Waabi and Volvo Partner for Self-Driving Truck Development

Waabi and Volvo Collaborate on Autonomous Truck Development

Waabi, a self-driving truck technology firm, is establishing a partnership with Volvo Autonomous Solutions to collaboratively develop and implement autonomous trucking solutions. This collaboration signifies a crucial step forward as Waabi approaches the stage of commercial deployment.

Volvo's Expanding Autonomous Vehicle Partnerships

This venture represents Volvo’s second strategic alliance focused on the co-development of self-driving heavy-duty trucks with a startup. Previously, in May 2024, Volvo joined forces with Aurora Innovation to unveil the Volvo VNL Autonomous truck.

Leveraging Existing Technology

The trucks utilized in this partnership will be based on the existing Volvo model, but will be equipped with Waabi’s complete technology stack. This includes the advanced sensor suite, powerful compute platform, and the core Waabi Driver software.

A Capital-Efficient Path to Market

“We now possess all the necessary components to effectively scale our product,” stated Raquel Urtasun, founder and CEO of Waabi, in an interview with TechCrunch. “We have next-generation AV 2.0 technology, a highly capital-efficient strategy, and a significantly accelerated route to market.”

Pilot Programs and Future Deployment

Waabi intends to initiate commercial pilot programs utilizing the Volvo-manufactured trucks in Texas within the coming months. The company is targeting a fully driverless demonstration on public roads by the end of 2025.

Following this, a full-scale driverless commercial launch – operating directly between customer facilities without intermediary terminals – is anticipated shortly thereafter, according to Urtasun.

OEM Flexibility

The founder clarified that the initial driverless launch may not necessarily be exclusively with Volvo vehicles, leaving open the possibility of collaboration with other Original Equipment Manufacturers (OEMs).

AI-Driven Approach to Autonomous Driving

Urtasun, formerly the chief scientist at Uber ATG before founding Waabi in 2021, asserts that her team has developed AI models capable of reasoning with human-like intelligence. This approach is designed to expedite commercial deployment and enhance overall system efficiency.

She posits that superior AI quality necessitates less data and computational power to interpret and respond to the surrounding environment.

Simulation and OEM Integration

Waabi has heavily relied on its simulation technology not only for testing and training its self-driving systems, but also for facilitating the design of trucks optimized for seamless OEM integration. The company debuted its first purpose-built truck – featuring integrated sensors, compute, and software – during the assembly process in 2022.

A Distinct Integration Strategy

In contrast to Kodiak Robotics, which offers a self-driving system as a standalone package, Waabi prioritizes integrating the Waabi Driver directly into autonomous trucks during the factory assembly process, minimizing disruption to existing OEM production lines.

Urtasun firmly believes this approach is paramount to building a safe and dependable product.

Building on Existing Investment

This partnership with Volvo is a natural progression from the automaker’s earlier strategic investment in Waabi through its venture capital arm, Volvo Group Venture Capital. Volvo subsequently participated in Waabi’s $200 million Series B funding round.

Production and Scaling

Volvo will manufacture trucks for Waabi at its advanced production facility in Virginia. Urtasun anticipates the first “handful” of trucks rolling off the assembly line in 2025, with a projected timeline of two to three years to achieve volume production.

Capital Efficiency as a Key Factor

Over this period, Urtasun emphasized that capital efficiency will be “absolutely critical” for success in the autonomous trucking sector. She believes Waabi’s “AI-first approach” will significantly reduce the capital required to achieve a driverless launch, representing “a tiny fraction” of the industry average.

Funding and Competition

To date, Waabi has secured $282 million in funding, according to PitchBook data, and Urtasun confirms the company has sufficient resources to launch driverless operations on public roads and beyond. Its primary competitors, Aurora and Kodiak, have raised $3.46 billion and $243 million, respectively.

Aurora is planning a driverless commercial trucking launch in April, while Kodiak recently delivered its first autonomous trucks to a commercial partner for off-road applications.

A Pivotal Year for the Industry

“2025 is the defining year for trucking; it’s a critical juncture,” Urtasun stated. “I anticipate potential further consolidation within the industry.”

A Shrinking Competitive Landscape

The number of active players in the autonomous trucking space has diminished following the closures of Embark and TuSimple, and the pause in Waymo’s autonomous truck program.

Remaining Independent

When questioned about the possibility of a merger or acquisition, Urtasun responded emphatically: “Absolutely not. Trucking is merely the initial step. We have far broader ambitions – robotaxis, warehouse robotics. I have extensive plans for the company, and we will remain a fully independent entity.”

Note: This article has been updated to reflect the possibility that Waabi’s driverless launch may not be exclusively with Volvo-built trucks.