30-minute hyperloop from Houston to Dallas on fast track with push from federal government

Looped in

U.S. Transportation Secretary Elaine Chao used SXSW to make the announcement. Photo courtesy of Hyperloop One

Creation of a transportation-in-a-tube system that promises to whisk passengers from Houston to Dallas in 30 minutes got a big boost March 12 from the federal government.

During an appearance at SXSW, U.S. Transportation Secretary Elaine Chao said she has established a transportation technology council that will aim to clear regulatory and legal roadblocks for the traffic-busting Virgin Hyperloop One concept and similar transit innovations.

In September 2017, the company behind Hyperloop One picked a 640-mile route in Texas for the initiative. The futuristic system — with passengers riding in pods carried through a massive tube — would connect Houston, Austin, Dallas-Fort Worth, Laredo, and San Antonio. Hyperloop One would provide two stops each in the Dallas-Fort Worth and Houston areas, and one each in Austin, Laredo, and San Antonio.

The north-south leg of Hyperloop One would run between Dallas-Fort Worth and Laredo, while the east-west leg would operate between Houston and San Antonio. As imagined now, a trip between Austin and Dallas would last 19 minutes at speeds up to 670 mph — two to three times faster than high-speed rail and 10 to 15 times faster than traditional rail. A ride from Houston to Austin would take 21 minutes, while a trek from Houston to San Antonio would last 26 minutes.

"Texas is exploring how to make hyperloop a reality at the state and local level, but federal support is a huge key for us to be certified and successful," Ryan Kelly, head of marketing and communications for Virgin Hyperloop One, tells CultureMap. "It is exciting that the federal government is recognizing us as a potential new mode of transportation that can be a leap forward for America. Hopefully, Texas can be a first mover."

Aside from Texas, Virgin Hyperloop One has U.S. projects underway in Colorado, Missouri, and the Chicago-Columbus-Pittsburgh corridor. Virgin Group, led by Sir Richard Branson, is among the investors in Hyperloop One.

The federal council unveiled at SXSW will help fast-track a first-of-its-kind transportation network in the U.S. that shares components with trains, planes, and self-driving vehicles. Members of the council will explore technological innovations, such as transit tunnels and self-driving vehicles, in the quest to speed up development of Virgin Hyperloop One and other emerging modes of mass transportation.

"Hyperloop is a new mode of transportation that is built for the 21st century," Jay Walder, CEO of Virgin Hyperloop One, says in a release. "We want to be the company that spearheads the next giant leap forward in transportation here in the United States, but we know we can't do it alone."

Kelly says it's unclear when Texas passengers might be able to travel on Virgin Hyperloop One's network, but the company hopes the first route — wherever it may be — will be ready by the end of 2028.

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This story originally ran on CultureMap.

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ElecTrip uses eco-friendly Teslas to shuttle business people to and fro across the state. Courtesy of Electrip

Texas startup using Tesla cars for more efficient and eco-friendly travel

Rethinking roadtrips

A Texas startup shuffling business men and women across the state in style has created an elevated road trip experience for its customers.

Founded in 2018 and based in Austin, ElecTrip aims to add luxury and convenience to regional commutes between major Texas cities by providing transportation in Teslas equipped with WiFi, complimentary snacks, and professional drivers.

Mandeep Patel, a University of Texas at Austin student, had the idea for the company just about a year ago while completing an internship. Patel had the company up and running just a few months later.

Patel serves as founder and CEO, along with his classmate and co-founder, Eliott Lee, who is COO. Lee tells InnovationMap that he and Patel had gotten tired of the stress of airport travel, the restrictive schedule of buses, and the soul-draining fatigue of driving. ElecTrip's no-compromise solution is cost effective, comfortable, and carbon neutral.

"One thing we really pride ourselves on is being sustainable, energy-efficient, and having no emissions," Lee says.

ElecTrip offers door-to-door service for their customers, who can customize pickup and drop-off locations in any major Texas city. The company has eight routes between Houston, Austin, Dallas, and San Antonio, but customers can book a custom route within a 300-mile radius of those cities. Prices range from $249.99 to $429.99, but customers can opt to share rides to cut down on cost, with cars seating three to five riders.

"We emphasize on B2B, geared more towards businesses," says Lee, explaining that customers can customize their trip with food and beverage requests.

The company offers three different Tesla models: Tesla Model S, Tesla Model X, and Tesla Model 3, each offering a specific number of passenger seats, luggage capacity, and mileage range.

"The main reason why we chose Tesla is because of the supercharger network," says Lee in referring to Tesla's 1,422 Supercharger Stations throughout the United States.

Clients don't have to worry about the charging process, Lee says. The company plans the trips around these charging stations, which are free to any Tesla user.

ElecTrip is less than a year old and has already coordinated hundreds of rides, according to the website. While starting the company while still juggling classes — Lee expects to graduate from UT in 2020, while Patel is graduating this year — Lee says being a student-run startup has its perks.

"We find a lot of funding in startup competitions that only students have access to," said Lee.

Additional initial funding for the company came out of Patel's savings account, Lee says. ElecTrip owns one Tesla and rents out additional vehicles to cover the demand of rides. Lee explains that renting vehicles instead of owning them would cut back on the company's real estate while providing additional income for Tesla owners that aren't using their cars.

Patel and Lee are the only two full-time employees at ElecTrip, as all drivers work on a contract-basis. Lee tells InnovationMap that in the future, ElecTrip will focus on business partnerships.

"A lot of these other services are geared towards consumers," says Lee. "We hope to be geared toward mainly towards businesses in the long run."

ElecTrip is gearing up for growing its partnerships with local small businesses in Austin and Houston to provide food and drink products for rides.

"It is something we're looking at targeting in the next one or two months," says Lee.

Mandeep Patel (left) and Eliott Lee are the co-founders of ElecTrip, a travel company that uses Teslas across Texas.Courtesy of ElecTrip

Virgin Trains may be speeding into Texas. Photo courtesy of Virgin Trains

Transportation company steers talk of high-speed trains between Houston, Austin, and San Antonio

ALL ABOARD?

You've likely heard of the proposed high-speed "bullet" train that would connect Houston and Dallas, as well as the proposed transportation-in-a-tube concept that would link Houston, Austin, Dallas, San Antonio, and Laredo.

Now, another possible alternative to planes, Amtrak trains, and automobiles has chugged into the picture.

Virgin Trains USA, a transportation startup that plans to trade its shares on the Nasdaq stock exchange, is exploring two high-speed routes in Texas — one tying together Houston, Austin, and San Antonio, and the other between Houston and Dallas. All four of those cities are plagued by ever-increasing traffic tie-ups.

There's no word yet on when these routes might take shape. At this point, they're merely ideas, and ahead of the company going public, officials at Virgin Trains are staying mum.

In all, Virgin Trains has outlined seven potential routes in the U.S. beyond what it already has on the drawing board.

"Our goal is to build railroad systems in North America that connect major metropolitan areas with significant traffic and congestion," the company says in a filing with the U.S. Securities and Exchange Commission.

Virgin Trains aims to tie together heavily populated cities separated by 200- to 300-mile distances that are "too long to drive, too short to fly." It wants to run the trains along existing transportation corridors — rail, highway or a combination of the two — "to cost-effectively build our systems, as opposed to developing entirely new corridors at potentially significantly higher costs."

If the Virgin name sounds familiar, it should. British billionaire Sir Richard Branson's Virgin Group is a minority investor in Virgin Trains, which already operates a South Florida route between Miami and West Palm Beach. West Palm Beach-to-Orlando and Orlando-to-Tampa routes also are in the works in Florida, in addition to a Los Angeles-to-Las Vegas route. Virgin's other transportation investments include airlines and space travel.

Jim Mathews, president and CEO of the Rail Passengers Association, says he's on board with the Branson-backed Virgin Trains venture — not as an "anti-Amtrak" move but as an advancement in U.S. passenger rail travel.

"Speaking from the experience of someone who spent almost his entire career watching Sir Richard innovate, invest, and take risks, I firmly believe this could be a real shot in the arm for passenger rail in the United States," Mathews writes on the association's website. "Like all entrepreneurs, Sir Richard isn't afraid to fail, and he has made a few bad bets in the past. But he's also made some very good ones, and has transformed not just travel but philosophies wherever he has gone."

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This story originally ran on CultureMap.

TxDOT has a new task force focused on keeping Texans informed on self-driving vehicles that are getting road ready. Getty Images

Texas forms task force geared at autonomous vehicle development

Road to unmanned driving

Self-driving cars are en route to Texas, and the state government wants to ensure Texas is ready for the ride. The Texas Department of Transportation announced the creation of a Connected and Autonomous Vehicle Task Force on Jan. 24.

The CAV Task Force will focus on being a comprehensive resource for information on all Texas CAV projects, investments, and initiatives, the press release says. The organization will also host events surrounding CAV progress and education around the topic.

"With our world-class universities, top-notch workforce and startup culture, Texas is a national leader in the development of new technologies," says Gov. Greg Abbott in the release. "As transportation technology advances, the CAV Task Force will ensure that the Lone Star State remains at the forefront of innovation."

TxDOT's interest, the release reports, is in hopes that the self-driving technology will minimize accidents and maximize safety, as well as expand opportunities for residents, especially within the elderly and disabled populations who currently don't have reliable transportation to their errands and appointments.

In 2017, in the 85th Texas Legislative Session, Abbot signed Senate Bill 2205 into law. The legislation identifies key requirements for CAVs, such as insurance and adhering to traffic laws, like normal vehicles, as well as requiring video recording devices in the car, the Texas Tribune reported. However, it's worth nothing that self-driving vehicles were already being experimented with in Austin by the likes of Google, the Tribune notes.

"Our goal is to further build on the momentum already established with the Texas Technology Task Force and the Texas Innovation Alliance, and work with interested parties on the latest and greatest in CAV projects and enhancements," says TxDOT Executive Director James Bass. "We look forward to furthering these important efforts as connected and autonomous vehicles become reality."

TxDOT is also focusing on rail planning, as the Houston-Dallas high-speed rail chugs along. Earlier this month, the state asked for Texans' feedback on the projects.

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8+ can't-miss Houston business and innovation events in April

where to be

Editor’s note: Houston's weeklong innovation festival kicks off April, followed by Rice University's globally recognized pitch competition returning for its 26th year. Plus, find coworking pop-ups, industry meetups, pitch battles and even a crawfish boil on the calendar. Here’s what not to miss and how to register. Please note: this article might be updated to add more events.

March 30-April 4 — H-Town Roundup

Celebrate innovation, entrepreneurship and collaboration at Houston Exponential's sixth-annual H-Town Roundup. During the free event series, previously known as Houston Tech Rodeo, attendees can expect insightful talks, workshops and networking events at venues across the city.

This event began March 30. Register here.

April 2 — Industrious Coworking Day

Enjoy a complimentary day of cowering at Industrious and network with professionals at the Ion. Breakfast, snacks, wifi and workspace tours are included. Following the cowering day, Industrious will host happy hour at Second Draught from 4-6 p.m.

This event is Thursday, April 2, from 8:30 a.m.-5 p.m. at the Ion. Register here.

April 2 — Technology Summit for Women

The fourth annual Women in Tech Cummil will feature speakers across three core tracks: Transformation + Digital strategy, Cyber + Risk + Resilience, and AI in Practice. Pearl Chu, director of technical domains and university relations at SLB, will give the opening remarks. Other panelists come from CenterPoint Energy, BP, Technip Energies and other leading companies.

This event is Thursday, April 2, from 2-5 p.m. at the Ion. Register here.

April 8 — Veterans Business Battle

Hear pitches from veterans and entrepreneurs as they compete for more than $10 million in investments at Rice Businesses' 12th annual Veterans Business Battle. This year, the two-day event will also feature a Small Business Expo, which invites Houston-based, veteran-owned businesses to participate in education, networking and the opportunity to showcase their business. Moonshots Capital and Mercury Fund will also host a fireside chat.

This event begins Wednesday, April 8, at 11 a.m. at the Ion. Click here to register.

April 9-11 — Rice Business Plan Competition

The Rice Alliance for Technology and Entrepreneurship will host the 26th annual Rice Business Plan Competition this month. Forty-two student-led teams from around the world, including one team from Rice, will present their plans before more than 300 angel, venture capital, and corporate investors to compete for more than $1 million in prizes.

This event begins Thursday, April 9. Find more information here.

April 10 — BioHouston Chili Cookoff

Connect with Houston's life sciences community at BioHouston's 21st annual chili cookout. This event is geared toward startup founders, researchers and industry veterans alike.

This event is Friday, April 10, from noon-4 p.m. at Bayou City Event Center. Register here.

April 14 — Mercury Fund Day at the Ion: Agentic Commerce

Don’t miss the latest installment of Mercury Fund Day at the Ion, previously known as Software Day. The recurring monthly event features office hours (by application), a keynote and networking opportunities. This month's topic focuses on agentic commerce.

This event is Tuesday, April 14, from 3:30-7 p.m. at the Ion. Register here.

April 19 – UH Energy Industry Crawfish Boil

Head to the UH Cullen College of Engineering Green Space for the 35th annual UH Energy Industry Crawfish Boil. The event will include a student showcase, STEM activities, a kids zone, live music, networking and, of course, crawfish. Proceeds from the event will support the multidisciplinary capstone fund that aims to increase professional readiness for Cullen College engineering and technology students.

This event is Sunday, April 19, from 1-5 p.m. at the Cullen College of Engineering Green Space. Find more information here.

April 24 — Rice Business Healthcare Conference

Leading experts, innovators and the next generation of healthcare leaders will converge at the Rice Business Healthcare Conference. Hosted by the Rice Business Healthcare Association, the conference will explore AI's potential impact on the sector.

This event is Friday, April 24, from 8 a.m.-2 p.m. at McNair Hall on Rice University's campus. Find more information here.

Houston unicorn closes $421M to fuel first phase of flagship energy project

Heating Up

Houston geothermal unicorn Fervo Energy has closed $421 million in non-recourse debt financing for the first phase of its flagship Cape Station project in Beaver County, Utah.

Fervo believes Cape Station can meet the needs of surging power demand from data centers, domestic manufacturing and an energy market aiming to use clean and reliable power. According to the company, Cape Station will begin delivering its first power to the grid this year and is expected to reach approximately 100 megwatts of operating capacity by early 2027. Fervo added that it plans to scale to 500 megawatts.

The $421 million financing package includes a $309 million construction-to-term loan, a $61 million tax credit bridge loan, and a $51 million letter of credit facility. The facilities will fund the remaining construction costs for the first phase of Cape Station, and will also support the project’s counterparty credit support requirements.

Coordinating lead arrangers include Barclays, BBVA, HSBC, MUFG, RBC and Société Générale, with additional participation from Bank of America, J.P. Morgan and Sumitomo Mitsui Trust Bank, Limited, New York Branch.

“As demand for firm, clean, affordable power accelerates, EGS (Enhanced Geothermal Systems) is set to become a core energy asset class for infrastructure lenders,” Sean Pollock, managing director, project Finance at RBC Capital Markets, said in a news release. “Fervo is pioneering this step change with Cape Station, a vital contribution to American energy security that RBC is proud to support.”

The oversubscribed financing marks Cape Station’s shift from early-stage and bridge funding to a long-term, non-recourse capital structure, according to the news release.

“Non-recourse financing has historically been considered out of reach for first-of-a-kind projects,” David Ulrey, CFO of Fervo Energy, said in a news release. “Cape Station disrupts that narrative. With proven oil and gas technology paired with AI-enabled drilling and exploration, robust commercial offtake, operational consistency, and an unrelenting focus on health and safety, we have shown that EGS is a highly bankable asset class.”

Fervo continues to be one of the top-funded startups in the Houston area. The company has raised about $1.5 billion prior to the latest $421 million. It also closed a $462 million Series E in December.

According to Axios Pro, Fervo filed for an IPO that would value the company between $2 billion and $3 billion in January.

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This article first appeared on EnergyCapitalHTX.com.

Houston food giant Sysco to acquire competitor in $29 billion deal

Mergers & Acquisitions

Sysco, the nation's largest food distributor, will acquire supplier Restaurant Depot in a deal worth more than $29 billion.

The acquisition would create a closer link between Sysco and its customers that right now turn to Restaurant Depot for supplies needed quickly in an industry segment known as “cash-and-carry wholesale.”

Sysco, based in Houston, serves more than 700,000 restaurants, hospitals, schools, and hotels, supplying them with everything from butter and eggs to napkins. Those goods are typically acquired ahead of time based on how much traffic that restaurants typically see.

Restaurant Depot offers memberships to mom-and-pop restaurants and other businesses, giving them access to warehouses stocked with supplies for when they run short of what they've purchased from suppliers like Sysco.

It is a fast growing and high-margin segment that will likely mean thousands of restaurants will rely increasingly on Sysco for day-to-day needs.

Restaurant Depot shareholders will receive $21.6 billion in cash and 91.5 million Sysco shares. Based on Sysco’s closing share price of $81.80 as of March 27, 2026, the deal has an enterprise value of about $29.1 billion.

Restaurant Depot was founded in Brooklyn in 1976. The family-run business then known as Jetro Restaurant Depot, has become the nation's largest cash-and-carry wholesaler.

The boards of both companies have approved the acquisition, but it would still need regulatory approval.

Shares of Sysco Corp. tumbled 13% Monday to $71.26, an initial decline some industry analysts expected given the cost of the deal.

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