Aurora signs two carriers to launch autonomous freight

Quick Look

• Aurora Innovation announced this week customer agreements with two carriers to begin driverless trucking operations: Value Truck in Arizona and Charger Logistics in Brampton, Ontario, Canada.
• The trucks used in both agreements will be equipped with Aurora's newly released second-generation driverless trucks. Value Truck will use Aurora's technology to transport goods more efficiently in the Southwest, while Charger Logistics will use driverless trucks to add capacity on the Dallas-to-Laredo route.
• Andy Khera, president and CEO of Charger Logistics, said in a July 28 statement that autonomous trucking is a transformative opportunity for the freight industry and expects it to "improve asset utilization and enhance service reliability," especially on one of its busiest U.S. freight corridors.

Deep Dive

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

Aurora will own and operate the trucks, contracting them to Value Truck and Charger Logistics under "Truck-as-a-Service" agreements, an Aurora spokesperson said in an email to Trucking Dive. These are full commercial contracts with fixed pricing and volume.

For both customers, routes will initially begin supervised operations in Q3, with Aurora expecting to transition to daily driverless operations with its second-generation trucks in Q4, according to Aurora.

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

Aurora's initial two-route agreement with Value Truck enables the carrier's drivers to focus on local freight and potentially achieve 24/7 capacity on key long-haul and high-volume routes, according to the press release.

Khera said autonomous trucks will enhance Charger Logistics' capacity, especially for customers shipping 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 Charger Logistics contract. A company spokesperson said in an email that the company does not disclose truck counts for any customer contract.

Aurora's agreements with Value Truck and Charger Logistics are further steps for the autonomous technology company to deploy its technology through carrier partnerships. In April, the company announced an expanded partnership with Hirschbach Motor Lines, where the refrigerated carrier will own 500 driverless trucks operated by Aurora's technology. Then in May, Aurora announced a new driverless route in partnership with Volvo Autonomous Solutions and food distributor McLane Company.

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

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

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

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