Autonomy—the Santa Monica-based automobile subscription service until recently known as NextCar—is getting into electric vehicles via Tesla’s popular Model 3.
The startup, which provides customers monthly vehicle subscriptions for an all-in price that includes maintenance costs, said Thursday that it will offer the Tesla Model 3 as part of a range of electric and zero-emission vehicles.
NextCar, which was launched in 2020 by former TrueCar CEO Scott Painter, rebranded as Autonomy late last year after acquiring the defunct Hewlett-Packard software brand and its intellectual property. Having recently raised $83 million in debt and equity financing, Autonomy is now ramping up its platform by including the best-selling electric car in history.
Autonomy customers will be able to subscribe to a Model 3 for a three-month minimum term, and then on a month-to-month basis afterward. Fees range anywhere from $550 per month (with a $5,500 start fee) to up to $1,000 per month (with a $1,000 start fee), plus a $500 security deposit. The service, which plans to add an insurance offering to its all-in bundle in the coming weeks, is currently available only in California.
“Electric vehicles have reached a tipping point, and it’s clear that the Tesla Model 3 is this generation’s [Toyota] Prius,” Painter, who serves as Autonomy’s CEO, said in a statement. He said Autonomy’s subscription model is meant to appeal to consumers in an era when “financial responsibility and the avoidance of debt” has prompted many to reconsider purchasing a car.
The startup also pitches an easy-to-use customer experience through its mobile app; it says customers can order a vehicle in only 10 minutes by providing their driver’s license and payment information, while the process of picking up the car or getting it delivered to them should take no more than 20 minutes. They can also manage their subscription through the Autonomy app.
Autonomy isn’t the only way drivers can get their hands on a Tesla short-term. In October, Hertz announced that Teslas would comprise more than 20% of its rental car fleet by the end of 2022 after it ordered more than 100,000 vehicles from the Elon Musk-led automaker. The news saw Tesla’s market capitalization surge above $1 trillion.
Correction, Jan. 21: A previous version of this article reported that Autonomy is in beta testing and currently includes insurance with its all-in subscription price. It has been corrected to reflect that the service is now commercially available and plans to add an insurance offering in the coming weeks.
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Parallel Systems Emerges From Stealth With $50 Million For Autonomous Electric Trains—But Will Its Plan Work?
Parallel Systems has big dreams for the future of railway freight operations, and it seems that the venture capital world has taken notice.
The Los Angeles-based transportation startup announced a $49.55 million Series A funding round as it emerged from stealth mode on Wednesday. The round was led by Anthos Capital, with additional investments from the likes of Congruent Ventures, Riot Ventures and Embark Ventures.
Comprised of former SpaceX, Google and Tesla engineers, Parallel Systems is aiming to develop autonomous and electric freight train cars that would make the American shipping industry greener and more efficient.
“We’ve been pretty quiet about what we’ve been doing,” Parallel Systems CEO Matt Soule, formerly the principal avionics engineer at SpaceX, told dot.LA. “Our website has been pretty barren.” Soule co-founded the company two years ago with fellow former SpaceX engineers John Howard and Ben Stabler. Including $3.6 million in seed funding, the startup has now raised more than $53 million to date.
Parallel Systems’ technology relies on replacing traditional diesel-powered locomotives with battery-powered freight cars. In its model, each train car is self-powered, and can break apart from or join together with other cars as needed. In theory, this ability to autonomously break apart and reassemble as needed would reduce the need for switching stations, where trains are reorganized and rerouted manually.
It could also drastically reduce the significant physical footprint of trains, converting them from two-mile-long behemoths into “platoons” of 20-to-50 cars that wouldn’t require massive terminals for loading and unloading. Smaller trains would be able to travel closer to their final destinations before being unloaded—reducing trucking emissions, which account for roughly 7% of all greenhouse gas emissions in the U.S., in the process.
“The opportunity we’ve been after is kind of decarbonizing freight from a new angle,” Soule said.
All of these ideas would be beneficial toward alleviating America’s clogged supply chains and reaching its ambitious carbon emission goals—if they were able to be integrated into America’s existing rail infrastructure. On that front, some experts are skeptical.
“My first instinct was that this looks like SpaceX engineers getting bored and working on something that they know nothing about,” Chris Caplice, executive director of the Massachusetts Institute of Technology’s Center for Transportation & Logistics, told dot.LA. “They didn’t think about the larger system—whether it's regulatory, the network itself, the rail operations or the labor involved. I think they just found a technological solution to a problem they wanted to solve.”
From left: Parallel Systems co-founders Ben Stabler, Matt Soule and John Howard.Courtesy of Parallel Systems
Caplice worries that Parallel Systems’ technology fails to consider the realities of America’s existing rail network. Today, rail lines are divided into signal blocks, which can range from less than a mile to 15 miles long; these blocks are in fixed geographic positions, and only one train at a time is permitted into any signal block. For the new autonomous, single-car system to work, “you would have to put in thousands more control points in different places to get the network chopped down small enough to do this,” according to Dale Lewis, the former director of strategic analysis for CSX Transportation.
Even then, it likely still wouldn’t look like what Parallel Systems is imagining, with cars continuously breaking in and out of platoons. To realize what the company is pitching, Lewis says you’d need a complete revamp of the entire rail system.
“If [Parallel Systems] can bring in a couple people who have deep experience in operations planning…and sit with them for a day to go through how this would fit in the system, they’d probably come to some different conclusions about what they’ve got,” he said.
While the startup doesn’t employ any full-time railway operations specialists, Soule says Parallel Systems has brought in “veterans from the industry” who have helped them “understand the business.” He says safety is a top priority for the company; indeed, their vehicles would feature AI that would allow them to come to a stop quicker than traditional trains. No one is going to argue against safer trains—though most modern trains already come equipped with a system known as Positive Train Control, which autonomously prevents train-to-train collisions and other human errors.
Still, the 24-person firm is planning to hire heavily on the software side as it tries to figure out how to integrate its ambitious designs into the existing infrastructure. On the hardware side, Parallel Systems is working toward the second iteration of its prototype battery-electric rail vehicle, and testing it on a closed track in California.
“We’re going as fast as we can in terms of building the tech,” Soule said.
Parallel Systems Explainer Video Video via www.youtube.com
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Electron Transport, a Los Angeles startup founded by alumni of electric automaker Faraday Future and military technology firm Anduril, is raising a $28 million funding round, per regulatory filings.
Dubbed a “stealth electrification startup” by its founders, Electron Transport has closed on $24.7 million and aims to raise nearly $3.5 million more, according to an SEC filing. The firm is developing an electric truck chassis, dot.LA has learned.
A number of companies are working to electrify trucks, including Irvine-based Rivian and Detroit heavyweight Ford. It is unclear whether Electron Transport is focused on pickup trucks, like the aforementioned brands, or commercial-use vehicles.
The one-year-old startup’s founders include Phillip Weicker, who co-founded Canoo—the electric vehicle maker that recently left Los Angeles for Bentonville, Ark. He and his co-founders, John Henry Harris and William Eberts, all previously worked for L.A.-based Faraday Future.When reached by dot.LA, Harris—who is also an alumnus of electric truck maker Xos—declined to comment on the funding round.