Truck fleet operator Ryder System Inc. and Gatik said on Tuesday they will build a national U.S. autonomous short-haul, “middle-mile” logistics network for Gatik, a Silicon Valley self-driving startup, to deliver goods to business customers.
Ryder’s corporate venture capital arm RyderVentures has also invested in Gatik’s latest funding round of $85 million that was announced in August.
Gatik works with Walmart Inc. and Loblaw Companies Ltd. to deliver goods to retail stores from warehouses using autonomous trucks with safety drivers — though in Arkansas it is already running some driverless deliveries.
As part of the partnership, Gatik will lease a fleet of medium-duty trucks from Ryder – initially around 20 vehicles in the Dallas area.
Gatik will add its autonomous driving systems to those trucks, which will transport goods to retail locations from fulfillment centers, or “dark stores” — distribution centers catering to e-commerce business.
Ryder will also service and maintain Gatik’s leased trucks.
“The significance and importance of this partnership is that it enables us to expand our footprint nationwide,” Gatik CEO Gautam Narang told Reuters.
