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After Wild West start, scooter providers chase scale to survive
Source: Reuters
LONDON, Oct 14 (Reuters) – The era of breakneck growth for electric scooter firms is giving way to more selective expansion focused on profits as they face tougher regulations, more demanding customers and wary insurers.
Hurt badly by global coronavirus lockdowns last year, companies offering by-the-minute rental of e-scooters say ridership is soaring to pre-COVID 19 levels among urban consumers eager to avoid public transport or taxis.
But that doesn’t mean the app-based industry is returning to the free-wheeling, pre-pandemic world where “micromobility” firms were loosely regulated and raked in money from investors.
Scooter firms now face cities that are using licensing to limit the number of operators, consumers demanding better software and vehicles, and insurers leery of safety risks.
This is forcing up costs and will push the low-margin industry towards further consolidation. Some smaller providers have already been snapped up, including Boston-based Zagster, bought by transport technology company Superpedestrian in 2020, and San Franciso-based Scoot, taken over by Bird Rides in 2019.
“It really takes scale to get the economics to work,” says Travis VanderZanden, CEO of Santa Monica-based Bird, which is due to go public via a merger with special purpose acquisition company (SPAC) Switchback II Corp . “So I think we’re going to see some of the smaller players fall by the wayside.”
Bird is a global player that expects revenue to double in 2021 from a pandemic-hit 2020, and then double again to $400 million in 2022. That is still small compared to a car-based ride hailing company such as Uber (UBER.N), which had gross revenues of $4.1 billion in 2019.
Bird’s planned merger – which will go to a Switchback II shareholder vote on Nov. 2 – values the company at $2.3 billion, about 20% below its January 2020 price tag, according to startup data platform PitchBook. Lime, also a global player, saw its valuation fall nearly 80% during a June 2020 funding round from one less than a year earlier.
While the pandemic battered valuations at the top, an analysis by Reuters found it also cut off funding for many smaller e-scooter providers.
“There are a lot of companies that can’t invest in hardware, can’t invest in safety features and can’t invest in training,” says Wayne Ting, CEO of Lime, whose investors include Uber. Lime acquired Uber’s micromobility unit Jump.
The current environment is a far cry from 2017 when electric scooters accessed through smartphone apps first appeared in large numbers. A flood of new providers created “Wild West competitions” as predominantly European cities hosted unlimited numbers of vendors, said Candice Xie, CEO of Chicago-based Veo, which operates in more than 40 U.S. cities.
“A lot of companies raced to the bottom in order to get market share,” she said.
Vehicles were dumped on streets from Detroit to Paris, and the term “scooter blight” was born.
Early rental scooters “were consumer grade and not built for a high level of utilization,” said Voi Scooters CEO Fredrik Hjelm. Stockholm-based Voi operates nearly 100,000 scooters across western Europe.
NEW SHERIFF IN TOWN
Now, cities and countries have tightened regulations, creating tough bidding processes for licences aimed at limiting the number of scooter providers.
Copenhagen temporarily ejected all scooter providers earlier this year while it rewrites its regulations.
Some U.S. cities, including Columbia, Missouri, and Winston-Salem in North Carolina, have allowed e-scooter providers to return with more oversight after expelling them.
Large scooter providers say awarding licences to a few major players with track records guarantees better service and allows them to operate larger fleets profitably.
“This has become a game of slim margins and scaling up,” said Voi’s Hjelm. “And it’s far better to have fewer operators with greater density.”
Britain has launched trial projects for e-scooter providers in certain cities – but with speed restrictions, and users must have a driver’s licence.
“We’re determined to make sure safety is at the core of our trial and that it works for everyone,” said Helen Sharp, head of Transport for London’s e-scooter trial for three operators: Lime, Tier and Dott.
To meet London requirements, Berlin-based Tier has developed software to stop its scooters accessing certain busy roads.
“You might just be able to push it, but it wouldn’t be easy,” said Tier’s UK and Ireland head of cities, Georgia Yexley.
But better scooters and software drive up costs.
Fred Jones, Tier’s regional general manager for northern Europe, said the company’s scooters can now last five years and have 83 replaceable components to extend their lifespan.
“That costs a lot, not just the scooter, but the parts and skilled labour to service them,” Jones said. “If you don’t get that right, the economics won’t work.”
Ensuring they do is key for funding.
Silicon Valley venture capital firm Autotech Ventures avoided micromobility firms until this year when it bought into Chicago’s Veo and another unidentified firm.
“Veo has taken a disciplined approach to growth, achieving impressive unit economics and much higher profitability than virtually all of its peers,” said AutoTech Ventures managing director Dan Hoffer.
According to PitchBook, in the first half of 2021 venture capital deal activity in the micromobility sector fell to $1.4 billion from $4.6 billion in the same period in 2020.
WARY INSURERS
Another problem for would-be e-scooter providers is insurers see e-scooters as inherently more dangerous than bikes or cars.
“Riders are particularly vulnerable, more so than cyclists,” said Martin Smith, technical claims manager for motor at Aviva (AV.L), a large UK insurer that does not cover e-scooters.
Regular motor insurers such as AXA UK (AXAF.PA), Admiral (ADML.L) and Unipolsai (US.MI) also avoid e-scooter providers, leaving them to specialist players, such as Zego. Bird CEO VanderZanden said to get lower insurance rates it uses data from the 300 cities it operates in globally, highlighting the benefits of scale.
It has also added physical safety features like a double brake and developed software to boot irresponsible riders off its service – all running on its own operating system.
“Having amazing vehicles is one thing,” VanderZanden said. “But you need data to show insurance companies to make this work.”
Additional reporting by Paul Leinert in Detroit, Andrea Mandalà in Milan and Muvija M. in Bengaluru Editing by Joe White and Mark Potter
Our Standards: The Thomson Reuters Trust Principles.
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How innovative lubricants are advancing sustainability in e-mobility
By Leyla Alieva, Co-Founder and CEO of NEOL Copper Technologies, and Professor Boris Zhmud, CTO, Tribonex AB
In the rapidly transforming automotive sector, e-mobility stands out as a pivotal area of innovation and growth. The advancement of e-mobility solutions is having an important impact on our society, with more people choosing greener transportation methods as they become environmentally conscious. Current environmental policies and rapid adoption mean the global electric vehicle (EV) fleet is set to grow twelve-fold by 2035[1].
However, keeping EVs, along with hybrid vehicles, well-maintained is a challenge. Securing a more sustainable future means delivering reliable e-mobility solutions, affordable for customers. Overcoming concerning worries over long-term dependability of EVs is essential to ensuring user confidence. Even though most failures in modern vehicles are electric, tribology still plays an important role. Friction and wear are always there. A faulty control module and a faulty bearing in electric motor will bring the same level of nuisance to the vehicle’s owner. Hence, effective collaboration between mechanical engineers and lubricant developers is crucial for adoption of EV technology.
While there are more environmentally friendly vehicles being manufactured, there has also been a rise in high-efficiency lubricants that can offer more substantial protection against component wear. This article will address the strenuous circumstances that cause wear in both EVs and hybrid vehicles, how these challenges can be resolved and why embracing a range of technologies will be pivotal in developing sustainable e-mobility solutions.
Facing the challenges in e-mobility lubrication
To shed light on the complexities and future trends of this critical industry, it is important to establish the lubrication challenges facing vehicle and component manufacturers. For hybrid vehicles, the intermittent operation of internal combustion engines at lower temperatures poses significant issues, such as increased water accumulation in the engine oil and higher fuel dilution. These conditions result in specific tribological stress on engine components, necessitating specialized lubricant solutions.
Fully electric vehicles present a different set of challenges. Their electric motors operate at high speeds, at around 12,000 to 18,000 rpm, and this demands that lubricants withstand these rigorous conditions, with high-performance motors reaching 24,000 rpm. These speeds are only set to increase as well. For instance, motors running at 30,000 rpm are being prepared for the next generation of EVs and there already are experimental designs of interior permanent magnet synchronous motors (IPMSM) reaching 100,000 rpm. With these extremely high speeds in mind, material compatibility and the need for effective cooling solutions further complicate the development of suitable lubricants for EVs.
Addressing these challenges requires innovative solutions in both hardware and lubricant formulations. There have been several key advancements that would support both hybrid and electric vehicles. Lower viscosity synthetic oils are a good example of a lubricant that could significantly benefit hybrid vehicles, offering improved flow in cold-start conditions.
For high-speed electric motors in EVs, methods like force lubrication and spray lubrication are being developed, as traditional splash lubrication is often inadequate. Finally, waterborne lubricants are being explored for their superior cooling properties. However, while these are hoped to be more comprehensive solutions, they are still in development.
The potential of copper filming technology
Lubricant developers are always looking for new ways to improve the sustainability and reliability of vehicle components. One avenue that is showing promise is the development of lubricants with copper filming technology. It offers unique protective properties against hydrogen-related damage, which is prevalent in tribological contacts.
The technology, particularly using metal-organic copper compounds, is compatible with EV systems, avoiding issues like copper corrosion that limit other additives. Higher affinity of copper additives to surfaces makes it potentially more effective than traditional zinc-based detergents. Furthermore, even though copper is considered to be an oxidation promotor, copper additives are not. In fact, oxidation tests show that copper additives act synergistically with antioxidants. Hence, synthetic lubricants deploying the copper filming technology are characterized by an extended service life.
Early results from numerous real-world and laboratory-controlled projects that include testing copper filming technology in crankcase lubricants have demonstrated quantifiable performance benefits. This technology has shown to not only reduce friction but also provide wear protection, which is crucial for performance and efficiency.
Embracing collaborative development
In order to overcome these challenges around lubrication, the e-mobility sector could adopt a consortium model to enhance collaboration between mechanical engineers and lubricant developers. By bringing together hardware designers and lubricant formulators early in the development process, the industry can create tailored solutions for the diverse range of EV hardware. This approach requires open communication, collaborative testing programs and data sharing, focusing on developing bespoke solutions rather than one-size-fits-all products. Streamlining approval processes is also critical to encourage innovation, especially from smaller companies.
By embracing new approaches and lubricant technology, as well as fostering collaboration, the automotive industry can overcome the challenges of EV lubrication. As EV adoption continues to rise, there is pressure on manufacturers to make their vehicles reliable and thanks to the latest developments there is a pathway for a sustainable, efficient future.
While it would be right to be cautious about predicting a fully electric fleet within the next 20 years, there is hope that a more pragmatic multi-technology approach can achieve carbon neutrality in the future. As well as e-mobility, fuel cells, hydrogen engines, and renewable fuels each have a significant role to play. This diversified strategy is necessary to overcome the limitations of resources, current energy mixes, and the carbon footprint associated with battery manufacturing and recycling.
[1] https://www.iea.org/reports/global-ev-outlook-2024/outlook-for-electric-mobility
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Combating Cyber Fraud in the Aviation Industry
Source: Finance Derivative
Written by Andrea Feldman, Senior Cyber Threat Intelligence Analyst at BlueVoyant
Fraudulent cyber-attacks targeting the airline industry are a common issue largely seen coming out of the underground, such as the deep and dark web. According to RSA Security, airlines are the industry most affected by online fraud, accounting for 46% of fraudulent transactions. As a result, the financial costs for airlines are huge with losses due to fraud estimated at 1.2% of the total global airline revenue.
Over the past few years, there has been a significant spike in threat actors targeting the aviation industry worldwide, due to airlines’ increasing reliance on online booking and reservation platforms. These online tools make it more convenient for customers to purchase airline tickets and have become an industry standard. However, it has also enabled fraudsters to exploit vulnerabilities in online systems. The significant disruption and increase in remote work caused by the COVID-19 pandemic has also caused an increase in fraud in recent years.
Analysing Fraud in the Underground Market
Posts offering flight tickets or compromised accounts with frequent flyer miles or reward points at advantageous prices are very common in underground forums, chat platform groups, and even on social media. Threat actors commonly sell flight tickets at reduced prices by using compromised credit cards to purchase tickets. These kinds of posts are frequently seen in the underground market targeting airlines worldwide. Threat actors typically purchase the flight tickets a few hours before the flight, reducing the likelihood of the airline identifying the fraud in time.
Compatible BIN numbers
It is also common to see posts in underground forums where threat actors seek specific credit card BINs that perform well when booking with certain airlines.
Compromised Travel Agent Consoles
Nevertheless, some threat actors obtain tickets by hacking travel agents’ accounts or conducting fake bookings. Examples include threat actors plotting in an underground forum offering access to a travel ticket panel for sale.
Messages from a threat actor can include mentions of the fake travel panel and its ability for users to instantly issue plane tickets under any name, on any airline, or to any destination. Furthermore, the threat actor can note that the access originates from a large, legitimate company with many accounts, which increases the difficulty for the breach to be detected.
Compromised Frequent Flyer Accounts
Frequent Flyer programs are also heavily targeted in the underground market as another way to issue fraudulent flight tickets. Threat actors offer compromised frequent flyer account credentials for sale, often at advantageous prices. These credentials, which include frequent flyer miles or reward points, are obtained through fraudulent methods such as phishing or hacking into customer accounts. The attackers then steal points or miles and redeem them for flights or other rewards. Access to the compromised accounts themselves is then sold separately.
Fraudulent activities can lead to financial losses for an airline due to chargebacks, increased operational costs for fraud prevention, and damage to the airline’s reputation.
Mitigation of Aviation Fraud
To combat this kind of fraud, it is crucial to enhance security measures and ensure the effectiveness of fraud prevention systems. Employee training and awareness are also essential components for implementing prevention techniques.
Given that fraudsters continuously adapt their methods, it is important to:
· Regularly review and update fraud prevention policies and procedures to address evolving threats
· Conduct thorough internal audits to identify any gaps or exploits in existing systems and processes
· Stay informed about emerging technologies and industry standards to leverage innovative solutions for fraud prevention
· Enforce Multi Factor Authentication (MFA) for user accounts, and ensure password policies are effective and up to date
· Airlines should be monitoring for phishing websites impersonating them, compromised accounts sold in the underground and other fraudulent activities in the dark web.
As the risk of fraud within the aviation industry continues to pose a threat, organisations must be prepared to implement stringent security measures. Companies should look to partner with cybersecurity partners which offer impersonation and fraud detection solutions. They must also implement dark web monitoring and brand protection services, essential to actively monitoring underground communities. This will enable companies to stay ahead of fraudsters, helping to triage the most serious threats that can otherwise have a severe impact on an airline’s reputation and customer experience ratings in a significantly competitive market.
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Could 3D Solid State Batteries Accelerate the Adoption of Electric Vehicles
As we push towards the goal of net zero by 2025, the era of the internal combustion (IC) engine is drawing to a close.
Although consumer reliance on the humble petrol- or diesel-fueled motor car has been climbing at a steady and predictable pace ever since Henry Ford-style mass production caught on, there has been a modest dent in the demand for traditional vehicles, with nearly one in five cars sold in 2023 being electric.
So will this trend continue to grow? We would argue yes, but putting a timescale on this is a tricky task: the predictability we have seen with IC vehicles doesn’t apply to everything. Not all innovations buck conform to one clearly defined trend. And this appears to be the case with electric vehicles.
With nearly 20% of new cars being electric in some regions, electric vehicles (EVs) are steadily increasing their market share. In fact, in countries like Norway, adoption reached around 80% in 2023. This year, it’s projected that 25% of passenger car registrations will be electric, surpassing 17 million units in global sales. These numbers indicate a significant upward trend in EV adoption, especially in recent years.
Nonetheless, even taking these encouraging figures into account, EVs still only represent a small proportion of all vehicles on the road. This needs to change otherwise there’s a danger that EV adoption could stagnate.
What needs to change to boost EV adoption?
Apart from the natural laws of supply and demand, the main limitations hindering EV development are most notably cost, slower recharge rates and limited range.
This is where batteries come in as the key to addressing these hindrances.
Batteries designed for vehicles focus on overcoming a range of challenges. Weight, cost, and the sourcing of materials are all significant. Beyond these, one factor stands out. With, nearly 50% of consumers claimed they’d need a higher real-world range to consider switching from ICE vehicles to electric cars according to a recent survey by GoCompare – the limitations posed by a battery’s range is a key factor to be addressed.
This means that we are a long way off being reliant on fossil fuels to power our vehicles. However, a solution might be closer than we think.
LionVolt’s cutting-edge battery technology is a driving solution for electric cars and sustainable aviation by creating groundbreaking 3D solid-state technology for next-gen batteries.This new technology could be key to far greater EV uptake at a scale that could set a steep new trend.
What are 3D solid-state batteries, and how do they work?
The key to overcoming the challenges limiting the shift towards electrification are batteries and cells that are much faster to charge than those currently used and can extend range and performance. Central to these developments are advances in lithium-ion batteries.
In terms of range, the science revolves on energy density – how much energy can be packed into each battery for a given weight. To achieve high density, we are seeing a shift to more advanced products from materials commonly used in today’s cells. New anode technologies, including silicon and lithium, will increase today’s range and can be ‘dropped into’ the existing supply chain. To get a significant increase, the production process involves switching the flammable liquid common to old-style batteries with a solid, non-flammable material.
Obvious benefits to drivers and the planet alike range from,faster charging, higher performance, intrinsically higher standards of safety, longer battery life, and radically lowered carbon footprints
The real gamechanger here is extended range: driving ranges upwards of 800 km—or about 500 miles—are no longer the stuff of EV drivers’ imagination and this could be the stepchange we need for mass adoption.
LionVolts innovations in the battery space address consumer demands for extended range while also offering a safer, more sustainable alternative to traditional batteries.
This lays the foundations for an increased uptake of EVs in the future, but electric cars are not where the innovations end. LionVolt are also developing larger versions of these batteries that have the very real potential of fueling aviation. We could say when it comes to electrification to achieve net zero, the sky’s the limit (no pun intended!).