Planes, Trains, and...Robotaxis?

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2023 was a tough year for startups.

Multiple large-scale wars, the collapse of SVB, and high interest rates led to a 60% decrease in venture capital funding for new businesses.

Cash-cushioned angel investors and firms simply weren’t willing to shell out the billions of dollars to engineering grads for half-baked A.I. apps they had in previous years.

Many media outlets and tech enthusiasts repeatedly claimed it to be one of the worst years for startups in recent memory.

Some even went so far as to label it a ‘mass extinction’ event.

It is true, that a lot of buzzy tech businesses failed.

Transportation hopeful Hyperloop One, Bezos-backed logistics company Convoy, and Olive AI, once valued at more than 4 billion USD, all shut down in 2023.

More than 3,200 VC-backed startups in 2023 closed up shop, spanning businesses in different industries and seed levels.

However, to call last year ‘extinction-level’ is, in my mind, absolute blasphemy.

Sure, a lot of prominent, exciting companies that were highly overvalued went out of business, but to say that the startup industry was at risk of dying is a far cry from the truth.

What many of those same articles failed to mention is that in 2023, the U.S. Chamber of Commerce reported more than 5.5 million small business applications had been filed, breaking the single-year record set in 2021.

It’s pretty easy to look at these hyped startups that failed and assume that the whole ecosystem is going to sh*t. I’m here to point out that that couldn’t be farther from the truth.

The A.I. boom we saw in 2023 is stratospherically propelling the startup sphere in cities from SF to developing hubs like Nashville.

Entrepreneurship in the United States is at an all-time high. Around the country, in sectors from fintech to agriculture, ideas are rapidly being developed, tested, and brought to commercial markets.

Huge innovation is happening all around us, but so much of our media is focused on NVIDIA earnings reports or this week’s company that filed for bankruptcy (not pointing any specific ‘claws’ at you, Red Lobster).

To challenge this negative narrative, I will highlight the most ground-breaking companies changing the consumer and business landscape.

Each piece will focus on a specific industry, breaking down 3 companies that I believe demonstrate the massive leaps we are making toward a better future.

To begin, let’s dive into the industry both figuratively and literally taking us to new heights: Travel.

Going, Going, Gone

Today, it takes a little more than 7 hours to fly from NYC to London.

What if I told you that thirty years ago, passengers were regularly bouncing between the two financial hubs in half the time?

From 1976 to 2003, British Airways and Air France operated fleets of the most impressive commercial airplane known to humankind: The Concorde.

Traveling at 2x the speed of sound, the iconic aircraft shuttled passengers from around the world hours faster than we do today.

When it was in operation, Concorde could slingshot you from London to Bahrain or Barbados at 1,354 MPH compared to the roughly 550 MPH commercial airliners fly at in 2024.

Despite this, the only way to fly supersonic in the 21st century is to be the next ‘Maverick’.

So, what happened?

How is it that commercial flight was more advanced 30 years ago than it is now?

There were several reasons why these planes ultimately did not stick around (even after a last-ditch effort by Sir Richard Branson). The first is cost. The present-day value of a ticket on the world’s fastest commercial plane in the late 20th century was roughly $20,000 dollars.

While this came with cushy seats and caviar, it wasn’t enough to lure consumers for the long haul.

Another huge problem was going supersonic. These planes were restricted from reaching Mach 2 over land due to the dangers the sonic boom created for populated areas.

For passengers, the ride experience wasn’t as smooth as they were used to, with high turbulence and thunder-like noise that even 3 glasses of champagne couldn't drown out.

Sadly, the plane was ultimately put out of commission in 2003.

Now, a new company partnering with NASA aims to reverse history.

Here Comes the BOOM!

Despite launching less than 10 years ago, Boom Supersonic is on track to bring back supersonic flight in the next decade.

In March of 2024, the company successfully tested its independently built supersonic plane, “Overture” in its first flight, marking a massive milestone towards the return of Concorde-like commercial airliners.

Leveraging augmented reality tech to aid pilots, carbon fiber composites, and designed to run on 100% sustainable aviation fuel, the plane brings the best tech available in modern-day aeronautics to complete its audacious goal of first supersonic commercial flights by 2029.

The company has already made key partnerships with several prominent aerospace companies and inked deals with American Airlines, United, and Japan Airlines for 130 future planes.

If it hits its 2029 target, consumers can expect to pay roughly $5000 for a roundtrip flight. Though certainly not cheap, it would be 4x less than the Concorde of late and comparable to business class tickets today.

I may never be able to afford a ticket, but the prospect of flying at Mach-level speeds in economy class during my lifetime has me geeked.

Flying, But On A Boat

Living in Mountain View, the home of Google’s international HQ, it’s not uncommon to see discrete company shuttles shuffling software engineers to and from their mega-campus.

While commuters in most other cities take a car, train, or walk on foot to their office, many of the megacorps out here have been providing ride services to their techies since the early 2000s.

Despite being free for employees, it’s tough to avoid huge traffic delays due to the sheer amount of other less glitzy Bay Area commuters.

One new SF startup is aiming to solve this problem - on water.

Navier, which builds battery-powered hydrofoil boats, hopes to cut 1.5+ hour commutes in half for employees traveling between Marin County and San Francisco.

The boats themselves actually sit 4 feet above the surface of the water, smoothly gliding along at a 10th of the operational cost of regular gas-guzzling boats.

MIT PhD grad Sampriti Bhattacharyya founded the company after seeing the underutilization of waterways in major metros, which serve as a free public resource currently left untapped for commuters.

One company, fintech giant Stripe, has already jumped on the opportunity to provide its employees with Navier’s services in 2024, marking the first corporate partnership for the boat startup.

Stripe has one of its main headquarters in South San Francisco and will use the vessels equipped with tables and wifi to ferry its employees across the Bay on a peaceful ride to HQ.

If successful in its pilot program with Stripe, Navier plans to expand its operations to other large coastal hubs like Seattle, Miami, and NYC.

As companies back peddle their policies towards hybrid or fully in-person work, roads will only become increasingly congested, exasperating the need for new forms of commuting.

While I do love sweaty bike rides to work on my 2004 Ellsworth, taking a flying boat instead doesn’t sound like a bad alternative.

Racing Robotaxis

Although I’m all in on supersonic flights and cruises to work, the one company that’s got me really fired up is Zoox.

Like Waymo (formerly the Google Self Driving Car Project) or GM’s Cruise, Amazon-backed Zoox aims to reshape how roadways are used in the U.S., from error-prone humans behind the wheel to no humans (or wheel) at all.

These autonomous driving companies all aim to solve one gigantic problem: safety.

Per the World Health Organization (WHO), more than 1.19 million people die each year due to motor vehicle accidents. Shockingly, road vehicle injuries are the leading cause of death for young people (aged 5-29) around the globe.

The largest reasons we see fatal accidents today stem from distracted driving and impaired driving, both of which are completely avoidable with autonomous vehicles.

What makes Zoox stand out from the pack is instead of outfitting existing cars with bulging sensors, cameras, and radar tech, Zoox has created an entirely new pod-like vehicle with the rider experience first in mind.

The shuttle-like robotaxi features wireless charging, no unwanted middle seat, and tons of space perfect for workers and the claustrophobic alike.

I think Zoox has the upper hand because it is built for the future of travel. Gas-powered cars today are inconvenient, getting larger, and less safe for both motorists and pedestrians.

On the other hand, Zoox’s four-wheel steering and small size make it the perfect vessel for city commuters and a safe, judge-free ride option to your next pre-game.

Waymo and Cruise may have a headstart on offering driverless rides to future customers, but I believe Zoox offers the most innovative solution to transform road travel for a safer and more seamless world over the long run.

Regardless of what company ultimately wins out a significant portion of the autonomous driving market share, the new developments made daily in this space are cause for hope.

The businesses reshaping how we move in air, water, and land will transform travel on a macro-scale in the 21st century.

Given the current pace of innovation in the U.S. and globally in these spaces, I can’t imagine what the travel industry will even look like in the next few decades.

The startup scene in the U.S., let alone the world isn’t at risk of extinction.

It’s only heating up.

-John Henry

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