Motional CEO on Autonomous Logistics

Motional Explores Expansion into Autonomous Trucking and Logistics

Motional, a $4 billion joint venture established by Aptiv and Hyundai, is currently evaluating potential participation in the autonomous trucking or logistics sectors. This was revealed by the company’s CEO during a live discussion at TechCrunch’s 2021 Mobility Event.

Karl Iagnemma explained that the fundamental technology developed by Motional is adaptable to various applications. He stated, “The core technology can, naturally, be applied to multiple use cases.” This comment came in response to a question from TechCrunch transportation editor Kirsten Korosec regarding Motional’s plans to broaden its business scope into the trucking industry.

Similarities and Differences in Autonomous Applications

While Motional maintains that the greatest economic potential lies in resolving the complex technological challenges of autonomy for passenger transport – specifically, the robotaxi model – Iagnemma acknowledged that the core issues remain consistent. These include perception, planning, decision-making, and localization, regardless of whether the focus is on moving people or goods.

Iagnemma further elaborated on the criteria for evaluating new ventures, stating, “We’re looking for a business opportunity that closely aligns with the technical aspects of our current development stack.” He emphasized that different use cases present varying business models and opportunities.

Strategic Considerations for Motional

The company prioritizes opportunities that require minimal incremental effort for maximum return. This internal ranking system guides Motional’s strategic direction. The goal is to identify applications where existing technology can be efficiently leveraged.

Aurora's Perspective on Freight vs. Robotaxis

Chris Urmson, co-founder and CEO of Aurora, another autonomous vehicle company, also participated in the panel. He conceded that automated ride-hailing and passenger transport will ultimately become a more transformative and larger business than trucking in the long run.

However, Aurora is presently concentrating on freight applications. Urmson explained this decision is based on the current feasibility of scaling operations. He noted, “The freight and trucking market is here today,” contrasting it with the longer development timeline for the robotaxi market.

Challenges and Opportunities in Autonomous Driving

Both panelists concurred that achieving full autonomy presents significant hurdles. Urmson suggested that solving the challenges in trucking might be somewhat easier than in urban environments. The relative predictability of freeway driving simplifies the initial development process.

“Once the initial technological challenges are overcome within a defined operational domain, expansion shifts from technological development to operational scaling,” Urmson stated. This transition allows for revenue generation and further investment in core technology, ultimately enabling expansion into ride-hailing services.

Scaling and Revenue Generation

Urmson believes that scaling a business and generating revenue through trucking allows for the continued refinement of core autonomous technology. This, in turn, will facilitate the development of a robust and compelling business model in the ride-hailing sector.