorn, Grab very well understands the needs and challenges we have here. We are also well positioned to support more high tech industries and infrastructure companies originating from Indonesia.”

On another front, this is an important strategy for the company on the regulatory and government front.

In a climate where it’s not unusual to see companies banned from operating in markets where they have run afoul of officials and the public, Grab is essentially buying its way into working with the state, and actually taking a commercial role in building its infrastructure. This — offering help with building infrastructure and simply passing on some of its experience and learnings — is a route that Didi has also been taking to make its way into new markets.

Grab said that it has invested $1 billion to date in Indonesia before now, and it said that its contribution to the economy in 2018 was $3.5 billion (48.9 trillion Indonesian rupiahs).

SpaceX has launched CRS-18, the 18th commercial resupply mission its flown for NASA to deliver experiment, research and supply materials to the International Space Station. This mission’s cargo included IDA-3, the second automated docking ring set to be installed on the ISS, which will enable autonomous docking capabilities for future commercial spacecraft visiting the station with both crew and cargo on board. CRS-18 took off from Cape Canaveral in Florida at 6:01 PM ET (3:01 PM PT) on Thursday, after an attempt Wednesday was scrubbed due to weather.

There are around 5,000 lbs of cargo on board the Dragon launched for this mission. CRS-18 also carried an research mission into engineering organic tissue for use in 3D bioprinting from a company called Techshot, as well as experiments in tire material manufacturing from Goodyear. There’s even Nickelodeon’s signature green slime (yes, the slime you’re thinking of) which is being sent up care of the ISS U.S. National Laboratory to help astronauts educate students on how fluid operates in microgravity environments.

SpaceX previously flew the Falcon 9 first stage rocket booster used on this mission just two months ago for the last ISS resupply mission, CRS-17. That’s a quick turnaround for one of its refurbished rockets, and another sign that it’s making good progress in its goal of achieving fully reusable launch capabilities. The Dragon cargo capsule used for this mission also flew before – twice, including for CRS-6 in April, 2015 and once again in December 2017 for CRS-13.

sped up crs 18 falcon 9 launch

The landing of the Falcon 9 from CRS-18, sped up 2X.

This launch included a recovery attempt for the Falcon 9, too, and it returned and landed as planned at the company’s LZ-1 landing zone at Cape Canaveral Air Force base. The first-stage booster separated from the second stage and Dragon craft as planned, and then returned to Earth, landing successfully after a controlled descent. This was SpaceX’s 44th successful recovery of a Falcon 9 first-stage after launch.

Next up for the Dragon capsule is for it to dock with the ISS, which is set to happen on Saturday. It’ll then have its cargo unloaded by the astronauts on board the station, and receive 3,300 lbs of return cargo which it’ll bring back to Earth with a return trip that’ll conclude with a splash down in the Pacific Ocean.

Elon Musk’s SpaceX managed to pull off something very few people thought it could — by disrupting one of the most fixed markets in the world with some of the most entrenched and protected players ever to benefit from government contract arrangements: rocket launches. The success of SpaceX, and promising progress from other new launch providers including Blue Origin and Rocket Lab, have encouraged interest in space-based innovation among entrepreneurs and investors alike. But is this a true boom, or just a blip?

There’s an argument for both at once, with one type of space startup rapidly descending to Earth in terms of commercialization timelines and potential upside, and the other remaining a difficult bet to make unless you’re comfortable with long timelines before any liquidity event and a lot of upfront investment.

Cheaper, faster, lighter, better

GettyImages 840530492

Image via Getty Images / Andrey Suslov

There’s no question that one broad category of technology at least is a lot more addressable by early-stage companies (and by extension, traditional VC investment). The word ‘satellite’ once described almost exclusively gigantic, extremely expensive hunks of sophisticated hardware, wherein each component would eat up the monthly burn rate of your average early-stage consumer tech venture.