Transportation

Early results show defeat for California Prop 30, a plan to tax the rich and fund EVs • ZebethMedia

By zebethcontrolPosted on November 9, 2022Posted in Climate, electric vehicles, EV charging, Lyft, TransportationNo Comments

Californians seem to be voting against a proposal on the midterm election ballot that would tax the wealthiest Californians to help pay for electric vehicle tax incentives and EV charging infrastructure in the state. With about 53% of the state’s votes counted, Proposition 30 was losing 57.3% to 42.7%, according to California’s Secretary of State. California is already a leader in promoting a shift to electric cars and was the first state to ban the sale of gas-powered cars by 2035. Proposition 30, as the ballot proposal is called, promises to accelerate that shift by adding an additional 1.75% tax on incomes above $2 million. Aside from helping Californians, particularly low-income residents, shift to EVs, 20% of the funds would be used to pay for wildfire prevention and firefighter training. Ride-hailing company Lyft backed Prop. 30, contributing 95% of the campaign’s total funding, or $45 million. Lyft aims to have 100% of the vehicles on its platform be electric by 2030, so making EV incentives more available to low-income drivers would massively benefit the company. Lyft, which recently laid off 13% of workers, didn’t hit revenue and active rider targets in its third quarter earnings, causing its stock to fall and investors to fear the ride-hailing company is ceding too much ground to competitor Uber. Opponents of the ballot, including California’s Governor Gavin Newsom, claim Lyft just wants to benefit itself at the expense of the rich. They argue it requires taxpayers to pay for EV subsidies that Lyft, as well as Uber, would have to pay on their own come 2030, when California law stipulates rideshare companies need EVs to account for 90% of their vehicle miles traveled. Curiously, Uber has stayed quiet on the matter. “Prop. 30 is being advertised as a climate initiative,” Newsom says in an advertisement slating the proposal. “But in reality, it was devised by a single corporation to funnel state income taxes to benefit their company. Put simply, Prop. 30 is a Trojan Horse that puts corporate welfare above the fiscal welfare of our entire state.” The California Democratic party, of which Newsom is a member, endorsed the ballot proposal. Newsom has teamed up with the Chamber of Commerce and other billionaires to oppose a proposal that they think will cause wealthy Californians to leave the state. Labor groups and environmentalists are defending the measure.

Elon Musk sells 19.5 million Tesla shares worth almost $4 billion • ZebethMedia

By zebethcontrolPosted on November 9, 2022Posted in Elon Musk, elon musk buys twitter, Tesla, TransportationNo Comments

Tesla CEO Elon Musk is selling millions of Tesla shares again. The celebrity executive disposed of 19.5 million shares Tuesday, which is worth about $3.95 billion, according to three filings with the U.S. Securities and Exchange Commission. Musk did not take to Twitter to explain why he sold shares, but it’s possible the money will go towards his $44 billion deal to buy the social media platform, which went through last month. In April, Musk also sold around 9.6 million shares of Tesla stock, which at the time was worth $8.5 billion. Those shares were sold at around $885.42. Since then, Tesla has issued a three-for-one stock split, bringing the cost of each share down. Musk sold shares Tuesday at an average price of $202.56 each. Tesla is currently trading at $191.30 after hours.

Electric Era wants to put an EV charger in convenience store parking lot near you • ZebethMedia

By zebethcontrolPosted on November 9, 2022Posted in Hardware, TransportationNo Comments

Before starting Electric Era, Quincy Lee was one of the chief mechanical engineers at Space X. He got bored of doing space stuff when the climate crisis was happening down here on Earth and decided to do something about one of the biggest challenges with the adoption of electric vehicles: Distributed high-speed charging infrastructure. “I spent seven years at SpaceX cutting my teeth on rockets and satellites. While watching a rocket launch from SpaceX mission control in 2018, I saw the Earth recede in size as the rocket flew away into the void of space. WTF, I thought to myself,” says Lee, the company’s founder and CEO, in an interview with ZebethMedia. “Why am I spending all my time sending tech away from Earth when humanity is about to burn to a crisp from climate change. That is dumb.” The company just raised $4 million (bringing its total raised to $8 million) to tackle this challenge, with fast-charging EV stations, especially aiming to install them at and near convenience stores. That makes them eligible for President Biden’s National Electric Vehicle Infrastructure (NEVI) Formula Program, enabling it to tap into the $5 billion program. The business model makes sense: 7-Eleven claimed it’s gearing up to install charger stations at 500 of its locations by the end of the year and last year, Shell claimed it is wants to add 500,000 charging points by the end of 2025. The market may soon be ready for some consolidation, come to think of it. Electric Era announced that it has secured its investment from Proeza Ventures, Blackhorn Ventures, Liquid 2 Ventures and previous strategic investors including Remus Capital. The company also added another SpaceX veteran to its payroll — Sam Reineman, who served as Lead Mechanical Engineer at the Musk-powered company. He joins as Electric Era’s CTO to help accelerate the production and delivery of the PowerNode Platform to customers. “Blackhorn, Proeza and Joe Montana’s Liquid 2 ventures are outstanding. They are deeply technical and top tier climate investors. They are super intense about deep decarbonization, first principles thinking and outstanding business strategy, said Lee. “The PowerNode Platform is the most affordable EV fast-charging solution. We built it to avoid costly demand charges and grid upgrades, making it the ideal choice for convenience stores — particularly those looking to qualify for NEVI grants.” The idea is that the platform reduces grid requirements and demand charges by a third, while supporting fast-charging speeds. The upshot is that this enables convenience stores to replicate the gas station experience while optimizing revenue and minimizing the costs of fast-charging, keeping them in the game in a new round of competition with gas stations and charging infrastructure. “Our tech allows us to build Tesla SuperCharger-like stations at every gas station in America in weeks instead of years. We are laser focused on having 10,000 PowerNode charging stations installed by 2030,” claims Lee, painting a picture of aggressive market expansion in the future: “Electric Era was founded to make EV fast-charging ubiquitous and affordable. In 10 years you will be able to autonomously charge your Rivian or CyberTruck on every street corner in America at our charging stations.” Not a moment too soon; EV charging is desperate for a business model, as Tim explored in a recent post, and inviting EV drivers into convenience stores and fast food establishments might be just the thing to tip the scales. The company is facing stiff competition, as a huge number of EV charging companies have raised money in the past year, all trying to take on different slices of the same market. Loop lassoed in $60 million, Bump charged ahead with $180 million, Monta climbed a $30 million mountain of cash and Kopperfield made $5 million appear, just to list a few of the recent rounds.

How Formula E will shape Maserati’s first passenger EV • ZebethMedia

By zebethcontrolPosted on November 8, 2022Posted in EV, formula e, Maserati, TransportationNo Comments

When the 2024 Maserati GranTurismo Folgore comes to market next fall, consumers might notice some Formula E motorsports DNA running through the automaker’s first EV. In January, Maserati will become the first Italian team to compete in the ABB FIA Formula E World Championship when the series kicks off its ninth season in Mexico City. The series serves as a testbed for manufacturers to experiment with the technology, including energy management, thermal management and battery design, that will eventually trickle down to their passenger cars. Like others, Maserati is taking what it learned developing an electric race car and integrating it into its passenger EV. Maserati’s first EV, the GranTurismo Folgore, is expected to arrive next summer with a sub-$200,000 sticker price and pave the path for the Italian luxury sports car maker to go fully electric by the end of the decade. Two V6-powered versions of the GranTurismo are slated to arrive in showrooms in the spring. The brand will add an all-electric Grecale SUV and Gran Cabrio GT to its Folgore (“Thunderbolt”) lineup next year, with battery-electric versions of Maserati’s MC20 Spyder, Levante SUV and Quattroporte sedan expected to follow mid-decade. Where will this Formula E technology pop up? The company is pulling lessons (and tech) from at least three areas of its Formula E race car and integrating it into the Folgore. Seating The GranTurismo Folgore EV’s T-bone shaped battery pack allowed engineers to position the driver’s seat closer to the ground for better handling and aerodynamics. The powertrain’s architecture positions the battery modules around the central body instead of beneath the seats as in a typical EV, to create one of the lowest seating positions for an electric passenger car. The lower center of gravity and 50:50 weight distribution help the driver change direction at higher speeds. Inverters The GranTurismo Folgore draws its energy from a 92.5 kilowatt-hour battery and a trio of 300-kilowatt motors – one in the front, two in the rear. But the car’s inverter, a key component of a car’s electrical system that converts direct current to alternating current, affects how the driver perceives the car’s 760 horsepower. The motors use silicon carbide-based inverter technology derived from Formula E, a first in a production car. These inverters provide higher power density than traditional inverters while cooling the battery more efficiently. Charging Energy management is crucial in Formula E. Teams are not allowed to swap batteries mid-race, so the cars need to be able to travel up to 200 mph for 45 minutes on a single charge. Motivated by the demands of the higher-performance Gen 3 car the series will begin using next year, Maserati’s 800-volt EV charging architecture has been designed to add 270 kilowatt hours in DC fast-charging, adding up to 60 miles in five minutes. A successful performance in Formula E next year could create visibility for the GranTurismo Fologre and, by extension, the rest of Maserati’s EV lineup. We’ll tune in next year to see if the brand can claim a “win on Sunday, sell on Monday” victory.

Wing brings drone delivery options to DoorDash customers in Logan, Australia • ZebethMedia

By zebethcontrolPosted on November 8, 2022Posted in App, Apps, DoorDash, drone delivery, Robotics & AI, Transportation, wingNo Comments

DoorDash is teaming up with Alphabet’s Wing to offer customers an easier way to arrange for goods to be delivered via drone. Beginning this week, a small number of DoorDash users in Logan, Australia will be able to order certain convenience and grocery items through the DoorDash app and have them delivered by a Wing drone, typically in 15 minutes or less, Wing says. The experience looks much like it does with a typical DoorDash delivery. A dedicated “DoorDash Air” carousel in the app highlights items eligible for Wing drone delivery, and the GPS location of orders is tracked in real time. Perhaps the only major difference is, unlike a standard DoorDash delivery, users who order via drone will be asked to specify a delivery spot in the app where their package can be safely lowered from the drone once it arrives. As Wing notes on its corporate blog, the DoorDash partnership is a step toward opening Wing’s platform so that its delivery service can be accessed via third party apps. “We see this new functionality as a logical step on this journey to make drone delivery a plug-and-play option for more businesses and consumers — no matter what app they use,” the company writes. Image Credits: DoorDash For DoorDash, the collab signals the company’s ongoing commitment to autonomous delivery tech. Last year, DoorDash introduced DoorDash Labs , a division focused on building automation and robotics solutions for last-mile deliveries. Separately, DoorDash has piloted delivery robots from vendors including Starship Technologies. Wing’s tie-in with DoorDash comes at an especially precarious time for the drone delivery industry. Technical, logistical and financial hurdles have impeded major players’ progress toward ubiquitous drone delivery — assuming that’s even an achievable vision. A report from Bloomberg earlier this year revealed that Amazon, for example, which has been developing delivery drones for years, has yet to overcome key safety concerns and technological limitations. Wing has wisely kept its scope smaller, focusing on a select few markets including several cities across Australia, Finland and Virginia and Texas in the U.S. The company has had to contend with its own share of issues, including neighbors irked by the drones’ loud propellers and weather-related flight disruptions. But Wing has achieved some success to date, reaching 200,000 lifetime deliveries in March 2022 and inking partnerships with supermarket chains like Australia’s Coles and Walgreens. According to analyst firm Research and Markets, the global drone package delivery market could be worth $5.56 billion by 2030. Among others, carriers like FedEx and UPS and retailers such as Walmart are testing autonomous drone cargo flights for short-haul deliveries.

Electric commercial van maker Arrival delays revenue until 2024 • ZebethMedia

By zebethcontrolPosted on November 8, 2022Posted in Arrival, EV, TransportationNo Comments

Troubled electric vehicle startup Arrival, which is restructuring its business to develop commercial vans for the U.S. instead of Europe, said Tuesday it doesn’t expect to earn revenue until after 2023. The British company, which has struggled to raise funds to produce EVs using its modular microfactory strategy, will halt operations at its Bicester, U.K., factory to focus on opening a facility in Charlotte, North Carolina. Arrival initially planned to build the van at scale in Europe through a now-shelved $150 million at-the-market offering. Several factors make the U.S. a more attractive climate, said CFO John Wozniak, including a larger market, higher margins, and new incentives of up to $40,000 for battery-electric commercial vans under the Inflation Reduction Act. “Limited resources and the attractive opportunities in the U.S. market makes developing U.S. products the best use of capital,” Wozniak told analysts during the company’s third-quarter earnings call. “But this means revenue and margins will come later, not in 2023.” The company reported a third-quarter loss of $310.3 million, compared with a $30.6 million loss for the same period a year ago. Arrival has faced several struggles — including production delays, a class action lawsuit and wide-scale layoffs — since going public last year in a $660 million special purpose acquisition deal with CIIG Merger. The company finally produced its first electric van, a last-mile delivery vehicle called the L van, in October in Bicester. Last week, the EV maker received a letter from Nasdaq warning it would be delisted if it does not manage to trade above $1 for 10 consecutive days over the next six months. The company’s share price reached $22 at its debut but has traded below $1 since late September. Shares traded at 59 cents Tuesday morning following the company’s earnings report. “This does not mean we’re writing off the U.K. and European markets,” said Mike Ableson, Arrival’s CEO of North America. “We are prioritizing the U.S. market with our current available funds, but we’ll keep an incredible team in place in the U.K. to redesign and optimize aspects about the L van for the new EU regulations.” For the U.S., the company will build a larger van called the XL. “We cannot make money on our current L van product given the cost of parts associated with being on low volume,” Wozniak said. “Each vehicle we produce reduces our cash balance.” The company expects to begin producing the vans in Charlotte 12 to 18 months after raising capital, according to Ableson, a former General Motors executive who will head Arrival’s U.S.-based product engineering team. Many components carry over from the L van to the XL, including “especially some of the high value systems like traction motors and battery modules,” which will shorten the development timeline, he said. As part of the restructuring, Arrival is laying off about 700 workers — or 30% of its workforce — from 2,400 to “just under 1,700,” according to Ableson. Most of those positions are based in the U.K.

Musk’s $56 billion Tesla pay deal goes to trial amid Twitter overhaul • ZebethMedia

By zebethcontrolPosted on November 8, 2022Posted in Elon Musk, elon musk buys twitter, Tesla, Transportation, TwitterNo Comments

As if Elon Musk didn’t have enough on his plate, the world’s richest man is headed to court next week to defend his $56 billion Tesla pay package. Richard Tornetta, a Tesla shareholder who filed suit in 2019 to rescind Musk’s 2018 pay deal, claims the package — “the largest compensation grant in human history” — is unjustly paid to Musk without demanding he focus entirely on the carmaker. The trial begins November 14, yet another drama Musk will have to juggle as he works to overhaul Twitter. Musk’s deal to buy the social media company went through at the end of October, and since then Musk has set to work laying off swathes of employees, getting sued for said layoffs, and generally scheming out loud on the platform about charging users $8 per month to get a blue tick next to their names. The Twitter buy didn’t exactly help Musk’s case in the lawsuit over his pay package. Aside from Tesla, Musk already serves as CEO of SpaceX, the Boring Company, OpenAI and Neuralink. With Twitter, Musk will only lend credence to Tornetta’s claims that Musk is a “part-time executive” at Tesla. Tornetta also claims the board set low bars on performance targets for Musk and that the grant was “demanded for the avowed purpose of colonizing Mars (the planet).” Tesla has said Musk’s pay package delivered a 10-fold increase in value to shareholders. The trial will be decided by Kathaleen McCormick on Delaware’s Court of Chancery. McCormick oversaw Twitter’s suit against Musk that ended in him agreeing to close his $44 billion deal, an acquisition which he financed in large part by selling his Tesla stock. The grant ‘defied its goal of focusing Musk on Tesla’ Tornetta’s lawyers argue the 2018 package did not achieve its stated purpose of getting Musk to focus on Tesla, and no wonder — there were no provisions requiring Musk to devote time or attention to Tesla, nor were there provisions limiting Musk’s allocation of time or attention to non-Tesla endeavors. “Indeed, Musk testified that since the Grant’s approval, he has spent a little more than half his time on Tesla matters and has dedicated substantial time and attention to various other endeavors,” the lawsuit reads. Musk’s lawyers responded that his ambition is what makes him unique as a CEO, and that he does not punch a clock to determine time spent at the company. The disputed pay package allows Musk to buy 1% of Tesla stock at a discount each time performance and financial targets are met. If they aren’t met, Musk gets nothing. Tesla hit 11 out of 12 targets, according to court papers. “In any event, under the proposed plan, Musk would not earn any compensation at Tesla unless he drove tremendous growth, which could not be accomplished without significant time and attention from the CEO,” said Musk’s lawyers. The suit against Musk also claims the package was not entirely fair because Musk controls the board. “None of the committee members were independent of Musk,” wrote Tornetta’s lawyers. For example, Kimbal Musk, Musk’s brother, sits on Tesla’s board — a pretty clear conflict of interest. Tornetta’s filing also points to former board member Antonio Gracias who the plaintiff describes as a close friend of Musk’s. Gracias, personally and through his private equity firm, has collectively invested over half a billion dollars in “essentially all of Musk’s entities,” according to the filing, including PayPal, Tesla, SpaceX, SolarCity, The Boring Company and Neuralink. In addition, the filing calls out Ira Ehrenpreis and James Murdoch, who are both still on Tesla’s board, as being personal friends of Musk and investors in Musk’s entities. Gracias, Murdoch and Ehrenpreis are also listed among the defendants on the case.

Lyft takes $135.7 million hit on Argo AI shutdown • ZebethMedia

By zebethcontrolPosted on November 8, 2022Posted in Argo AI, autonomous vehicles, Lyft, ridehailing, TransportationNo Comments

Ride-hailing company Lyft lost $135.7 million in the third quarter due to the shutdown of autonomous vehicle company Argo AI, in which Lyft had a small stake. Late last month, Argo AI closed its doors as its main backers, Ford and Volkswagen, pulled their investments in order to focus on more near-term goals like advanced driver assistance systems in passenger vehicles. Lyft and Argo were working together to test autonomous ride-hailing using Argo’s tech on the Lyft platform. The two companies had launched public robotaxi services in Austin, Texas in September and Miami, Florida in December of last year. Both of those services have now been discontinued, a Lyft spokesperson told ZebethMedia. Lyft did not say how it will adjust its AV strategy in the future, but the company has also partnered with Motional, another AV tech company, to launch robotaxis in Las Vegas in August. Lyft’s losses incurred by the Argo shutdown only account for about a third of the company’s total losses for the quarter. In Q2, Lyft lost $422.2 million, which is a larger cost than the $99.7 million in the same period of 2021 and a net loss of $377.2 million in the second quarter of this year. A bigger portion of Lyft’s losses are attributable to $224.1 million in stock-based compensation and related payroll expenses, an increase from $179.1 million in the second quarter. The uptick is related to the top-up that Lyft issued to employees when its stock price declined earlier in the year, according to a Lyft spokesperson. Lyft said the increase isn’t yet related to the rounds of layoffs from the company, the first of which occurred in July and the second just last week as Lyft tries to cut down on operating expenses. In regards to that reduction in workforce, Lyft expects to “incur a charge of between $27 million and $32 million” in Q4, as well as “a stock-based compensation charge and corresponding payroll tax expense related to affected team members, as well as restructuring charges related to a decision to exit and sublease, or cease use, of certain facilities,” said Elaine Paul, Lyft’s chief financial officer, during Monday’s earnings call. “However, we aren’t able to estimate these charges at this time because they depend in part on our future stock price.” Paul also said Lyft has been working to reduce stock-based compensation next quarter by ceasing new hires in the U.S. and shifting the nexus of hiring away from the U.S. and toward international markets like Canada and Eastern Europe where “there’s a different compensation model with low or no equity.” Lyft misses Q3 estimates For the third quarter, Lyft reported revenue of $1.05 billion, which is slightly less than Wall Street expectations of $1.06 billion. The company’s earnings per share hit -$1.18 versus the $0.09 that was expected. Even active riders, which saw an improvement quarter over quarter, only topped 20.3 million, and the Street had hoped for 21.1 million. That said, Lyft’s revenue per active rider beat expectations of $49.94 at $51.88. Lyft’s stock, which had started to climb after Uber reported strong earnings last week, fell 14.36% Monday in after-hours trading. The company’s shares have slid 69.29% since the start of the year. Lyft closed the quarter with $143.7 million in cash. Looking forward, Lyft expects revenue to be between $1.145 billion and $1.165 billion in the fourth quarter, with revenue growth reaching between 9% and 11% quarter over quarter and 18% to 20% year over year. Part of that growth will come from increased revenue per rider, which is backed by Lyft’s recent decision to increase service fees for riders. Paul said Lyft intends to cut its operating expenses by roughly $20 million in Q4 versus Q3, which is in part due to the reduction in force. John Zimmer, Lyft’s president, said he was confident that Lyft would be able to achieve its Q4 goals regardless of the macro environment. “We’ve been using internally two main cases. One is the growth case, which assumes market bookings grow in the low to mid 20% year over year, and that the labor market stays as tight as it currently is,” said Zimmer during the Q3 earnings call. “And then, internally what we call a recession case where the market growth slows and we see operating leverage through lower driver engagement and acquisition costs if unemployment rises. So in both cases, we have a very confident path to the billion dollars, and in both cases, we’ll continue to focus our R&D spend on marketplace innovation that helps improve the cost basis of the business.”

Foxconn invests another $170M into EV SPAC Lordstown Motors • ZebethMedia

By zebethcontrolPosted on November 8, 2022Posted in EV, Foxconn, Lordstown Motors, TransportationNo Comments

Taiwanese manufacturer Foxconn is increasing its investment in EV startup Lordstown Motors by buying $170 million in common stock and newly created preferred shares. Once the deal is complete, Foxconn will hold all of Lordstown’s outstanding preferred stock and 18.3% of its common stock on a pro forma basis. Foxconn will also have the right to two board seats, the companies said Monday. The additional investment comes a year after the electric light-duty truck manufacturer sold its 6.2-million-square-foot Lordstown, Ohio, factory to Foxconn. As part of that $230 million deal, which included a direct investment of $50 million, Foxconn agreed to help Lordstown Motors manufacture its Endurance pickup truck. Production of the electric pickup truck began in September 2022. This latest deal, specifically the $100 million direct preferred stock investment, replaces the joint venture funding announced last year by Foxconn and Lordstown Motors. The investment will occur in tranches and is subject to a review by the Committee on Foreign Investment in the United States. An initial closing is expected to be held later this month. Foxconn will purchase about 12.9 million shares of common stock at a purchase price of $1.76 per share, resulting in total proceeds of $22.7 million. Foxconn will also buy 300,000 shares of preferred stock at $100 per share, resulting in total proceeds of $30 million. The remaining shares of preferred stock will be purchased by Foxconn as Lordstown Motors achieves based certain milestones. After receiving approval from CFIUS, Foxconn will buy an additional 26.9 million shares of common stock at a purchase price of $1.76 per share, resulting in total proceeds of about $47.3 million. “Since announcing our first transaction with Foxconn more than a year ago, it has been our objective to develop a broad strategic partnership that leverages the capabilities of both companies. Foxconn’s latest investment is another step in that direction,” Lordstown Motors Executive Chairman Daniel Ninivaggi said in a statement. The companies said the fresh injection of capital will be used to fund development and design activities for a new electric vehicle program in collaboration with Foxconn, a manufacturing company best known for making Apple’s iPhone. Lordstown Motors is one of several companies that went public over the past two years by merging with a special purpose acquisition company DiamondPeak Holdings Corp., with a market value of $1.6 billion. The company struggled almost from the get-go, its demise fueled by a damning report by short-seller firm Hindenburg Research that accused the EV SPAC of misleading investors on both its demand and production capabilities. Hindenburg disputed that the company booked 100,000 pre-orders for its electric pickup truck, a stat shared by Lordstown Motors in January 2021. The company later cut its forecast and CEO Steve Burns and CFO Julio Rodriguez resigned, just a few weeks after was reassuring investors of the company’s bright future. The missteps continued and the U.S. Securities and Exchange Commission and the Department of Justice opened investigations into the EV startup. Even after receiving a $400 million lifeline in from a hedge fund managed by investment firm Yorkville Advisors, Lordstown had its struggles, including losing GM as an investor. Its deal with Foxconn has been its best chance at survival even as supply chain issues limit production of its EV pickup.

Travel app Hopper raises $96M from Capital One to double down on social commerce • ZebethMedia

By zebethcontrolPosted on November 7, 2022Posted in App, Apps, capital one, funding, startup, Startups, Transportation, travel, travel bookingNo Comments

Evidently, the downturn hasn’t soured investors on the travel industry. Travel booking startup Hopper today announced that it closed a $96 million follow-on investment from Capital One, bringing the company’s total raised to close to $730 million. The fresh cash will be put toward several efforts, CEO and co-founder Frederic Lalonde said in a press release, including supporting Hopper’s new social commerce initiatives. As a part of the funding, Hopper says it’s extending its partnership with Capital One to create new travel products aimed at Capital One customers. Hopper’s tech already powers Capital One Travel and Premier Collection, Capital One’s marketplace of hotels and resorts exclusive to Capital One Venture X cardholders. It’s a safe bet that similar experiences along that vein are forthcoming. “With Hopper, we have found a partner who can not only match that pace, but help us continue to challenge the status quo and take a differentiated approach to building a world-class travel brand,” Capital One managing VP Matt Knise said in statement. “Through this strategic partnership, we’re well-positioned to adapt to a rapidly changing travel environment and create industry-leading solutions for our customers along their travel journey.” Founded by Frederic Lalonde and Joost Ouwerkerk in 2007, Hopper spent six years in stealth building what it claimed at the time was the “world’s largest structured database of travel information.” The company’s web-crawling tech ingested blogs, photo-sharing sites and other sources of information about locales and tagged them to a geolocation in a massive place database. But after Hopper’s public debut in 2014, the company’s leadership decided to pivot to mobile and devote engineering resources to flight prediction, building a tool that continuously monitors airline prices and sends price change alerts via push notification. Since the, Hopper has evolved into one of the largest travel apps in North America, with over 80 million downloads and sales of flights, hotels, homes and rental cars on the platform set to exceed $4.5 billion this year. Hopper differentiates itself from rival travel services (e.g. Travelocity) with features such as airfare price freezes and flight disruption guarantees, the former of which the company says represents about 40% of its total app revenue. Last year, Hopper ventured into the business-to-business market with the launch of Hopper Cloud, a partnership program that allows travel providers including Kayak, Marriott and Trip.com to resell Hopper’s fintech and travel agency products through a white-label portal. Hopper claims that Cloud has seen a rapid uptake, now comprising more than 40% of Hopper’s business; Lalonde claims that Hopper Cloud is on track to make more in 2022 than all of Hopper did in last year. On the consumer side, this spring, Hopper shifted its focus to in-app promotions, discounts and sales events. Social commerce is the company’s next big push, anchored by features like referrals, share-to-earn, team buying and daily gift, which reward users for with discounts on travel purchases for launching the app and engaging in sharing with friends. Hopper was last valued at $5 billion, ZebethMedia reported in early February. The company — which has an estimated 11.2% of the third-party air travel market in the U.S. — plans to eventually go public.