Ford unveils lineup for Europe to outpace gas and diesel vehicle sales by 2022 – gpgmail


Ford unveiled a range of hybrid vehicles Tuesday at the Frankfurt Motor Show as part of its plan to reach sales of 1 million electrified vehicles in Europe by the end of 2022.

Ford introduced hybrid and plug-in hybrid versions of the Mondeo wagon, Puma compact crossover, Kuga (shown below) and Explorer SUVs as well as the new Tourneo “people mover” at the show.

FORD KUGA SIDE CHARGING

But more are coming. Ford said earlier this year it plans to bring eight electrified vehicles to market this year and another nine that will be produced by 2024. One of those, an all-electric Mustang-inspired SUV, will come to market in 2020. The electric SUV with Mustang styling has a targeted range of 600 km (more than 370 miles) calculated using the World Harmonised Light Vehicle Test Procedure (WLTP), and fast-charging capability.

Ford expects that electrified vehicles will account for more than 50% of its car sales in Europe by 2022, surpassing combined sales of conventional petrol and diesel models.

Ford’s upcoming portfolio is part of its broader plan to make its Europe division leaner and more profitable. The company said in June it will cut 12,000 jobs and consolidate its manufacturing footprint to a proposed 18 facilities by the end of 2020. Most of the job cuts, 2,000 of which are salaried position, will occur through voluntary separation programs.

The automaker also announced Tuesday partnerships with six energy suppliers in Europe, including Centrica in the U.K. and Ireland, to install home charging wall boxes and provide green energy tariffs. A partnership with NewMotion aims to help drivers locate and pay for charging more easily at more than 118,000 charging points in 30 countries.

“With electrification fast becoming the mainstream, we are substantially increasing the number of electrified models and powertrain options for our customers to choose from to suit their needs,” Ford of Europe President Stuart Rowley said in a statement.

Electrified doesn’t mean every vehicle will be solely powered by electricity. The term means the vehicles can use hybrid, plug-in hybrid or battery-electric technology. The showcase Tuesday supports the automaker’s earlier commitment that every new Ford passenger vehicle will include an electrified option.

Ford Europe plans

While some automakers have stuck to an all-electric strategy, Ford plans to produce a range of hybrids, plug-in hybrids and battery electric vehicles.

“There is no ‘one-size-fits-all’ solution when it comes to electrification – every customer’s circumstances and travel needs are different,” said Joerg Beyer, executive director of engineering at Ford of Europe. “Our strategy is to pair the right electrified powertrain option to the right vehicle, helping our customers make their electrified vehicle experience easy and enjoyable.”

Ford isn’t doing this alone. The automaker announced in July a partnership with Volkswagen Group that covers collaboration on electric vehicles and development of autonomous technology via a $2.6 billion investment by VW into Argo AI.

Under the EV part of the tie-up, Ford will use VW’s MEB platform, the underlying architecture for its upcoming line of passenger electric vehicles, to develop at least one fully electric car for Europe. VW debuted Monday the ID.3, the first model with MEB platform.


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America’s largest companies push for federal online privacy laws to circumvent state regulatory efforts – gpgmail


As California moves ahead with what would be the most restrictive online privacy laws in the nation, the chief executives of some of the nation’s largest companies are taking their case to the nation’s capitol to plead for federal regulation.

Chief executives at Amazon, AT&T, Dell, Ford, IBM, Qualcomm, Walmart, and other leading financial services, manufacturing, and technology companies have issued an open letter to Congressional leadership pleading with them to take action on online privacy, through the pro-industry organization, The Business Roundtable.

“Now is the time for Congress to act and ensure that consumers are not faced with confusion about their rights and protections based on a patchwork of inconsistent state laws. Further, as the regulatory landscape becomes increasingly fragmented and more complex, U.S. innovation and global competitiveness in the digital economy are threatened,” the letter says.

The subtext to this call to action is the California privacy regulations that are set to take effect by the end of this year.

As we noted when the bill was passed last year there are a few key components of the California legislation including the following requirements:

  • Businesses must disclose what information they collect, what business purpose they do so for and any third parties they share that data with.

  • Businesses would be required to comply with official consumer requests to delete that data.

  • Consumers can opt out of their data being sold, and businesses can’t retaliate by changing the price or level of service.

  • Businesses can, however, offer “financial incentives” for being allowed to collect data.

  • California authorities are empowered to fine companies for violations.

There’s a reason why companies would push for federal regulation to supersede any initiatives from the states. It is more of a challenge for companies to adhere to a patchwork of different regulatory regimes at the state level. But it’s also true that companies, following the lead of automakers in California, could just adhere to the most stringent requirements which would clarify any confusion.

Indeed many of these companies are already complying with strict privacy regulations thanks to the passage of the GDPR in Europe.


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4 Automakers Agree to Cleaner California Air. Now They May Be Sued.


Is this crazy, or what: Four automakers face a Department of Justice investigation and possible lawsuit because they possibly conspired to, uh, build more fuel-efficient cars and help make California’s air cleaner. BMW, Ford, Honda, and Volkswagen are the reported targets of a Justice Department investigation into whether they skirted federal competition laws by agreeing with each other to agree to stricter emissions standards in California.

President Trump is mad at California and automakers standing in the way of his administration’s plan to roll back climate change regulations. It’s possible the DOJ is onto something if it can show the automakers agreed among themselves to act in a way that limits competition or product choices without involving the government beforehand. For instance, reducing the number of big SUVs sold there may be good for the air, but it might be seen as collusion.

States’ Rights vs. Executive Power

At a high level, the disagreement is over the rights of states to set a higher standard for higher fuel efficiency and lower air pollution–in this case, a right granted by federal laws (rather the 10th Amendment holding the “powers not delegated to the United States [are] reserved to the States respectively, or to the people”), and on the other hand, the powers of the executive branch.

The law at play here is the federal Clean Air Act, which dates to the 1960s. It has been modified over the years. It says the feds, not individual states, get to set clean air regulations. But there’s a huge loophole: Because California is the state most affected by car-driven air pollution since the end of World War II, the act lets California set more stringent standards. And it allows the other states to follow the same rules California sets (but not its own rules). Colorado, Connecticut, Delaware, District of Columbia, Maine, Maryland, Massachusetts, New Jersey, New Mexico (model year 2011 and newer), New York, Oregon, Pennsylvania, Rhode Island, Vermont, and Washington currently use California’s rules. These states represent the entire Pacific West Coast as well as the eastern seaboard from Maine to Washington, DC, and about a third of the US population. For what it’s worth, every California-rules state except Pennsylvania went for Clinton, not Trump, in the 2016 election.

In 2018, President Trump sought to roll back or freeze some fuel economy and air pollution standards. California wants to keep stricter rules. California Air Resources Board Chairwoman Mary Nichols, who was involved in the July agreement with the four automakers, says California’s emissions goals are achievable and they help US automakers because other countries, particularly China, hew closely to California’s rules. In other words, even if the US were to roll back standards, any automaker that wants a global footprint still has to engineer cars to meet the most stringent standards.

Trump “Enraged.” California Gov: “Political Interference.”

The President used his bully pulpit — Twitter — to excoriate BMW-Ford-Honda-VW. He called them “politically correct Automobile Companies [capitalizations his]” run by “Foolish executives” while the Golden State “will squeeze … [automakers] to a point of business ruin.”

Trump also tweeted that “Henry Ford would be very disappointed if he saw his modern-day descendants wanting to build a much more expensive car, that is far less safe and doesn’t work as well.” Pollution controls will increase vehicle cost — $3,000 a car according to Trump, or $2,100 a car by the Trump administration’s earlier statements. Factcheck.org said there’s little or no evidence that cars with higher mpg are less safe in accidents.

Lighter cars in accidents with heavier vehicles fare less well, but economy improvements could come from greater efficiencies rather than lightening a vehicle. At the same time, a lighter car does less damage to another lighter-weight car.

Consumer Reports weighed in and said Americans as a group will lose $460 billion in fuel savings “in the coming years if the federal government goes forward with plans to roll back the nation’s fuel economy and emissions standards for new cars and light-duty trucks.”

When The New York Times reported Trump was “enraged” by the audacity of California, his handlers opted to alert others in the media that The Times has correctly captured the President’s mood, according to Politico. California Gov. Gavin Newsom fired back at Trump’s “blatant political interference.”

Administration critics of the BMW-Ford-Honda-VW deal with California say the deal to raise fuel efficiency could mean the end of big SUVs and crossovers. Here, the 2019 Ford Expedition, with three rows of seats, room for eight, and EPA ratings of 18-20 mpg overall. The pact would raise efficiency to almost 50 mpg by 2026, although fuel efficiency mpg is higher than real-world mpg.

How It Came to This

The backstory dates to the early 1950s and the understanding almost 70 years ago of how smog affects California, to California clean air legislation signed by then Gov. Ronald Reagan, federal fuel economy and clean air legislation of the 1960s, and the California-US agreement thanks to the unique status of California and, in particular, the Los Angeles basin that traps smog.

California’s authority to act comes from the Clean Air Act, which was signed by President Richard Nixon.

When the Trump administration sought to ease some of the clean air standards, 17 automakers urged the White House to continue talks with California and avoid a legal battle. They warned that failure to reach agreement would lead to “an extended period of litigation and instability.” Of the 17, BMW, Ford, Honda, VW continued to discuss with California their support for strong clean-air/higher-mpg standards. They announced an agreement in late July. That’s what enraged the President.

The agreement has the four automakers agreeing to increase fuel efficiency standards by model year 2026, just six years away, to almost 50 mpg (fleet average). Note that what the government calls miles per gallon is considerably higher than the real-world mpg compliant cars would actually get. Between credits and dispensations that are the work of accountants and legislators, not engineers, a vehicle that gets roughly 35-40 mpg would be, roughly, a 50-mpg car for sake of the rules.

According to a Sept. 6 Wall Street Journal story by Timothy Puko and Ben Foldy with the tagline Politics (not Cars):

The four companies [BMW, Ford, Honda, VW] and the California Air Resources Board announced the deal in July to signal support for keeping one, nationwide emissions standard. Justice Department officials believe the agreement could effectively restrict competition by potentially limiting the types of cars and trucks the auto companies offer to consumers, according to people familiar with the department’s thinking. Such an impact of the deal—potentially cutting production of sport-utility vehicles and crossovers that burn more gasoline—could cross legal lines, the people said. Courts have prohibited such deals even if the motivation was for a public good, the people said.

The automakers would also be hurting themselves because big SUVs and pickups often have profit margins on the order of $10,000 per vehicle. To keep selling them, they’ll need to sell even more compact cars and hybrids, plug-in hybrids, and EVs.

Now read:




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Ford says its autonomous cars will last just four years – gpgmail


The automotive industry has embraced — and advertised — self-driving cars as a kind of panacea that will solve numerous problems that modern society is grappling with right now, from congestion to safety to productivity (you can work while riding!).

Unfortunately, a very big question that has been almost entirely overlooked is: how long will these cars last?

The answer might surprise you. In an interview with The Telegraph in London, John Rich, who is the operations chief of Ford Autonomous Vehicles, reveals that the “thing that worries me least in this world is decreasing demand for cars,” because “we will exhaust and crush a car every four years in this business.”

Four years! That’s not a very long lifespan, even compared with cars that undergo a lot of wear and tear, like New York City cabs, which were an average of 3.8 years old in 2017, meaning some were brand new and others had been in service for more than seven years.

It’s more surprising compared with the nearly 12 years that the average U.S. car owner hangs on to a vehicle. In fact, Americans are maintaining their cars longer in part because the technology used to make and operate them has advanced meaningfully. In 2002, according to the London-based research firm IHS Markit, the average age of a car in operation was 9.6 years.

So what’s the story with autonomous cars, into which many billions of investment capital is being poured? We first turned to Argo AI, a Pittsburgh, Pa.-based startup that raised $1 billion investment in funding from Ford three years ago and refueled this summer with $2.6 billion in capital and assets from Volkswagen as part of a broader alliance between VW Group and Ford. Argo is developing cars for Ford that it’s testing right now in five cities.

We’d hoped Argo could help us put that four-year number into context, including how Ford arrived at it and whether it could be lengthened. Since Ford will be operating the cars, Argo pointed us back to Ford’s Rich, who, while on the run, answered some our questions via email.

Asked how many miles Ford anticipates that the cars will travel each year — we wondered if this number would be more or less than a taxi or full-time Uber driver might traverse — he declined to say, telling us instead that while Ford isn’t sharing miles targets, the “vehicles are being designed for maximum utilization.”

Wrote Rich, “Today’s vehicles spend most of the day parked. To develop a profitable, viable business model for [autonomous vehicles], they need to be running almost the entire day.”

Indeed, Ford isn’t selling these cars to individuals any time soon. Instead, it plans to use the cars in autonomous fleets that will be used as a service by other companies, including as delivery vehicles. Ford sees the “initial commercialization of AVs to be fleet-centric,” says Rich.

We also wondered if Rich’s prediction for the lifespan of full self-driving cars ties to his expectation that Ford’s autonomous vehicles will be powered by internal combustion engines. Most carmakers appear to be investing in new combustible engine architectures that promise greater fuel efficiency and fewer emissions but that still require more parts than electric cars. And the more parts that are being stressed, the higher the likelihood that something will break.

Rich says the idea is to transition to battery-electric vehicles (BEV) eventually, but that Ford also needs to “find the right balance that will help develop a profitable, viable business model. This means launching with hybrids first.”

In his words, the challenges with BEVs as autonomous vehicles right now: includes a “lack of charging infrastructure where we need to operate an AV fleet. Charging stations and infrastructure needs to be built that will add to the already capital-intensive nature of developing the AV technology and operations.”

Another challenge is the “depletion of range from on-board tech. Testing shows that upwards of 50 percent of BEV range will be used up due to the computing power of an AV system, plus the A/C and entertainment systems that are likely required during a ride hailing service or passenger comfort.”

Ford also worries about utilization, writes Rich, “The whole key to running a profitable AV business is utilization – if cars are sitting on chargers, they aren’t making money.”

And it’s worried about battery degradation, given that while “fast charging is needed daily to run an AV fleet, it degrades the battery if used often,” he says.

Of course, the world would be far better off without any combustion engine exhaust emissions. On the brighter side, while Ford’s cars may not be long for this world, between 80 and 86 percent of a car’s material can be recycled and reused. According to a trade group called the Institute of Scrap Recycling Industries (ISRI), the U.S. recycles 150 million metric tons of scrap materials every year altogether.

Fully 85 million tons of that is iron and steel; the ISRI says the U.S. recycles another 5.5 million tons of aluminum, a lighter but more expensive alternative to steel that carmakers also use.


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Trump adds tariffs to $550 billion of Chinese imports in trade war reprisal – gpgmail


President Trump announced Friday on Twitter that tariffs on Chinese imports will increase 5 percentage points in a tit-for-tat response to China’s own plans to place new duties on U.S. goods.

About $250 billion of goods produced by China and imported into the U.S. already have a 25% tariff. This newest increase will push tariffs to 30% beginning October 1, 2019. Trump also increased “List 4” tariffs from 10% to 15%. The List 4 tariff, which affects the remaining $300 billion of Chinese imports, will go into effect September 1 and December 15.

The increase in tariffs on Chinese imports follows news earlier Friday that China will impose $75 billion worth of duties on U.S. goods, beginning Sept. 1 and December 15. China’s foreign ministry said that it would resume tariffs on U.S. imports of automobiles and auto parts and place an additional 5% or 10% tariff on agricultural and food products like soybeans, coffee, whiskey and seafood.

U.S. automakers Ford, GM, Fiat Chrysler Automobiles and Tesla all saw shares fall in response to China’s new tariffs. Agricultural product companies, the textile industry as well as automakers that build vehicles in the U.S. for export to China will take the brunt of China’s newest tariffs. The move could force these companies to raise prices, which could further dampen sales.

The president’s initial response on Twitter to China’s decision sent the market into a tailspin. The Dow Jones Industrial Average fall by as much as 700 points before closing the day slightly down only 623 points at 25,628.60. The S&P 500 Index fell 75.84 points to end the day at 2,847.11 and the Nasdaq dropped 239.62 points to close at 7,751.77.

Trump’s tariffs announcement came after markets closed Friday.

 




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How Pivotal got bailed out by fellow Dell family member, VMware – gpgmail


When Dell acquired EMC in 2016 for $67 billion, it created a complicated consortium of interconnected organizations. Some, like VMware and Pivotal, operate as completely separate companies. They have their own boards of directors, can acquire companies and are publicly traded on the stock market. Yet they work closely within the Dell, partnering where it makes sense. When Pivotal’s stock price plunged recently, VMware saved the day when it bought the faltering company for $2.7 billion yesterday.

Pivotal went public last year, and sometimes struggled, but in June the wheels started to come off after a poor quarterly earnings report. The company had what MarketWatch aptly called “a train wreck of a quarter.”

How bad was it? So bad that its stock price was down 42% the day after it reported its earnings. While the quarter itself wasn’t so bad, with revenue up year over year, the guidance was another story. The company cut its 2020 revenue guidance by $40-$50 million and the guidance it gave for the upcoming 2Q19 was also considerably lower than consensus Wall Street estimates.

The stock price plunged from a high of $21.44 on May 30th to a low of $8.30 on Aug 14th. The company’s market cap plunged in that same time period falling from $5.828 billion on May 30th to $2.257 billion on Aug 14th. That’s when VMware admitted it was thinking about buying the struggling company.


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Waymo self-driving cars head to Florida for rainy season – gpgmail


Waymo is taking some of its autonomous vehicles to Florida just in time for hurricane season to begin testing in heavy rain.

The move to Florida will focus on testing how its myriad of sensors hold up during the region’s rainy season as well as to collect data. All of the vehicles will be manually driven by trained drivers.

Waymo will bring both of its autonomous vehicles, the Chrysler Pacificas and a Jaguar I-Pace, to Naples and Miami, Florida for testing, according to a blog posted Tuesday. Miami is one of the wettest cities in the U.S., averaging 61.9 inches of rain annually.

The self-driving car company, which is a business under Alphabet, began testing its autonomous vehicles in and around Mountain View, Calif., before branching out to other cities and weather, including Novi, Michigan, Kirkland, Washington and San Francisco. But the bulk of the company’s activities have been in suburbs of Phoenix and around Mountain View — two places with lots of sun, and even blowing dust, in the case of Phoenix.

Waymo opened a technical center Chandler, Ariz. and started testing there in 2016. Since then the company has ramped up its testing and launched an early rider program in April 2017 as a step toward commercial deployment.

The company will spend the next several weeks driving on a closed course in Naples to test its sensor suite , which includes lidar, cameras and radar . Later in the month, Waymo plans to bring its vehicles to public roads in Miami. A few Waymo vehicles will be collecting data on highways between Orlando, Tampa, Fort Myers and Miami.

Waymo is hardly the only autonomous vehicle company to take advantage of Florida’s AV friendly regulations. Ford and Argo AI, the self-driving company it backs, have had a presence in the Miami since early 2018. Argo AI began collecting data and mapping and has since expanded to testing in autonomous mode last summer.

Last year, Ford partnered with Walmart and Postmates to test the business of delivering goods like groceries and pet food using self-driving vehicles. The pilot project is focused on Miami-Dade County.

Self-driving trucks startup Starsky Robotics also is testing in Florida.


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Inside Voyage’s plan to deliver a driverless future – gpgmail


In two years, Voyage has gone from a tiny self-driving car upstart spun out of Udacity to a company able to operate on 200 miles of roads in retirement communities.

Now, Voyage is on the verge of introducing a new vehicle that is critical to its mission of launching a truly driverless ride-hailing service. (Human safety drivers not included.)

This internal milestone, which Voyage CEO Oliver Cameron hinted at in a recent Medium post, went largely unnoticed. Voyage, after all, is just a 55-person speck of a startup in an industry, where the leading companies have amassed hundreds of engineers backed by war chests of $1 billion or more. Voyage has raised just $23.6 million from investors that include Khosla Ventures, CRV, Initialized Capital and the venture arm of Jaguar Land-Rover.

Still, the die has yet to be cast in this burgeoning industry of autonomous vehicle technology. These are the middle-school years for autonomous vehicles — a time when size can be misinterpreted for maturity and change occurs in unpredictable bursts.

The upshot? It’s still unclear which companies will solve the technical and business puzzles of autonomous vehicles. There will be companies that successfully launch robotaxis and still fail to turn their service into a profitable commercial enterprise. And there will be operationally savvy companies that fail to develop and validate the technology to a point where human drivers can be removed.

Voyage wants to unlock both.

Crowded field


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Domino’s launches e-bike delivery to compete with UberEats, DoorDash – gpgmail


Domino’s will start using custom electric bikes for pizza delivery through a partnership with Rad Power Bikes, as it aims to become more competitive with on-demand apps like DoorDash, GrubHub and UberEats.

Hundreds of e-bikes will be deployed across corporate-owned stores later this year in Baltimore, Houston, Miami and Salt Lake City, the company said Tuesday.

The e-bike announcement comes as Domino’s, which specializes in pizza, faces increasing competition from on-demand delivery apps like UberEats that offer customers far more choice. Domino’s could never offer enough menu options to compete with DoorDash or UberEats, but it can compete on service and delivery times.

The e-bikes are part of that plan. The company has also partnered with companies like Ford to test pizza delivery using autonomous vehicles. Earlier this summer, it launched a new pilot for self-driving pizza delivery in Houston in partnership with Nuro. Domino’s will use Nuro’s R2 vehicle, its second-generation autonomous electric test car, which will go into service later this year.

The e-bikes supplied by Rad Power Bikes are equipped with small integrated motors to assist with pedaling, and can run for 25 to 40 miles, depending on the user, before needing a recharge, according to the company. The bikes are equipped with lights in the front and back, reflective materials for driver safety and have a top assisted speed of 20 miles per hour.

Importantly, the e-bikes have been customized to hold pizza, drinks and sides. One e-bike can hold up to 12 large pizzas.

The company tested the e-bikes and discovered that service and delivery times improved, Tom Curtis, Domino’s executive vice president of corporate operations, said in the announcement. The e-bikes also opened up the labor pool for the company, allowing it to tap into candidates who might not have a car or driver’s license.

Some franchisee owners were already using e-bikes and found they are essential in hilly urban areas.

“While delivery on a traditional bike solved many of our traffic and parking issues, the hills in Seattle were tough on even our best cyclists,” Greg Keller, Seattle Domino’s franchisee said in a press release announcing the e-bike program. “E-bikes were a game-changer for us, and we’ve been delivering with them for three years now. We have been able to save money, provide better service, increase hiring and maintain a happy workforce.”


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How top VCs view the new future of micromobility – gpgmail


Earlier this month, gpgmail held its annual Mobility Sessions event, where leading mobility-focused auto companies, startups, executives and thought leaders joined us to discuss all things autonomous vehicle technology, micromobility and electric vehicles.

Extra Crunch is offering members access to full transcripts key panels and conversations from the event, including our panel on micromobility where gpgmail VC reporter Kate Clark was joined by investors Sarah Smith of Bain Capital Ventures, Michael Granoff of Maniv Mobility, and Ted Serbinski of TechStars Detroit.

The panelists walk through their mobility investment theses and how they’ve changed over the last few years. The group also compares the business models of scooters, e-bikes, e-motorcycles, rideshare and more, while discussing Uber and Lyft’s role in tomorrow’s mobility ecosystem.

Sarah Smith: It was very clear last summer, that there was essentially a near-vertical demand curve developing with consumer adoption of scooters. E-bikes had been around, but scooters, for Lime just to give you perspective, had only hit the road in February. So by the time we were really looking at things, they only had really six months of data. But we could look at the traction and the adoption, and really just what this was doing for consumers.

At the time, consumers had learned through Uber and Lyft and others that you can just grab your cell phone and press a button, and that equates to transportation. And then we see through the sharing economy like Airbnb, people don’t necessarily expect to own every single asset that they use throughout the day. So there’s this confluence of a lot of different consumer trends that suggested that this wasn’t just a fad. This wasn’t something that was going to go away.

For access to the full transcription below and for the opportunity to read through additional event transcripts and recaps, become a member of Extra Crunch. Learn more and try it for free. 

Kate Clark: One of the first panels of the day, I think we should take a moment to define mobility. As VCs in this space, how do you define this always-evolving sector?

Michael Granoff: Well, the way I like to put it is that there have been four eras in mobility. The first was walking and we did that for thousands of years. Then we harnessed animal power for thousands of years.

And then there was a date — and I saw Ken Washington from Ford here — September 1st, 1908, which was when the Model T came out. And through the next 100 years, mobility is really defined as the personally owned and operated individual operated internal combustion engine car.

And what’s interesting is to go exactly 100 years later, September 2008, the financial crisis that affects the auto industry tremendously, but also a time where we had the first third-party apps, and you had Waze and you had Uber, and then you had Lime and Bird, and so forth. And really, I think what we’re in now is the age of digital mobility and I think that’s what defines what this day is about.

Ted Serbinski: Yeah, I think just to add to that, I think mobility is the movement of people and goods. But that last part of digital mobility, I really look at the intersection of the physical and digital worlds. And it’s really that intersection, which is enabling all these new ways to move around.

GettyImages 1129827591

Image via Getty Images / Jackie Niam

Clark: So Ted you run TechStars Detroit, but it was once known as TechStars Mobility. So why did you decide to drop the mobility?

Serbinski: So I’m at a mobility conference, and we no longer call ourselves mobility. So five years ago, when we launched the mobility program at TechStars, we were working very closely with Ford’s group and at the time, five years ago, 2014, where it started with the connected car, auto and [people saying] “you should use the word mobility.”

And I was like “What does that mean?” And so when we launched TechStars Mobility, we got all this stuff but we were like “this isn’t what we’re looking for. What does this word mean?” And then Cruise gets acquired for a billion dollars. And everyone’s like “Mobility! This is the next big gold rush! Mobility, mobility, mobility!”

And because I invest early-stage companies anywhere in the world, what started to happen last year is we’d be going after a company and they’d say, “well, we’re not interested in your program. We’re not mobility.” And I’d be scratching my head like, “No, you are mobility. This is where the future is going. You’re this digital way of moving around. And no, we’re artificial intelligence, we’re robotics.”

And as we started talking to more and more entrepreneurs, and hundreds of startups around the world, it became pretty clear that the word mobility is actually becoming too limiting, depending on your vantage where you are in the world.

And so this year, we actually dropped the word mobility and we just call it TechStars Detroit, and it’s really just intersection of those physical and digital worlds. And so now we don’t have a word, but I think we found more mobility companies by dropping the word mobility.


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