Aurora signs two carriers to launch autonomous freight

Quick Overview

• Aurora Innovation announced this week customer agreements with two carriers to launch driverless transportation: one is in Arizona, Value Truck, and the other is in Brampton, Ontario, Canada, Charger Logistics。
• The trucks used in both agreements will be equipped with Aurora's newly released second-generation autonomous trucks. Value Truck will use Aurora technology to transport goods more efficiently in the southwestern United States; Charger Logistics will add driverless capacity on the Dallas to Laredo route.
• Andy Khera, President and CEO of Charger Logistics, said in a statement on July 28 that autonomous trucks represent a transformative opportunity for the freight industry and expects this move to "improve asset utilization and enhance service reliability," noting that the route is one of the carrier's busiest freight corridors in the U.S.

Deep Insights

The technology company's customer agreements with Value Truck and Charger Logistics come just before its Q2 earnings report scheduled for Wednesday, and follow last week's launch of its latest generation autonomous trucks. The company said its second-generation autonomous trucks will be deployed in its commercial network, which covers 10 driverless routes in the U.S. Sun Belt, to serve more customers.

An Aurora spokesperson said in an email to Trucking Dive that Aurora will own and operate these trucks, providing capacity to Value Truck and Charger Logistics through "Technology-as-a-Service" agreements. These are full commercial contracts with fixed pricing and volumes.

According to Aurora, for both customers, routes will initially have supervised operations in Q3, with a transition to daily driverless operations of its second-generation autonomous trucks expected in Q4.

Joe Skoog, CEO of Value Truck, said its future driverless routes will initially include Phoenix to Fort Worth and Laredo to Dallas, but the July 27 press release did not disclose the number of trucks to be deployed. "The Aurora Driver will add flexible capacity on key long-haul corridors while allowing our drivers to focus on areas where they have the most experience," Skoog said in the announcement.

According to the press release, Aurora's initial two-route agreement with Value Truck allows the carrier's drivers to focus on local freight and adds the potential for 24/7 capacity on key long-haul and high-volume routes.

Khera said autonomous trucks will enhance Charger Logistics' capacity, especially for customers transporting temperature-controlled, pharmaceutical, and other critical goods on its Dallas to Laredo lane, one of its busiest lanes in the U.S. Sun Belt.

Aurora did not disclose the number of trucks used in the contract with Charger Logistics. A company spokesperson said in an email that the company does not disclose truck counts for any customer contracts.

Aurora's agreements with Value Truck and Charger Logistics are another step for the autonomous technology company in deploying its technology through carrier partners. The company announced in April an expansion of its partnership with Hirschbach Motor Lines , where the refrigerated carrier will own 500 driverless trucks operated by Aurora technology. Subsequently, in May, Aurora announced new driverless routes with Volvo Autonomous Solutions and food distributor McLane Company .

Using autonomous trucks for longer hauls and less desirable routes is a primary reason Hirschbach and McLane Company are turning to driverless technology. Richard Stocking, President and CEO of Hirschbach, noted in a statement that the technology provides drivers with greater flexibility, and expanding the use of driverless trucks is an investment in the quality of life for its employees. Meanwhile, Susan Adzick, President of McLane Restaurant, said in a statement that autonomous technology helps the company achieve greater efficiency in the supply chain and allows drivers to focus on customer-facing last-mile delivery.

When launching the new generation of trucks, Aurora co-founder and CEO Chris Urmson said in a statement that the company's latest platform lays the foundation for scaled delivery. He added that its latest fleet will use International LT series tractors equipped with the company's next-generation hardware.

Through its manufacturing supplier partner Roush, Aurora aims to achieve an annual production run rate of 1,000 trucks later this year.

"Deploying our second-generation trucks enables us to put hundreds of autonomous trucks on the road and ultimately deliver to more customers," Urmson said in the press release.