Gatik Expands Autonomous Trucking to Texas - $85M Funding

Gatik AI Secures $85 Million Series B Funding for Autonomous Truck Expansion

Since emerging from stealth mode two years ago, Gatik AI, an autonomous vehicle startup, has been actively demonstrating the viability of self-driving technology integrated with box trucks for efficient short-haul freight transport.

Expanding Operations into Texas

The company is now extending its reach to Texas, marking its fourth operational market, supported by a new infusion of capital. Gatik announced on Tuesday the successful completion of an $85 million Series B funding round.

Koch Disruptive Technologies, the venture capital arm of Koch Industries, spearheaded the investment. Existing investors, including Innovation Endeavours, Wittington Ventures, FM Capital, Dynamo Ventures, Trucks VC, AngelPad, Intact Ventures, also participated in this round.

To date, Gatik has amassed a total of $114.5 million in funding.

Strategic Partnership with Koch Industries

“We are currently focused on scaling our operations and accelerating growth, and we believe Koch Industries will provide the greatest strategic benefit,” stated Gautam Narang, CEO and co-founder of Gatik, in a recent discussion.

Pilot Programs and Manufacturing Partnerships

Gatik has been conducting pilot programs with Walmart in Arkansas and Louisiana, and with Loblaw Companies Limited in Ontario, Canada, transporting goods efficiently.

In 2020, the company established a manufacturing collaboration with Isuzu, aiming for the large-scale production of medium-duty autonomous trucks by early 2023.

Focus on B2B Logistics

Gatik differentiates itself from other autonomous delivery companies by concentrating on business-to-business (B2B) logistics rather than direct-to-consumer deliveries.

The startup utilizes its autonomous trucks to move groceries and other merchandise from major distribution hubs to retail stores. For example, approximately five box trucks are currently employed by Gatik to serve Loblaw’s logistical needs.

Driverless Operations in Arkansas

On a specific route within Arkansas, Gatik has successfully eliminated the need for a human safety driver, signifying a move towards fully “driverless” operation for some of its autonomous box trucks.

The ultimate objective is to remove safety operators from its entire fleet of box trucks.

New Facility in AllianceTexas

Gatik has inaugurated an autonomous trucking facility within the AllianceTexas Mobility Innovation Zone, a sprawling 26,000-acre development in the Dallas-Fort Worth region dedicated to transportation and logistics innovation.

The company is presently transporting freight for several undisclosed clients in Texas, utilizing trucks built on Isuzu platforms.

Plans are in place to establish a presence in multiple cities throughout Texas.

Texas as a Hub for Autonomous Vehicle Technology

Gatik’s expansion into Texas aligns with the growing presence of other autonomous vehicle technology companies, including Aurora, Kodiak Robotics, TuSimple, and Waymo.

The decision to choose Texas was influenced by its role as a major international shipping center, a supportive regulatory framework for autonomous vehicle testing and deployment, and favorable weather conditions.

Narang also highlighted the diverse range of potential customers in Texas, enabling a multitenant operational model where a single truck can serve multiple clients throughout the day.

Future Growth and Expansion

The newly acquired funding will be allocated towards expanding the fleet of Class 3-6 multitemperature autonomous box trucks and increasing the company’s workforce, particularly in Texas.

Currently, Gatik’s team of approximately 70 employees is distributed across its headquarters in Palo Alto, its engineering center in Toronto, and its operational bases in Arkansas and Louisiana.

The company anticipates doubling its employee count to around 150 individuals within the next six to nine months.