Exclusive: First self-driving car service for passengers launches in Houston

ready to ride

Cruise is now cruising some Houston streets. The self-driving car service has launched with $5 flat-rate rides. Photo courtesy of Cruise

For the first time, Houstonians can hail an autonomous vehicle to get from point A to point B, thanks to a tech company's latest market roll out.

San Francisco-based Cruise, which has launched in its hometown, Phoenix, and Austin over the past year and a half, previously announced Houston and Dallas as the company's next stops. Dallas, where Cruise is currently undergoing testing, will roll out its service by the end of the year.

As of today, October 12, Houstonians in the Downtown, Midtown, East Downtown, Montrose, Hyde Park, and River Oaks neighborhoods can hail a ride from an autonomous electric vehicle seven days a week between the hours of 9 pm to 6 am.

"We believe that everyone has a right to safer, more accessible and more affordable transportation, and we remain focused on cities first because that’s where our mission will have the greatest impact. Houston follows that city-first strategy with its densely traversed downtown, propensity for ridehail, and vibrant cultural center," Sola Lawal, Cruise's Houston manager, tells InnovationMap. "Cruise also shares in Houston’s Vision Zero mission to end traffic deaths and serious injuries by 2030 and we’re excited to address the transportation needs of Houston communities."

Although today marks the launch to the public, Cruise's employees and their friends and family have been testing out the service since August.

"People love this shift from working for your car as the driver, to the car working for you and the time this gives people back in their days," he explains. "A common reaction from first time riders starts with people being shocked and awed for the first two minutes then the ride becomes so normal that you forget you're in a driverless car."

Founded in 2013 by CEO, CTO, and President Kyle Vogt and Chief Product Officer Dan Kan, Cruise vehicles have self-driven over 5 million miles — 1 million of those miles were cruised on Texas streets. The company's fleet includes 400 electric vehicles powered by renewable energy.

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Cruise's plan for Houston is to launch and grow from there, including launching larger passenger vehicles, the Origin fleet, for bigger groups of people.

"We always start small and methodically expand from there. For us it’s all about safety and how we expand in partnership with communities, so we let that be our guide for expansion vs arbitrary timelines," Lawal says. "Our goal is to continue to expand as quickly and safely as possible so we can get folks to the Rodeo when it starts and back home, anywhere in Houston, when it ends. You can expect expanded map areas, increased supply of AVs, and expanded hours until we are 24/7 across Houston."

Cruise has raised $10 billion in capital commitments from investors, including General Motors, Honda, Microsoft, T. Rowe Price, Walmart, and others. Additionally, the tech company has also a $5 billion credit line with GM Financial, giving it the financial support needed to scale. Strategically aligned with General Motors and Honda, Cruise has fully integrated manufacturing at scale.

Cruise, which touts a pricing model competitive to existing rideshares, is launching with $5 flat-rate rides for passengers.

"Houstonians who ride with us have the chance to be part of history in the making," Lawal tells Houston's to-be Cruise riders. "The industry has made incredible progress in the last two years but we are still in the early days of what’s to come as driverless ridehail becomes a reality for more people.

"We are proud of the service we’ve built so far and the safety record we have to show for it, but will always continue to improve. We're excited to launch with the community of Houston and we simply ask that you give it a try," he continues. "And when you do please give us feedback, we’d love to hear about your experience."

Origin, a larger, six-person self-driving vehicle, will also launch in the Houston market once Cruise rolls it out. Rendering courtesy of Cruise

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Walmart and Popable are teaming up just in time for the holiday shopping season. Image courtesy of Popable

Walmart, Houston startup team up to bring small biz products to shelves

holiday shopping teamwork

Thanks to a pop-up shop marketplace platform, small businesses will now have the opportunity to have their goods displayed in one of the country’s largest national retail stores.

Through a strategic partnership between Houston-based Popable and Walmart, local businesses to set up shop for short-term leasing and bring brand new eyes to their products.

“Supporting small businesses has always been a priority for Walmart,” says Darryl Spinks, senior director of retail services for Walmart, in a news release. “We are proud to work with Popable to offer local brands an opportunity to grow inside our stores. This is a great example of our focus on offering services unique to the neighborhoods we serve through our store of the community initiative.”

Popable has assisted brands secure qualified spaces, get education and resources, and build community, and connections that are vital to helping small businesses expand their visibility in the marketplace. The platform simultaneously helps retail landlords find qualified retailers from a directory of tens of thousands of brands to fill vacancies and drive traffic to their shopping centers.

For those small businesses interested, they can be paired with their local participating Walmart to connect and enter into an agreeable temporary leasing agreement by signing up on the platform’s official website. The businesses will set up right in front of the store generally where the customer service areas and salons tend to be. While the partnership isn’t aimed to be a pilot program, Popable will be giving Walmart the chance to infuse some local flavor into the stores from the community.

With the holidays around the corner, and small businesses looking to gain back revenues lost during the COVID-19 pandemic, the opportunity to display and sell their products at Walmart can be highly beneficial to recoup profits, and unload new and extra products to a larger audience.

“Going into the holidays the timing is pretty good for a lot of brands looking to move some access inventory that they have loaded up from last year, but this (hopefully with Walmart) will be a year-round thing,” says Popable CEO and co-founder Scott Blair. “The pop-up opportunities we’ve been seeing with brands doing reach outs so far, a lot of them are looking for stuff into January and February too.”

Scott Blair, CEO and co-founder of Popable, says he hopes to continue the partnership with Walmart. Photo courtesy of Popable

The Walton family fortune grew astoundingly in the past year — to the tune of $23 billion. Photo via Getty Images

Texas billionaire and family reign as the world’s richest clan

RETAIL RICHES

It's hardly a surprise that America's Walton family, including Fort Worth billionaire Alice Walton, remains the world's richest family. What's truly stunning is how much their wealth has grown in the past year — by more than $23 billion.

In once again crowning the Waltons the world's richest family, the Bloomberg news service recently reported that their collective fortune had risen by $23 billion in the past year due to the climbing stock price of the Walmart retail chain. Sam Walton opened the first Walmart store in 1962.

Descendants of Sam and his brother, Bud, control more than 1.3 billion shares of Walmart stock either directly or through family trusts, Bloomberg says. Even though the Waltons have liquidated $6 billion in Walmart stock this year, they're now worth more in 2021 than they were in 2020.

As of mid-September, the Waltons were worth $238.2 billion, according to Bloomberg. That's almost $100 billion above the next richest family in the world, the Mars family of candy and pet care fame. Last year, Bloomberg pegged the Waltons' fortune at $215 billion.

To put the Waltons' one-year, $23 billion bump in wealth into perspective, Bloomberg estimates the net worth of Walmart heir Lukas Walton at $22 billion.

Alice Walton ranks as the second richest person in Texas (No. 1 is Elon Musk, at more than $200 billion), but she's not the richest Walmart heir. As of September 27, Bloomberg estimated Walton's net worth at $61.9 billion, making her the 19th richest person in the world. Ahead of her are brothers Jim ($63.7 billion, No. 17 worldwide) and Rob ($63.3 billion, No. 18 worldwide).

Not everyone is impressed with the Waltons' mountain of money. In February, U.S. Sen. Bernie Sanders, an independent from Vermont, branded the Waltons "the poster child for greed," based on the retailer's low starting wage. Walmart recently raised its minimum pay for hourly workers from $11 to $12.

"This is a family that is incredibly wealthy," Sanders said of the Waltons before the wage increase took effect.

"One of their owners spend[s] zillions of dollars on antique cars. They've got mansions. They have all kinds of art collections," the senator told CNN. "But somehow or another they can't pay their starting wage at more than 11 bucks an hour."

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This article originally ran on CultureMap.

Nuro is now able to roll out its new model of self-driving vehicles in Houston thanks to a recent announcement from the government. Photo courtesy of Nuro

Self-driving delivery company with Houston pilots gets historic government approval for new model

hit the road

A California-based tech company has got the green light today to move forward a new line of autonomous vehicles that will soon hit Houston streets.

Nuro, which has a few self-driving delivery pilot programs across Houston, has been granted its exemption petition from the United States Department of Transportation's National Highway Traffic Safety Administration. This move is a first for DOT, and it allows Nuro to roll out its vehicles on public roads without the features of traditional, passenger-carrying vehicles — like side mirrors or windshields, for instance.

"Since this is a low-speed self-driving delivery vehicle, certain features that the Department traditionally required – such as mirrors and windshield for vehicles carrying drivers – no longer make sense," says U.S. Secretary of Transportation Elaine L. Chao in a news release.

Now, with this permission, Nuro has unveiled its newest model — the R2. The new model is more narrow than the R1, and has 65 percent more climate-controlled space for its food deliveries. The vehicle also has new safety features, like 360-degree vision using lidar, radar, and cameras and even has a pedestrian-protecting feature that enables the car to collapse on impact.

Image courtesy of Nuro

"We founded Nuro on the belief that we could reimagine, design, and develop an autonomous vehicle that would make the world a safer place," says Nuro co-founder and president, Dave Ferguson, in a release. "Our second-generation vehicle will advance our goal of transforming local commerce, and we are gratified that the Department of Transportation, under Secretary Chao's leadership, is promoting public safety and providing regulatory certainty for the self-driving industry."

The R2 models are being assembled in the U.S. with Nuro's partner, Roush Enterprises, which is based in Michigan. Per the NHTSA announcement, Nuro can deploy up to 5,000 R2 vehicles during the two-year exemption period. According to the DOT release, the organization will be monitoring Nuro's work throughout those two years.

"NHTSA is dedicated to facilitating the safe testing and deployment of advanced vehicle technologies, including innovative vehicle designs, which hold great promise for future safety improvements," says NHTSA Acting Administrator James Owens in the release. "As always, we will not hesitate to use defect authority to protect public safety as necessary."

Nuro currently has three pilot programs — all of which were announced last year. The company is working with Domino's, Kroger, and Walmart on food and grocery deliveries in six Houston ZIP codes. Since entering the Houston market, Nuro has been using its fleet of self-driving Prius vehicles to research and map the city's roads.

With this permission granted from DOT, Nuro can start making deliveries using its R2 fleet with its three retail and restaurant partners.

"Today's decision shows that 'exemption' can mean more safety," says Ferguson. "Our world-class team solved countless novel problems to create this design, and, after extensive modeling, research, and testing, created a vehicle unlike any other on the road today."

Photo courtesy of Nuro

Last year, California-based Nuro, a self-driving car tech company, launched three pilots in Houston. Courtesy of Nuro

California self-driving vehicle startup has all eyes on Houston — here's why

On a roll

Houston — with its sprawl and winding roads broken up across various neighborhoods — is particularly challenging when it comes to self-driving car navigation. And that's exactly why Nuro, a California-based tech startup that's raised over $1 billion in funding, decided to focus on the Bayou City for its autonomous vehicle delivery pilot programs.

"Houston is our first full-scale operations city," Sola Lawal, product operations manager in Houston, tells InnovationMap. "All eyes at Nuro are focused on Houston."

Last year alone, Nuro launched three pilots in six of Houston's ZIP codes from Bellaire to the Heights. The first of which was a partnership with Kroger in March, followed by the announcement of autonomous pizza delivery from Domino's in June. Last month, Nuro announced its latest delivery partner was Walmart.

Lawal explains Houston's appeal to Nuro in a few ways, but the challenging landscape is key. Nuro cars are learning from the narrow, tree-laden streets of West University or the pedestrian-heavy, ditch-lined paths in the Heights.

"There's a ton for us to learn, but it's a great microcosm of the United States in a number of different ways," he says.

In addition to its diversity within its street types, Houston, named the most diverse city in the country, represents an ideal customer base, says Lawal, a Houston native himself. Houstonians are open minded about new experiences.

"If you think and look across Houston, the average commute is over 60 minutes for people to get back and forth," Lawal tells InnovationMap. "As we surveyed across major cities we were interested in, Houston stood out as a place where customers said they don't want go to the grocery store if they don't have to or get in their cars again to pick up their pizza."

The third reason Houston was a great market for Nuro is the amount of regulatory support the state of Texas has — Gov. Greg Abbott announced the launch of the Texas Connected and Autonomous Vehicle task force a year ago — as well as the support at the city level.

"It's been a welcoming environment from the mayor's office down for us to be here," Lawal says.

Since entering the Houston market, Nuro's local operations have grown to over 100 employees. The company still has software operations out of California, and some work being done in Arizona, but the Houston is the largest — and growing as the company seeks new partnerships with more stores with a goal of eliminating errands once and for all.

"The way that we think about this is that this new technology and our mission of accelerating robotics for everyday life, is we will bring the people what they want," Lawal says when asked about what types of stores Nuro is looking to partner with.

Eventually, Lawal says, the plan would be to have every errand be delivery optimized with Nuro technology — from big-box stores like Walmart to your local florist.

"Our goal is to have a platform that retailers can connect to in order to provide easy and inexpensive delivery," he says.

Currently, Nuro's technology is still in learning mode. Nuro's fleet of Prius cars with staff onboard are driving up and down Houston streets mapping and taking notes on a daily basis. The company also has bots, called the R2 fleet, that are designed to be unmanned.

These bots are smaller than normal cars and are completely electric. Rather than being designed to protect passengers inside like traditional automobiles, the R2s are designed to be safe for people outside the vehicle.

"It's a new way of thinking about transportation and what our vehicles can and should do," Lawal says.

2020 is the year of these R2 bots, and some areas can expect to see them in action — specifically focused on Domino's pizza delivery — in just a matter of weeks.

Nuro has teamed up with Walmart for self-driving grocery delivery. Courtesy of Nuro

Nuro and Walmart select Houston for self-driving delivery pilot program

Look ma, no hands

A California-based autonomous vehicle robotics company that has deployed self-driving delivery cars in Houston already has announced another pilot program.

Nuro and Walmart announced a new collaboration for high-tech, affordable grocery delivery — first to a select group of shoppers, and then, later in 2020, to a wider range of customers.

"Walmart is committed to serving our customers whenever and however they choose to shop," says Tom Ward, Walmart's senior vice president of digital operations, in a news release. "We are excited to work with Nuro and continue to learn as we are incorporating self-driving technology in our delivery options, learning more about our customers' needs, and evolving Walmart's future delivery offerings."

Nuro's fleet of custom R2 delivery vehicles as well as its autonomous Toyota Priuses powered by Nuro's software have already been deployed in Houston through a couple of partnerships launched earlier this year. This summer, Nuro premiered its pizza-delivery option through a collaboration with Dominos after first entering the Houston market in March with its Kroger grocery delivery.

The new Walmart partnership adds variety and affordability to Nuro's suite of partnerships.

"Walmart's dedication to its customers aligns with our desire to help people save time and money while making shopping easier. We are excited to join forces with Walmart to help provide the best possible delivery experience to customers," says Cosimo Leipold, Nuro's head of partner relations, in the release. "Working alongside Walmart gives us an incredible opportunity to improve our door-to-door operations, serve Walmart's loyal customers, and continue to integrate and engage with the Houston community."

The new opportunity comes for Walmart as the company is expanding its access. The company has expanded to offer pickup options at 3,100 locations and deliveries from more than 1,600 stores — all supported by a team of over 50,000 personal shoppers, Ward writes in a blog post.

"We're already bringing the best of Walmart to our customers through Grocery Pickup and Delivery," Ward writes. "By continuing to test autonomous vehicle capabilities, we're better able to understand the path self-driving technology can take us down the road."

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Biosciences startup becomes Texas' first decacorn after latest funding

A Dallas-based biosciences startup whose backers include millionaire investors from Austin and Dallas has reached decacorn status — a valuation of at least $10 billion — after hauling in a series C funding round of $200 million, the company announced this month. Colossal Biosciences is reportedly the first Texas startup to rise to the decacorn level.

Colossal, which specializes in genetic engineering technology designed to bring back or protect various species, received the $200 million from TWG Global, an investment conglomerate led by billionaire investors Mark Walter and Thomas Tull. Walter is part owner of Major League Baseball’s Los Angeles Dodgers, and Tull is part owner of the NFL’s Pittsburgh Steelers.

Among the projects Colossal is tackling is the resurrection of three extinct animals — the dodo bird, Tasmanian tiger and woolly mammoth — through the use of DNA and genomics.

The latest round of funding values Colossal at $10.2 billion. Since launching in 2021, the startup has raised $435 million in venture capital.

In addition to Walter and Tull, Colossal’s investors include prominent video game developer Richard Garriott of Austin and private equity veteran Victor Vescov of Dallas. The two millionaires are known for their exploits as undersea explorers and tourist astronauts.

Aside from Colossal’s ties to Dallas and Austin, the startup has a Houston connection.

The company teamed up with Baylor College of Medicine researcher Paul Ling to develop a vaccine for elephant endotheliotropic herpesvirus (EEHV), the deadliest disease among young elephants. In partnership with the Houston Zoo, Ling’s lab at the Baylor College of Medicine has set up a research program that focuses on diagnosing and treating EEHV, and on coming up with a vaccine to protect elephants against the disease. Ling and the BCMe are members of the North American EEHV Advisory Group.

Colossal operates research labs Dallas, Boston and Melbourne, Australia.

“Colossal is the leading company working at the intersection of AI, computational biology, and genetic engineering for both de-extinction and species preservation,” Walter, CEO of TWG Globa, said in a news release. “Colossal has assembled a world-class team that has already driven, in a short period of time, significant technology innovations and impact in advancing conservation, which is a core value of TWG Global.”

Well-known genetics researcher George Church, co-founder of Colossal, calls the startup “a revolutionary genetics company making science fiction into science fact.”

“We are creating the technology to build de-extinction science and scale conservation biology,” he added, “particularly for endangered and at-risk species.”

Houston investment firm names tech exec as new partner

new hire

Houston tech executive Robert Kester has joined Houston-based Veriten, an energy-focused research, investment and strategy firm, as technology and innovation partner.

Kester most recently served as chief technology officer for emissions solutions at Honeywell Process Solutions, where he worked for five years. Honeywell International acquired Houston-based oil and gas technology company Rebellion Photonics, where Kester was co-founder and CEO, in 2019.

Honeywell Process Solutions shares offices in Houston with the global headquarters of Honeywell Performance Materials and Technologies. Honeywell, a Fortune 100 conglomerate, employs more than 850 people in Houston.

“We are thrilled to welcome Robert to the Veriten team,” founder and CEO Maynard Holt said in a statement, “and are confident that his technical expertise and skills will make a big contribution to Veriten’s partner and investor community. He will [oversee] every aspect of what we do, with the use case for AI in energy high on the 2025 priority list.”

Kester earned a doctoral degree in bioengineering from Rice University, a master’s degree in optical sciences from the University of Arizona and a bachelor’s degree in laser optical engineering technology from the Oregon Institute of Technology. He holds 25 patents and has more than 25 patents pending.

Veriten celebrated its third anniversary on January 10, the day that the hiring of Kester was announced. The startup launched with seven employees.

“With the addition of Dr. Kester, we are a 26-person team and are as enthusiastic as ever about improving the energy dialogue and researching the future paths for energy,” Holt added.

Kester spoke on the Houston Innovators Podcast in 2021. Listen here

Startup funding, sportstech win and more trending innovation news for January

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