Uber Freight and Aurora Innovation have formed a multi-year collaboration to integrate Aurora’s autonomous driving technology into the Uber Freight network until 2030. This partnership allows Aurora to access shipping customers and expand its reach as it prepares to launch its fully driverless commercial service later this year. It also helps Uber Freight by connecting its shipping customers with a technology that aims to address labor shortages and underutilized fleets in the trucking industry.
The tie-up between Uber Freight and Aurora is an expansion of a previous pilot program that involved hauling goods on the Uber Freight network between Dallas and Houston. This collaboration comes at a time of a freight recession caused by various factors such as higher prices of goods, lower customer demand, and increased fuel costs. Falling freight rates have led many trucking companies, including Convoy, to shut down. Uber Freight has also been affected by lower revenue per load, with an 8% decline in revenue year-over-year in the first quarter.
For Uber Freight, the goal is to connect its shipping customers with a technology that can solve key issues in the trucking industry, such as labor shortages and underutilized fleets. This collaboration also aligns with Uber’s investment in Aurora and self-driving technology. Despite selling its self-driving unit, Uber ATG, to Aurora in 2020, Uber still holds a stake in autonomous vehicles. As part of the deal, Uber invested $400 million into Aurora, giving it a 26% stake in the combined company.
Aurora plans to launch a fully driverless commercial service by the end of 2024, using a Transportation-as-a-Service (TaaS) model on the Uber Freight network. Initially, Aurora will own and operate a fleet of up to 20 trucks produced by Paccar and Volvo and appear as a carrier on the Uber Freight network. Eventually, the model will shift to a Driver-as-a-Service (DaaS) model, where carriers purchase trucks with Aurora’s Driver technology on board and offer their services on the Uber Freight network.
The DaaS model comes with Aurora maintenance and support, including access to a command center with remote operators to assist in difficult situations. However, Aurora is still a couple of years away from bringing the DaaS model to market. To prepare for this, Uber Freight and Aurora are launching the Premier Autonomy program, which aims to give carriers an early path to purchase and onboard the Aurora Driver technology. This program will help carriers understand how to use the technology and integrate it into their systems.
The timing of the DaaS model aligns with Aurora’s deal with automotive supplier Continental, which plans to mass-produce Aurora’s autonomous vehicle hardware kit by 2027. This collaboration between Uber Freight and Aurora sets the stage for the future of autonomous trucking and offers potential solutions to the challenges faced by the trucking industry today. By integrating autonomous driving technology into their network, Uber Freight and Aurora aim to revolutionize freight transportation and create a more efficient and sustainable future.
