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In a major blow to shared micromobility companies Lime, Dott and Tier, Paris has voted to ban rental e-scooters from its streets. Many in the industry fear the move in Paris, where free-floating scooters initially took off in 2018, will have ripple effects in other cities.
Paris has been one of the most heavily regulated e-scooter markets, something companies have pointed to as an example of how they can play nice with cities. Yet, despite limiting scooter top speeds to as slow as 10 kilometers per hour (about 6 miles per hour) and requiring riders to use dedicated parking areas or pay fines, Paris has become the first city to completely reverse its policy on offering contracts to shared micromobility companies.
In a referendum on Sunday organized by Paris mayor Anne Hidalgo, Paris residents voted 89% against keeping shared e-scooters in the city. The three companies that pay for contracts to operate in the City of Light will have to pull their fleets — a total of 15,000 e-scooters — out of the city by September 1.
Hidalgo, who originally welcomed shared e-scooters to Paris, has pushed for the city to become a more livable 15-minute city and has spearheaded policies that reclaim parking spots from cars to create new bike lanes and pedestrian-friendly areas. However, shared scooters have gotten a lot of pushback from many city residents who often complain about reckless driving and clutter on sidewalks.
Hidalgo said on Sunday that scooters are the cause of a lot of accidents and that the business model was too expensive to be sustainable, with a 10-minute ride costing about €5. She also said free-floating scooters aren’t as climate friendly as she’d want. At the start of the year, TechCrunch dived deep into scooter usage in Paris and found through a variety of studies that while e-scooters are incredibly popular, they mostly replace walking or public transit rather than car usage.
That doesn’t mean they didn’t replace any car trips. One study from 2019 found 7% of kilometers covered by scooters replace car and personal taxi trips, a number that has likely grown over the years. But 7% is not nothing, says Hélène Chartier, director of urban planning at C40, a global network of mayors taking urgent climate change action. Chartier previously served as an advisor to Hidalgo.
“As part of a mobility package that Paris would offer as an alternative to cars, [shared e-scooters] could have been an option,” said Chartier. “Without all of the other problems, they could have said, ‘Ok why not?’ But if you add the accidents, if you add the difficulty on the public space, at some point, you need to say this is not the main solution. We should invest more in bikes, e-bikes, walking.”
David Zipper, a visiting fellow at the Harvard Kennedy School’s Taubman Center for State and Local Government, tweeted that he wasn’t surprised to see Paris vote against shared e-scooters, but he didn’t expect such a large margin. That sentiment has been mirrored by scooter advocates and the companies themselves.
Dott, Lime and Tier said in a joint statement that the low voter turnout affected the results of the referendum. Only 103,084 people turned out to vote, which is about 7.5% of registered Paris voters. They blamed restrictive rules, a limited number of polling stations (and thus long lines that dissuade young voters) and no electronic voting, saying the combination “heavily skewed toward older age groups, which has widened the gap between pros and cons.”
Additionally, the companies said the referendum was held the same day as the Paris marathon, and that only residents of the city were allowed to vote, leaving out those who live just outside the city but commute in.
The operators offered free rides to customers who voted Sunday and relied on social media influencers to try to get young users to vote, efforts that seem to have gone in vain. Parisians reported there were a high proportion of older voters in the queues.
The referendum isn’t binding, so Hidalgo can still make the unlikely decision to keep scooters in the city based on the low voter turnout. The numbers clearly show that scooters are popular. Lime has previously told TechCrunch that 90% of its fleet in Paris is used every day. In 2021, over 1.2 million scooter riders, 85% of whom were Parisians, took a total of 10 million rides across Lime, Dott and Tier. That’s around 27,000 rides per day.
The ban will not have an effect on the e-bikes offered by shared micromobility companies, which will remain in the city. Similarly, privately owned scooters are not affected by the ban, of which 700,000 were sold in France last year, according to transport ministry figures.
Paris votes overwhelmingly to ban shared e-scooters by Rebecca Bellan originally published on TechCrunch
UPDATE: Tesla tweaks Model 3 page of U.S. website encouraging buyers to take delivery now in anticipation of reduced tax incentives by March 31.
The U.S. Treasury Department’s guidance on battery sourcing requirements for the electric vehicle tax credits will result in fewer vehicles being eligible for full or partial credits, reports Reuters, citing an unnamed U.S. official.
The proposed EV credit guidance as included in the Inflation Reduction Act says that in order for vehicles to qualify for $3,750, which is half of the total credit, 50% of the value of battery components must be produced or assembled in North America. To get the remainder of the credit, 40% of critical minerals must be sourced from the U.S. or a country with which it has a free trade agreement.
The guidance on battery sourcing was meant to kick in on January 1, 2023, but in December the Treasury Dept. decided to hold off until March to give some EV-makers a grace period to meet the requirements.
The Treasury Dept. is expected to share its guidance Friday, and while the Reuters report doesn’t state exactly what it will be, we can guess that the full guidance will kick in, meaning many EVs will lose tax credits or see them cut. The Treasury Dept. is also expected to define key terms like processing, extraction, recycling and free trade deals.
The battery sourcing rules are aimed at helping the U.S. decrease its reliance on China for batteries. While most automakers have been reorganizing supply chains and bringing more processes onshore since COVID, not all will have had the chance to completely upgrade their battery sourcing in time to meet both the Treasury Dept.’s requirements and the increased demand for EVs.
China currently makes 81% of the world’s cathodes, 91% of the world’s anodes and 79% of the world’s lithium-ion battery production capacity, according to data from Benchmark Mineral Intelligence, a market research firm. For comparison, the U.S. has just 0.16%, 0.27% and 5.5% market share, respectively.
Despite the U.S., and most of its free trade agreement partners, being woefully behind China, the Biden administration has said it thinks over time, the tax credit will result in more EVs sold as automakers reorganize supply chains to meet the IRA rules, the source told Reuters.
In February, the Treasury Dept. updated the vehicle classification standard to redefine what makes a vehicle a sedan, an SUV, a crossover or a wagon. The change made more Tesla, Ford, General Motors and Volkswagen EVs eligible for up to $7,500 tax credits. Those vehicles stand to lose some or all of the tax credits once the battery sourcing guidance is out. In fact, Tesla on Wednesday evening updated the Model 3 page on its U.S. website to reflect this, saying the tax credit is expected to be reduced for the vehicle by March 31 and encouraging buyers to “take delivery now.”
Battery sourcing guidance might slash EV tax credits by Rebecca Bellan originally published on TechCrunch
The European Parliament formally approved a law to ban the sale of new gas and diesel cars in the European Union starting in 2035 in a move designed to speed up the transition to electric vehicles.
The new legislation, which is part of a broader effort by the EU to combat climate change, says that by 2035, carmakers must achieve a 100% cut in carbon-dioxide emissions from new cars sold, which means no new fossil fuel–powered vehicles could be sold in the 27-country bloc.
With 340 votes in favor, 279 against and 21 abstentions, the new rules also set a path for more immediate emissions reductions targets. New cars and vans sold from 2030 will have to meet a 55% and 50% cut in emissions, respectively, compared to 2021 levels. The previous 2030 emissions target for new cars sold was 37.5%.
The law was first accepted by negotiators from EU countries, the European Parliament and the European Commission in October last year, so Tuesday’s approval is just a step before the law gets a formal rubber stamp and the rules begin to take effect. That’s expected to happen in March.
Member of the European Parliament Jan Huitema said these target revisions are crucial steps if Europe wants to reach climate neutrality by 2050.
“These targets create clarity for the car industry and stimulate innovation and investments for car manufacturers,” Huitema said in a statement. “Purchasing and driving zero-emission cars will become cheaper for consumers and a second-hand market will emerge more quickly. It makes sustainable driving accessible to everyone.”
However, some automakers, industry players and countries have been giving the EU pushback ever since the law was proposed in July 2021. Renault, for example, said in 2021 that it would seek an extension to the proposed plan to ban internal combustion engine vehicle sales in the EU by 2035, instead hoping to push out the transition to 2040 so it could provide more affordable cars to EV buyers.
As a result of resistance, the final deal approved Tuesday includes flexibilities, including a caveat for small carmakers producing fewer than 10,000 vehicles per year to be able to negotiate weaker targets until 2036.
EU formally bans sale of gas and diesel cars from 2035 by Rebecca Bellan originally published on TechCrunch
Canadian vertical farming startup Adapt AgTech is partnering with Reef Technology to bring its mushroom-growing shipping containers to major cities across the United States, starting with Austin.
Reef transforms urban real estate like parking lots into mobility and logistical hubs and currently operates over 8,000 locations across hundreds of cities. The partnership will help Adapt place its shipping containers steps away from such customers as restaurants and grocery stores, without having to pay the astronomical rent of a commercial or industrial space in a downtown area.
Adapt opened its first shipping container in Austin and began deliveries to restaurants this week. Over the course of the next few years, the startup plans to expand to over 50 locations, including Boston, Chicago, San Francisco, Seattle and Miami.
“Our model is to create hyper-local farms in densely populated urban areas to reduce the distance from farm to fork,” Jonathan Murray, Adapt AgTech’s CEO and founder, told TechCrunch.
Adapt’s network of shipping container farms specializes in “aberrant gourmet mushrooms,” which are gourmet mushrooms that haven’t been available in North American retail until very recently. Think pink, yellow, blue and king oysters, chestnut mushrooms, and the trending lion’s mane.
“Mushrooms cater very, very well to container farming versus other crops like leafy greens because of the energy consumption,” continued Murray. “They don’t require a tremendous amount of light. It’s really just temperature and humidity.”
Adapt, which launched in February 2022, delivered its first farm in June last year to a location in Toronto. The company has been growing ever since and now has farms in Ottawa, Vancouver, Halifax, Kingston and Austin. On February 17, Adapt says it will launch a partnership with Loblaws — Canada’s largest retailer — starting with two flagship stores in downtown Toronto, and then dozens more in Toronto and Ottawa before expanding elsewhere over the following months.
Adapt will also roll out with retail banners under Canadian grocery chains Sobeys and Pattison Food Group in 2023.
“By the end of 2023 we’ll be available in stores of at least three of the top five largest retailers in Canada from Halifax to Vancouver and in between, which combined represent over 3,500 stores,” said Murray.
Adapt recently closed a seed round with climate VC Congruent, and it will use the funds to expand its base and hire more support.
Image Credits: Adapt AgTech
Adapt AgTech designs and manufactures its shipping containers in Delta, British Columbia. Aside from the five containers operating today, Adapt recently started production on 16 more units and is aiming to deploy over 25 units over the next 12 months. Some of Adapt’s shipping containers are solar-powered with backup plugs, but for the purposes of a speedy U.S. launch, the startup will plug its shipping containers into the grid. The energy consumption, Murray said, is low — about 10 kilowatt hours per day.
The company’s distribution model is akin to a hub and spoke. Adapt uses a centralized hub in Kingston, Ontario, to do all of the lab work and colonize the substrate blocks — meaning it allows the mycelium, the root structure of the fungus, to grow on blocks of sawdust, spent coffee grounds or coconut coir. The startup then sends out the blocks to shipping containers, where the mushrooms can fruit close to customers. Murray says this allows Adapt to deliver mushrooms within a couple of hours of harvest, which not only means fresher fungi, but also longer-lasting mushrooms and reduced spoilage.
The startup deploys and operates the containers and also fulfills orders. An operator oversees everything from harvesting to managing orders to delivering mushrooms.
“All of our containers are currently operating essentially on one full-time farmer, so we’re enabling them to become what we like to call ‘farmtrepreneurs,'” said Murray. “So uncapped commissions, grow your territory as big as you can. We’ll add containers, we’ll grow your territories. This allows us to bring new and young people into farming as well, which is exciting.”
Murray also noted that existing mushroom farm operators have reached out to Adapt to flip their at-home businesses into Adapt farms.
The whole process allows the startup to stay vertically integrated, and thus save money on materials like substrate, which Adapt makes itself out of whatever is locally available. Adapt’s control over each farm also lets the company keep tabs on well-fruiting mushroom strains and propagate more of them, delivering even healthier margins to the company and a high-quality product that’s cheaper than what you’d get at the farmer’s market, said Murray.
From shipping container to table: Adapt brings urban mushroom farms to US by Rebecca Bellan originally published on TechCrunch
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