Morning Brew - ☕ Driving force

AV startup May Mobility takes a different tack.
January 08, 2024

Tech Brew

HubSpot

It’s Monday. Welcome to the first full working week of 2024. Today, we’re going places. Specifically, Arizona, where AV startup May Mobility introduced a driverless service in Sun City. Tech Brew’s Jordyn Grzelewski had a long chat with the startup’s CEO about what sets it apart from other AV companies.

In today’s edition:

Jordyn Grzelewski, Annie Saunders

FUTURE OF TRAVEL

No driver, no problem

Graphic displaying a headshot of May Mobility CEO Edwin Olson Edwin Olson

Tired of waiting for the bus?

May Mobility wants to help solve the lack of reliable public transit in many US cities. The Ann Arbor, Michigan-based AV startup just took a leap forward on this mission, commencing “rider-only” service in Sun City, Arizona.

The company has been running in Sun City with safety operators in its vehicles since April 2023; now, the service is going fully driverless. Initially, a group of “early riders” will have the option to request pickup from locations like grocery stores and pharmacies by one of May’s autonomous Toyota Sienna minivans, free of charge, with plans to expand in the future. The startup’s microtransit model contrasts with the approach of competitors like Cruise, which faced a series of setbacks in its attempts to commercialize a driverless rideshare service.

May Mobility CEO and co-founder Edwin Olson spoke to Tech Brew about the significance of this milestone, why he thinks May Mobility (which has more than $300 million in venture-capital funding) will beat out other AV companies to reach profitability, and the startup’s vision to improve urban spaces.

This conversation has been edited for length and clarity.

Can you start at a high level and give me an overview of May Mobility?

May was founded about 2017, but with a pretty different view toward how to build an AV business than what we’re seeing a lot in the marketplace. Robotaxi is a really hard business. The revenues really aren’t that great. You’re competing with individual Uber drivers. And the cost of launching that business is incredibly high, because of the critical mass effects that you have to achieve in terms of scope, number of vehicles, and things like that. This has really been a pain point throughout the AV industry that’s led to a lot of the news that we have seen. What May does that’s fundamentally different here in the go-to-market strategy is that we are selling long-term contracts to municipalities and businesses.

Keep reading here.—JG

     

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FUTURE OF TRAVEL

Bouncing back

Fleet of vehicles parked at a car dealership Hispanolistic/Getty Images

The days of empty car dealer lots and high sticker prices may be in the US auto industry’s rearview mirror.

Following a 2023 sales rebound, industry analysts predict a “return to normalcy” in the US car market, according to a new report from Cox Automotive.

The momentum of 2023 ended in a Q4 milestone in the EV race: Chinese EV maker BYD unseated Tesla as the world’s top all-electric vehicle seller. Tesla had a strong quarter, notching a record 484,500 deliveries globally. But BYD clinched the top spot with some 526,000 all-electric vehicle sales in Q4.

In the US, analysts expect EV sales to grow in 2024, though likely at a slower pace than they did in 2023.

“We’re right back to where we were as an industry” before the pandemic, Charlie Chesbrough, Cox Automotive’s senior economist, told Tech Brew. “Inventories are starting to build again. Dealer lots are starting to get full again. And discounting and incentives are back in full force.”

Keep reading here.—JG

     

READER SPOTLIGHT

Coworking with Ryan Adams

Graphic featuring a headshot of GeoLinks COO Ryan Adams. Ryan Adams

Coworking is a weekly segment where we spotlight Tech Brew readers who work with emerging technologies. Click here if you’d like a chance to be featured.

How would you describe your job to someone who doesn’t work in tech?

As the president and COO of GeoLinks, I am given the opportunity to have a unique view of not only our company but also the telecommunications industry as a whole. I have the privilege and luxury to hire, work alongside, and lead an incredibly talented team. I firmly believe in hiring remarkable people, providing the space they need to succeed, and then ultimately trusting in their expertise to deliver the best possible results for our customers as possible. In addition to overseeing the company’s overall operations and hiring, my role addresses how GeoLinks can connect people, businesses, and municipalities across suburban, rural, and urban communities.

Bringing internet access to areas that were previously underserved and witnessing the positive impact that our work has on the lives of individuals, businesses, and entire communities is truly fulfilling. Whether it’s providing connectivity to a school library or helping a local business expand operations, I’m proud that my job enables me to lead a team of the best and brightest engineers, field technicians, and salespeople who are equally passionate about their work and dedicated to making a difference. Overall, I see my job as one that is all about opportunity and creating positive change.

What’s the most compelling tech project you’ve worked on, and why?

My mind instantly goes to our partnership with ALERTCalifornia, a public safety program helping mitigate natural disasters across the state.

Keep reading here.

     

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BITS AND BYTES

Stat: 18. That’s the average annual number of extreme weather disasters that caused more than $1 billion in damages over the past three years, according to National Oceanic and Atmospheric Administration data cited by Grist, a significant uptick since the agency started keeping track of such events in 1980.

Quote: “Heat pumps are like Taylor Swift: I hear about them everywhere these days, and even though they’ve been around for many years, their popularity keeps expanding.”—Alison F. Takemura, a staff writer at Canary Media, in a roundup of reasons to be optimistic about the clean energy transition

Read: Nobody knows what’s happening online anymore (The Atlantic)

New year, new quotas: Every sales team needs an MVP (most valuable platform). Meet yours: HubSpot Sales Hub. Check it out for yourself.*

*A message from our sponsor.

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