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The Station: Amazon eyes Zoox, Aurora goes back to school and Cabana hits the road

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The Station is a weekly newsletter dedicated to all things transportation. Sign up here — just click The Station — to receive it every Saturday in your inbox.

Hi and welcome back to The Station, a newsletter dedicated to all the present and future ways people and packages move from Point A to Point B. I’m your host Kirsten Korosec, senior transportation reporter at TechCrunch.

The mobility world got busy this week. Really. busy. This is gonna be a long one, buckle up.

Take a look at the most recent survey we conducted with a bunch of venture capitalists about mobility and what areas interest them most. We talked to Ernestine Fu with Alsop Louie Partners, Stonly Baptiste and Shaun Abrahamson with Urban Us, Shahin Farshchi with Lux Capital, Kate Schox with Trucks VC and Jeff Peters of Autotech Ventures.

Reach out and email me at kirsten.korosec@techcrunch.com to share thoughts, criticisms, offer up opinions or tips. You can also send a direct message to me at Twitter — @kirstenkorosec.

Uber tossed more than 20,000 JUMP bikes into a recycling yard following its deal to offload the JUMP brand to Lime. A photo below, courtesy of Cris Moffitt, shows a sliver of the thousands of bikes at the yard in North Carolina.

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“The extent of waste is unfathomable,” the Bike Share Museum said in a tweet.

Since then, Tier Mobility CEO and co-founder Lawrence Leuschner said he wants to take some of those bikes, “repair them, and give them a second life – as we do for all of our vehicles,” he wrote on LinkedIn.

Keaks (Kirsten Korosec) has been working on a big(ish) story about JUMP for the last week. Stay tuned and/or holler at her if you have any tips.

Meanwhile, we noticed Superpedestrian, the startup that makes self-diagnosing electric scooters, has teamed up with Zagster. Superpedestrian quietly launched LINK, its shared electric scooter service in partnership with Zagster in Fort Pierce, Florida in late December.

As of at least February 2020, Zagster had an agreement with Superpedestrian’s LINK to manage the fleet of shared scooters in Kansas, according to city commission documents. In March, the city council in Manhattan, Kansas authorized the city to negotiate a permitting contract with Zagster to run a six-month electric scooter pilot in partnership with Superpedestrian’s LINK.

Over in Europe, long-distance ridesharing startup BlaBlaCar said it’s expanding to scooter sharing. The company doesn’t plan to operate its own fleet of scooters. Instead, BlaBlaCar is partnering with Voi, a European e-scooter service that has raised $136 million over multiple rounds. Voi scooters will feature three different brands — Voi, BlaBlaCar and BlaBla Ride.

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It’s not a deal yet — well, as far as we know, but I’d be remiss not to highlight it here. I’m talking, of course, about the WSJ report that Amazon is in advanced talks to acquire self-driving vehicle startup Zoox.

Zoox is unlike any other autonomous vehicle startup I’ve encountered in the past five or so years. The company has taken on several capitally intensive and ambitious roles — electric vehicle designer and manufacturer, full stack autonomous vehicle developer and robotaxi operator. Zoox co-founder Jesse Levinson will disagree with me here — we’ve had this discussion before — but the company is essentially doing this alone. Yes, it has relationships and support from suppliers; it has investors. But it doesn’t have a meaningful OEM partner and backer like its competitors Argo AI and Cruise . And it has no where near the piggy bank that Waymo holds.

It’s a bold and risky strategy. It’s also expensive.

It’s a poorly kept secret that Zoox has had to do some belt tightening over the past 12 months. The company cut costs last year and tried to renegotiate some supplier contracts, sources told me at the time. In October, it raised $200 million in new convertible note funding, which was supposed to be folded into a Series C round and close by the end of 2019 or early 2020. As far as we know, that never happened. Sources have told me Zoox was in talks with OEMs about sealing a deal with a manufacturing partner that might also include financial backing. Daimler and FCA were name dropped in different conversations at the time, but I was never able to verify that the deals were close.

Then COVID-19 hit. Zoox tightened its belt further and cut nearly all of its contract drivers.

There’s no doubt that Zoox needs money to survive. But an Amazon-Zoox deal, if it happens, is bittersweet.

Zoox is the plucky startup — the stand-at-the-cliff’s edge pioneer that you want to succeed. Going it alone carries existential risk, but it has also given it the freedom to stick to its vision.

If acquired, Zoox will get sucked up into the Amazon ether and one wonders what it will become.

Other deals that got our attention:

Bolt, the Estonia-based company that provides on-demand ridesharing, scooters and other transportation services across some 150 cities in Europe and Africa, raised €100 million ($109 million) in a convertible note. Bolt also confirmed that is now valued at €1.7 billion (or nearly $1.9 billion at today’s rates). The money is coming from a single investor, Naya Capital Management, which was also a major backer of the company in its last round, a $67 million Series C announced in July 2019.

Ola Electric, the EV business that spun out of the ride-hailing giant Ola in 2019, acquired  electric scooter startup Etergo. The Dutch startup built a scooter that uses a swappable, high energy battery that delivers a range of up to 240 km (149 miles). Ola Electric is aiming to produce and launch its own line of two wheelers as soon as this year.

Tesla’s board certified a financial milestone that unlocks the first tranche — worth more than $700 million — of an unprecedented multi-billion-dollar pay package for CEO Elon Musk, according a document filed Thursday with the Securities and Exchange Commission. The milestone allows Musk to purchase the first grouping or tranche of nearly 1.69 million shares at a steep discount. As far as we know (based on SEC filings) Musk has not exercised those options yet.

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