We are happy to present you with the latest installment in our series of industry deep dives, following our Foodtech, Industrial Tech, Wellbeing, Digital Health, Future of Work, Fintech and Artificial Intelligence reports.
In our newest report, we take a look at the Mobility ecosystem, focusing on the global 2020 funding outlook, the industry's growth over the last decade, and how leaders like Uber, Grab, Citymapper and others are reshaping the way people and goods move around the world.
At White Star Capital, we approach mobility through four main subsectors: urban mobility, travel and hospitality, delivery and logistics, and long-distance transportation. Our portfolio includes startups such as Tier Mobility, a micro-mobility operator providing last-mile transportation to urban populations, including e-scooters and e-mopeds (the company just raised $250m in Series C funding); MindSay, a SaaS company developing an AI-powered assistant that helps companies in large B2C-oriented industries, such as travel and retail, optimize customer support and increase customer conversion; and Unacast, a proximity and location data platform that helps data-driven industries understand the physical world the same way we understand the online world.
Workshop - Best of Both Worlds_ Combine KG and Vector search for enhanced R...
Wsc 2020 global mobility report
1. White Star Capital
An Overview of the
Mobility Sector
From the eyes of an
international investor
December 2020
2. White Star CapitalWhite Star Capital
Contents
Section 1 Mobility Ecosystem: An Overview
Section 2 Sector Focus
Urban Mobility
Travel & Hospitality
Delivery & Logistics
Long-Distance Transportation
Section 3 Regional Spotlight
North America
Europe
Asia
Section 4 Partnering with White Star Capital
4
11
43
47
3. White Star Capital
The rethinking of mobility
3
Source: Pitchbook, data as of 30-Sep-20
c. 200 Deals
$13.3bn
Invested in
Asia in 2020
so far
c. 200 Deals
$4.4bn
Invested in
Europe in
2020 so far
c. 300 Deals
$10.9bn
Invested in North
America in 2020
so far
The year 2020 has been a pivotal year for the mobility space, across all segments, from
travel and hospitality to urban and long distance transportation, to delivery and logistics.
The Covid-19 pandemic that started at the end of 2019 in Asia, quickly spreading to other
continents, led to unprecedented governmental measures across the planet, such as
lock downs, quarantines, curfews or reinforced sanitary standards and processes in
numerous sectors.
These measures are pushing mobility companies to reimagine their offering and
consumers to adapt their behaviours, in a new normal that is still being defined.
The limitations and controls on the movement of people, whether within cities or across
continents, are leading to:
1) the emergence of solutions providing innovative ways to travel, in particular across
shorter distances, do activities or collaborate professionally, and to
2) the reshaping of the movement of goods, boosted by the e-commerce acceleration
and increasingly coming to people’s places.
While innovations are reimagining cities, through new transportation or delivery means,
they are also working on making life outside urban areas potentially more integrated
into economic spheres, through distance working or drone and other last mile delivery
modes.
Beyond the recent Covid-19-related events, as moving and traveling have become
increasingly accessible and are being commoditized, consumers have been increasingly
valuing solutions offering outstanding customer experiences, in addition to price
factors.
We will likely witness, in the coming challenging months, the emergence of new category
defining leaders, reinventing the way people and goods move around the planet,
whether in urban areas or across the globe, through technological breakthrough as well
as innovative distribution channels and improved customer experience.
5. White Star CapitalWhite Star Capital
$30bn
VC funding in mobility in the
first 9 months of 2020, only a
7% decrease vs. the first 9
months of 2019
2020 News Highlights
5
Source: Pitchbook, data as of 30-Sep-20
1 Venture capital. 2 Rounds >$100m.
101
Mega-rounds2 worldwide
over the past 10 years
Mobility Ecosystem: An Overview
89
VC1-backed mobility
unicorns worldwide
17%
Share of VC funding
invested in mobility over
the last 3 years, globally
74
Mobility IPOs over the
last 10 years
$140bn
VC funding in mobility
over the last 3 years
6. White Star CapitalWhite Star Capital
124 204 288
388 441 466
584 591 622
30869
105
157
219
306
351
414 379
425
205
182
349
396
401 450 376
194
250
413
574
836
1,168
1,289
1,508
1,574 1,545
787
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 YTD
North America Europe Asia Rest of the World
5.7 7.8
11.9 8.2
18.9 17.1
11.2
3.1
3.6 5.0
4.6
13.2
21.5 24.0
40.8
20.5
13.3
2.3 2.7 2.7
9.9
24.1
35.0 36.7
65.1
45.1
30.4
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 YTD
North America Europe Asia Rest of the World
Funding has grown significantly over the last
decade as companies innovate in the mobility
space
6
Source: Pitchbook, data as of 30-Sep-20
Note: mobility includes: urban mobility, travel and hospitality, delivery and logistics, long distance transportation.
Mobility Ecosystem: An Overview
Asia and North America have been the main drivers of the worldwide deal value
increase over the past few years, with mega-rounds from companies like Didi
Chuxing, Meituan-Dianping, Grab or Uber.
However, investments are more evenly split from a deal volume perspective, with
North America leading the race.
Amount of venture capital funding in mobility ($bn)
Amount of venture capital funding in mobility (# deals)
7. White Star CapitalWhite Star Capital
The mobility ecosystem is maturing, with later
stage deals representing an increasing portion of
funding
7
Mobility Ecosystem: An Overview
The most mature of these regions being China, with Series C+
deals becoming routine
Massively outsized rounds in early stage deals are increasingly
frequent, specifically in the electric and autonomous vehicle space
Selected outsized funding rounds
$500m
Series C (Sep-19)
China
$600m
Series B (Feb-19)
China
$110m
Series B (Mar-17)
Netherlands
$160m
Series B (Jul-17)
US
$1.6bn
Series B (Aug-17)
China
$1.1bn
Series A (Jun-16)
US
$250m
Series A (Jul-16)
US
$150m
Seed (Sep-18)
Brazil
$220m
Series B (Sep-18)
Columbia
North America China Europe
Seed share of deals 30% 12% 35%
0.4% (26.7)% (23.4)%
Series A share of deals 31% 33% 28%
1.4% (28.7)% 6.7%
Series B share of deals 16% 27% 16%
(8.4)% 11.5% (15.8)%
Series C+ share of deals 23% 27% 20%
4.3% 123.0% 145.5%
+[xx]% Growth in share of deals 2020 vs. 2018
Source: Pitchbook, data as of 30-Sep-20
8. White Star Capital
$120m
Series C (Apr-16)
Spain
$270m
Series E (Aug-16)
UK
The North American and Asian markets have been driving
mega rounds in mobility, while Europe is catch-in up
8
Source: Pitchbook
Note: Mega round refers to a round of $100m+. Rounds shown are largest 4 rounds in that year.
Mobility Ecosystem: An Overview
The US and China more specifically have attracted funding
through much larger mega-rounds, and more frequently, given
the market opportunity
North America Asia Europe Latam
2019
2017
2016
2018
2020
$560m
Series F (Jul-19)
Germany
$1.0bn
Growth (Jun-19)
Sweden
$170m
Series D (Apr-19)
Spain
$280m
Series C (Nov-19)
Netherlands
$1.5bn
Series D (Feb-19)
China
$4.8bn
Series H (Oct-19)
Singapore
$1.1bn
Series E (Apr-19)
India
$1.5bn
Series F (Dec-19)
India
$180m
Growth (May-18)
Estonia
$550m
Growth (Jan-18)
Germany
$150m
Series D (Oct-18)
Germany
$160m
Series E (Jan-18)
Spain
$1.25bn
Growth (Dec-18)
US
$1.7bn
Series H (Mar-18)
US
$600m
Series I (Sep-18)
US
$870m
Series F (Dec-18)
US
$4.0bn
Growth (Aug-18)
China
$4.6bn
Growth (Feb-18)
China
$2.5bn
Series G (Mar-18)
Singapore
$4.0bn
Growth (Apr-18)
China
$420m
Growth (May-17)
Germany
$520m
Series F (Nov-17)
UK
$110m
Series B (Mar-17)
Netherlands
$390m
Series E (May-17)
Germany
$600m
Series G (Jul-17)
US
$1.0bn
Series F (Sep-17)
US
$250m
Series D (Oct-17)
US
$410m
Series D (Mar-17)
US
$1.6bn
Series B (Aug-17)
China
$5.5bn
Growth (Apr-17)
China
$1.0bn
Series D (Nov-17)
China
$1.1bn
Growth (Oct-17)
India
$1.1bn
Series A (Jun-16)
US
$5.6bn
Growth (May-16)
US
$250m
Series A (Jul-16)
US
$1.0bn
Series F (Feb-16)
US
$3.3bn
Series F (Jan-16)
China
$7.3bn
Series G (Jun-16)
China
$1.0bn
Growth (Feb-16)
China
$1.3bn
Series F (Apr-16)
China
$1.0bn
Series D (Apr-19)
US
$1.25bn
Series B (Apr-19)
US
$750m
Growth (Aug-19)
US
$940m
Series B (Feb-19)
US
$700m
Series F (May-20)
US
$3.0bn
Growth (May-20)
US
$460m
Series B (Feb-20)
US
$590m
Series C (Jan-20)
US
Mega rounds by region
• Investments in
autonomous and electric
vehicle technologies as
well as ride-hailing
platforms have been
largely driven by the North
American and Asian
markets, while strong
leaders in the delivery
platform space have
emerged across all
continents
• Travel & Hospitality
players have attracted far
less funding
$890m
Series I (Feb-20)
Singapore
$3.0bn
Series F (Mar-20)
Indonesia
$500m
Growth (May-20)
China
$575m
Series G (Apr-20)
UK
$600m
Growth (Sep-20)
Sweden
$290m
Growth (Jul-20)
Germany
$320m
Series E (Sep-20)
Spain
$500m
Series D (May-17)
Brazil
$500m
Series C (Jan-17)
Brazil
$150m
Growth (Jun-19)
Brazil
$1.0bn
Series D (Apr-19)
Columbia
$110m
Growth (Oct-18)
Brazil
$150m
Seed (Sep-18)
Brazil
$190m
Series C (Jan-18)
Columbia
$220m
Series B (Sep-18)
Columbia
$300m
Series E (Sep-20)
Columbia
$400m
Growth (Sep-20)
Mexico
Autonomous driving
$1.5bn
Growth (Sep-20)
China
9. White Star CapitalWhite Star Capital
9
6 8
18
13
27 28
52
45 46 44
7
8
7
6 6
5
12
8
11
20 20
28
36
59
51 52
49
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
M&A IPO
North
America
41%
Europe
38%
Asia
15%
Strategic M&A has been driving most of the exits in
the mobility space over the past decade
9
Source: Pitchbook, data as of 30-Sep-20
Note: amounts of the selected VC-backed exits reflect valuations at exit
Mobility Ecosystem: An Overview
North America and Europe have been the most active regions
in terms of number of exits
$3.1bn
Acq. by Uber (Mar-19)
UAE
Woowa Brothers
$4.0bn
Acq. by Delivery Hero (Apr-20)
South Korea
$3.5bn
IPO (Jun-20)
China
$8.5bn
IPO (Sep-18)
China
$82.4bn
IPO (May-19)
US
$2.5bn
IPO (Jun-20)
US
$2.4bn
IPO (Apr-14)
UK
$2.7bn
Acq. by Meituan (Apr-18)
China
$52.8bn
IPO (Sep-18)
China
$2.0bn
IPO (Apr-14)
US
$24.0bn
IPO (Mar-19)
US
$4.9bn
IPO (Jun-17)
Germany
$2.0bn
IPO (Jun-11)
US
$10.8bn
IPO (Aug 2020)
China
$9.5n
Acq. by Alibaba (Apr-18)
China
Exits by type across years since 2010
Selected VC-backed exits
Exits by geography
over the past decade
10. White Star CapitalWhite Star Capital
There are 89 VC-backed mobility unicorns globally, with the automotive
sector owning the lion’s share
10
Source: Pitchbook
1 Amount shown corresponds to the last reported valuation.
Note: a Unicorn is a VC-backed company that has publicly announced a fund raising round at a valuation at or above $1bn.
Mobility Ecosystem: An Overview
$31.0bn
US
$1.4bn
US
$2.7bn
US
$1.3bn
US
$5.4bn
US
$1.0bn
US
$4.0bn
US
$2.5bn
US
$3.2bn
US
$18.0bn
US
$3.4bn
US
$2.3bn
US
$2.6bn
US
$1.3bn
US
$1.5bn
US
$1.3bn
US
$2.3bn
US
$2.7bn
US
$1.2bn
US
$18.0bn
US
$1.2bn
US
$2.8bn
US
$1.1bn
US
$1.1bn
US
$1.1bn
US
$1.3bn
US
$1.0bn
US
$4.9bn
US
$2.1bn
US
$2.9bn
US
$1.3bn
US
$2.3bn
US
$1.7bn
US
$1.5bn
Mexico
$3.5bn
Germany
$2.6bn
UK
$2.3bn
Germany
$3.0bn
Spain
$1.9bn
UK
$1.8bn
Estonia
$1.6bn
Sweden
$1.6bn
France
$1.0bn
Germany
Europe (9)1
Americas (43)1
$3.1bn
US
$1.0bn
US
$1.0bn
US
$1.0bn
Brazil
$1.0bn
US
$1.0bn
US
Asia (37)1
$58.0bn
China
$10.0bn
Indonesia
$15.0bn
China
$14.0bn
Singapore
$1.00bn
India
Manbang
$6.5bn
China
$8.5bn
China
$6.0bn
China
$4.4bn
India
TELD energy
$1.1bn
China
$1.0bn
China
$1.1bn
India
$1.1bn
India
$1.0bn
Hong Kong
$1.0bn
UAE
$1.0bn
China
$1.0bn
China
$1.0bn
China
$1.9bn
China
$1.5bn
Israel
$1.5bn
India
$1.5bn
China
$1.5bn
Hong Kong
$1.4bn
China
$1.4bn
China
$1.2bn
China
Yimida
$1.2bn
China
$3.2bn
India
$3.5bn
China
$3.0bn
China
$2.8bn
Indonesia
$3.0bn
China
$2.3bn
India
Dingdong
$2.0bn
China
$2.0bn
China
$3.5bn
Colombia
$16.0bn
US
$1.1bn
US $3.6bn
India
$1.0bn
Hong Kong
12. White Star Capital
The White Star Capital perspective on mobility
segmentation
12
Sector Focus
At White Star Capital, we approach mobility through 4 main sub-sectors:
urban mobility, travel & hospitality, delivery & logistics, as well as long-
distance transportation
Urban Mobility Fleet Sharing
Ride Hailing
Public Transport
MaaS aggregators
Smart Cities
Products and solutions used by consumers and
businesses to move within cities. This also includes
enabling technologies which provide the
infrastructure for seamless mobility.
Long-Distance Transportation
Travel & Hospitality
Search & Book
Tours & Activities
Corporate Travel
Travel Services
Services and solutions for consumers and
businesses to organize and facilitate recreational or
business travel options.
Automotive
Shared Transportation
Fleet Management
Products and solutions used by consumers and
businesses to travel long distances, over land,
water, air, and space.
Full-Stack and asset-light
delivery platforms
Freight & Shipping
Services and solutions used by businesses to
facilitate the delivery of goods to consumers or other
businesses.
Delivery & Logistics
14. White Star CapitalWhite Star Capital
2.8 3.5
7.2
1.2
6.0
2.0 3.90.3
0.9
0.7
0.9
7.7
11.0
10.3
13.8
6.4
5.3
0.1 0.2 0.5
5.0
11.6
18.5
12.6
21.2
9.5 10.3
-
5.0
10.0
15.0
20.0
25.0
30.0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
YTD
North America Europe Asia Rest of the World
33 16253 55 117 163 172 206 237 252
The evolving model of urban mobility: sustainable,
accessible, seamless and connected
14
Source: Pitchbook, data as of 30-Sep-20
Sector Focus: Urban Mobility
Urban Mobility: An Introduction
Funding in the urban mobility space has so far largely
been driven by Asia, with large players such as Didi,
Grab, or Gojek
Amount of venture capital funding in urban mobility (value, in $bn, and volume)
For most of our history, humans have lived in small rural communities, until the second half of the
19th century, which saw the beginning of a mass migration towards cities. Widely available means
of transportation were then limited to railways between cities and walking inside of them.
A new era in urban mobility was born in 1863, with the inauguration of the first underground
railway in London, catering to the increasingly dense population of the city. Over the 20th century, the
advent of the automobile in affluent cities brought with it a trend of suburbanisation, expanding the
reach of cities into less dense peripheries.
Today, over 55% of the world’s population lives in urban settings, a number expected to surpass
70% by 2045. The current urban setup is not ready to address the challenges that come with this:
private cars have gridlocked big metropoles, public infrastructure struggles to keep up, and
concerns around sustainability and accessibility are at the forefront.
This precarious situation, coupled with the proliferation of enabling technologies (smartphones,
connectivity, IoT) and increasingly forward-thinking regulators, has resulted in an abundance of new
solutions, better tailored to the needs of city dwellers. Private car ownership is being displaced by
more convenient on-demand solutions. COVID-19, beyond causing a short-term drop in ridership
(c.70%), is catalysing the re-shaping of cities into people-centric dwellings.
Urban mobility businesses have seen gargantuan inflows of VC capital in the last 5 years, across
continents, and have expanded internationally, fiercely competing for market share. Some of
these mobility platforms and super-apps are now emerging as the winners in their respective
geographies, reshaping the way people live and move in their cities.
# Deal volume
15. White Star Capital
Fleet
Sharing
Public
Transport
Managed
last-mile
delivery
Vehicle
subscription
The city is being re-imagined around humans
15
Source: Pitchbook, news run
* White Star Capital portfolio company.
The urban mobility ecosystem is complex and densely packed, with operators
making use of enabling technologies to offer seamless mobility to customers
The Urban Mobility Ecosystem
Key Parties in the ecosystem
• Consumers value convenience, safety, sustainability and accessibility
• Operators offer mobility solutions to consumers. This may involve operating large fleets of vehicles, or
employing fleets of drivers and riders. Some vertically integrated platforms offer combinations of these along
with payments and other financial services, while mobility aggregators offer full-trip multi-modal planning
functionalities
• Digital infrastructure providers offer the necessary systems for operators to offer their services such as
connectivity, mapping, payments and data
• Hardware and urban infrastructure providers offer innovative vehicles and the necessary infrastructure such
as charging points
• Cities and regulators provide public transport and a regulated environment for fair and safe use of public space
• All parties across the value chain are seeking to make assets more sustainable through their life-cycle
Sector Focus: Urban Mobility
Ride-hailingMobility aggregators
routing, planning, booking
Customers
Vertically integrated
platforms & super apps
Hardware suppliers, vehicle innovation, urban infrastructure, electrification, parking, smart cities
Operators
Local public
transit apps
(Sharenow)
(Uber)
Cities and Regulators
Software supporting connectivity, communications, customer support, payments, insurance, data analysis
Subscriptions
*
*
*
16. White Star Capital
These mobility leaders have re-shaped the way we
move within cities
16
Source: Pitchbook, Company websites, news run
Note: total raised include both equity and debt financing. * White Star Capital portfolio company.
Sector Focus: Urban Mobility
$20.0bn raised while private
Selected Investors and partnersUber (US) is an on-demand technology platform which offers ride-
hailing, food delivery and micro-mobility services.
Uber pioneered the ride hailing model, disrupting the taxi industry, by
connecting in real time passengers with car drivers in urban areas.
The Company faced unprecedented growth thanks to network effects
in a winner-take-it-all-market.
$360m raised to date
Selected Investors and partners
Tier (Germany) is a multi-modal micro-mobility platform offering e-
scooters, e-mopeds and a decentralised battery user-swapping
network.
TIER is standing our thanks to its highly efficient operating model,
based on in-housed operations and advanced predictive maintenance
technology, that allows it to be increasingly profitable in a capex
intensive industry.
*
$10.5bn raised to date
Selected Investors and partners
Grab (Singapore) is a mobility and services mobile platform, offering
transport, on-demand delivery, consumer and financial services.
Grab stood out through its extensive offering, including groceries,
logistics, lifestyle, entertainment, health or financial services. This
super-app model allowed the company to address a vast range of
consumers needs, embedding it into people’s daily lives, thus
increasing the product stickiness.
$52m raised to date
Selected Investors and partners
Citymapper (UK) provides a transit platform for public transport, micro-
mobility and other modes of transport.
Citymapper’s uniqueness relies in the data it collects through the mobile
app use. By offering information to consumers on how to efficiently go
from Point A to Point B, the company has been able to gather extensive
data on populations’ mobility trends within cities.
17. White Star Capital 17
Sources: Pitchbook, news run
Sector Focus: Urban Mobility
Mobility-as-a-Service (MaaS) and Super-
Apps
• Citizens have come to value convenience
over car ownership. With this comes a
strong market pull for MaaS, its first
incarnations being in the form of fleet-
sharing and ride-hailing services.
• As these layers of the value chain become
commoditized, players are expanding
their reach in two ways:
• Vertically: end-to-end, multi-modal
route planning and ticketing with
single-transaction payments and
subscriptions
• Horizontally: delivery, financial and
other services. Providers can benefit
from higher utilisation of their current
mobility fleets (assets and drivers) and
cross selling to their customer base
• Local governments play an important role
in vertical integration with cities such as
Berlin and its integrated mobility app, Jelbi,
acting as pilots for open mobility
paradigms that include smart and
adaptable public transport.
Vehicle subscription services
• Micromobility in its current form might not
be financially accessible to the mass
affluent when it comes to daily commuting.
Vehicle subscriptions can offer a more
accessible alternative for daily
recurring mobility needs of citizens.
• These operators offer modern vehicles,
with servicing, repairs, maintenance, and
insurance in case of theft, greatly
simplifying the user experience.
New generations of urbanites have a reduced interest in
owning assets and look for the most seamless and
affordable solutions for their mobility needs
Single-mode
Integrated MaaS players are expanding
their offerings, vertically and horizontally
Multi-modal
Payment
aggregation
Ride Hailing
& Vehicle
Rental
Financial
Services
Food, Drugs,
P2P Delivery
Travel
planning
Subscriptions
Cities are offering integrated MaaS
through white-label platforms
Bike subscription
Scooter subscription
18. White Star Capital 18
Sources: Pitchbook, energy.gov, news run
Sector Focus: Urban Mobility
..Autonomous driving..
• Commercially viable Level-5 autonomy has proven
harder to crack than some experts anticipated, but
the promise of autonomous driving continues to
excite innovators and investors
• For ride-hailing companies, displacing drivers could
result in cost reductions of up to 70-80%.
Companies like Uber and Lyft have partnered with
OEMs and tech companies, making large
investments to remain at the forefront
• These players will need to transition from their
current asset-light model, where vehicles are
owned by drivers, to a more capital intensive one,
as they are forced to invest in and maintain large
fleets of robo-taxis
• Autonomy will also bring with it a large universe of
ancillary services to rethink interactions in the city,
productivity and entertainment during transit,
autonomous re-charging and parking, insurance,
and better utilisation of vehicles when away from
their owners
New technologies could fundamentally change the
dynamics of urban transportation
Autonomous car partnerships map
..as well as urban air transportation
• Urban air transportation is expected to surface in
controlled environments in the next decade. Its
potential, if successfully implemented, could be
huge
• The first of its incarnations might be in the form of
delivery/logistics drones. The latter are already
used commercially for photography, military,
surveillance or intelligence, but this new use case
will require the development of many enabling
factors that go far beyond vehicle-tech
• A more remote prospect, eVTOL air taxis promise
to reduce congestion in city centres
Some of those include electrification..
• China is the global leader in electrification,
followed by Europe and the US
• Along with the proliferation of electric vehicles
(EVs), charging docks or battery swapping
stations for cars and light vehicles are beginning
to emerge in cities
• Several players like Gogoro or Tier are deploying
decentralised urban user-battery-swapping
infrastructure for their fleets
Developments needed for Urban Air
Transportation:
• Unmanned traffic management
systems (UTM)
• Battery energy density
• Regulation, safety, airspace
management
• Physical Infrastructure: vertiports,
storage, charging
• Pilot training
% plug-in electric cars by region
2.3%
4.5%
5.1%
1.8%
2.3%
3.0%
1.1%
2.1% 1.9%
2017 2018 2019
China Europe US
19. White Star Capital 19
Sources: Pitchbook, OECD, International Transport Forum,
Apple Mobility Trends, AppAnnie, Gatesnotes
Sector Focus: Urban Mobility
COVID-19 has significantly affected
consumers’ behaviours
• COVID-19 has had a dramatic impact on
urban transportation as massive lockdowns
forced individuals to remain at home
• Food delivery start-ups saw increased
volumes, while ride hailing and fleet sharing
operators lost almost all activity, many halting
operations in an effort to reduce costs
• Despite the initial hit, these operators were
quick to recover once restrictions were lifted, as
commuters avoided public transport in favour
of single-occupancy alternatives
• On a more profound level, COVID-19 has been
a cautionary tale that has helped put the
spotlight on sustainability, as citizens
experienced what a car-free city could be like
Sustainability is now at the forefront
• Dense cities are considered the best
platforms for environmentally, socially and
economically sustainable development,
dramatically increasing the quality of life of large
populations. Congestion and pollution are
among the main challenges, with cars still today
the dominant mode of transportation
• Levers to improve mobility include utilising
existing systems more efficiently, electrification
based on renewable sources and integration
with public transport. These measures alone
could reduce emissions by 60%
• Against the backdrop of the COVID-19 crisis,
cities have accelerated their plans for
transitioning to more human-centric and
sustainable mobility models. London
launched trials for s-scooter providers ahead of
schedule while Paris has stated it will promote
bicycle usage through significant infrastructure
investments
• In this context, start-ups are emerging with
sustainability propositions across the value
chain, from OEMs to operators to recycling and
compensation of emissions
Sentiment towards safety and sustainability have a
marked effect on consumer choices
Vehicle innovation and manufacturing
Operators
Smart cities & infrastructure
Electric battery innovation and production
Smart mobility platforms
UberEats bookings growth
% Quarterly growth
10% 8% 20% 7% 49% 23%
20. White Star Capital
New challenges are opening the door to new
opportunities
20
Sector Focus: Urban Mobility
Cities being re-imagined
• In the context of the recent Covid-19-
related events, overall traffic in cities
has taken a hit. The concepts of
location and travel are evolving,
pushing urban players to re-think their
offering
Opportunity
• As sanity and safety concerns
grow, public transportation is being
shied away from, to the benefit of
other personal mobility means or
walks
• In addition, restaurants, bars,
physical shops or parking spaces
are being severally impacted by the
various lock downs
• We expect to see the birth of
numerous solutions helping
cities and urban players to
rethink their offering and the way
they monetize it, through
increased digitalization, new
distribution channels or the
rethinking of outdoor spaces like
streets, parc or private locations
Opportunity
• Beyond providing clean
transportation means, we see
tremendous opportunities for
players focusing on the
deployment of sustainable
energy infrastructures, allowing
planet-friendly mobility devices to
run
• Whether it is related to e-bikes, e-
scooters or other transportation
means, we believe the recent
Covid-19 related events will
accelerate the shift towards green
infrastructure and will further
drive consumer adoption, as
illustrated by recent governments’
and cities’ announcement regarding
the expansion of electric vehicle
lanes and infrastructure
Missing infrastructure
• The fast growth of personal electric
vehicles in cities has so far not been
followed by a deployment of related
infrastructure
22. White Star CapitalWhite Star Capital
Increasingly customer-centric travel experiences
made accessible to the mass affluent
22
Source: Pitchbook, data as of 30-Sep-20
Sector Focus: Travel & Hospitality
Travel & Hospitality: An Introduction
The travel and hospitality space has so far been driven
by Asia, with large rounds from players like Oyo
Amount of venture capital funding in travel and hospitality (value, in $bn, and volume)
Travel has been embedded throughout history, and one of earliest examples of recreational travel
can be found in the 17th century, when young, European men of high standing were encouraged to
travel across Europe as part of a tradition called the “Grand Tour”. It was common for young nobles
from Northern and Western Europe to cross the continent to broaden their horizons and learn about
art, culture, and geography.
Technological developments in transport over the following centuries has transformed recreational
travel into a modern day luxury that can experienced by all.
While hotel companies and travel agencies, both online and physical, have been incumbents in
providing means for people to travel and stay around the world, players in the travel and hospitality
sector have emerged in recent years to provide innovative offerings and distribution channels to
the ever-changing preferences of consumers. With incumbents lagging to adopt new technologies,
consumers are increasingly opting to rely on emerging players with robust technology for their lodging
needs.
There has been a shift in consumer expectations, the most notable being a demand for experiences.
Beyond transportation and accommodation needs, or extravagant destinations, travellers are
increasingly looking for extraordinary experiences with exciting itineraries. Traditional travel agencies
have lacked accountability for the satisfaction of the customer once a booking is sold. In contrast,
emerging players are taking note of this gap and are using customer data and feedback to ensure
traveller satisfaction, which has been critical to their growth and success.
# Deal volume
0.6
1.8
0.2
1.4 0.9 1.1 0.5
0.4
0.6
0.9
0.3
1.0
0.8
1.2 2.2
4.0
0.40.4 0.6 0.5
1.0
2.9
1.4
3.0
3.6
6.0
1.4
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 YTD
North America Europe Asia Rest of the World
71 158149 178 242 306 346 329 331 365
23. White Star Capital
The disruption of intermediaries between travellers
and their suppliers
23
Sources: news run
1 Online Travel Agency. 2 Global Distribution System. 3 Travel Management Companies. 4 Such as information on seats, wi-fi, lounge or priority.
Search platforms and OTAs1 have simplified and improved the planning
process of travel logistics for transportation, lodging, and activities
Ecosystem
IntermediaryDemand
Key Parties in the ecosystem
• Travellers: Consumer or business in planning travel for recreational or business purposes
• Intermediaries: Platforms providing travellers with options for transport and lodging
• Travel Suppliers: Individuals or businesses providing travellers with solutions consumed during the trip
Sector Focus: Travel & Hospitality
Supply
Makes a request
and pays the
intermediary
Aggregates
supply and offers
choice to client
Transfers
payments & takes
a 15-20% fee
Is listed on the
intermediary
platform
Consumers &
Businesses
Lodging
Incumbents
Disruptors
OTA & Physical
agencies
Experiences
Disruptors
Incumbents
Hotel
Accommodation
Alternatives
B&Bs, individuals’
accommodations,
vacation properties
Activity
Providers
Local attractions
Consumers &
Businesses
Either books transportation ticket directly through website
Or books
through
platform
Transfers
information (strong
bargaining power)
Airlines
Search Platform
GDS2
OTA and TMC3
Disruptors
Transfers elaborated
information, allows for
additional revenue
streams
Provides basic
information on
available flights
Provides elaborate
information4
through APIs
24. White Star Capital
$1.1bn raised to date
Selected Investors and partnersTripActions (US) is a corporate travel management company that
keeps travellers safe while driving business travel continuity.
To make the corporate travel experience seamless, TripActions
prioritized user experience for everyone from the traveller, to
finance teams, to travel program managers.
These start-ups have transformed how consumers book
and manage their accommodation when travelling for
leisure or business
24
Source: Pitchbook, Company websites, news run
Note: total raised include both equity and debt financing. * White Star Capital portfolio company.
1 South East Asia.
$6.4bn raised to date
Selected Investors and partners
$1.2bn raised to date
Selected Investors and partners
$265m raised to date
Selected Investors and partnersYanolja (South Korea) is an online accommodation booking
platform reinventing the concept of love hotels in South Korea.
Yanolja has transformed love hotels, largely stigmatized by
locals, into affordable, short-term rental options for global
travellers.
$655m raised to date
Selected Investors and partners
GetYourGuide (Germany) operates an online travel agency and
market place for attractions and activities worldwide.
Unlike traditional tourism companies that tend to lack
accountability for customer satisfaction, GetYourGuide is using
customer feedback data to curate attractions and improve travel
experiences.
Airbnb (US) is an online community marketplace for people to
list, discover, and book accommodations.
Airbnb revolutionized the short-term lodging industry, directly
challenging hotel chains, by creating a trusted marketplace for
homeowners to lease their residential properties to travellers.
Traveloka (Indonesia) is a leading online aggregator for air travel,
hotels, and attractions in the SEA1 region.
Traveloka offers, beyond travels, a lifestyle booking platform,
providing consumers with the ultimate holistic booking
experience.
Sector Focus: Travel & Hospitality
25. White Star Capital
Source: Pitchbook, press articles, Sifted, TravelTech
Essentialist, PhocusWire
1 BCG publication.
25
Sector Focus: Travel & Hospitality
Consumers are shifting to longer-term
stays...
• In the current Covid-19 situation, the rise
of digital nomads and the work-from-
anywhere model blur the lines between
leisure and corporate travels
• Already 30% of employed people work
remotely at least part of the time, in
Sweden, Finland and the Netherlands,
and this number is expected to increase,
worldwide
• Search & Book companies are
redesigning their product and service
offering to address the longer-term
stay trend of the new nomadic
generation
• They are doing so either externally,
through M&A (think Selina acquiring
Remote Year in Oct-20), or organically,
such as Airbnb launching new tools to
promote monthly rentals, as well as
smaller companies raising new financing
rounds to go faster and compete with
existing players such as SpotAHome
Companies are rethinking their product offering to
adapt to new consumer behaviours
.. and more local experiences.
• Search & Book platforms, as well as
Tours & Activities, are tailoring their
offering to more local audiences, as the
outlook on borders reopening keeps
being gloomy
• Hyper local product expansion includes,
alongside domestic travels offerings,
home-based experiences, online
workshops or virtual tours
70% of the bookings
made over April-July-20 were
in the traveller's home
country, vs. 45% in 2019
Raised a $75m series C
in Sep-20, led by Cool
Japan Fund
of employees are expected to
resort to a remote working
model in the future140%
Digital nomads in the US
could reach 10.9m in 2020,
vs. 7.3m in 2019, representing
a 49% increase
Raised a $23m series A
in Oct-20, led by a16z
Raised a $45m series C,
in Sep-20, led by Prime
Raised a $35m series A
in Oct-20, led by
Holtzbrink, Lakestar
and Picus
Diversifying into hyper
local activities, going
deeper into the supply
Offering more local
options to people
shopping for experiences
Focusing on more
domestic destinations
26. White Star Capital 26
Sector Focus: Travel & Hospitality
Companies are exploring new ways to
monetize and distribute their offering..
• Distribution channels in the travel
industry have so far been dominated by
a few large incumbents with a strong
bargaining power, such as Global
Distribution Systems (GDS) in the air
traffic field, or players like Booking.com in
the hospitality space
• The industry is witnessing the emergence
of new distribution players, allowing
companies like airlines or hotels to
diversify the way they monetize their
businesses. Such new players, like Duffel
in the air traffic space or Impala in
hospitality, facilitate innovative
distribution channels through application
programming interfaces (API), enabling
companies to better share their data with
partners that will bring them business
• Hotels, more specifically, that can no
longer rely on overnight stays, must
broaden their set of ancillary services
and focus on asset optimization,
unlocking value from under-utilized
spaces like pools, gyms or parking
Both companies and investors are exploring innovative
ways to prosper in the travel space
..while investors are on the look out for
the next big opportunities.
• In the midst of the massive market’s
reshuffling, the industry is witnessing the
emergence of SPACS (special-purpose
acquisition company)
• Over the summer 2020, those blank
check companies, with no operations,
founded with the aim to raise money
through an IPO, in order to acquire or
merge with another company, have
flourished in the space
Amount raised
through IPO
$500m
$300m
$175m
Company
created
Go Acq. Corp.
Altitude Acq.
Thayer Ventures Acq.
Date of
creation
Aug-20
Sep-20
Oct-20
Incumbents Disruptors
Hospitality
Air traffic
$465m (2019)
N.A. (2019)
$555m (2017)
$248m (2018)
N.A. (2019)
$300m (2017)
N.A. (2019)
N.A. (2018)
$3.9bn (2015)
The industry is facing consolidation, driven
by leading players
Source: Pitchbook, news run
27. White Star Capital
New challenges are opening the door to new
opportunities
27
Sector Focus: Travel & Hospitality
New offerings needed from
travel and hospitality
companies
• Companies in the travel and
hospitality space have to
drastically transform there
offering, to adjust to reduced
tourism and business travels as
well as the rise of flexible and full
remote working habits
Opportunity
• Going forward, travel and
hospitality perks might become
key elements in companies’
employee incentive strategies,
as the need to incentivize and
motivate employees outside of the
company building increases
• Companies with full remote
workers might increase the
number of team offsites and
gatherings, while those with a
flexible remote environments,
asking employees to be present
once a week or a month, might
increasingly include lodging and
transport-related financial
support to their employees’
rewards, to guarantee productivity
• We see significant potential for
start-ups tackling this emerging
market of turnkey travel and
hospitality perks
Opportunity
• We see opportunities for
emerging players tackling
the optimization of
hospitality and travel
companies’ cost
structures, which tend to
run on tight margins
• Levers include the
improvement of workers’
productivity thanks to
streamlined processed or
automation tools, as well
as robotics solutions,
relieving human beings of
numerous repetitive and
basic tasks
Challenging new normal
imposing cost reductions
• Travels and hospitality companies
are facing an unprecedented shift
in consumers’ behaviours,
following governments measures
and sanitary concerns, leading to
massive drops in revenues
29. White Star CapitalWhite Star Capital
The growing need for fast, safe and comprehensive
delivery solutions
29
Source: Pitchbook, data as of 30-Sep-20, BCG, Hitach, Worldshipping, news run
1 For further analysis on the Foodtech and Industry tech spaces, read our dedicated reports on https://medium.com/venture-beyond.
Sector Focus: Delivery & Logistics
Delivery & Logistics: An Introduction
Over the past few years, Asia has led the way in funding
with large rounds from companies like Ele.me or Meituan
Amount of venture capital funding in delivery and logistics (value, in $bn, and volume)
Throughout the centuries, people and communities have been facing the need to exchange and deliver
goods across villages, cities, countries and oceans. From slow and dangerous horse drawn
wagons, railway systems to steamboat and then cargo ships, business owners have always
looked for faster and safer ways to ship and deliver their items. Goods transportation have hence
always been intertwined with mobility solutions evolution and international trade expansion.
The shipping container invention in 1955 led to a revolution in the cargo transportation and emerged
as a foreshadowing of the globalization era. Giving birth to a system of "intermodalism", a
container could now be moved seamlessly between ships, trucks and trains, simplifying the whole
logistical process of shipping and delivery. With great economies of scale driving the cost of delivery
down, around 90% of every purchased item is now shipped in a container.
Whether related to domestic or cross-border delivery, the advent of e-commerce since the late
1990s has changed customer’s needs, now expecting a fast and reliable delivery service. Covid-19
has only confirmed this shift to e-commerce to become permanent, a challenging surge for companies
that are unprepared for rapid delivery increases in volume and shifts in business models.
Similarly to how e-commerce has been gaining market shares over physical retail, on-demand food
and commodities delivery is increasingly gaining market shares from traditional eat-in
restaurants and grocery shops. The last mile delivery, making up 28% of a product’s total
transportation cost, is the least efficient element of the delivery journey, leading to the emergence of
new delivery platform models, with higher efficiency and lower cost, often thanks to “gig economy”
workers. Increasingly regulated, these disrupting platforms are now focusing on alternative delivery
solutions such as drones and autonomous vehicles, expected to be the next stage of both shipping
and delivery’s evolution1.
# Deal volume
6.2 7.3
11.3
6.2
13.8 11.7 9.2
2.3
1.7 3.2
3.2
7.4
10.3
6.4
26.1
12.0
8.5
4.3 3.6 5.3
10.5
17.0
22.9
15.4
43.1
28.6
21.7
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 YTD
North America Europe Asia Rest of the World
539 1,343406 985 1,388 2,000 2,087 2,269 2,333 2,333
30. White Star Capital
Logistics services platform
On-demand shipping platform Trucking marketplace
Items ordered via an online platform or a local retailer
are now delivered thanks to new digital logistics
platforms and optimized delivery solutions
30
Source: Pitchbook, CB Insights, OurCrowd
The various players in the ecosystem either act as third-party delivery
services through marketplace and logistics platforms, or as comprehensive
shipping solutions
The Delivery and Shipping Ecosystem
Sector Focus: Delivery & Logistics
Food only
Groceries only
On-demand delivery platform
Digital freight forwarder
Autonomous vehicle
AV & Drones Trucks
Last-mile deliveryFreight & long-distance shipping
Marketplace
Dada-JD
The Shipping Process
Origin warehouse Destination warehouse
Freight
Export
haulage
Origin
handling
Destination
handling
Import
haulage
Warehousing
Freight
SaaS
Robotic
solutions
31. White Star Capital
These leaders have revolutionised the way goods and
items are shipped and delivered to end customers
31
Source: Company websites, press, Pitchbook
Note: total raised include both equity and debt financing. 1 Acquired by Alibaba.
Sector Focus: Delivery & Logistics
$4.0bn raised to date1
Selected Investors and partnersEle.me (CHI) is an online food delivery platform.
As a pioneering actor, Ele.me is now the largest on-demand food
delivery platform in China with more than 50% of total market,
accessible through main mobile apps (Taobao, Alipay…). Benefiting
from strong synergies with Alibaba group, Ele.me is also a pioneering
actor in new delivery solutions such as drone and robots delivery.
$2.9bn raised to date
Selected Investors and partnersDoorDash (US) offers an online food delivery platform.
DoorDash is one of the first startups to offer the delivery facility through
an aggregator platform, with primary purpose to enable every merchant
to deliver. Mainly focused on food delivery, it expanded to groceries
delivery and now offers DoorDash Drive, a white-label delivery solution.
$670m raised to date
Selected Investors and partners
Convoy (US) is an online carrier marketplace, connecting shippers
and truck drivers.
Facing a fragmented and unoptimized trucking market, Convoy uses
data-driven software to match big customers with small truck
companies, making the process more efficient by ultimately saving
time, money and CO2 emissions.
$1.5bn raised to date
Selected Investors and partnersNuro (US) develops automated on-road delivery robots.
Nuro’s achievements already stand as milestones for the delivery
industry, accelerating the benefits of robotics for everyday life. Its newly
developed R2 robot is the first autonomous vehicle to be granted an
exemption by the U.S. Department of Transportation.
$1.6bn raised to date
Selected Investors and partnersDeliveroo (UK) offers an online food delivery platform.
Deliveroo was among the first European platforms to offer fully-
owned delivery operations, unlike pre-existing lead-gen models,
thus unlocking a huge opportunity for the majority of restaurants
which do not have riders to deliver their product.
32. White Star Capital 32
Sources: Pitchbook, news run
1 Transaction is a merger.
Sector Focus: Delivery & Logistics
..as scale is now of utmost importance
• Scale allows strong network effects in
this space: the more restaurants and food
providers (content supply) on the
platform, the more consumers (demand),
and the more drivers (logistics supply),
and vice-versa
• It also helps create barriers to entry, as
economies of scales deter potential new
entrants, and build a solid bargaining
power with food suppliers, leading to
increasing take rates
The food delivery space is characterized by
massive capital inflows and intense consolidation
The food delivery space has attracted
large capital inflows from massive tech
players
• Giant tech leaders have identified the
potential of increasingly integrated
delivery platforms
• Born as online listings or pure
marketplaces, food platforms have then
expanded vertically to offer delivery
logistics, as well as horizontally to other
items such as grocery or convenience
store items. They now entering the dark
kitchen / store space, giving room for
further business upside
Consolidation in the food delivery space
has intensified..
• Over the past couple of years, delivery
players across all continents have
increasingly resorted to M&A
• This consolidation serves various
purposes. Players aim to reinforce their
leadership position in some
geographies, such as Just Eat acquiring
Takeaway Germany, shorten time to
market, illustrated by Delivery Hero
acquiring Woowa Brothers to expand to
Asia, improve unit economics, or more
easily access capital
Notable Transactions
Jul-20
Jun-20
Dec-19
Dec-19
Dec-18
Apr-18
Mar-18
$2.7bn
$8.3bn
$7.4bn
$4.0bn
$1.1bn
$9.5bn
2.7bn
Large tech players’ investments
Valuations ($bn)
Market caps or latest private valuations
Germany
South East Asia
1
80
25
20
16
4
4
4
2
1
33. White Star Capital 33
Sources: Pitchbook, McKinsey, CBInsights, press articles
Sector Focus: Delivery & Logistics
E-commerce logistics services have
surged..
• In order for physical retailers and small-
to-medium companies to face and benefit
from e-commerce boom, many third-
party logistics start-ups have emerged
to provide those businesses last-mile
logistics services and other delivery
features
..And so have digital-driven shipping
disruption
• Operational inefficiencies in the
shipping industry, due to the discrete
solutions and involvement of multiple
intermediaries, have driven the growth of
start-up ecosystem. Many shippers and
retailers are now expecting higher
visibility, against delays and fraud, and
more efficient loading and journey to
reduce both shipping costs and time
• New freight forwarding tech actors,
such as Flexport or FreightHub, using
modern software and data analytics, are
digitizing the end-to-end freight shipment
process, aiming to displace traditional
forwarders (DHL, Kuehne+Nagel …). By
providing real-time freight and logistics
services to many small-to-medium e-
commerce firms, they give them an
opportunity to compete against
incumbent giants such as Amazon
• Similarly, trucks marketplaces aim at
displacing the entrenched freight brokers
who have traditionally acted as
middlemen between shippers and
carriers. In addition to reduced costs for
shippers, the increased visibility into
available loads makes it easier for
carriers and independent drivers to
bundle load routes
Versatile and efficient digital solutions are shaking the
aging market of shipping, from freight forwarding to
logistics delivery solutions for retailers
Freight forwarding
Incumbents
Freight forwarding
Start-ups
+15%
revenue
20%
savings
For carriers by maximizing
load capacity throughout a
delivery run
For shippers thanks to
increased visibility into
shipping fees
Trucks marketplaces
are facing the antiquated way shippers book
space on trucks, still responsible for 20% of
all journeys carrying no load at all
0.4
1.7
3.4 3.4
10
6.3
2014 2015 2016 2017 2018 2019
Funding, USD billions
Total funding in logistics start-ups
34. White Star Capital
New challenges are opening the door to new
opportunities
34
Sector Focus: Delivery & Logistics
Optimization of the goods
delivery logistics
• With the reduced movement of
people, following the recent Covid-19-
related events, comes the intensified
movement of goods, that are
increasingly delivered to people’s
home
• Companies must find ways to handle
logistics in a cost-efficient manner
Opportunity
• We see opportunities for start-ups
to develop efficient full-stack or
asset-light offerings with
improved margins in the logistics
space, from better warehouse
optimization to efficient last-mile
delivery, where density is key
• Levers include increasingly
automated processes,
elaborated dispatch algorithm,
strong business intelligence
tools or robotics technologies
• The rise of e-commerce and the
recent pandemic events have
made logistics and delivery
solutions more critical than ever
Opportunity
• While moving outside cities,
former urbanites will likely
expect the same quality of
services and speed of delivery
offered by logistics players in
urban areas, when ordering
food, groceries or other
convenience items
• Being able to offer the same
standards in significantly less
dense areas, with the right unit
economics at scale, is still an
unsolved challenge in which we
see much potential
Last-mile delivery of goods
beyond the city walls
• The new way of working may
impact cities demographics, with the
upper class moving to more cities’
suburban areas, seeking better life
quality
• The addressable market for flexible
and rapid last-mile delivery in places
with less population density might
thus increase in the coming years
36. White Star CapitalWhite Star Capital
Environmental and financial sustainability to take
centre stage in next generation transport systems
36
Source: Pitchbook, data as of 30-Sep-20
Long-distance transportation: An Introduction
Asia has been driving funding in the space, large inflows
going mostly to companies developing technologies for
electric and autonomous vehicles
Amount of venture capital funding in long-distance transportation (value, in $bn, and volume)
Throughout history, humans have sought to traverse the earth and move to new locations, whether by
land or by sea. With the advent of wheeled carts and river boats around 3500 BC, and domestication
of horses around 3100 BC, humans started traveling farther away from their communities.
The invention of Watt steam engine in 1769 marked the next transition in long-distance travel, with
steam-powered railways and cars becoming mainstream by mid-19th century. The rapid evolution
continued in 20th century with widespread adoption of internal combustion engine. The first airplane
flight by Wright brothers in 1903 completely transformed long-distance travel, with over 4.5 billion
air passengers in 2019.
These advancements have unfortunately led to transportation becoming the fastest-growing
contributor to the world’s climate emissions. Transport emissions, which include road, rail, air and
marine transportation, account for around 25% of global CO2 emissions. In addition, the added
stress on public infrastructure and ensuing need of gargantuan government investments has brought
concerns about environmental and financial sustainability to the forefront.
Alongside the development of multi modal transportation means, digital innovation and rising
environmental awareness of travellers are going to drive fundamental redevelopment of underlying
infrastructure, with renewable energy sources taking centre-stage. Consumers’ higher willingness to
pay for more sustainable options will make these tremendous renovations economically viable.
However, transportation is an asset-intensive and expensive running system with long utilization
cycles, slowing down any potential change. Therefore, the immediate focus remains on optimizing
current infrastructure utilization. Initiatives like the proposed harmonization of European air space
by the Single European Sky framework, which could reduce its carriers’ CO2 emissions by 10%,
might take precedence in the short to medium-term before the next evolution of long-distance travel.
# Deal volume
Sector Focus: Long-Distance transportation
3.9 4.6
9.1
3.3
8.7 9.6
6.31.8
2.2 1.7
2.4
12.0
14.1
18.4
19.3
13.6
7.0
1.8 2.2 2.1
7.6
18.0
24.1 24.5
30.9
25.9
16.2
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 YTD
North America Europe Asia Reste of the World
292 736406 590 901 1,204 1,332 1,428 1,464 1,430
37. White Star Capital
Car-hire
and
pooling
Buses Air
mobility
Railways Space Travel
The long distance transportation ecosystem
includes both surface and air travel
37
Source: Pitchbook, news run
The breadth of opportunities within the long distance
mobility ecosystem, from ride-sharing to air-taxis and
space travel, has led to steady innovation
The Long Distance Mobility Ecosystem
Key Parties in the ecosystem
• Consumers value convenience, safety, sustainability and accessibility
• Operators provide mobility solutions to consumers. The business models vary across different modes of
transportation. While some own fleets and employ drivers, others act as aggregators offering multi-modal
planning functionalities. Some vertically integrated platforms also offer payments and other financial services to
service consumer needs
• Hardware and infrastructure providers provide innovative vehicles and the necessary support infrastructure
• Cities and regulators are focused on creating an environment for fair and safe use of public space
Customers
Operators
Government and Regulators
Sector Focus: Long-Distance transportation
Hyperloop
Autonomous
vehicles
Software
Hardware
Ticketing
Surface travel Air travel
Sensors
and IoT
Blue Origin
Car
leasing
38. White Star Capital
$947m raised while private
Selected Investors and partnersTesla (US) provides electric vehicles and clean energy solutions.
Tesla has democratized the use of electric cars thanks to its full stack
approach, mastering the whole value chain, from conception to
manufacturing to distribution, covering both the hardware and software
aspects of electric vehicles, as well as the required charging
infrastructure.
These below companies have been reshaping the
long-distance transportation space
38
Source: Pitchbook, Company websites, news run
Note: total raised include both equity and debt financing.
Sector Focus: Long-Distance transportation
$467m raised to date
Selected Investors and partnersBlablacar (France) is a long-distance car-pooling marketplace.
BlaBlaCar pioneered the long-distance ride sharing market through
the creation of a secure, trust-based community, and easy
connections between drivers and passengers.
$565m raised to date
Selected Investors and partnersFlixbus (Germany) is a mobility platform offering intercity bus service in
Europe and the US.
Unlike traditional intercity bus services, FlixBus does not own any buses
or employ any drivers, and instead works in co-operation with regional
bus companies. The company is responsible for permits, route planning,
pricing and customer service, making its business model highly scalable
$815m raised to date
Selected Investors and partnersGetaround (US) is an online peer-to-peer car sharing platform.
Getaround disrupted the car market by being one of the first companies
to introduce the concept of car-sharing for drivers. The company
created trust between drivers looking for a car and car owners willing to
rent out their idle vehicles for payment.
$392m raised to date
Selected Investors and partners
Lilium (Electric vertical take-off and landing (eVTOL) air taxi service
planned for launch in 2025.
Lilium is the first eVTOL aviation company among the proposed new-
age regional air mobility services. It plans to launch the five-seater
Lilium Jet, first tested in May 2019, by 2025 and transition to fully
autonomous system within 10 years.
39. White Star Capital
Fierce competition and growing ecosystem
• OEMs are launching new EV models
abroad, with Tesla’s Model III in France or
the Audi e-Tron in the US
• They are joining forces with energy and
battery specialists via JVs3 to master the
supply chain
• Historical OEMs are investing heavily in
tech. Volkswagen invested $100m and
$200m consecutively in Quantum Scape, a
manufacturer of lithium batteries
• Unicorns in the sector are growing fast. An
unprecedented number of EV OEMs are
even becoming publicly-listed fast, via
SPACs3, such as Faraday or Canoo
• The ecosystem is maturing at the upstream
section of the value chain, with suppliers
of battery and recharging infrastructure
solutions raising massive amounts of
private or public funding
39
A growing market despite Covid-19
• OEMs and EVs-only manufacturers are
expanding their offerings launching
EVs with different degrees of
electrification to cover the full range of
consumer needs among MHEVs, HEVs,
PHEVs and BEVs1
• Initially a luxury good, EVs are now
available under different models, from
SUV to small city cars such as the Nissan
Leaf or the Audi e-Tron, enabling OEMs
to address a larger market
• Although the Covid-19 pandemic
negatively impacted the automotive
sector overall, it also accelerated the
OEMs’ shift to online sales
Electric vehicles (EVs) are growing fast and competition
is fierce between OEMs and tech players
New tech entrants2
Source: IHS Markit, McKinsey, BCG, Pitchbook, Forbes, Europe Autonews, Volkswagen
1 Mild-Hybrid Electric Vehicle, Hybrid Electric Vehicle, Plug-in Hybrid Electric Vehicle and
Battery Electric Vehicles. 2 Not exhaustive. 3 Joint Ventures. 4 Special Purpose
Acquisition Companies
Suppliers
Infrastructure solutions
EV OEMs
143 ➔ 450
New electric models
launched in 2019 vs
2022 plan
$95bn ➔ $398bn
Market size in 2019
vs 2025 projections
Popular EV models2
Incumbent OEMs2
JVsTech investments
Sector Focus: Long-Distance transportation
40. White Star Capital 40
Source: Pitchbook, MarketsandMarkets
1 White Star Capital portfolio company.
Most of the innovation in the bus and railways businesses
have so far been related to distribution channels, with
infrastructure-related changes yet to come
Experiences and business models
around buses are being re-imagined
• The bus transportation’s value chain, is
undergoing a paradigm shift, from the
infrastructure to the bookings
• On the one hand, the industry is moving
towards cleaner energies, electrification
and zero-emission buses, driven by
supportive regulatory environment
and declining battery prices
• On the other hand, the emergence of
online ticketing platforms such as
Flixbus allow for reduced friction in the
passengers’ journeys, increased asset
utilization, as well as data analytics to
optimize transport networks
Sector Focus: Long-Distance transportation
137
935
2019 2027E
Electric bus sales (units in ‘000s)
Real disruption in the railways space will
come from speed improvement
• While the railways space is also
benefiting from incremental innovation
through more consumer friendly
distribution channels, with players like
Trainline, more disruptive innovation
lies in speed technologies
• Indeed, technological innovation allowing
for greater speed, such as Hyperloop, is
expected to transform intercity travel
and provide an alternative to air travel
• In addition, Increased wireless
connectivity and IoT applications are
enabling operators to monitor rail
infrastructure in real-time and perform
predicative maintenance
1,100+
km per hour
Hyperloop One
target speed in the
coming years
Dubai – Abu Dhabi in 12 minutes
Latest Hyperloop project, agreed with the
local authorities in Oct-20, to connect the two
cities being 160 km apart
15m tickets sold monthly
Across 175 countries
Multi-modal platforms are rising
• Mobility is becoming increasingly multi-
modal, with real-time asset-light
information platforms like CityMapper,
or fleet operators such as Uber or Tier1
encompassing a broad range of
transportation means into their offering
41. White Star Capital
Sources: McKinsey, Statista, TechCrunch, news run
41
Air mobility is expected to be significantly disrupted
both in the short and long terms
Sector Focus: Long-Distance transportation
The recent pandemic will have a
significant impact on consumers’
behaviours in the medium term
• The Covid-19 outbreak brought long
distance travel to an abrupt halt with
massive lockdowns globally
• Air travel demand is expected to be down
by 66% and 47% in 2020 and 2021
respectively, and is not expected to
reach 2019 levels before 2024
• Additionally, c. 40% of consumers are
expected to fly less often in the post-
COVID normal
-100%
-75%
-50%
-25%
0%
25%
50%
75%
100%
Jan-20 Mar-20 May-20 Jul-20 Sep-20 Nov-20
Global United States
Germany China
YoY change of flight frequency (%)
Most of the innovation in air mobility will
be related urban areas
• While the long-distance air mobility
sees incremental innovations related to
the customer journey improvement, true
disruption will be related to Urban Air
Mobility (UAM)
• The industry is poised to redefine short
inter-city commute, reducing road
congestion. Some key challenges remain,
including:
• 1) the development of costly
infrastructure allowing vertical take off
and landing (VTOL), as well as
streamlined equipment enabling rapid
charging and refuel processes,
• 2) the optimization of those
infrastructure to cover to routes with
intense traffic during peak hours,
• 3) the development of ancillary
revenues, alongside air traffic, such as
retail or personal service, to recoup costs
Autonomous technology
might can reduce the cost per
passenger-seat-kilometer by up to 50%
compared to a piloted UAM flight
leading the push
towards urban air
mobility (UAM)
250+
companies
60k+
UAM pilots
Will be needed by
2028, before
autonomous flight
become a reality
42. White Star Capital
New challenges are opening the door to new
opportunities
42
The car market’s outdated
offering
• Private car ownership is evolving,
with increasingly fewer people
owning their car for numerous years
while resorting to long-term financial
debt
• Car purchase processes offered by
incumbents have not benefitted from
much innovation and remain tedious
with much paperwork
Opportunity
• The market of people mobility is
experiencing two trends: 1) on the
one hand, consumers have
demonstrated an interest in
shared assets, through the rise of
car-pooling, ride-hailing, or free-
floating transportation means
throughout cities, such as cars,
motorbikes, bikes or scooters, and
2) on the other hand, following the
Covid-19-related events,
consumers have shown renewed
interest in privately owned
transportation means, shying
away from public transportation
• We believe that solutions rightly
addressing consumers’ needs will
sit at the crossroad to those trends,
offering private transportation
means through flexible solutions
around the ownership and the
use of vehicles
Opportunity
• Batteries are crucial
components of electric
vehicles, as cars sit idle 95% of
the time
• We see opportunities for Original
Equipment Manufacturers
(OEMs) to decrease battery
and overall costs, through
shared energy networks and
integrated solutions with
different charging options, at
home or with public infrastructure
for example
• In addition, we are foreseeing
potential for solutions allowing
OEMs to generate additional
revenue streams, such as
offerings facilitating the
financing, making EVs more
accessible to consumers
The challenge of
electrification
• The lack of charging infrastructure
combined with relatively short battery
life prevent a seamless use of EVs
• Because of the high cost of the
batteries, EVs are more expensive to
produce than traditional gas or diesel
vehicles, which translates in
unprofitable unit economics for OEMs
Sector Focus: Long-Distance transportation
44. White Star Capital
North America: vast territories favouring affordable
long-distance transportation means, strong
innovation in electric and autonomous vehicles, as
well as moving regulations are the defining trends
44
Source: World Population Review, Airport Codes, Pitchbook, Techcrunch Reuters, TheVerge
1 Worldometer. Total area includes land area and water bodies. 2 Global Car Index. Includes cost of car acquisition, insurance, petrol, road tax
and breakdown covers for a VW Passat (large family car). 3 Electric vehicle, Autonomous vehicle. 4 Kristi Marvin, founder of SPACInsider.
Global Outlook
• Second and fourth among the largest countries1 respectively, Canada and the US have
also the lowest population density in the world, thus favouring long-distance
transportation means
• Air travel is a common feature in North America, with more than 20,000 airports in the
US and eight of the top 10 overall long-haul routes originating from North America
• The average cost of buying and running a car2 in both Canada and the US is among the
lowest in the world, under $15k, which makes car a popular transportation mode in
North America
Vast territories have favoured affordable long-distance transportation means
North America boasts a thriving mobility ecosystem when it comes to electric and
autonomous vehicles, disrupted by both tech players and traditional OEMs, who invest
heavily in innovation
• While Tesla has historically led the way in the EV3 space, 2020 marks the year of the “deals
with wheels”4 with an unprecedented number of EV and AV3 companies that have entered
the public markets in force via SPACs, representing a total $6bn invested. The year of
Covid-19 boosted the rise of SPACs, offering a way to mitigate market volatility and raise
capital, especially for early-stage and capital-intensive companies
• Historical OEMs, among the largest publicly traded companies in their category in the US,
have raced to invest heavily in AV, only halted by Covid-19. In Jul-19, General Motors
invested $3.4bn in Cruise Automation alongside Softbank while Ford plans to spend $4bn
through 2023 in AV
• With their large reserves of cash, US tech incumbents are significantly reshaping the
mobility landscape: in 2018, Intel acquired Mobileye for $15bn, representing the largest
acquisition in AV by a large corporate and in May-20, Alphabet company Waymo was valued
above $30bn after a $3bn fundraising round
• From an environment perspective, although the US withdrew from the Paris agreement on
climate change in 2017, Federal States are enforcing their own laws to fight global
warming. In Jul-20, the New York state announced that it will allocate $750m through 2025
to expand EV infrastructure, and in Sep-20, California, the largest auto market in the US,
announced the ban of sale of new gasoline cars by 2035
• From a social law perspective, the California Assembly Bill (AB5), passed early 2020, now
requires companies hiring gig workers massively, such as Uber, Lyft and DoorDash, to
reclassify them as employees, with the right to enjoy traditional employee benefits. This
will heavily impact business models going forward
Nascent regulation in the US is changing the mobility landscape towards more
sustainable models
45. White Star Capital
• The European Commission continues to commit to the highest sustainability targets,
planning to further reduce greenhouse gas emissions by at least 55% in 2030, compared to
1990 levels. Regarding transportation modes, all passenger cars will have to observe a
maximum of 95 gr of CO2 / km by 2021, a rule that favors the growth of EV1s
• European cities have created a highly regulated urban mobility market, accelerating the
adoption of micro-mobility in a sustainable fashion: cities in Europe tend to grant selected
micro-mobility companies permits to operate only after a tender process
• Covid-19 in Europe has accelerated regulations in favour of micro-mobility, with the UK
moving e-scooter trials 12 months forward, acknowledging e-scooters as a safe, convenient
socially distanced commuting mode in the Covid-19 world
Europe: new regulation favouring clean mobility
reshaping the mobility landscape
45
Source: European Commission, Nouvel Obs, Barclays, McKinsey, BlaBlaCar, FCA
1 Electric vehicles. 2 Such as Tier Mobility, a White Star Capital portfolio company, who announced a $250m Series C led by Softbank in Nov-2020.
Global Outlook
European countries and cities are committing to high regulatory standards, driving
sustainable mobility even in times of a pandemic
Denser cities and existing infrastructure in Europe have created a substantial
opportunities for micro-mobility and last-mile delivery players
• Cities in Europe are by design three times denser than US cities, creating congestion, with
1% of the European GDP lost to congestion yearly, and therefore encouraging higher
adoption of micro-mobility transportation modes
• Existing infrastructure is favouring micro-mobility options, with 34% of trips by bike or on
foot in Europe compared to less than 4% in the US. London has allocated £250m to new
cycling lanes while Paris is planning to remove 50% of its open-air car parks to make room for
new infrastructures
• Modern and abundant public transportation options and infrastructure allow micro-
mobility companies to cooperate with the city regulators, create multimodal offers and design
seamless journeys for the commuters
• Micro-mobility companies have raised mega-rounds2 and the last-mile delivery
ecosystem has matured, with Just Eat merging with Takeaway.com and then acquiring
Grubhub for $7.4bn in the same year of 2020
• Flixbus and BlaBlaCar have capitalized on both regulation and existing mobility networks to
popularize ride-sharing through all Europe, BlaBlaCar still showing a 15% growth YoY, in
the summer 2020, despite the effects of Covid-19
• Europe contributes to 9 of the top 10 countries with the highest penetration rate of EVs
• In 2019, EVs sales in Europe rose by 44% to reach 590,000 units, behind China’s 1.2m but
ahead of the US’s 320,000. Driven by the main German manufacturers such as Volkswagen
and BMW, the trend continued in Q1-20 in Europe with a 25% increase while EVs sales
decreased in both China and in the US
• On the one hand, governmental incentive programs changed the consumption habits,
with France strengthening its reward-penalty scheme based on CO2 emissions. On the other
hand, car manufacturers are forced to double down on their production volumes and
remain at the cutting edge of innovation to meet ever stricter standards
• Automakers have built JVs to ensure seamless battery supply. Fiat Chrysler recently
joined forces with Engie EPS a French energy storage, microgrids and eMobility player
Outside the city, ride-sharing has changed long-distance transportation journeys while
EVs1 are becoming more popular than anywhere in the world
46. White Star Capital
Asia: Congested cities, sometimes with poor transportation
infrastructure, are seeing the rise of SuperApps
46
Global Outlook
• Rampant urbanization combined with a middle class expected to grow exponentially,
from 3.2bn people in 2016 to 5.2bn in 2028, has led to increasingly congested cities
• With city-states Macau, Singapore and Hong-Kong in the top 4 of the most densely
populated countries in the world, and Tokyo and Jakarta the two largest of the 35
megacities1 in the world, East and South East Asia are experiencing pressurized urban
mobility landscapes
Asia is facing congested mega-cities issues
Increasing vehicle ownership and already congested cities worsened air population but
EVs are yet to become popular in South East Asia
• Although EVs could be the solution for cleaner cities, South East Asia so far lacks supply,
attractive consumer economics, as well as government incentives and charging infrastructures
Source: Brookings Institute, Pitchbook, Demographia, CNN Travel, GoEuro, Japan RailPass, Asean Automotive Federation, Bain & Company
1 Urban areas over 10 million population. 2 Industry short for “magnetic levitation”. Maglev trains work on the principle of magnetic repulsion
between the cars and the track. 3 The Shinkansen hits 603 kmph (375 mph).
SuperApps in South East Asia started as mobility players and now position themselves
as one-stop-shops addressing every consumer need in the city
• In addition to the hassle of moving within cities, the explosive growth of mobile, internet and
e-commerce penetration have led to the rise of Grab and Gojek
• Indonesian Gojek started as an on-demand motorbike taxi app in 2010 and is now
operating in Transport & Logistics, Food, Payments and News & Entertainment
• Similarly, former GrabTaxi, Singaporean Grab started as a copycat of Uber in 2012 and
expanded its services to Food Delivery, Payments and Insurance among many others
• Offering a broad range of services has helped improve unit economics strengthen user
retention
• Large amounts of funding, $6bn and $10bn invested in Gojek and Grab respectively,
from Japanese conglomerates Softbank and Rakuten, alongside major Chinese groups
such as Alibaba and Tier-1 funds such as Sequoia or Tiger Global, made them the most
valuable unicorns in South East Asia
While East Asia boasts modern transportation infrastructures, South East Asia suffers
from a lack of public transportation means
• In East Asia, connecting cities faster is a way to reduce congestion. Japan and South
Korea can rely on the most advanced inter-city trains in the world. They are the only
countries, with China, to operate Maglev2 trains. Japan is even home to the fastest3
commercialized Maglev train in the world. Japan Airlines and Japan National Railway
allocated $55bn to connect Tokyo to Nagoya by 2027 via the Shinkansen
• In South East Asia, the lack of public transportation means explains why vehicle
ownership, although not convenient, is higher than in other parts of the world. In
Brunei, car sales grew 8% in the first 5 months of 2020 despite the COVID-19 pandemic.
In Singapore or Indonesia alternative transportation modes such as ride-hailing have
blossomed, led by Grab and Gojek
48. White Star Capital
Introduction to White Star Capital
A Global Technology Investment Platform
White Star Capital is a global fund investing in Series A and B.
Our footprint is global: we have 7 offices in Guernsey, New York, Paris, London,
Montreal, Tokyo and Hong Kong.
We are partnering with exceptional entrepreneurs with global ambitions and leverage
our extensive experience and international network to help them scale their business
internationally. Our investments across the world include Dollar Shave Club, Meero,
Tier, Parsley Health, Butternut Box and Freshly.
3 Continents
With a presence in
North America,
Western Europe and
Asia, we invest in
early-stage
technology
companies with
global ambitions
I18N
We leverage our
experience founding
and scaling
businesses to
support the
internationalisation
of our start-ups
Track Record
Our current funds
have close to $300m
under management
and a portfolio of 25+
core companies
which have raised
over $1bn+
Team
An ideal balance
between
entrepreneurial and
operational
experience with
financial and M&A
experience
Global Presence and Portfolio
48
Physical Hubs Core Hubs
France, Germany, ROEUnited States
Canada
UK and Nordics
SEA
Partnering with White Star Capital
49. White Star Capital
White Star Capital Portfolio
Companies
49
Partnering with White Star Capital
Company Description
Tier Mobility is a micro-mobility operator providing last-mile transportation to urban
populations, including e-scooters and e-mopeds.
Investment Rationale
The micro-mobility market is rapidly growing and more specifically, the global electric scooter
market is expected to reach $42.0bn by 2030, growing at a 7.6% CAGR.
On-demand e-scooters are the last type of light vehicles arrived on the market but with a
growth pace that has no precedent in the history of tech.
Tier is positioned to experience significant growth as an electric, eco-friendly solution
operating in European countries where governments are actively pushing for greener cities
operating with low carbon emission vehicles.
2019
Stage Invested Total RaisedWSC Invested In
Series A $360m
HQ: Berlin, Germany
Our Outlook on Similar Mobility Opportunities
We believe consumers’ behaviors in urban areas will further shift from car ownership
towards greener and more convenient transportation modes, either shared or leased.
We expect cities and administration to further favor clean energy initiatives and related
infrastructure.
Lawrence Leuschner
CEO / Founder
Matthias Laug
CTO / Founder
Alex Gayer
CFO
Co-Investors
50. White Star Capital
White Star Capital Portfolio
Companies
50
Partnering with White Star Capital
Company Description
Unacast is a proximity and location data platform. The company is building a technology
and tools that help data-driven industries understand the physical world the same way we
understand the online world.
Investment Rationale
Unacast has positioned itself as a unifying force in the data industry, aggregating, matching,
and improving the data needed to determine how people are moving and interacting in the
physical world.
The rise in smart phones and ever-increasing number of sensors has generated an
abundance of fragmented location data that Unacast’s platform transforms into a usable
format.
Unacast provides location data that is critical to the success of advertising technology
companies. There are multiple use cases in massive industries such as retail, finance, smart
cities, and insurance.
2018
Stage Invested Total RaisedWSC Invested In
Series B $31m
HQ: New York, United States
Thomas Walle
CEO / Founder
Our Outlook on Similar Mobility Opportunities
As retail players and merchants are further embracing digitalization, we see numerous
opportunities for start-ups to provide solutions helping them further understand consumers’
behaviors and preferences.
Kjartan Slette
COO / Founder
Co-Investors
51. White Star Capital
Co-Investors
White Star Capital Portfolio
Companies
51
Partnering with White Star Capital
Company Description
Mindsay is a SaaS company developing an A.I.-powered assistant that helps companies in
large B2C-oriented industries, optimize customer support costs and increase online
customer conversion. Starting in the consumer-centric industries of travel and mobility,
Mindsay is expanding into adjacent sectors such as e-commerce, banking and utilities
Investment Rationale
The global chatbot is expected to reach $1.25bn by 2025, with a CAGR of 23%. This growth
is expected to by driven by the advancement of AI technology to better assist customers and
the embedment of messaging apps in people’s daily lives.
Through its technology, Mindsay allows companies to swiftly solve frequently asked
questions, allowing for more time to cover complex use cases, leading to increases of up to
50% in online customer conversion rates.
Mindsay’s verticalized approach allowed it to quickly expand into an industry before
expanding its use cases into adjacent areas.
2019
Stage Invested Total RaisedWSC Invested In
Series A $10m
HQ: Paris, France
Our Outlook on Similar Mobility Opportunities
Within a world becoming increasingly digital, and with the ability to provide a high-quality
customer experience being increasingly key for companies to attract and retain clients, we
expect customer support and more broadly cost reduction solutions to step at the forefront of
companies’ priorities.
Ilias Hicham
COO / Founder
Pierre Pakey
CTO / Founder
Guillaume Laporte
CEO / Founder
52. White Star Capital
Other White Star Capital Sector
Deep Dives
We actively publish detailed reports on different sectors
within the VC ecosystem
Industrial Technology
Sector Report
Fintech
Sector Report
Wellbeing
Sector Report
Communication and
Collaboration Sector
Report
Artificial
Intelligence
Sector Report
Foodtech
Sector Report
Partnering with White Star Capital