The following article, written by Nick Carey and Paul Leinert addresses the switch of focus from the investors towards AV tech. It is discussed, what are investors looking into the most and why are they, mostly, staying away from heavy solutions nowadays.
Summary:
- Investors are funding startups that focus on simpler self-driving solutions that target smaller and simpler customer segments.
- AV software companies such as Oxbotica, Einride, Outrider, and Aurrigo International are among the companies drawing investor interest.
- Investors are looking for startups that burn less cash and are already generating revenue.
- Making fully autonomous vehicles that can operate everywhere has proven to be harder and more expensive than expected.
- Robotaxi companies have fallen short of their earlier promises of operating fleets of vehicles by the early 2020s.
- Investors have shifted towards investing in self-driving truck companies that promised a faster route to market by hauling freight autonomously.
- Investors have gone back to basics, targeting less-complex, less cash-intensive forms of autonomy with a clearer path to payback, operating at lower speeds with little to no traffic.
- Venture investment in AV companies in Q4 2022 plunged 47% to $1.4 billion from a year earlier, according to PitchBook senior analyst Jonathan Geurkink.
- AV companies that focus on off-road/more structured environments have become popular due to the lack of progress in passenger AVs and high capital requirements.
- AV startups are increasingly operating in mining, construction, and agricultural equipment sectors.
- Companies like Caterpillar, Deere & Co, and CNH Industrial NV have also invested in AV technology.
Full Report: HERE (Reuters)
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Reference:
- https://www.reuters.com/authors/nick-carey/
- https://www.reuters.com/authors/paul-lienert/
- https://www.oxbotica.com/
- https://www.einride.tech/
- https://outrider.org/
- https://aurrigo.com/
- https://www.linkedin.com/in/jonathan-geurkink-346464/
- https://www.caterpillar.com/
- https://www.deere.com/en/index.html
- https://www.cnhindustrial.com/
- https://www.wired.com/story/robot-cars-are-causing-911-false-alarms-in-san-francisco/