New self-driving car service from San Francisco officially cruises into Texas

ready to roll

Cruise is kicking off its driverless ridehailing service in Austin. Photo via GetCruise.com

A driverless ridehailing app has made its first expansion out of California — and it's rolled right into Texas.

Founded in San Francisco in 2013, Cruise has completed its first driverless rides in Austin, marking its official launch. The company has not announced any other expansion plans at the moment.

It was a quick turnaround for the company, which announced its intentions in the Capital City in September, calling the feat “going from zero to driverless in about 90 days.” The service is only in three cities so far — based in San Francisco and expanded out to Austin and Phoenix — but given the success of that timeline, it’s reasonable to expect much more as soon as the company announces it.

“Folks, we are entering the golden years of [autonomous vehicle] expansion,” tweeted Crusie CEO Kyle Vogt while announcing the achievement on December 20.

Vogt seems to be right, at least in Austin. News about driverless vehicles keeps popping up, from pioneering autonomous Lyft rides to independent delivery robots for Chick-fil-A and Ikea. A major difference is the patron; while most other autonomous driving news is centered on using the technology for a well-known company providing value in other spaces, Cruise is driving for itself. (It has, however, received investment funds from companies like Honda and Walmart.)

Rider testimony focuses on safety with an aura of giddiness. Even amid the novelty displayed in a video Vogt shared, riders talked about the vehicle’s caution and smoothness. A safety page on the company’s website claims several measures including constant 360-degree vision, a sensitivity to even very light external touch, and communication between fleet vehicles to assist in machine learning. And if all else fails, the company emphasizes “end-to-end redundancy,” meaning that the system can compensate for failures.

Few topics polarize Austinites like opinions on driverless vehicles and this city’s magnetism for testing experiences. Love it or hate it, this is quintessential Austin.

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This article originally ran on CultureMap.

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Cruise rolls out self-driving car service in Houston - InnovationMap ›

Houston was Dallas-based Alto's second market to expand into in 2020. Photo courtesy of Alto

Why this startup founder is betting on responsible ridesharing as Houston continues to grow

guest column

Houston is a car dependent city and Houstonians spend approximately 75 hours a year in traffic. Ridesharing is a safer and more comfortable way to connect people and the places they need to travel. As Houston continues to grow — the city added 250 people a day in the last year — transportation options are crucial to connect people to the places they need to go.

What’s an alternative to driving your own vehicle? Ridesharing.

Ridesharing has many benefits, and it’s crucial that rideshare models both deliver a safe and consistent experience to passengers while supporting the needs of the cities in which they operate. In my view, responsible ridesharing has three parts: safety, fleet optimization, and sustainability.

The most obvious benefit is safety. The most important objective rideshare businesses have is to transport passengers from point A to point B; everyone in the vehicle is precious cargo. If you’re out drinking, for example, you can ditch your personal vehicle and call for a ride. Having drivers that are professionally trained and their mission to make sure you arrive at your destination safely is the most important priority.

I founded Alto with the mission to create a safer rideshare experience for passengers and drivers alike. To me, personal safety while riding or driving should be the top priority of a ridesharing company. Safety is at the core of Alto’s business model, and it’s built into everything we do. At the center of our business is our W-2 employee drivers who are background checked and complete a driver safety training program. Other features include in-car surveillance, telematic tracking, and in-app tracking of your Alto’s position and status. These features are key in creating a safer way to travel as well as building rapport with customers.

Responsible rideshare services also need to have purposeful wait times. Calling for an on-demand ride and receiving a two-minute pick up time is not sustainable and not good for cities. It doesn’t make sense for your ride to arrive faster than an ambulance would. Having such short wait times incentivizes putting more cars on the road and increases the number of drivers driving around a small section of the city waiting for the next ride request. More cars on the road lead to road congestion and even slowing down road lanes that are dedicated to public transit. Even extending a wait time for pick up to 10-15 minutes can greatly reduce the number of vehicles needed to serve customers, alter customers’ approach to hailing a ride, and with a little planning, create greater efficiencies for the city, customers, and the business.

Rideshare fleets that have sustainable assets are essential for acting as a responsible industry in cities and demonstrates a business’s positive impact. For many years we’ve been hearing about the great electric vehicle (EV) revolution for personal vehicles. But what about rideshare fleets? I think ridesharing services will continue to grow as a transportation alternative and I believe that the rideshare industry should prioritize electrification.

It’s not enough to put vehicles on the road without trying to make the industry more sustainable and climate conscious. Houston, an energy sector powerhouse, is leading the green energy transition and I think Houstonians, along with riders all over the country, want to see EV rideshare fleets.

My company Alto, for example, has announced its vision to transition our entire fleet to EVs over the next two years. There are few discussions about the EV transition for fleets and I’m proud that Alto is leading the industry in this regard. This EV vision is one example of how a rideshare company can build a better and more accountable industry, and these steps also give Houstonians a more responsible and sustainable transportation solution.

As Houston continues to grow, Houstonians will need transportation alternatives that meet various trip demands and do not overwhelm or harm the city’s transportation capabilities. Safety protocols, optimized fleets, and sustainability are all essential factors needed in a transportation framework to keep up with Houston’s economic and population growth. To get to that dinner reservation, the game at the Toyota Center, or that conference at the Convention Center, Houstonians should have access to a transportation alternative — ridesharing — to get them to their destination responsibly, safely, and sustainably.

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Will Coleman is the CEO of Dallas-based Alto, a luxury rideshare service that currently operates in Dallas, Houston, Los Angeles, Miami, and Washington, D.C.

Houston and Austin rideshare riders might soon walk away with some earnings — or at least some entertainment. Photo via playoctopus.com

'Cash cab' rideshare tech company expands services to Houston and Austin

In-ride entertainment

Your next Lyft or Uber ride might win you some money. An interactive advertising and entertainment platform that works in rideshares has announced it will expand to the Houston and Austin markets — just in time for SXSW.

Maryland-based Play Octopus has already received thousands of applications from rideshare drivers wanting the device in their vehicles, according to a press release. And expanding to Houston was an obvious move.

"As the leading rideshare advertising company in the country, expanding into Texas' ride-sharing scene is a necessary first step as we expand outside of the Northeast. Austin and Houston are both tech-driven cities that rely on rideshare for convenient transportation," says Cherian Thomas, the co-founder and CEO of Play Octopus. "Digital video consumption and rideshare are both at all-time highs, and for brands, Octopus provides the ability to reach millions of rideshare passengers on a monthly basis."

The company has recently seen success from partnerships with the likes of Disney, Red Bull, Tiffany & Co., Sprint, National Geographic, and Weight Watchers in major Northeastern cities. Houston and Austin are just the start of Octopus' 2019 growth plans.

The way it works is the company provides free tablets to qualified drivers. Tablets come with a monthly data plan, a mount, the cables required, and up to $100 a month — not to mention the perks — like tips and ratings — that come with providing riders a new option for ride entertainment. On the other side of the table, advertisers have access to millions of monthly riders and can use branding and geo-targeting ads.

The company launched the platform on the East Coast about a year ago and is already in over 7,000 vehicles generating almost 10 million engagements a month. Currently, Octopus is in New York; Boston; Philadelphia; Washington, D.C.; Baltimore; and Richmond, Virginia.

"Our national expansion is being fueled by our brand and agency partners, and further solidifies the Octopus platform as a key component to media plans," says Dillon Tedesco, the chief revenue officer of Play Octopus. "As we surpass the 10,000,000 monthly engagement milestone and introduce exciting new ways to interact with our tablets, we're looking forward to providing our clients with a deeper impact in more cities across the country."

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Houston brain health co. secures $6.5M for rare disease study

neuro funding

Houston-based Goldenrod Therapeutics, part of Fannin Partners' portfolio, has announced the initial close of a $6.5 million series seed preferred stock round.

The round was led by Ataxia Ventures and an affiliate of Fannin, according to a news release.

Goldenrod Therapeutics plans to use the funding to support manufacturing, formulation optimization, IND-enabling studies and a Phase I study of its drug to treat brain inflammation, known as 11h.

The study will consider how 11h, which blocks the enzyme PDE4, could treat Friedreich’s ataxia (FA), a rare genetic disease that affects movement, speech and balance. To date, other PDE4 inhibitors have proven to regulate neuroinflammation and neuronal signaling, but have had adverse gastrointestinal side effects or have not reached enough of the central nervous system, according to Goldenrod.

The company says its 11h is expected to have "broad applicability" with limited emetric side effects.

“Our 11h program is a next-generation, orally bioavailable, brain-penetrant PDE4 inhibitor, where researchers overcame longstanding limitations associated with earlier PDE4 inhibitors," Dr. Dev Chatterjee, CEO of Goldenrod, said in the news release. "We believe this creates the potential for a best-in-class therapy for Friedreich’s Ataxia and a potential foundation for development across multiple neurodegenerative and neuroinflammatory disorders.”

11h was first developed at the University of Nebraska Medical Center (UNeMed). Houston-based Fannin Partners in-licensed the product 2020 and landed SBIR Phase I funding to support its initial development for opioid use disorder soon after.

Goldenrod has also received funding to study 11h's effectiveness for multiple sclerosis, methamphetamine addiction and cocaine addiction.

Goldenrod says it is developing 11h to target a variety of neurological and inflammatory conditions, including Alzheimer's disease, multiple sclerosis, ALS, substance use disorders, Batten disease, pain and traumatic brain injury.

Elon Musk's SpaceX is about to make its debut on Wall Street

Money Moves

Elon Musk's rocket company SpaceX will make its debut on Wall Street Friday, June 12, and both institutional and retail investors are expected to gobble up the 555.6 million shares going up for sale at $135 apiece. Musk, already the world's richest man, could become its first trillionaire.

SpaceX is likely to become the biggest IPO ever, with proceeds of around $75 billion. SpaceX hopes to become the first company to send people to Mars. In fact, part of Musk’s future compensation depends on SpaceX eventually establishing a colony of at least 1 million people on the red planet.

Why SpaceX is going public now

In a video conference on Musk's social media platform X, he told JPMorgan CEO Jamie Dimon that people have suggested for the last 10 years that he take SpaceX public. He's doing it now because the company plans to put 100,000 next-generation Starlink satellites into orbit. Deploying AI data centers in space is a “massive new growth base and you need capital for that,” he said.

Going public provides access to the capital that SpaceX needs. But it also exposes it to more scrutiny from shareholders and more regulatory oversight. That includes filing quarterly financial reports, which critics say incentivizes short-term thinking over longer-term planning and creates unnecessary costs for a company. Securities regulators are currently soliciting public comment on a proposal to require public companies to file the financial reports only twice every year.

How the IPO impacts the company

Musk will hold the majority of a special class of shares, giving him control over decisions related to company strategy, finances and personnel. On the latter, because of his ownership of most of these Class B shares, the only person who can fire Musk as CEO is Musk.

The company credits Musk with being the “driving force” behind its growth, innovation and success. But what happens if Musk is no longer in the picture? SpaceX warns that the loss of Musk could disrupt its ability to execute its strategy as well as hurt its “reputation and relationships with customers, partners and other stakeholders.”

The company also warns that finding a replacement with the same skills and experience as Musk would be time-consuming, if not nearly impossible. As Wedbush Securities analyst Dan Ives wrote Wednesday, “At the end of the day Musk is SpaceX and SpaceX is Musk.”

What could make or break SpaceX

Currently in the test phase, the gigantic reusable Starship rocket is key to SpaceX realizing Musk's ambitions. Much of the commercial space business hinges on SpaceX developing Starship’s capability to be fully reusable and hearty enough for a quick turnaround between flights. If that doesn't happen, SpaceX warns that putting data centers and satellites in space will take longer and cost more money, meaning it risks customers bailing on the company.

Analysts say that by pioneering reusable rockets, SpaceX has established a clear lead on competitors such as Blue Origin, led by Amazon founder Jeff Bezos. The Starlink satellite business competes with, among others, AST SpaceMobile – which is relying on a SpaceX rocket to send its latest generation of satellites into orbit next week.

The prospectus filed last week says SpaceX’s biggest potential market is the sale of business-oriented artificial intelligence products designed to transform how people get work done. It’s an opportunity SpaceX predicts would be worth $22.7 trillion if it could somehow dominate rivals like Anthropic, OpenAI and Microsoft in a highly competitive industry. But the prospectus shows no clear path to profitability for the xAI business, which merged with SpaceX earlier this year.

Why Wall Street is paying attention

If the SpaceX IPO is as successful, the stock could quickly join the Nasdaq 100, a widely followed index that tracks the 100 largest non-financial companies in the composite. That's important because some popular funds, such as the $460 billion QQQ exchange-traded fund, mimic the index and will automatically buy whatever is listed in the index.

Nasdaq recently changed its rules to allow select companies to enter the Nasdaq 100 after just 15 trading days.

S&P Dow Jones Indices, on the other hand, is sticking to established and more traditional thresholds that will not allow SpaceX or other companies with gargantuan IPOs faster entry into its S&P 500 index. That means even high-profile companies will still need to wait for their stocks to trade a full 12 months before they can enter the index.

Companies want to be in the S&P 500 in particular because it's arguably the most important index on Wall Street, with trillions of dollars either mimicking it exactly or benchmarked against it. Vanguard's VOO fund that tracks the S&P 500 has roughly $950 billion invested in it, for example.

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