Suzuki backs Glideways robocar startup for Southeast Asia expansion

Glydways, an autonomous vehicles and infrastructure company, has raised $76 million in its Series B funding round. This round includes Altman’s Apollo Projects and Suzuki, Mitsui Chemicals Inc. and includes contributions from a consortium of new investors such as oil refinery operator Anios Holdings Inc. Previous investments from Bill Gates’ venture fund and Khosla Ventures are also a part of this total. The new influx of capital is worth an estimated $350 million to $400 million for Glideways, according to sources familiar with the matter.

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Founded seven years ago, Glideways is aiming for further growth with plans to launch another fundraising round later this year to support its research and development efforts and expand its workforce, Bloomberg reported. The company is already building a robocar network in San Jose and is now setting its sights on Southeast Asia, leveraging the support of its new Japanese backers to make significant inroads.

Expansion and strategic partnerships

Support from Japanese manufacturers drives Glideways’ vision for driverless cars and special roads. The company is setting up an office in Tokyo this month and is actively exploring manufacturing partnerships, including a significant collaboration with Suzuki. Mark Seeger, founder of Glydways, emphasized that Suzuki, known for its production of small, cost-effective cars, was an ideal partner for the production of the compact, four-person Glydcar.

“Alliances with Japanese companies will be key to winning new business in congested cities around Asia, such as in Vietnam, the Philippines and Indonesia,” Seeger said in an interview. He highlighted the importance of quality and commitment of Japanese companies. Safety and Suzuki’s joint venture in India, Maruti Suzuki Ltd., the country’s leading carmaker, further strengthens Glideways’ strategic position.

“Suzuki believes that small things beat big things. And I love that,” Seeger said. “For us, Japan is a launching pad for the rest of the world, whether it’s the Middle East — where I spend a lot of my time — or the Asia Pacific.”

“Glideways’ efforts help address both environmental and traffic issues,” a Mitsui Chemicals representative confirmed their investment. An Eneos representative added that the oil refiner “will contribute to the advancement of Glideways by integrating our energy infrastructure and car solutions infrastructure.” However, Suzuki representatives declined to comment, and Apollo Projects did not immediately respond to a request for comment.

Glideways’ proposal consists of a network of narrow roads dedicated to its driverless vehicles, which operate on demand and maintain an average speed of 50 kilometers per hour, delivering users directly to their destinations without stops. This model requires only a fraction of the space required for conventional train tracks, making it a potentially revolutionary solution for urban mobility.

The company, which initially received a $5 million investment from Japanese used-car dealer Heiwa Auto Co., aims to launch passenger services between San Jose Mineta International Airport and the city’s central Diridon station in the US by 2028. Despite ambitious plans, securing land in densely populated metropolitan areas to build new roads and stations remains a primary challenge.

“If we succeed, the multi-trillion-dollar industry will be completely transformed,” Seeger said, envisioning a radical change in daily transportation. More than 4,000 cities that urgently need mobility are where we should go.”

Date of first publication: 15 May 2024, 12:42 PM IST