Toyota is investing $500 million in Uber at a valuation reported at $72 billion

Toyota reportedly set to invest $500 million in Uber at a valuation of $72 billion
5:23 PM ET Mon, 27 Aug 2018 | 00:51

Toyota is investing $500 million investment in ride-hailing giant Uber in a bid to accelerate autonomous ride-sharing, the companies announced on Monday afternoon.

The investment values Uber, one of the world's most valuable privately held companies, at $72 billion, according to a report in the Wall Street Journal. That's a significant jump from Uber's most recently stated valuation of $62 billion, based on a self-reported tender offer at the end of the first quarter. The company lost $659 million last quarter, marking a wider loss than its first-quarter figure, according to its own report.

Under the deal, the companies will incorporate self-driving technology into vehicles based on Toyota's Sienna minivans, and the companies plan to begin piloting the program in 2021, they said. Toyota has dubbed the platform “Autono-MaaS,” standing for “autonomous mobility as a service.”

In June, Toyota invested $1 billion in Southeast Asian Uber-rival Grab.

Movements at the head of the Mobility Experience and Motorsport Business Lines

Diplômé de l’Ecole supérieure de Physique Chimie Industrielle à Paris et titulaire d’un Master of Science en Arizona aux Etats-Unis, Pascal Couasnon entre en 1987 dans le groupe Michelin. Jusqu’à présent directeur de l’activité Motorsport, Pascal a notamment été vice-président Marketing de Michelin Amérique du Nord, responsable de la communication technique de l’Entreprise mais aussi… Continue reading Movements at the head of the Mobility Experience and Motorsport Business Lines

Tesla is a ‘hope stock’ that is ‘just not real,’ fund manager says

Toyota investing $500 million in Uber to roll out a self-driving fleet
3:58 AM ET Tue, 28 Aug 2018 | 03:42

Tesla is a “hope stock” with little chance of success in the car-manufacturing industry, a fund manager told CNBC on Tuesday.

“Are we living in the real world?” Tesla is just another one of those hope stocks,” Peter Toogood, chief investment officer at The Embark Group, said on CNBC's “Squawk Box Europe.”

Tesla's share price took a nosedive Monday after the company's Chief Executive Elon Musk abruptly halted plans to take the firm private.

Musk had shocked investors on August 7 by announcing his aim to remove Tesla from the stock market at $420 per share. The firm's shares have shed almost 16 percent off their value since.

Days after that initial announcement, Musk said that Saudi Arabia's sovereign wealth fund had approached him “multiple times” about taking the firm off the public market, lifting hopes that Tesla could raise some much-needed cash to help its drive toward profitability. Such hopes of a Saudi deal have waned since Musk's U-turn on taking Tesla private.

Joshua Lott | Getty Images
Elon Musk

Despite Toogood's bearish thoughts on Tesla's auto manufacturing abilities, the analyst said there was “hope” for the firm in its self-driving technology.

“The only bit that has got hope is the autonomous driving,” Toogood said, adding, “(but) the idea to compete on a platform basis with cars; it's losing money every time it sells one.”

The investment manager said that the lack of a network for servicing Tesla cars was also a point of concern. Some international customers, for instance, have bemoaned repair waiting times, as parts need to be shipped from overseas.

“He's losing money every time he sells a car today, and he can't service them,” Toogood said. “Ask Norway, they can't actually get the car serviced because there's no network to service them. It's just not real.”

Norway is considered an electric vehicle-friendly country due to subsidies aimed at improving affordability and an overall target of going all-electric by 2025.

“Tesla continues to be a transformational company, especially on Model 3 production and demand,” Daniel Ives, chief strategy officer and head of technology research at GBH Insights, told CNBC in an email Tuesday.

“However, this last month has been a nightmare for Tesla bulls and the Street continues to put the company in the investor penalty box, given all the uncertainty surrounding the name in the near-term with the going-private fiasco front and center. At this point there are more questions than answers on Tesla.”

Tesla's stock price target was cut by a number of brokers on Monday and Tuesday, including CFRA, Independent Research and Canaccord Genuity.

Musk is the largest investor in Tesla, owning almost a fifth of the company's shares. Market observers have expressed worries over his leadership, citing the executive's presence on Twitter, involvement in public issues and general disdain for the media as causes for concern.

RPT-Electric Mercedes opens German assault on Tesla

(Repeats SEPT 3 story, no change to text) * Electric vehicles: Sales forecast tmsnrt.rs/2PuORFo * Electric vehicles: Market share tmsnrt.rs/2PvahlT By Esha Vaish and Laurence Frost STOCKHOLM/PARIS, Sept 3 (Reuters) – Mercedes-Benz is set to unveil its much-anticipated electric SUV on Tuesday, marking the start of a German onslaught against Tesla’s dominance of the fast-growing… Continue reading RPT-Electric Mercedes opens German assault on Tesla

Electric switch poses existential challenge to carmakers

When Tesla started production of the Model S saloon in 2012, the start-up had fewer than 3,000 employees. Chief executive Elon Musk had the luxury of beginning with a blank page, to hire just the specialists he needed and to even risk complete failure in his quest to launch the first successful electric-only car brand.… Continue reading Electric switch poses existential challenge to carmakers

  Auto Consultant Lawrence Burns Dishes the Dirt on Waymo 28 Aug

Photos: Left, HarperCollins; Right: Hite Photo

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Waymo's Fight With Uber Might Be the First Shot in a Self-Driving Car IP War

Google Has Spent Over $1.1 Billion on Self-Driving Tech

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The genesis of the modern self-driving car across three Darpa challenges in the early 2000s has been well documented, here and elsewhere. Teams of universities, enthusiasts and automakers struggled to get cars to drive themselves through desert and city conditions. In the process, they kick-started the sensor, software and mapping technologies that would power today’s self-driving taxis and trucks.

A fascinating new book, “Autonomy” by Lawrence Burns, explores both the Darpa races and what happened next—in particular, how Google’s self-driving car effort, now spun out as Waymo, came to dominate the field. Burns is a long-time auto executive, having come up through the ranks at GM and spent time championing that company’s own autonomous vehicle effort, the impressive but ill-fated EN-V urban mobility concept.

Burns began working with Google’s Project Chauffeur in 2010, just as New York Times journalist John Markoff was about to reveal the program to the world. (Incidentally, the book tells us that Markoff discovered its existence through a tip from a disgruntled former safety driver). But Burns’s role actually started earlier, when he turned down a request from Urban Challenge victors Red Whittaker and Chris Urmson to fund a joint venture between GM and their Carnegie Mellon team.

Burns writes that at the time (2008), even GM, which had supported Urmson’s team in the DARPA competition, believed autonomous cars were half a century away. What’s more, the company was preoccupied with its mere survival during the Great Recession.

Fast-forward to 2010, when Google’s program, led by Darpa veteran Sebastian Thrun, suddenly realized it needed someone to bridge the gap between Silicon Valley and Detroit. “They were looking for the grey-beard auto executive to help on many different fronts,” Burns told me in a telephone interview. “They were looking for an executive that had a vision for the technology but also knew how the OEMs [car makers] and regulators work.”

Burns’s book provides a wealth of detail and anecdotes about Google’s program, both technological and social. There’s a description of how Google co-founder Larry Page recruited Thrun (and what Burns calls his “lieutenant,” maverick engineer Anthony Levandowski) to the company in the face of multi-million dollar offers from venture capitalists to work on maps, and then self-driving cars.

Where the book really shines, though, is in illustrating the complex dynamic between Thrun, Urmson, and Levandowski, the three critical figures in making robot cars a reality. “We see a lot of heroes in this story,” says Burns. “Anthony is just an extraordinarily creative guy… with unbelievable energy. [But] he was disruptive, hard to trust and unpredictable.”

Although Burns’s sympathies clearly lie with Chris Urmson, the solid, dependable Canadian, his anecdotes often depict a smart and effective group solving problems together. On one occasion, Levandowski rented dozens of cars to supercharge Google’s mapping effort. On another, engineer Dmitri Dolgov (now Waymo CTO) faced off with a police officer while testing a prototype in a Mountain View car park.

There’s great reporting around 510 Systems, Levandowski’s stealthy start-up that provided imaging units and the first self-driving car to Google. Page eventually saw the firm as a conflict of interest for Levandowski. Thrun considered making Levandowski CEO of Chauffeur, but backed off when some team members threatened to leave if that happened. Another solution would have been for Levandowski to leave Google, going back to 510 or moving to a new company. Burns said Levandowski had even wooed several key engineers to join him there—an accusation he would later face again, with the formation of Otto. Under that scheme, Urmson would’ve been named CEO of the new company, if he had gone with them.

But Urmson wanted to stay put, reports Burn. “We built this thing here,” Urmson recalls saying. “This is going to take a lot of resources to build, so [Google] seems like the right place to do it.” As it turned out, Google bought 510, placating Levandowski with a hefty bonus plan for staying in Mountain View.

The group’s first tests on a public road involved a nerve-wracking rolling barrier of normal cars driven by Google employees in front of and behind the self-driving car, for safety. There’s also a fun section where the engineers struggle to complete a list of 10 difficult self-driving scenarios presented by Larry Page in order to earn a hefty pay-out. SPOILER ALERT: They succeed, enabling Urmson to make a down payment on a house.

Burns’s reactions to the team’s antics perfectly illuminate the difference between the Detroit auto companies and Google. “I was amazed that they were testing the vehicles on public roads. No automotive company would ever, ever have done that,” he tells me.

He also marvels at what Google accomplished in its $1.1 billion Chauffeur program (first reported in Spectrum). “GM spent about the same amount developing fuel cells during my 11 years as their vice president of R&D,” Burns recalls.

But even long after Markoff’s flattering story hit newsstands, Burns says that the Google team got the cold shoulder from Detroit, with reactions including amusement, disinterest, condescension, and anger that the engineers would take such risks. “I guess we’re not working with those guys,” Burns remembers Urmson saying after a particularly patronizing meeting.

Of course, things would change in the years that followed—especially after respected Detroit auto executive John Krafcik was brought on board. But there the book draws a veil. Burns has some discussion of Waymo rivals Uber and GM-Cruise, among others, and a fair bit on the infamous Waymo vs Uber trade secrets lawsuit. But none of his sources, nor he himself, delves into Waymo’s growing list of partnerships or future plans.

The book finishes with off with financial and economic analyses of the impacts of autonomous automotive mobility services (nothing on bikes or scooters), brief treatments of some high-profile crashes, and sparse details on Chris Urmson’s latest start-up, Aurora.

Burns ends on the optimistic note that we are inevitably heading for a tipping point where cheap, safe, and reliable self-driving vehicles will dominate transportation. “There’s going to be a moment where it’s crystal clear that the value offered by the convergence of autonomous and electric vehicles with transportation services to individual people is really compelling,” he tells me. “That point is when a lot of businesses are going to go into it… and that’s when things will scale, and scale fast.”

Anyone after a less rose-tinted view will be disappointed. There is little discussion in “Autonomy” of the possibility of increased congestion as we transition to an all-autonomous future, nor any reference to concerns about security, hacking, or potential societal risks around access and employment.

“Autonomy” is also partisan, to say the least. Although the book is not an official Waymo publication, Burns continues to be employed by the company. He is also a director at self-driving truck technology company Peloton. Burns also says he gave an early copy of the manuscript to Waymo, and made some very minor corrections or redactions at its request.

But these are minor quibbles. “Autonomy” does not claim to be a scholarly history of self-driving vehicles, nor a scientific paper to help regulators craft policy. In the hands of accomplished ghost writer Christopher Shulgan, it is rip-roaring story of one team’s exploits in reinventing the motor car. Now if only Anthony Levandowski would publish his account of the same events….

“Autonomy” by Lawrence D. Burns and Christopher Shulgan is published today by Ecco Books. $27.99

Editor's note: This story was updated on 28 August 2018.

  Meet Martti, the Finnish Robocar That Uses 5G 30 Aug

Photo: VTT

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VTT Technical Research Centre of Finland and mobile giant Nokia have joined forces to determine how 5G networks can transmit information to and from vehicles while on the road. To do this, they are testing the capabilities of 5G network technologies when combined with VTT’s robot car, called Martti.

The research is the combined effort of a consortium of Finnish companies and research institutes, including VTT and Nokia. As part of the 5G-SAFE project, researchers are studying what kind of novel road safety services, such as road condition and real-time incident information, 5G will enable for supporting autonomous driving.

These road safety services will rely on sensors and Internet of Things (IoT) devices to collect data from a robocar’s LiDAR, radar, video systems and roadside infrastructure such as weather stations, traffic cameras, and traffic lights. These devices will communicate over 5G networks to cloud-based services and algorithms for processing information and alerts to other vehicles in the area.

Researchers have been working to bring the data processing closer to the vehicles by the means of edge computing for reduced latencies and improved scalability, according to Tiia Ojanperä, Senior Scientist and Project Manager at VTT. Now they are implementing the solutions into real 5G test networks and vehicular platforms for validation.

“We were running the first pilot in June, where VTT’s robot car ‘Martti’ was connected to a 5G test network available in a vehicle test track in Sodankylä, Finland,” said Ojanperä said in an email interview. “The test network in question was still pre-5G, and waiting for real 5G capabilities that will be deployed once the equipment (i.e. network devices and user terminals) is commercially available.”

In the pilot, VTT’s robot car Martti was used to test the ability to detect obstacles and grooves in the road by the means of collaborative sensing. The demo was based on the transmission of 16-layer LiDAR sensor data on a 12.5 Hz frequency from another test vehicle to VTT’s MEC server located in the 5G-test network. The MEC server hosted an algorithm, which optimized Martti’s route.

The second and most recent test VTT and Nokia jointly conducted in August involved a similar communication of Martti’s sensor data to a server via Nokia’s prototype 5G equipment.

For as long as 5G networks have been on the horizon, observers have speculated about the main applications for these new networks, including certain automotive applications. Recently, experts have questioned whether it’s practical to use 5G for autonomous vehicles when mobile coverage of all the remote and rural roads is so limited.

The 5G-SAFE research project has incorporated this coverage limitation into their strategy in building out the technology.

“In the project, we assume that multiple radio technologies (e.g. 5G, 4G, ITS G5 or even satellite) will eventually be used in implementing the services, as not all the 5G capabilities (low latency, high bandwidth, etc.) will be available everywhere the vehicles travel,” said Ojanperä. “The idea is to select the most appropriate means of communication dynamically among the available ones. Also, the services will need to be adapted to the network capabilities, and in some remote or rural areas, only a subset of the features and information may be available.”

While this strategy may address coverage issues, questions remain about what aspects of driving could be safely handled over a 5G network as opposed to within the car's computers. Ojanperä believes that 5G-enabled distributed cloud services, such as the ones developed in the 5G-SAFE project, and direct vehicle-to-vehicle communication can essentially provide more knowledge to connected and automated vehicles of their surroundings to improve safety.

“One of the biggest benefits [of 5G networks] is edge computing and its enabled distributed crowd-sourcing opportunities,” said Ojanperä. “Edge computing is not access technology dependent, but the broad bandwidth of 5G makes it useful by enabling real-time local dynamic map updates and communicating even raw sensor data between vehicles via intelligent infrastructure.”

Ojanperä concedes that vehicles will still need to function without this additional information if the connection to the services is lost. In those situations, Ojanperä says the vehicles will have to rely on their own sensors with a limited range or implement some fail-safe functionality, like stop operation, when connectivity has been lost.

With the test environments and communication solutions in place, the next step will be to develop more advanced intelligence on top of the collected vehicular data, according to Ojanperä.

Ojanperä added: “It is not a big secret that real-time and reliable data is the oil, which enables machine-learning algorithms to make cars and transport systems evermore intelligent. Connectivity is the key enabling technology for pushing forward the transport automation mega-trend.”

< Back to The Race to 5G

Apple is late to a self driving milestone — its first test car accident

Apple’s secretive self-driving vehicle program has disclosed its first accident, according to a report filed with the California Department of Motor Vehicles. The low speed accident, which occurred August 24, is a milestone of sorts for the company, albeit not one that is being celebrated. These days, as more companies head out onto public streets… Continue reading Apple is late to a self driving milestone — its first test car accident

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Skip and Scoot are the only companies awarded scooter permits in SF

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