UPS invests in autonomous trucking company
Aug 16, 2019: UPS Ventures, UPS’ venture capital arm, has made a minority investment in autonomous driving company TuSimple. Together, both companies are testing self-driving tractor trailers on a route in Arizona to determine whether the vehicles can improve service and efficiency in the UPS network. This is an extension of the ongoing partnership between […]
Aug 16, 2019: UPS Ventures, UPS’ venture capital arm, has made a minority investment in autonomous driving company TuSimple. Together, both companies are testing self-driving tractor trailers on a route in Arizona to determine whether the vehicles can improve service and efficiency in the UPS network.
This is an extension of the ongoing partnership between UPS and TuSimple in which UPS has purchased transportation services from TuSimple.
UPS started working with UPS Ventures with the goal of understanding the requirements for Level 4 Autonomous trucking in its network. L4 Autonomous means the vehicle’s onboard computer is in complete control at all times, eliminating manual intervention. Currently, however, laws regulating L4 Autonomous driving require a driver in the vehicle at all times to take over operation if needed.
Throughout the ongoing tests, UPS has been providing truckloads of goods for TuSimple to carry on a North American Freight Forwarding route between Phoenix and Tucson, Arizona. The company initiated self-driving service in May 2019, with a driver and engineer in the vehicle. TuSimple and UPS monitor distance and time the trucks travel autonomously, safety data and transport time.
Scott Price, chief strategy and transformation officer said: “While fully autonomous, driverless vehicles still have development and regulatory work ahead, we are excited by the advances in braking and other technologies that companies like TuSimple are mastering.”
Founded in 2015, TuSimple’s mission is to bring the first self-driving truck to market, to increase safety, decrease transportation costs and reduce carbon emissions. TuSimple develops technology that will allow shipping companies to operate self-driving class 8 tractor-trailers – those that exceed 33,000 pounds and typically have three or more axles.
UPS contracts with third-party trucking companies during its peak shipping season. TuSimple believes it could cut average purchased transportation costs by 30 percent.
UPS is investing in Internet of Things (IoT) technology, Artificial Intelligence (AI) and advanced analytics to increase fuel efficiency and improve customer service to ensure that UPS remains the shipper of choice.
One way UPS explores new technologies is via its internal venture capital group UPS Ventures, which was established in 1997 as the UPS Strategic Enterprise Fund (SEF).