Hyzon Motors settles with the SEC for $25M / Uber partners with Los Angeles Yellow Cab

Plus, Delta CEO says airline 'went too far' with elite status changes

Inside Transportation

For September 28, 2023

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CarMax reported a 13.1% YoY decrease in revenue to $7.1B for the three months ending on Aug. 31. The company sold a total of 200,825 used vehicles, down from 216,939 during the same period in 2022.

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The average used vehicle price sold by CarMax was $27,500, down from $28,657 during the same period in 2022.
CarMax reported a total of $696.8M in gross profit, decreasing by 5.5% YoY.
The company spent $66.3M in advertising, 20% less year-over-year.
$KMX was down 9.73% for the day on Thursday afternoon.

Q: Would you trade in your vehicle under the current market conditions? Join the conversation here.

Uber revealed a multi-year partnership with the Los Angeles Yellow Cab. Under the deal, taxi drivers in Los Angeles, Orange County, and San Diego will be able to take on Uber rides.

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The partnership would give Uber access to up to 1,200 vehicles.
The deal follows similar programs with taxi fleets in New York City and San Francisco, first announced in 2022.
- The San Francisco Municipal Transportation Agency authorized the ability for taxis to use third-party ride-hailing apps for a flat, upfront fare in April 2022.
- Taxi drivers who drove via Uber earned 23.8% more in monthly fare revenue versus those who did not, per San Francisco municipal data.
$UBER was up 2.8% for the day and +2.45% WoW on Thursday afternoon.

NOTE: Inside.com founder and CEO Jason Calacanis is an investor in Uber.

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Hyzon Motors is settling with the Securities and Exchange Commission for $25M over false claims involving its fuel-cell electric vehicle. The agency's complaint involved a misleading video depicting the vehicle running on hydrogen when it was not equipped.

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The agency also said that Hyzon had falsely stated that it delivered its first FCEV in July 2021 and the sale of 87 FCEVs in 2021, when it did not sell any vehicles that year.
The case involved similar allegations to that of hydrogen truck maker Nikola, which paid the SEC a $125M fine.
Hyzon went public via a special purpose acquisition company merger with Decarbonization Plus Acquisition Corp. in July 2021.
The company had $158M in cash at the end of July, expecting to burn $12M per month.

JetBlue is warning that it may earn lower-than-expected profits for Q3 and Q4. The airline is citing the termination of its Northeast Alliance with American Airlines as one of the main reasons for the lower outlook.

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JetBlue also mentioned challenges involving air traffic control staffing shortages and weather disruptions that would increase operational costs through Q3.
"In the short to medium term, we have to reduce flights in very impacted airports because the system can't cope with the number of flights today. We're selling flights that we know we won't be able to operate because of ATC challenges," said JetBlue CEO Robin Hayes.
The airline also forecasted that the price of jet fuel would rise by $0.20 to $2.95 per gallon.
JetBlue stock, however, jumped 5.4% for the day on Thursday morning.

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Delta Air Lines CEO Ed Bastian said the airline "went too far" with changes to its loyalty program following a backlash to its announcement that the airline was planning on making it more expensive to earn elite status to get into airport lounges. This comes a day after JetBlue revealed it would begin matching status for Delta SkyMiles members.

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"It's gotten to the point, honestly, where we have so much demand for our premium product and services that are far in excess of our ability to serve it effectively in terms of our assets," said Bastian.
The airline had been barring employees from using lounges while traveling on standby with company privileges and raised prices for club membership for regular customers.
$DAL was up 2.13% for the day on Thursday morning.

Daimler Truck is launching a charging network for electric vehicles in the U.S. in collaboration with Electrada. The project is expected to roll out with selected commercial customers in H1 2024.

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Daimler Trucks sells the eCascadia battery-electric truck in the U.S., with the Freightliner eM2 expected to go into series production in Q4 2023.
The company plans to provide the charging solution for a charging-as-a-service monthly rate.
Electrada began offering Level 2 and DC charging for passenger vehicles in collaboration with FLO through a public-private partnership in the Midwest in 2020.

Quick Hits:

No-code development is here to stay, according to industry experts. Gartner predicts 80% of technology products will be built by those who are not IT professionals by 2024.*
A Hyundai Genesis pilot program for inductive charging has reportedly been cut.
Ryanair said its winter schedule reduction is due to delays in Boeing deliveries.
FreightTech platform Loadsmart acquired NavTrac, which provides analytics using computer vision for yard truck management.
Peru saw an increase in air passengers of 80.9% YoY in H1, reaching 85% of pre-pandemic levels.
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INSIDE TRANSPORTATION LEADERBOARD (7 DAYS)

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Nicolas Saravia

Sr. Analyst

Nicolas S. is a Sr. Analyst at Inside, covering transportation and startup trends. He is an avid map maker and data nerd. Nicolas has worked in the shared-scooter space, as well as advised e-bike and moped startups. Follow him at @MobilityNerd.

This newsletter was edited by Aaron Crutchfield

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