FedEx Corp. and Nuro have announced a multi-year, multi-phase agreement to test Nuro’s next-generation autonomous and electric delivery vehicle within FedEx’s operations. The collaboration launched in April with a pilot program in Houston, marking Nuro’s expansion into parcel logistics. It allows FedEx to explore various use cases for on-road autonomous vehicle logistics including multi-stop and appointment-based deliveries.
The Nuro pilot is the latest addition to the FedEx portfolio of autonomous same-day and specialty delivery devices. Others include the Roxo SameDay Bot developed in collaboration with DEKA Research & Development Corp., which travels at moderate speeds along roadsides and on sidewalks to deliver smaller shipments safely to customers at their homes and businesses.
The exponential growth of e-commerce has accelerated the demand for reliable, autonomous solutions throughout all stages of the supply chain, says FedEx.
“FedEx was built on innovation, and it continues to be an integral part of our culture and business strategy,” said Rebecca Yeung, Vice President, Advanced Technology and Innovation, FedEx Corp. “We are excited to collaborate with an industry leader like Nuro as we continue to explore the use of autonomous technologies within our operations.”
Nuro has been developing and testing its self-driving technology for nearly five years, which has included on-road deployment in multiple cities and industry-first regulatory approvals. The company has established partnerships with leaders in grocery, restaurant, and pharmacy verticals.
“This multi-year commitment will allow us to truly collaborate and bring Nuro’s powerful technology to more people in new ways and eventually reach large-scale deployment,” said Cosimo Leipold, Nuro’s head of partnerships. “Our collaboration will enable innovative, industry-first product offerings that will better everyday life and help make communities safer and greener.”
The FedEx collaboration is a major step for Nuro in entering parcel logistics.
“That’s why we are thrilled to announce our new partnership with the global leader in logistics,” wrote Nuro Co-founder Dave Ferguson in a Medium post about the FedEx partnership.
“This is a new kind of deal for our industry,” he said. “It is a strategic partnership with significant commitments on both sides, targeted use cases and markets, and ambitious scale.”
In testing with FedEx in Houston, Nuro is learning about the operation and getting feedback. It believes its technology can help improve the daily experience of FedEx’s team members, taking on inefficient deliveries, finding new ways to move parcels, and adding new capacity to support rapidly growing demand—all while delivering at the most convenient times for FedEx’s customers.
“Over time, we’ll test and deploy Nuro’s robots together and grow to a scale that will be transformative for logistics and for everyday life,” added Ferguson.
Nuro has been on a mission to transform local commerce through autonomous delivery, starting with its first tests delivering Kroger groceries in Scottsdale in 2017 and its recent high-profile partnership with Dominos for pizza deliveries in Houston. Among Nuro’s most recent high-profile investors, as a part of its Series C round of funding, were Toyota’s Woven Capital, L.P. and Chipotle Mexican Grill.
“The company is primed for success in a post-Covid world, where secure, user-friendly delivery is prized by consumers,” said George Kellerman, Managing Director, Woven Capital.
“Nuro could change the traditional delivery model and we believe consumers are going to continue to seek options and additional access points for how and where they enjoy their food,” added Curt Garner, Chief Technology Officer, Chipotle.
Nuro’s current and second-generation vehicle, the R2 launched in 2020, retains the unique design and key characteristics—including zero-emission propulsion—of the R1 from 2017. However, it has an extended lifespan, more cargo space, and can handle more varied conditions at a greater, city-wide scale.
Rather than custom-making each vehicle as with the R1, Nuro partnered with Roush to design and assemble the more durable R2 vehicle to better handle inclement weather and introduce temperature control to keep food fresh.
It has two-thirds more compartment space at 22.38 ft³ (633 L) while retaining a vehicle width of 1.10 m (3.6 ft), with a 190-kg (418-lb) payload. The 1150-kg (2535-lb) R2 uses a custom battery solution of 31 kW·h, enabling all-day operation.
The R2 is designed to keep what’s outside the vehicle safer than what’s inside, says Nuro. The vehicle’s top speed is limited to 25 mph (40 km/h), and it has redundant braking and control systems, a touchscreen for customer access and law-enforcement interaction, and a sound generator for pedestrian safety. Its sensor array, which includes both supplier-provided and in-house sensors, includes 360-degree overlapping cameras, a thermal-imaging camera, LiDAR, short- and long-range radar, ultrasonics, and emergency-vehicle audio detection.
The company applied and was approved for regulatory exemptions from the U.S. NHTSA for its vehicle due to its zero-occupant design. The exemptions allowed the company to replace the mirrors for human drivers with cameras and other sensors and remove the windshield meant to let human drivers see out with a specially designed panel that absorbs energy to better protect pedestrians.
