Like many companies, FedEx Corp. has been hampered by the nationwide labor shortage, which had a drastic effect on its earnings results in the first quarter. Its latest partnership, however, leans less on human workers — and more on automation.
FedEx is collaborating with Paccar, the Washington-based truck manufacturer, and Aurora Innovation Inc., the Pittsburgh-based self-driving vehicle technology company, to launch a commercial pilot test of autonomous trucks in linehaul trucking operations.
“FedEx was built on innovation, and we always anticipate what’s next to be future-ready,” said Rebecca Yeung, FedEx’s VP of advanced technology and innovation, in a press release. “This is an exciting, industry-first collaboration that will work toward enhancing the logistics industry through safer, more efficient transportation of goods."
Starting Sept. 22, Paccar’s autonomously-enabled trucks — which use the Aurora Driver, Aurora’s computer system that’s integrated into vehicles for autonomous driving — will haul FedEx loads between Dallas and Houston. It’s a 500-mile trip along Texas’ I-45 corridor, and the trucks are expected to operate autonomously, though there will be a backup driver present for safety.
“The foundation for commercializing self-driving trucks at scale lies in partnership with industry leaders,” Sterling Anderson, CPO and co-founder at Aurora, said in a company blog post. “PACCAR and FedEx are two of those leaders and we’re proud to be working with them to deliver on this important mission.”
The autonomous commercial endeavor comes roughly eight months after Aurora and Paccar announced a strategic partnership to run an "accelerated development program" aimed at making driverless-capable trucks — beginning with trucks from Paccar’s subsidiaries Peterbilt and Kenworth — which was reported by the Business Times' sister publication, the Silicon Valley Business Journal, in January.
For Aurora, it's the latest of several significant announcements out of the autonomous vehicle company in recent days and weeks.
On Sept. 21, Aurora unveiled a new prototype update of a Toyota Sienna minivan fitted with its Aurora Driver technology, which the company said will be used for ride-hailing purposes. Aurora also said that those ride-hailing services are now anticipated to be available to the public in late 2024. Testing of the new prototype will occur in Pittsburgh over the coming weeks and months as well as in the Bay Area and in Dallas, too.
Before that announcement, Aurora showed off on Sept. 13 its first commercial autonomous truck designed for the U.S. highway market and in partnership with the Sweden-based Volvo Group. It's the first of the Volvo VNL trucking fleet that is designed to operate with the Aurora Driver.
And on Sept. 9, the company officially declared the City of Pittsburgh to be its sole headquarters, dropping its dual headquarter status that it shared with the Steel City and Mountain View, California.
These developments and others come as Aurora prepares to go public toward the end of this year through a merger via a Special Purpose Acquisition Company, or SPAC, with Reinvent Technology Partners. According to a regulatory filing by RTP, the stock of the merged company is expected to be valued at about $21 per share, valuing the company at $11 billion, and is now most likely to occur in the fourth quarter.
