FedEx to Test Aurora Self-Driving Trucks - Dallas to Houston

FedEx Initiates Autonomous Trucking Pilot Program

FedEx has begun utilizing self-driving trucks for freight transport between Dallas and Houston. This initiative is part of a collaborative pilot program involving autonomous vehicle technology firm Aurora and commercial vehicle manufacturer Paccar.

Route and Operational Details

Paccar trucks, outfitted with Aurora's autonomous driving system, will operate the approximately 500-mile route along Interstate 45 on a recurring weekly basis. These vehicles will function autonomously, but will maintain a safety driver as a precautionary measure.

Aurora's Progress and Business Goals

This partnership signifies further advancement for Aurora in its pursuit of launching a fully autonomous trucking service. The company aims to achieve driverless freight hauling between terminals by the close of 2023.

The announcement coincides with a series of recent updates from Aurora leading up to a shareholder vote regarding its merger with Reinvent Technology Partners Y, a special purpose acquisition company (SPAC).

Financial Implications of the Merger

Upon completion of the merger, the resulting publicly traded company, listed on Nasdaq under the symbol AUR, is projected to have an implied valuation of $13 billion. Aurora was previously valued at $10 billion following its acquisition of Uber's self-driving division.

Pilot Program Objectives

According to Sterling Anderson, co-founder and CPO of Aurora, the pilot program is focused on evaluating and understanding necessary modifications to the trucks themselves. This includes integrating the autonomous system and associated cloud services with FedEx's existing operational infrastructure.

The initial phase of the pilot will involve a limited number of trucks. Anderson explained that starting with a small fleet allows for focused refinement of the product and user interface.

Future Expansion and Driverless Capabilities

Currently, there is no defined end date for the pilot program. Anderson anticipates its evolution and expansion beyond the initial Dallas-Houston route as Aurora progresses towards a fully driverless capable product.

Previous Collaboration and Strategic Partnerships

This pilot program builds upon a strategic agreement announced earlier in the year between Aurora and Paccar. This earlier collaboration focused on the development, testing, and eventual commercialization of autonomous Peterbilt and Kenworth trucks.

FedEx's Investment in Automation

This partnership demonstrates FedEx's growing interest in autonomous and robotic solutions. The company is experiencing consistently high delivery volumes, driving the need for innovative logistical approaches.

In June, FedEx announced a multi-year partnership to integrate and test Nuro's next-generation autonomous delivery vehicle into its operations.