Lyft prices IPO at top of range

Lyft raised more than $2 billion Thursday afternoon after pricing its shares at $72 apiece, the top of the expected range of $70 to $72 per share, CNBC reports. This gives Lyft a fully-diluted market value of $24 billion.

The company will debut on the Nasdaq stock exchange Friday morning, trading under the ticker symbol “LYFT.”

The initial public offering is the first-ever for a ride-hailing business and represents a landmark liquidity event for private market investors, who had invested billions of dollars in the San Francisco-based company. In total, Lyft had raised $5.1 billion in debt and equity funding, reaching a valuation of $15.1 billion last year.

Lyft’s blockbuster IPO is unique for a number of reasons, in addition to being amongst transportation-as-a-service companies to transition from private to public. Lyft has the largest net losses of any pre-IPO business, posting losses of $911 million on revenues of $2.2 billion in 2018. However, the company is also raking in the largest revenues, behind only Google and Facebook, for a pre-IPO company. The latter has made it popular on Wall Street, garnering buy ratings from analysts prior to pricing.

Uber is the next tech unicorn, or company valued north of $1 billion, expected out of the IPO gate. It will trade on the New York Stock Exchange in what is one of the most anticipated IPOs in history. The company, which reported $3 billion in Q4 2018 revenues with net losses of $865 million, is reportedly planning to unveil its IPO prospectus next month.

Next in the pipeline is Pinterest, which dropped its S-1 last week and revealed a path to profitability that is sure to garner support from Wall Street investors. The visual search engine will trade on the NYSE under the symbol “PINS.” It posted revenue of $755.9 million last year, up from $472.8 million in 2017. The company’s net loss, meanwhile, shrank to $62.9 million last year from $130 million in 2017.

Other notable companies planning 2019 stock offerings include Slack, Zoom — a rare, profitable pre-IPO unicorn — and potentially, Airbnb.

Updating.

Autonomous vehicle IP protection — when HAL is driving

Each day, a fleet of lidar-guided, all-electric Chevy Bolts exits a downtown garage to roam San Francisco, attempting to blend in with people-guided vehicles and other AVs. The autonomous vehicles are actually only “semi-autonomous” — each has a human crew whose mission is to correct the car’s erroneous driving decisions on the fly, until sufficient data can at least approximate the reflexive intuition of an experienced driver.

Like a child who develops a sense for right and wrong through praise and scolding, present-day machine learning requires similar binary experiential training. The collected learning then becomes a valuable basis for guidance systems that will render vehicles truly autonomous.

But how can that very valuable intellectual property be protected? Historically, startups could obtain venture capital by trotting out a portfolio of issued patents. With the 2014 Alice decision on subject matter patentability by the U.S. Supreme Court, however, it has been problematic, to say the least, to obtain patents that are essentially based on algorithms.

The two-step “Alice” test requires examination of 1) whether the claims are directed to a patent-eligible concept or a patent-ineligible abstract idea; and 2) if directed to an abstract idea, whether the claims contain an “inventive concept” sufficient to transform the abstract idea into a patent-eligible application. Under the latter, “well-understood, routine, and conventional” activities or claim elements cannot form an inventive concept. Even if subject matter barriers can be overcome, the evolved AI may no longer bear semblance to the original expression of code, such as to raise inventorship issues. If a macaque monkey cannot hold a copyright, can a machine hold a patent?   

As a result, most companies presently guard their machine learning data as trade secrets. But trade secret protection has its drawbacks, one of which is to society at large. Unlike technology taught in patented disclosures, which could allow a new entrant to catch up (provided it licenses or designs around the patent), an AV data set of an unwilling licensor is not obtainable absent a trade secret violation or duplicating the considerable miles driven. 

Keeping AV data secret also creates a “black box” where consumers and authorities are unable to fairly and completely evaluate the proficiency/safety of the AI systems guiding the vehicles. At most, consumers will likely have to rely on publicly compiled data regarding car crashes and other reported incidents, which fail to adequately assess the underlying AI or even isolate AI as the cause (as opposed to other factors). As it is, AV developers’ “disengagement reports” — those tallying incidents where the human attendant must take over for the AI — vary widely, depending on how the developer chooses to interpret the reporting requirement.  Without comparable data, consumers are often left with nothing more than anecdotal evidence as to which AV system is the safest or most advanced.

Trade secret protection has its drawbacks, one of which is to society at large.

Relying on trade secret protection is also problematic for the owner of the data, largely because of the requirement that to be protectable, the trade secrets must be kept confidential. This can lead to a “need-to-know” access environment, hampering development and breeding paranoia. Physical security could mean preventing employees from carrying data on portable devices or working from home, instead requiring work and storage on servers isolated from external connectivity. It also could mean needing metal detectors and security screening devices and procedures to, quite literally, keep data from walking out the door. Encryption also could be used, introducing yet another layer of protection, but possibly with a productivity trade-off. And none of this is a complete guard against a mal-intended employee who abuses their access privileges.  

And what of that disgruntled employee who, instead of taking an unauthorized copy to another employer, virally transmits it over social media? Once out in public, the secrets lose their value, as present law generally does not permit actions against a company that comes across trade secrets through no fault of their own. Imagine losing your company’s valuation because your once-proprietary AV data set is now essentially public domain.

On the other hand, one might question whether the “best” AI should be kept from the public. A promise of AVs is that AI guidance and inter-vehicle communications can enhance traffic safety and optimize traffic flow.  Confining the safest, highest functioning AI to select manufacturers would mean less-than-optimal overall safety or efficiency, as “smarter” cars would need to deal with “less smart” vehicles (and human-driven ones!). At the very least, without any technical standards regulating the interaction between various AVs, each unique system will need to communicate with, and predict the behaviors of, potentially hundreds of different AIs.

All of this is to suggest that, as present-day human-driven vehicles evolve into the Nikola 9000, our IP laws and protections must likewise evolve. Just as hybrid vehicles were an early solution to “range anxiety,” perhaps some hybrid IP concept could be developed to satisfy the needs for autonomous vehicle IP protection while continuing to “promote the progress of science and useful arts” under the Constitution.

Earn a free ticket to TC Sessions: Mobility 2019 with SocialLadder

Mobility is an expansive topic that includes drones, dockless scooters and autonomous cars — both terrestrial and aeronautic — plus all the ancillary tech required to get the job done. If Henry Ford and the Wright brothers were alive today, you can bet they’d be headed to TC Sessions: Mobility on July 10 in San Jose. TechCrunch’s one-day event takes a deep dive into the future of mobility and transportation with the industries’ revolutionary thinkers, founders, investors and technologists.

For the first time ever, TechCrunch is launching an ambassador program (powered by SocialLadder) where participants can earn a free pass. Free is awesome right? You betcha, and here’s how the program works:

  1. Download the SocialLadder app on your phone (Apple Store) (Google Play)
  2. Input Invite code “TechCrunch” to join our instance
  3. Create your own unique ticket code to share with your friends
  4. Complete social-sharing challenges in the app to earn points
  5. Once you earn enough points, you’ll be sent a free ticket to attend the event!

Already have SocialLadder? Just tap “Find a New Area” > Add Invite Code > Enter “TechCrunch”.

The day’s programming will include interviews, panel discussions, fireside chats and workshops with some of the greatest minds at work to push mobility to the next level. We’re busy creating the event agenda, and we’ll be announcing speakers and demos in the coming weeks, so check back for updates.

TC Sessions: Mobility 2019 takes place July 10 in San Jose, Calif. Buy your early-bird ticket or save even more money by becoming a TechCrunch ambassador with the SocialLadder app. Tell your friends and earn a free ticket. Either way, we can’t wait to see you — and the future of mobility — in July.

Lyft increases IPO price

Lyft, expected to hit to public markets in a landmark initial public offering Friday, has increased its share price range. In a new filing published Wednesday afternoon, the company outlined plans to charge between $70 and $72 per share.

In an amended IPO prospectus filed last week, the company said it would sell 30.7 million shares at between $62 and $68 a piece. Following high demand from Wall Street — its IPO was said to be oversubscribed on the second day of its roadshow — Lyft has opted to ask for more from its public market investors.

If Lyft sells 30.7 million shares at $72 apiece, it will bring in more than $2.2 billion at an initial valuation north of $20 billion. Lyft was previously valued at $15.1 billion by private market investors with a $600 million Series I round in 2018.

Lyft plans to trade on the Nasdaq under the ticker symbol “LYFT.”

Updating.

Nuro CEO Dave Ferguson at TC Sessions: Mobility on July 10 in San Jose

Autonomous delivery startup Nuro, fresh with nearly $1 billion in capital from SoftBank, is bursting with ideas — as some recent patent filings (and our recent deep dive into the company) suggest. And we can’t wait to learn more about what Nuro has planned.

It’s only fitting that Nuro co-founder and CEO Dave Ferguson is our first announced guest for TechCrunch’s inaugural TC Sessions: Mobility, a one-day event on July 10, 2019 in San Jose, Calif., that’s centered around the future of mobility and transportation.

Ferguson has been working on robotics and machine learning for nearly two decades and is an early pioneer of self-driving vehicle technology. He led the planning group for Carnegie Mellon University’s team that won the DARPA Urban Grand Challenge in 2007.

Ferguson holds an MS and PhD in robotics from Carnegie Mellon and a bachelor’s in computer science and mathematics from the University of Otago. He went on to become a senior research scientist at Intel and then developed machine learning trading strategies at Two Sigma, an investment firm.

Ferguson, who has been awarded more than 100 patents, eventually headed to Google’s self-driving program, now known as Waymo, serving as the machine learning and computer vision team lead.

TC Sessions: Mobility will present a day of programming with the best and brightest founders, investors and technologists who are determined to inventing a future Henry Ford might never have imagined. TC Sessions: Mobility aims to do more than highlight the next new thing. We’ll dig into the how and why, the cost and impact to cities, people and companies, as well as the numerous challenges that lie along the way, from technological and regulatory to capital and consumer pressures.

Nuro was founded in June 2016 by Ferguson and another former Google engineer, Jiajun Zhu. Nuro completed its first Series A funding round in China just three months later, in a previously unreported deal that gave NetEase founder Ding Lei (aka William Ding) a seat on Nuro’s board.

In February, Nuro hit the big leagues with a whopping $940 million in financing from the SoftBank Vision Fund, capital that will be used to expand its delivery service, add new partners, hire employees and scale up its fleet of self-driving bots. The startup has raised more than $1 billion from partners, including SoftBank, Greylock Partners  and Gaorong Capital.

Nuro’s focus has been developing a self-driving stack and combining it with a custom unmanned vehicle designed for last-mile delivery of local goods and services. The vehicle has two compartments that can fit up to six grocery bags each. Nuro’s aspirations don’t stop there.

A recent patent application details how its R1 self-driving vehicle could carry smaller robots to cross lawns or climb stairs to drop off packages. The company has even taken the step of trademarking the name “Fido” for delivery services.


Early-Bird tickets are now on sale — save $100 on tickets before prices go up.

Students, you can grab your tickets for just $45.

This self-driving AI faced off against an champion racer (kind of)

Developments in the self-driving car world can sometimes be a bit dry: a million miles without an accident, a 10 percent increase in pedestrian detection range, and so on. But this research has both an interesting idea behind it and a surprisingly hands-on method of testing: pitting the vehicle against a real racing driver on a course.

To set expectations here, this isn’t some stunt, it’s actually warranted given the nature of the research, and it’s not like they were trading positions, jockeying for entry lines, and generally rubbing bumpers. They went separately, and the researcher, whom I contacted, politely declined to provide the actual lap times. This is science, people. Please!

The question which Nathan Spielberg and his colleagues at Stanford were interested in answering has to do with an autonomous vehicle operating under extreme conditions. The simple fact is that a huge proportion of the miles driven by these systems are at normal speeds, in good conditions. And most obstacle encounters are similarly ordinary.

If the worst should happen and a car needs to exceed these ordinary bounds of handling — specifically friction limits — can it be trusted to do so? And how would you build an AI agent that can do so?

The researchers’ paper, published today in the journal Science Robotics, begins with the assumption that a physics-based model just isn’t adequate for the job. These are computer models that simulate the car’s motion in terms of weight, speed, road surface, and other conditions. But they are necessarily simplified and their assumptions are of the type to produce increasingly inaccurate results as values exceed ordinary limits.

Imagine if such a simulator simplified each wheel to a point or line when during a slide it is highly important which side of the tire is experiencing the most friction. Such detailed simulations are beyond the ability of current hardware to do quickly or accurately enough. But the results of such simulations can be summarized into an input and output, and that data can be fed into a neural network — one that turns out to be remarkably good at taking turns.

The simulation provides the basics of how a car of this make and weight should move when it is going at speed X and needs to turn at angle Y — obviously it’s more complicated than that, but you get the idea. It’s fairly basic. The model then consults its training, but is also informed by the real-world results, which may perhaps differ from theory.

So the car goes into a turn knowing that, theoretically, it should have to move the wheel this much to the left, then this much more at this point, and so on. But the sensors in the car report that despite this, the car is drifting a bit off the intended line — and this input is taken into account, causing the agent to turn the wheel a bit more, or less, or whatever the case may be.

And where does the racing driver come into it, you ask? Well, the researchers needed to compare the car’s performance with a human driver who knows from experience how to control a car at its friction limits, and that’s pretty much the definition of a racer. If your tires aren’t hot, you’re probably going too slow.

The team had the racer (a “champion amateur race car driver,” as they put it) drive around the Thunderhill Raceway Park in California, then sent Shelley — their modified, self-driving 2009 Audi TTS — around as well, ten times each. And it wasn’t a relaxing Sunday ramble. As the paper reads:

Both the automated vehicle and human participant attempted to complete the course in the minimum amount of time. This consisted of driving at accelerations nearing 0.95g while tracking a minimum time racing trajectory at the the physical limits of tire adhesion. At this combined level of longitudinal and lateral acceleration, the vehicle was able to approach speeds of 95 miles per hour (mph) on portions of the track.

Even under these extreme driving conditions, the controller was able to consistently track the racing line with the mean path tracking error below 40 cm everywhere on the track.

In other words, while pulling a G and hitting 95, the self-driving Audi was never more than a foot and a half off its ideal racing line. The human driver had much wider variation, but this is by no means considered an error — they were changing the line for their own reasons.

“We focused on a segment of the track with a variety of turns that provided the comparison we needed and allowed us to gather more data sets,” wrote Spielberg in an email to TechCrunch. “We have done full lap comparisons and the same trends hold. Shelley has an advantage of consistency while the human drivers have the advantage of changing their line as the car changes, something we are currently implementing.”

Shelley showed far lower variation in its times than the racer, but the racer also posted considerably lower times on several laps. The averages for the segments evaluated were about comparable, with a slight edge going to the human.

This is pretty impressive considering the simplicity of the self-driving model. It had very little real-world knowledge going into its systems, mostly the results of a simulation giving it an approximate idea of how it ought to be handling moment by moment. And its feedback was very limited — it didn’t have access to all the advanced telemetry that self-driving systems often use to flesh out the scene.

The conclusion is that this type of approach, with a relatively simple model controlling the car beyond ordinary handling conditions, is promising. It would need to be tweaked for each surface and setup — obviously a rear-wheel-drive car on a dirt road would be different than front-wheel on tarmac. How best to create and test such models is a matter for future investigation, though the team seemed confident it was a mere engineering challenge.

The experiment was undertaken in order to pursue the still-distant goal of self-driving cars being superior to humans on all driving tasks. The results from these early tests are promising, but there’s still a long way to go before an AV can take on a pro head-to-head. But I look forward to the occasion.

Alibaba, Tencent and other major names form $1.45B ride-hailing venture

For the last two years, Didi has been the dominant car-hailing force in China and its success has spawned a handful of competitors initiated by both internet firms and old-school carmakers. Just last week, another notable challenger has stepped up.

T3, which is short for “top 3”, officially launched after a dozen entities, including three major automakers, agreed to lay out a total of 9.76 billion yuan ($1.45 billion) for the joint venture following an initial agreement in July, according to an announcement released last week.

The big pile of cash will go towards “car-sharing services powered by renewable energy,” an offering that nicely aligns with Beijing’s push to electrify the transportation sector. T3’s investor list is also stellar, with the participation of three state-owned Chinese carmakers and the country’s largest internet companies, Alibaba and Tencent.

The marriage of private and state-owned players comes as China works to attract more private money into the clunky state sector to breathe innovation and efficiency into the latter, an effort dubbed the “mixed reform”. T3 will be purely-market driven, with a mission to build what it calls a “smart mobility ecosystem” by combining the data capability of its technology partners with the manufacturing know-how of its automakers, said the announcement.

China’s ecommerce giant Alibaba and social media leader Tencent lock horns on many fronts and it’s rare to see them co-invest. They are both Didi’s investors, although that bond came in a more roundabout way through the merger of Tencent-backed Didi and Alibaba-backed Kuaidi in 2015.

At T3 this time, the pair’s roles remain secondary as home appliance retailer Suning is set to be the largest shareholder by acquiring 17.42 percent equity. Suning’s leadership also explains why T3 debuted in Nanjing, the eastern Chinese city where it’s headquartered. Automakers FAW Group, Dongfeng Motor, and Changan Automobile will each pick up 16.39 percent of the new entity as the second-largest holders. Tencent, Alibaba and the rest of the affiliates will divide the remaining shares between them.

T3 didn’t go to lengths at its launch regarding how its ride-hailing venture will take shape, though it did mention a fleet 5,000 cars will start running on the streets of Nanjing in late May or early June. The assault comes at a critical time for Didi, which has been recovering from two controversial passenger murders by doubling down on security measures.

T3 isn’t the first time old-school carmakers have moved into car-hailing. Indeed, manufacturers are flocking to the red-hot industry as a series of new regulations give companies with car assets an edge to play. Didi, too, has been busy partnering with automakers to secure access to vehicle fleets.

Some of Didi’s foremost challengers from the carmaking sector include Caocao, a chauffeur ride-hailing app backed by Geely, and Shouqi Limousine & Chauffeur, which is started by state-owned Shouqi. BWM also became the first foreign automaker to join the race.

There is also intense rivalry from the internet camp. Alibaba’s financial affiliate Ant Financial has backed one of Didi’s most serious competitors, Hello TransTech (formerly Hellobike). Tencent-backed food delivery and hotel booking giant Meituan also drove into ride-hailing although that segment has yet to make a dent amid ruthless competition.

Linear Labs’ next-gen electric motor attracts $4.5 million in funding

Linear Labs, a startup developing an electric motor for cars, scooters, robots, wind turbines and even HVAC systems, has raised $4.5 million in a seed round led by Science Inc. and Kindred Ventures. 

Investors Chris and Crystal Sacca, Ryan Graves of Saltwater Ventures, Dynamic Signal CEO Russ Fradin, Masergy executive chairman and former-CEO Chris MacFarland, as well as Ustream co-founder Gyula Feher also participated in the round. 

The four-year-old company was founded by Brad and Fred Hunstable, who say they have invented a lighter, more flexible electric motor. The pair came up with the motor they’ve dubbed the Hunstable Electric Turbine (HET) while working to design a device that could pump clean water and provide power for small communities in underdeveloped regions of the world. 

Linear Labs currently has 50 filed patents, 21 of which are issued, with 29 patents pending.

The founders come with a background in entrepreneurship and electrical engineering. Brad Hunstable is former CEO and founder of Ustream, the live-video-streaming service that sold to IBM in 2016 for $150 million. Fred Hunstable, who comes with a background in electrical engineering and nuclear power, led Ebasco and Walker Engineering’s efforts in designing, upgrading and completing electrical infrastructure, environmental and enterprise projects as well as safety and commercial-grade evaluation programs.

The HET uses multiple rotors that can adapt to varying conditions, according to the company. It also produces twice as much torque density and three times the power density than permanent magnet motors. Linear Labs says its motor produces two times the output per given motor size, and minimum 10 percent more range. 

The HET design makes it ideally suited for mobility applications such as electric vehicles because it produces high levels of torque without the need for a gearbox. This helps cut production cuts, the company contends. 

“The holy grail in electric motors has always been high torque and no gearbox, and the HET achieves both in a smaller, lighter and more efficient package that is more powerful than traditional motors,” Linear Labs CTO Fred Hunstable said in a statement.

The upshot could be electric vehicles with better range and more powerful electric scooters.

The commercialization of the electric motor will result in substantial leaps in terms of energy savings, reliability enhancement, and low-cost manufacturing, according to Babak Fahimi, founding director of the Renewable Energy and Vehicular Technology (REVT) Laboratory at the University of Texas at Dallas. 

The company plans to use the seed funding to market its invention to customers. It’s also hiring talent and recently added new people to its leadership team, including John Curry as their president and Jon Hurry as vice president. Curry comes from KLA-Tencor and NanoPhotonics. Hurry has held positions at Tesla, Faraday Future, General Motor’s hydrogen fuel cell program and Lucid Motors.

Linear Labs’ next-gen electric motor attracts $4.5 million in funding

Linear Labs, a startup developing an electric motor for cars, scooters, robots, wind turbines and even HVAC systems, has raised $4.5 million in a seed round led by Science Inc. and Kindred Ventures. 

Investors Chris and Crystal Sacca, Ryan Graves of Saltwater Ventures, Dynamic Signal CEO Russ Fradin, Masergy executive chairman and former-CEO Chris MacFarland, as well as Ustream co-founder Gyula Feher also participated in the round. 

The four-year-old company was founded by Brad and Fred Hunstable, who say they have invented a lighter, more flexible electric motor. The pair came up with the motor they’ve dubbed the Hunstable Electric Turbine (HET) while working to design a device that could pump clean water and provide power for small communities in underdeveloped regions of the world. 

Linear Labs currently has 50 filed patents, 21 of which are issued, with 29 patents pending.

The founders come with a background in entrepreneurship and electrical engineering. Brad Hunstable is former CEO and founder of Ustream, the live-video-streaming service that sold to IBM in 2016 for $150 million. Fred Hunstable, who comes with a background in electrical engineering and nuclear power, led Ebasco and Walker Engineering’s efforts in designing, upgrading and completing electrical infrastructure, environmental and enterprise projects as well as safety and commercial-grade evaluation programs.

The HET uses multiple rotors that can adapt to varying conditions, according to the company. It also produces twice as much torque density and three times the power density than permanent magnet motors. Linear Labs says its motor produces two times the output per given motor size, and minimum 10 percent more range. 

The HET design makes it ideally suited for mobility applications such as electric vehicles because it produces high levels of torque without the need for a gearbox. This helps cut production cuts, the company contends. 

“The holy grail in electric motors has always been high torque and no gearbox, and the HET achieves both in a smaller, lighter and more efficient package that is more powerful than traditional motors,” Linear Labs CTO Fred Hunstable said in a statement.

The upshot could be electric vehicles with better range and more powerful electric scooters.

The commercialization of the electric motor will result in substantial leaps in terms of energy savings, reliability enhancement, and low-cost manufacturing, according to Babak Fahimi, founding director of the Renewable Energy and Vehicular Technology (REVT) Laboratory at the University of Texas at Dallas. 

The company plans to use the seed funding to market its invention to customers. It’s also hiring talent and recently added new people to its leadership team, including John Curry as their president and Jon Hurry as vice president. Curry comes from KLA-Tencor and NanoPhotonics. Hurry has held positions at Tesla, Faraday Future, General Motor’s hydrogen fuel cell program and Lucid Motors.

UPS partners with drone startup Matternet for medical sample deliveries

Unmanned drone deliveries are making their way inside the UPS network. Thanks to a partnership with drone startup Matternet, UPS will start delivering medical samples via unmanned drones at WakeMed’s hospital in Raleigh, North Carolina.

With the approval of the Federal Aviation Administration and North Carolina’s department of transportation, UPS and Matternet will conduct routine daily flights that transport medical samples. Previously, WakeMed relied on courier cars, which were subject to road delays.

The drone-led deliveries entail a medical professional first loading the drone with a medical sample or specimen, such as a blood sample. From there, the drone will fly along a predetermined mouth to a fixed landing pad at WakeMed’s main hospital and central pathology lab.

UPS and Matternet will then be able to analyze the program and better determine how drones can be more broadly used to improve deliveries at other hospitals throughout the country. UPS previously partnered with Zipline to test medical deliveries via drone in remote communities.

“We believe unmanned aerial systems could better serve customer needs and provide opportunities for network improvements that generate efficiencies and enable us to grow our business,” UPS VP of Advanced Technology Group Bala Ganesh said in a statement.

By deploying drones, the hope is to reduce costs and increase efficiency. Matternet conducted test flights last August as part of the FAA’s unmanned aircraft system integration pilot program (IPP).

This comes about a year after Matternet secured a $16 million round led by Boeing HorizonX Ventures, the aviation company’s venture arm. At the time, the Federal Aviation Administration had recently selected, among others, Matternet for drone logistics operations for U.S. hospitals as part of its Unmanned Aircraft System pilot program. In 2015, Matternet started testing the first drone delivery system in Zurich, Switzerland to transport blood and pathology samples to labs.

Matternet has since expanded its operations in Switzerland and has conducted more than 1,700 flights over densely populated areas to make more than 850 deliveries of patient samples.

“Together with UPS, we aim to shift the status quo for on-demand logistics for healthcare systems in the U.S. through drone delivery networks,” Matternet CEO Andreas Raptopoulos said in a statement. “Our technology allows hospital systems to transport medical items at an unprecedented level of speed and predictability, resulting in improved patient care and operational savings.”