SiriusXM acquires Automatic. Waymo starting public trials. Verizon invests in self-driving startup.
New CB Insights data shows that the once-hyped on-demand sector continues to fade through the first quarter of 2017. Deal activity has plummeted to 3-year lows as more on-demand companies close shop.
The usual suspects now absorb the vast majority of capital, with Instacart, Ola, and Airbnb accounting for 74% of Q1’17 funding. And as our downround tracker shows, even these giants’ prospects are far from certain.
However, ride-hailing has been an action-packed space this year, with Uber and Ola’s struggles contrasted by fundraising activity from Lyft, Didi, and Go-Jek. This week saw more consolidation as Gett acquired Juno for $200M.
Gett says the deal will allow it to compete with Lyft for second place in Juno’s home (and only) city of NYC and give it a foothold for US expansion. For a perspective on what exactly Gett is getting, we turn to a handy chart of NYC Taxi & Limousine Commission trip data from Todd Schneider:
The chart runs through the end of February 2017; for reference, Uber was providing roughly 250k trips per day over the same timeframe, which admittedly doesn’t fully capture the ongoing fallout from its PR nightmares.
On one hand, Gett’s $200M will make the company a second-place challenger in just a single US market. On the other, driver and customer acquisition costs can be staggering; Uber lost $2.8B in 2016 (excluding China), while Lyft lost $600M. As Uber’s China retreat showed, crossing borders is difficult. Though intranational competition remains, the international picture has trended towards oligopoly as the leading TNCs have carved out regional fiefdoms.
What’s your take on Gett’s deal and its price tag?
ARM targets auto market
Semiconductor designer ARM has unveiled its Mali-C71 image signal processor, aimed squarely at automotive ADAS applications. Like other semis, ARM’s push into this new market was fueled by an acquisition, namely its $350M pickup of computer vision specialist Apical last year.
ARM has been on a tear recently, purchasing three companies since SoftBank completed its own acquisition of ARM last September. CB Insights subscribers can check out all of ARM’s investment activity here.
This week in patents
Although head-up displays (HUDs) are now ubiquitous options among luxury vehicles, a new Ford patent application suggests further research into full-windscreen AR applications. The patent describes a HUD capable of overlaying information onto passing environmental features or generating virtual signs on a car’s windscreen.
These capabilities would pair nicely with Ford’s research into the projection technology for such a system.