Kinetic Founders: CEO Nikhil Naikal, CTO Sander Marques, COO Chris Weber
Courtesy: Kinetic Automation
While demand for electric vehicles is still growing in the U.S., the sales growth rate for low-polluting cars has slowed in 2024 due in part to insurance and repair costs for new technology-laden models.
A 2024 study by JD Power found that, despite climate benefits, only 26% of US car buyers are “likely to consider buying” an EV in the next year, and more than 20% are “unlikely to consider buying an EV” at all.
That’s where Santa Ana, California startup Kinetic Automation steps in. By providing diagnostics and recalibration of high-tech systems in modern vehicles, the company hopes to reduce the costs associated with EV ownership and repair.
The startup, which employs about 40 people full-time, has developed a robotic system that uses computer vision and machine learning software to quickly diagnose problems with vehicles’ digital systems.
Kinetic CEO and co-founder Nikhil Naikal explained that many of the new models, especially the battery electrics, are loaded with bells and whistles such as touchscreens and powerful infotainment software, along with a variety of cameras and sensors that enable everything from fast chargers to drivers. safety features include forward collision avoidance, lane-keeping and adaptive cruise control.
The existing collision repair industry is well equipped to handle physical repairs like replacing bumpers, broken windshields, brakes and paint or adjusting alignment. But for many collision repair centers and car dealerships, ensuring all sensors, software and computers are working properly can prove time-consuming and expensive.
Kinetic provides robotic systems and technicians to help these shops and dealerships fix the “digital” aspects of their fussy customers’ cars.
Here’s how it works: A customer’s car rolls into one of Kinetic’s service bays, which is scanned from bumper to fender by machine vision sensors, some on robotic arms that appear above the vehicle.
Scans determine which systems need to be properly programmed or require recalibration. Then the Kinetic software, which is connected to the vehicle’s system, will start and track the completion of the repair.
Kinetic uses robotics and AI to recalibrate software and sensors in electric vehicles.
Courtesy: Kinetic Automation
The company built the first four service hubs in Las Vegas, and Orange County, San Bernardino and Riverside counties in California.
To increase growth, Kinetic has raised $21 million in series B venture funding led by Menlo Ventures, joined by Allstate Strategic Ventures, Liberty Mutual Strategic Ventures and the company’s early investors Lux Capital, Construct Capital and Haystack Ventures.
Menlo Ventures partner Shawn Carolan, who invested in the Uber and Jump Bikes, said collision companies and car dealerships that have worked with Kinetic as pilot customers helped really really to lead the deal.
“They said, ‘This cuts our cycle time by days.’ Or ‘We get the car back to the customer faster and cheaper,’ and ‘This makes my life easier,'” he explained. “So we know this has solved a tremendous pain point.”
Before starting Kinetic with co-founders, COO Chris Weber and CTO Sander Marques, Naikal worked as vice president of software engineering at Velodyne, a company that makes lidar sensors that enable robots, drones and autonomous vehicles to detect and avoid objects in space. surrounding environment. Velodyne joins Ouster in 2023.
Weber previously worked as an operations leader at Uber, while Marques is a re-engineering entrepreneur whose company previously developed engine control modules for high-performance vehicles.
Kinetik will provide services to robotaxi fleets, Naikal said, and other autonomous vehicle owners. But for now, the startup is focused on hiring, training technicians and building service centers across the U.S. to handle higher-volume auto repairs, especially electric vehicles that are growing into a larger share of cars on U.S. roads each year. .
To date, Kinetics has been the most commonly employed Ford Mach-E, GM Chevy Bolt, Hyundai Ioniq EVs, and some Teslas in the service hub there, the CEO said.
Market research firm Canalys estimates that sales of battery and plug-in hybrid electric vehicles will reach 2.2 million units by 2024 in North America, representing about 12.5% ​​of all new vehicle sales in the region.
“Motor vehicle insurance for EVs, and across the board, has been a major contributor to inflation rising like 20% when you look at the Consumer Price Index over the last 12 months,” Naikal said. “I’m hoping to break some points while making people more comfortable switching to electric.”