FedEx Tests Self-Driving Deliveries With Start-Up Nuro

Package delivery companies are looking to reduce costs of last-mile delivery.

By Euni Han | Jun 16, 2021
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FedEx is partnering with robotics company, Nuro, to deliver packages around Houston, .

The multi-year, multi-phase agreement follows a surge in last-mile delivery during the pandemic.

Last-mile refers to the last step of the delivery process from transportation hub to final destination; it’s also the most expensive part of the fulfillment chain.

Related: Emerging Supply Chain Trends Âé¶¹Éçs Need to Know About

The vehicles could improve efficiency for handling remote locations and late-night pickups.

Nuro’s Head of Partnerships, Cosimo Leipold, says the slow-moving units will offer cost-savings by providing “the biggest bang for your buck.”

FedEx’s Vice President for Advanced Technology and Innovation, Rebecca Yeung, says the “serious, long-term commitment” aims to reduce problems, not workers.

Related: IKEA, Lenovo Among Businesses with Products Still Stalled in the Suez Canal

“Instead of dispatching a driver to get those packages,” she , “a device like Nuro could be super helpful.”

The company’s unmanned vehicles are already making deliveries in the Houston area for grocery chain Kroger and Domino’s Pizza.

The Mountain View, California-based Nuro, which was founded in 2016, says the pilot program with FedEx has already started, and hopes the partnership will eventually lead to large-scale deployment for the logistics giant.

Related: Retail Will Never Go Back to Normal

FedEx is partnering with robotics company, Nuro, to deliver packages around Houston, .

The multi-year, multi-phase agreement follows a surge in last-mile delivery during the pandemic.

Last-mile refers to the last step of the delivery process from transportation hub to final destination; it’s also the most expensive part of the fulfillment chain.

Related: Emerging Supply Chain Trends Âé¶¹Éçs Need to Know About

The vehicles could improve efficiency for handling remote locations and late-night pickups.

Nuro’s Head of Partnerships, Cosimo Leipold, says the slow-moving units will offer cost-savings by providing “the biggest bang for your buck.”

FedEx’s Vice President for Advanced Technology and Innovation, Rebecca Yeung, says the “serious, long-term commitment” aims to reduce problems, not workers.

Related: IKEA, Lenovo Among Businesses with Products Still Stalled in the Suez Canal

“Instead of dispatching a driver to get those packages,” she , “a device like Nuro could be super helpful.”

The company’s unmanned vehicles are already making deliveries in the Houston area for grocery chain Kroger and Domino’s Pizza.

The Mountain View, California-based Nuro, which was founded in 2016, says the pilot program with FedEx has already started, and hopes the partnership will eventually lead to large-scale deployment for the logistics giant.

Related: Retail Will Never Go Back to Normal

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