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June 25, 2019
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Consumer Reports knocks Tesla’s Navigate on Autopilot feature

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Consumer Reports is calling the automatic lane-change feature on Tesla’s Navigate on Autopilot “far less competent” than a human driver and cautioned it could pose safety risks.

The consumer advocacy organization posted its review Wednesday on the newest version of Tesla’s advanced driver assistance system.

Navigate on Autopilot is an active guidance system that is supposed to navigate a car from a highway on-ramp to off-ramp, including interchanges and making lane changes. Once drivers enter a destination into the navigation system, they can enable “Navigate on Autopilot” for that trip.

Tesla pushed out a software update last month to allow for automatic lane changes. Drivers have to enable this feature, which gives the car permission to make its own lane changes. If not enabled, the system asks the driver to confirm the lane change before moving over. Automatic lane changes can be canceled at any time.

The system has been touted as a way to make driving less stressful and improve safety. In practice, the system had startling behavior, Jake Fisher, senior director of auto testing at Consumer Reports told TechCrunch.

“It doesn’t take very long behind the wheel with this feature on to realize it’s not quite ready for prime time,” Fisher said. CR said one of the more troubling concerns were failures of Tesla’s three rearward-facing cameras to detect fast-approaching objects from the rear better than the average driver.

The CR reviewers found Navigate on Autopilot lagged behind human driving skills and engaged in problematic behavior such as cutting off cars and passing on the right. CR drivers often had to take over to prevent the system from making poor decisions.

As a result, the system increases stress and doesn’t improve safety, Fisher said, before asking “So what is the point of this feature?”

The automatic lane change reviewed by Consumer Reports is not the default setting for Autopilot, Tesla notes. It’s an option that requires drivers to remove the default setting. Tesla also argues that drivers using Navigate on Autopilot properly have successfully driven millions of miles and safely made millions of automated lane changes.

While Fisher acknowledged the default setting, he contends that isn’t the issue. He notes the Tesla has many warnings that the driver must be alert and ready to take over at any time.

“Our concern is that if you’re not alert (or ready to take over) you could be put into a tricky situation,” he said.

The bigger concern for all systems like these is the driver will put too much trust into it, Fisher said. The automatic lane-change feature might not be good enough for drivers to let down their guard yet. If Tesla improves this system, even a little bit, the risk of complacency and too much trust rises.

And that’s problematic because drivers still must be ready to take over. “Just watching automation is a harder human task than driving the car,” he said.

CR asserts that an effective driver monitoring system would mitigate this risk. DMS is typically a camera combined with software designed to track a driver’s attention and pick up on cognitive issues that could cause an accident such as drowsiness.

DMS are found in certain BMW models with an ADAS system called DriverAssist Plus, the new 2020 Subaru Outback and Cadillac’s equipped with its Super Cruise system.

This isn’t the first time CR has raised concerns about Autopilot. Last week, the consumer advocacy organization called on Tesla to restrict the use of Autopilot and install a more effective system to verify driver engagement in response to a preliminary report by National Transportation Safety Board on the fatal March 2019 crash of a Tesla Model 3 with a semi-trailer in Delray Beach, Fla.

Last year, CR gave GM’s Super Cruise the top spot in its first-ever ranking of partially automated driving systems because it is the best at striking a balance between technical capabilities and ensuring drivers are paying attention and operating the vehicle safely. Tesla followed in the ranking not because it was less capable, but because of its approach to safety, Fisher noted.

CR evaluated four systems: Super Cruise on the Cadillac CT6, Autopilot on Tesla Model S, X and 3 models, ProPilot Assist on Infiniti QX50 and Nissan Leaf, and Pilot Assist on Volvo XC40 and XC60 vehicles. The organization said it picked these systems because they’re considered the most capable and well-known in the industry.

Startups Weekly: Spotify gets acquisitive and Instacart screws up

in alex wilhelm/anchor/Bessemer Venture Partners/consumer reports/CrunchBase/Delhi/funding/Fundings & Exits/Fusion Fund/gimlet/gimlet media/India/Instacart/josh constine/lime/Mark Suster/Megan Rose Dickey/Mike McNamara/Politics/Reddit/Sanjay Jha/Spotify/Startups/steve huffman/TC/Uber/upfront ventures/Venture Capital/web summit/Y Combinator by

Did anyone else listen to season one of StartUp, Alex Blumberg’s OG Gimlet podcast? I did, and I felt like a proud mom this week reading stories of the major, first-of-its-kind Spotify acquisition of his podcast production company, Gimlet. Spotify also bought Anchor, a podcast monetization platform, signaling a new era for the podcasting industry.

On top of that, Himalaya, a free podcast app I’d never heard of until this week, raised a whopping $100 million in venture capital funding to “establish itself as a new force in the podcast distribution space,” per Variety.

The podcasting business definitely took center stage, but Lime and Bird made headlines, as usual, a new unicorn emerged in the mental health space and Instacart, it turns out, has been screwing its independent contractors.

As mentioned, Spotify, or shall we say Spodify, gobbled up Gimlet and Anchor. More on that here and a full analysis of the deal here. Key takeaway: it’s the dawn of podcasting; expect a whole lot more venture investment and M&A activity in the next few years.

This week’s biggest “yikes” moment was when reports emerged that Instacart was offsetting its wages with tips from customers. An independent contractor has filed a class-action lawsuit against the food delivery business, claiming it “intentionally and maliciously misappropriated gratuities in order to pay plaintiff’s wages even though Instacart maintained that 100 percent of customer tips went directly to shoppers.” TechCrunch’s Megan Rose Dickey has the full story here, as well as Instacart CEO’s apology here.

Slack confidentially filed to go public this week, its first public step toward either an IPO or a direct listing. If it chooses the latter, like Spotify did in 2018, it won’t issue any new shares. Instead, it will sell existing shares held by insiders, employees and investors, a move that will allow it to bypass a roadshow and some of Wall Street’s exorbitant IPO fees. Postmates confidentially filed, too. The 8-year-old company has tapped JPMorgan Chase and Bank of America to lead its upcoming float.

Reddit CEO Steve Huffman delivers remarks on “Redesigning Reddit” during the third day of Web Summit in Altice Arena on November 08, 2017 in Lisbon, Portugal. (Horacio Villalobos-Corbis/Contributor)

It was particularly tough to decide which deal was the most notable this week… But the winner is Reddit, the online platform for chit-chatting about niche topics — r/ProgMetal if you’re Crunchbase editor Alex Wilhelm . The company is raising up to $300 million at a $3 billion valuation, according to TechCrunch’s Josh Constine. Reddit has been around since 2005 and has raised a total of $250 million in equity funding. The forthcoming Series D round is said to be led by Chinese tech giant Tencent at a $2.7 billion pre-money valuation.

Runner up for deal of the week is Calm, the app that helps users reduce anxiety, sleep better and feel happier. The startup brought in an $88 million Series B at a $1 billion valuation. With 40 million downloads worldwide and more than one million paying subscribers, the company says it quadrupled revenue in 2018 from $20 million to $80 million and is now profitable — not a word you hear every day in Silicon Valley.

Here’s your weekly reminder to send me tips, suggestions and more to kate.clark@techcrunch.com or @KateClarkTweets

I listened to the Bird CEO’s chat with Upfront Ventures’ Mark Suster last week and wrote down some key takeaways, including the challenges of seasonality and safety in the scooter business. I also wrote about an investigation by Consumer Reports that found electric scooters to be the cause of more than 1,500 accidents in the U.S. I’m also required to mention that e-scooter unicorn Lime finally closed its highly anticipated round at a $2.4 billion valuation. The news came just a few days after the company beefed up its executive team with a CTO and CMO hire.

Databricks raises $250M at a $2.75B valuation for its analytics platform
Retail technology platform Relex raises $200M from TCV
Raisin raises $114M for its pan-European marketplace for savings and investment products
Self-driving truck startup Ike raises $52M
Signal Sciences secures $35M to protect web apps
Ritual raises $25M for its subscription-based women’s daily vitamin
Little Spoon gets $7M for its organic baby food delivery service
By Humankind picks up $4M to rid your morning routine of single-use plastic

We don’t spend a ton of time talking about the growing, venture-funded, tech-enabled logistics sector, but one startup in the space garnered significant attention this week. Turvo poached three key Uber Freight employees, including two of the unit’s co-founders. What’s that mean for Uber Freight? Well, probably not a ton… Based on my conversation with Turvo’s newest employees, Uber Freight is a rocket ship waiting to take off.

Who knew that investing in female-focused brands could turn a profit for investors? Just kidding, I knew that and this week I have even more proof! This is L., a direct-to-consumer, subscription-based retailer of pads, tampons and condoms made with organic materials sold to P&G for $100 million. The company, founded by Talia Frenkel, launched out of Y Combinator in August 2015. According to PitchBook, it was backed by Halogen Ventures, 500 Startups, Fusion Fund and a few others.

Speaking of ladies getting stuff done, Bessemer Venture Partners promoted Talia Goldberg to partner this week, making the 28-year-old one of the youngest investing partners at the Silicon Valley venture fund. Plus, Palo Alto’s Eclipse Ventures, hot off the heels of a $500 million fundraise, added two general partners: former Flex CEO Mike McNamara and former Global Foundries CEO Sanjay Jha.

If you enjoy this newsletter, be sure to check out TechCrunch’s venture-focused podcast, Equity. In this week’s episode, available here, Crunchbase editor-in-chief Alex Wilhelm and I chat about the expanding podcast industry, Reddit’s big round and scooter accidents.

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