Nuro’s Street-Legal Bots To Deliver Packages For FedEx

FedEx and autonomous driving tech developer Nuro are launching a “long-term” partnership that will use its small robotic vehicles that look a bit like toasters on wheels to handle last-mile parcel deliveries. 

“It’s a strategic partnership with significant commitments on both sides, targeted use cases and markets, and ambitious scale,” Nuro said in a blog post. “We’ve already begun testing with FedEx in Houston, learning about their operations and getting their feedback. 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.”

The program is an expansion for Nuro into same-day parcel deliveries from groceries and food orders. Initial testing began in Houston in April, according to FedEx. Neither it nor Nuro is sharing financial details of the project, or precisely how many delivery vehicles will be involved.

Founded by two former members of Google’s self-driving car project, Nuro is among the best-funded autonomous tech developers, securing more than $1.4 billion in investment rounds led by Toyota’s Woven Capital, Softbank and Greylock Management. Unlike competing self-driving tech programs at Alphabet’s Waymo and GM-backed Cruise, Nuro focuses solely on deliveries and logistics, rather than robotaxis. Its electric R2 vehicle, designed to haul packages, groceries and food orders for companies including Walmart, Kroger and CVS, is about half the size of a conventional car and travels at relatively low speed. It was the first driverless vehicle to receive U.S. approval to operate on public streets without conventional driving controls, such as a steering wheel and brake and accelerator pedals. The FedEx program follows Nuro’s start of a pizza delivery pilot with Domino’s, also in Houston. 

Memphis-based FedEx said the growth of e-commerce led it to explore “autonomous solutions” throughout its delivery operations. In 2019, the delivery giant said it was testing a delivery robot developed with inventor Dean Kamen, creator of the electric Segway scooter.

The Nuro program will test multiple stops and appointment-based deliveries, FedEx said.

The company was “built on innovation, and it continues to be an integral part of our culture and business strategy,” said Rebecca Yeung, FedEx’s vice president for advanced technology and innovation. “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’s small electric R2 vehicle, about half the size of a compact car, is designed and built in a partnership with Roush Enterprises and has a 360-degree vision system for monitoring other vehicles, pedestrians, bicyclists and road conditions.