FedEx Corp. and Nuro have established a multi-year, multi-phase agreement to test autonomous deliveries for parcels.
The collaboration began with a pilot program in Houston and a new pilot will expand the operation into parcel logistics and allows for FedEx to explore other use cases for on-road autonomous vehicle logistics.
FedEx has branched out beyond traditional parcel deliveries and is looking to new technologies to improve efficiency and grow its business, including the use of drones for delivery as well as mobile robots.
FedEx said that these new paths are necessary because of the explosion in growth of e-commerce, which is not expected to slow down any time soon. Use of new technologies and automation will improve safety, efficiency and productivity, the company said.
Nuro has established itself as a leading vendor in autonomous delivery in the past year, signing deals with Chipotle for food deliveries, CVS for drug deliveries and Kroger for grocery deliveries. It also received $500 million in funding as well as additional money from Woven Capital, the investment firm of Toyota.