Is FedEx building out a team of autonomous sidekicks for its same-day delivery bot, Roxo?
In June, the delivery services giant announced it had signed a multiyear, multiphase agreement with Nuro Inc. — the California-based autonomous vehicle company — to test its autonomous delivery vehicle.
Then, in September, FedEx revealed it was collaborating with Paccar, the Washington-based truck manufacturer, and Aurora, the California-based self-driving vehicle technology company, to launch a commercial pilot test of autonomous trucks in line haul trucking operations.
And on March 30, FedEx continued that trend with its latest announcement: its largest subsidiary, FedEx Express, will test autonomous air delivery drones.
The company has partnered with South San Francisco-based Elroy Air, which is developing autonomous aircraft systems and software. FedEx Express is expected to test Elroy's signature product, the Chaparral, an autonomous vertical takeoff and landing (VTOL) aerial cargo system that can lift 300 to 500 pounds, and carry it up to 300 miles.
It’s also capable of flights without the need for additional infrastructure, like airports or charging stations.
“FedEx was built on innovation, and we are always looking toward new technologies to help enhance the logistics industry through improved safety, efficiency, and customer service,” said Joe Stephens, FedEx Express SVP of global planning, engineering, and technology, in a press release. “We look forward to continued testing and learning throughout our collaboration with Elroy Air.”
According to MBJ’s sister publication the San Francisco Business Chronicle, the Chaparral is a Cessna-sized hybrid-electric VTOL, and it took its first test flight in the summer of 2019. Elroy Air has 53 total employees, and in August 2021, it completed a $40 million seed funding round.
FedEx began working with Elroy Air in January 2020, and the company expects to begin flight testing in 2023. It will test the Chaparral in FedEx Express’ middle-mile logistics operations, moving shipments between sorting locations.
The announcement comes amid explosive growth of e-commerce. From March 2020 to February 2022, U.S. consumers spent $1.7 trillion online, according to the Adobe Digital Economy Index; and FedEx maintains that the surge has accelerated demand for efficient transportation and logistics solutions throughout all stages of the supply chain.
FedEx detailed the partnership just two days after it revealed that founder Fred Smith would step down from the CEO role this summer, with president and COO Raj Subramaniam taking over the position. Smith will remain executive chairman.
