Gatik, the autonomous vehicle company specializing in the “middle mile” logistics sector, is currently utilizing its self-driving box trucks to fulfill online grocery orders for Walmart customers. The company has now broadened its reach into Canada through a new collaboration with major retailer Loblaw, following a recent $25 million Series A funding round.

Gatik announced on Monday that a fleet of five autonomous box trucks will begin delivering goods for Loblaw in Toronto starting in January 2021. These vehicles will operate seven days a week across five designated routes on public roads, each accompanied by a safety driver. This implementation builds upon a successful 10-month pilot program in the Toronto region and represents the inaugural autonomous delivery fleet operating within Canada.

“With the growing popularity of online grocery shopping among Canadians, we’ve been exploring methods to enhance the efficiency of our supply chain. Autonomous middle-mile delivery provides an excellent solution,” stated Lauren Steinberg, Senior Vice President of Loblaw Digital. “This initial launch in Toronto allows us to transport merchandise from our automated fulfillment center multiple times daily, ensuring we can meet the demands of PC Express online grocery orders at stores throughout the city.”

Distinguishing itself from other autonomous delivery services, Gatik concentrates on business-to-business logistics rather than direct consumer delivery. The company’s autonomous trucks are designed to transport groceries and other products between large distribution centers and retail stores. In the case of Loblaw, Gatik will integrate Ford Transit 350 box trucks with refrigeration units, lift gates, and its proprietary autonomous driving software.

“Retailers frequently identify significant inefficiencies within their logistical processes, particularly in the middle-mile segment – the transportation between automated picking facilities and retail locations,” explained Gautam Narang, CEO and co-founder of Gatik. “Gatik’s core expertise and success lie in this area, enabling us to deliver immediate benefits to our clients. We are pleased to collaborate with Loblaw to address this vital aspect of their supply chain.”

Gatik’s focus on the “middle mile” B2B market has attracted both customers, such as Walmart, and investors. Wittington Ventures and Innovation Endeavors jointly led the company’s Series A funding round, with participation from FM Capital, Intact Ventures, and existing investors Dynamo Ventures, Fontinalis Partners, and AngelPad. To date, Gatik has secured $29.5 million in funding.

The company intends to utilize these funds to expand its operations throughout North America and increase its workforce at its facilities in Palo Alto, California, and Toronto. Narang also indicated that Gatik is actively seeking to broaden its partnerships with retailers and increase the size of its autonomous vehicle fleet.

“Throughout the past year, we observed a 30% to 35% increase in order volume from our customer base, and we anticipate this trend will persist,” Narang noted. “We remain committed to integrating autonomous delivery into mainstream logistics, generating substantial efficiency gains for retailers across North America and beyond.”

Gatik reports having successfully completed over 30,000 revenue-generating autonomous delivery orders for a diverse range of customers across North America.