self-driving trucks
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Tire-making giant Bridgestone has taken a minority stake in Kodiak Robotics, the Silicon Valley-based startup developing autonomous trucks, as part of a broader partnership to test and develop smart tire technology.
While the terms of the deal weren’t disclosed, Kodiak Robotics co-founder and CEO Don Burnette told TechCrunch that this is a direct financial investment. Bridgestone CTO Nizar Trigui has also joined the Kodiak board as an observer.
The deal involves more than capital. The two companies have also formed a strategic partnership focused on advancing Bridgestone’s tire tech and fleet management system. Kodiak will use Bridgestone’s sensor-laden tires and fleet management system on its self-driving trucks, which are used to carry freight between Dallas and Houston as part of its testing program. The company recently said it is expanding its freight carrying pilots to San Antonio. Kodiak also tests its self-driving trucks — always with a safety operator behind the wheel — in and around Mountain View, California.
Semi-trucks travel 100,000 to 150,000 miles a year, Burnette said, adding that tire integrity and tire monitoring are integral to the safety of trucking, whether they’re driven by a human or computer.
“Safety of an autonomy system ultimately comes down to our ability to manipulate the tires that touch the road when you are accelerating or braking or steering,” Burnette said. “You need to be able to rely on your tires to actually perform the way they are expected to perform, otherwise your safety envelope is not necessarily guaranteed.”
Kodiak will use these smart tires to monitor pressure, temperature and even measure the loads on the wheels, which plays a role in vehicle dynamics and maneuverability. Kodiak will share the data it collects with Bridgestone, which the company can use to improve the chemistry of its tires.
Tire companies like Bridgestone already collect basic information from telematics providers that helps determine where trucks are driven, what types of roads they use as well as tire pressure and temperature. Predictive models are then developed based on that data. Autonomous vehicle companies bring an added value to tire companies, Burnette noted. Kodiak’s self-driving trucks are loaded with sensors of their own, which allows the company to collect massive amounts of driving data that can help Bridgestone understand exactly how its tires are being used.
“Autonomy providers like Kodiak have all of the raw data specifically on how the trucks are being driven,” he said. “We know what the forces are, we know what the steering is, we know what the braking pressures that were being commanded in real time. And so we can gather a wealth of data that has never been previously possible to collect for companies like Bridgestone.”
This allows Bridgestone to build predictive models that will more accurately be able to predict the eventual lifetime and also possibly give warnings to when tires may fail out of field. “And that’s ultimately what Kodiak is really interested in,” Burnette added.
The news follows Kodiak’s announcement in May that it was partnering with South Korean conglomerate SK to explore the possibility of deploying its autonomous vehicle technology in Asia. The ultimate aim of the SK partnership is to sell and distribute Kodiak’s self-driving technology in the region. Kodiak will examine how it can use SK’s products, components and technology for its autonomous system, including artificial intelligence microprocessors and advanced emergency braking systems. Both companies have also agreed to work together to provide fleet management services for customers in Asia.
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Gatik, the autonomous vehicle startup focused on the “middle mile,” is already using its self-driving box trucks to deliver customer online grocery orders for Walmart. Now, the company — freshly stocked with $25 million in Series A funding — is expanding up into Canada with a partnership with retail giant Loblaw.
Gatik said Monday that five autonomous box trucks in Toronto will be used to deliver goods for Loblaw starting in January 2021. The fleet will be used seven days a week on five routes along public roads. All vehicles will have a safety driver as a co-pilot. This deployment, which follows a 10-month pilot in the Toronto area, marks the first autonomous delivery fleet in Canada.
“As more Canadians turn to online grocery shopping, we’ve looked at ways to make our supply chain more efficient. Middle-mile autonomous delivery is a great example,” Loblaw Digital senior vice president Lauren Steinberg said in a statement. “With this initial rollout in Toronto, we are able to move goods from our automated picking facility multiple times a day to keep pace with PC Express online grocery orders in stores around the city.”
Unlike other autonomous delivery companies, Gatik isn’t targeting consumers. Instead, the startup is using its autonomous trucks to shuttle groceries and other goods from large distribution centers to retail locations. For Loblaw, the company will equip Ford Transit 350 box trucks with refrigeration units, lift gates and its autonomous self-driving software.
“Retailers know the biggest inefficiencies in their logistics operations often exist in the middle-mile, typically between automated picking facilities and retail locations,” Gatik CEO and co-founder Gautam Narang said in a statement. “This is where Gatik lives and succeeds, and is the reason we’re able to offer immediate value to our customers. We are delighted to partner with Loblaw in addressing this critical piece of their supply chain.”
Gatik’s “middle mile” B2B focus has attracted customers like Walmart, as well as investors, including Wittington Ventures and Innovation Endeavors, which co-led the company’s Series A round. FM Capital and Intact Ventures, along with existing investors Dynamo Ventures, Fontinalis Partners and AngelPad also participated in the round that was announced alongside the Loblaw partnership. Gatik has raised $29.5 million to date.
The company said it plans to use the funding to build out operations across North America and hire more employees at its Palo Alto, California and Toronto facilities. Narang said Gatik is also pushing to expand its retail partnerships and fleet deployments.
“Throughout the year we saw an increase of 30% to 35% in orders from our customer base, and we expect this trend to continue,” Narang said. “We will continue to bring autonomous delivery into the mainstream, driving substantial efficiencies in supply chain logistics for retailers across North America and beyond.”
Gatik said it has completed more than 30,000 revenue-generating autonomous orders for multiple customers across North America.
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TuSimple, the self-driving truck startup backed by Sina, Nvidia, UPS and Tier 1 supplier Mando Corporation, is headed back into the marketplace in search of new capital from investors. The company has hired investment bank Morgan Stanley to help it raise $250 million, according to multiple sources familiar with the effort.
Morgan Stanley recently sent potential investors an informational packet, viewed by TechCrunch, that provides a snapshot of the company and an overview of its business model, as well as a pitch on why the company is poised to succeed — all standard fare for companies seeking investors.
TuSimple declined to comment.
The search for new capital comes as TuSimple pushes to ramp up amid an increasingly crowded pool of potential rivals.
TuSimple is a unique animal in the niche category of self-driving trucks. It was founded in 2015 at a time when most of the attention and capital in the autonomous vehicle industry was focused on passenger cars, and more specifically robotaxis.
Autonomous trucking existed in relative obscurity until high-profile engineers from Google launched Otto, a self-driving truck startup that was quickly acquired by Uber in August 2016. Startups Embark and the now defunct Starsky Robotics also launched in 2016. Meanwhile, TuSimple quietly scaled. In late 2017, TuSimple raised $55 million with plans to use those funds to scale up testing to two full truck fleets in China and the U.S. By 2018, TuSimple started testing on public roads, beginning with a 120-mile highway stretch between Tucson and Phoenix in Arizona and another segment in Shanghai.
Others have emerged in the past two years, including Ike and Kodiak Robotics. Even Waymo is pursuing self-driving trucks. Waymo has talked about trucks since at least 2017, but its self-driving trucks division began noticeably ramping up operations after April 2019, when it hired more than a dozen engineers and the former CEO of failed consumer robotics startup Anki Robotics. More recently, Amazon-backed Aurora has stepped into trucks.
TuSimple stands out for a number of reasons. It has managed to raise $298 million with a valuation of more than $1 billion, putting it into unicorn status. It has a large workforce and well-known partners like UPS. It also has R&D centers and testing operations in China and the United States. TuSimple’s research and development occurs in Beijing and San Diego. It has test centers in Shanghai and Tucson, Arizona.
Its ties to, and operations in China can be viewed as a benefit or a potential risk due to the current tensions with the U.S. Some of TuSimple’s earliest investors are from China, as well as its founding team. Sina, operator of China’s biggest microblogging site Weibo, is one of TuSimple’s earliest investors. Composite Capital, a Hong Kong-based investment firm and previous investor, is also an investor.
In recent years, the company has worked to diversify its investor base, bringing in established North American players. UPS, which is a customer, took a minority stake in TuSimple in 2019. The company announced it added about $120 million to a Series D funding round led by Sina. The round included new participants, such as CDH Investments, Lavender Capital and Tier 1 supplier Mando Corporation.
TuSimple has continued to scale its operations. As of March 2020, the company was making about 20 autonomous trips between Arizona and Texas each week with a fleet of more than 40 autonomous trucks. All of the trucks have a human safety operator behind the wheel.
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San Francisco-based autonomous trucking company Starsky Robotics announced this morning that it’s closed a $16.5 million Series A, led by Shasta Ventures. The news comes as the company also announced that it recently completed a seven-minute drive on a closed course without a single human in the truck. Read More
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