Ford and Google agreed to a six-year partnership that will see the tech giant integrate its operating systems into the automaker's Ford and Lincoln vehicles, beginning in 2023. Google will become Ford's main provider of cloud technology and connected vehicle services. Both companies will establish a new group called Team Upshift, where employees will leverage shared data to develop new services for Ford's customers.

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• Ford will use Google's artificial intelligence technology to "improve the efficiency of vehicle development, supply chain and manufacturing operations."
• Ford intends to use Google's technology to streamline its operations and accelerate Ford CEO Jim Farley's $11B global restructuring plan.
• Farley said the deal was worth "hundreds of millions of dollars," but wouldn't specify the exact amount.
• The agreement isn't exclusive, and both companies will be allowed to partner with other tech companies and automakers.
• Since Farley took over as CEO in October 2020, Ford's share price has risen by 60%.

United Airlines could furlough 14,000 employees once the second round of federal aid expires on March 30. In December, Congress approved $15B in payroll support for airlines as part of a $900B stimulus package.

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• In October, United furloughed more than 13,000 employees after $25B in federal payroll support expired.
• The furlough warnings are a clear sign that the airline industry is still pessimistic about the COVID-19 recovery.
• U.S. companies are legally obligated to issue furlough warnings two months in advance, however, it isn't guaranteed that United will layoff its employees.
• The Association of Flight Attendants-CWA has urged the Biden administration and Congress to approve a third round of federal payroll support that would maintain jobs until Sept. 30.
• U.S. airlines lost a combined $34B last year with United Airlines reporting a net loss of $1.9B in Q4 and $7.1B in all of 2020.

Space startup Astra will merge with the Holicity SPAC to go public at a $2.1B valuation. The deal will generate $500M for Astra. It has raised $100M since its inception in 2016 from investors such as Salesforce CEO Marc Benioff.

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• Astra is a California-based company that builds 40 feet tall rockets capable of carrying small orbital payloads up to 100kg.
• Its Rocket 3.2 successfully reached space in December.
• Astra has $150M of "booked launch revenue under contract" from 10 major customers, including NASA and the Pentagon.
• It charges up to $3M per launch, compared to Rocket Lab and Space X, which charge $13M and $60M, respectively. It's important to note Astra's rockets have a smaller cargo capacity.
• By the end of 2021, Astra is planning to launch rockets every month. It hopes to launch rockets daily by 2025.

American Airlines authorized a $1.1B stock sale on Friday to boost liquidity. Last October, American Airlines approved a $1B stock sale, and so far, it has sold $882.4 million at $12.87 a share.

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• American Airlines shares surged last week after it was mentioned in the WallStreetBets Reddit forum. It's currently the most shorted airline stock in the U.S.
• American Airlines was hit badly by the pandemic as it lost a record $8.9B in 2020 and $2.2B in Q4.
• The company forecast that revenue this month will drop by 60%-65% compared to 2019.

Other related news:

• American Airlines CEO Doug Parker warned employees to prepare for another round of layoffs once the federal aid expires on March 30.
• American furloughed 19,000 employees in October but began recalling them in December once Congress approved a second stimulus package.

Private jet startup Wheels Up will merge with a SPAC to go public at a $2.1B valuation. The Aspirational Consumer Lifestyle Corp SPAC will provide Wheels up with $550M. An additional $240M will come from "private investment in public equity" (PIPE). The deal will close in Q2.

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• Wheels Up is the second-largest U.S. based private jet operator behind NetJets.
• It has access to at least 1,500 aircraft and flew more than 150,000 passengers last year. It is aiming to become the Uber or Airbnb of private jets.
• Commercial airline traffic is 65-70% below pre-pandemic levels, however, demand for private jets has nearly recovered from the COVID-19 pandemic.
• Wheels Up forecasts it earned $690M in revenue last year, up from $385M in 2019.
• Delta Air Lines owns a minority stake in Wheels Up after it sold its private jet business to the company last year.

A version of this story first appeared in Inside VC. You can read the full issue here.

Uber announced it will acquire online alcohol delivery service Drizly for $1.1B. 90% of the transaction will be financed with Uber stock, with the remaining coming from cash. The deal is on track to close in the first six months of 2021.

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• Uber will integrate Drizly into its Uber Eats app while also allowing it to operate a separate app.
• Drizzly has been called the "Uber for alcohol delivery." It has raised $119.6M since its inception in 2012.
• It operates in at least 1,400 cities across North America and gross bookings have grown by more than 300% YoY.
• Last year, Uber acquired the food delivery service Postmates for $2.6B. It attempted to acquire GrubHub, but the deal fell through after regulators expressed concerns it would reduce competition.

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• Singapore-based ride-hailing/delivery company Grab increased the size of its term loan to $2B, from $750M. The company will now have approximately $5B in cash on hand.
• SpaceX will launch billionaire Jared Isaacman into space aboard its Crew Dragon capsule. No professional astronauts will be aboard the flight and Isaacman intends to donate the three remaining seats.
• UPS' revenue surged by 21% to $24.9B in Q4, after e-commerce sales surged during the holidays. It posted a $3.2B loss.
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