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FedEx Corporation and robotics startup Nuro have reportedly signed a multi-year agreement to develop and test last-mile delivery using autonomous vehicles. The American multinational delivery giant will be using its Houston facility for the pilot program.
This partnership is expected to lower the costs of last-mile delivery which has increased significantly amid the COVID-19 pandemic. To counter this, the two companies are planning to deploy bots for delivery of the packages starting groceries, food, and eventually medical supplies.
Cosimo Leipold, Head of partnerships at Nuro stated that the company plans to roll out the unmanned delivery vehicle on routes where it's relatively cost-effective.
Rebecca Yeung, the Vice President for advanced technology and innovation at FedEx quoted the company plans to ease out the pressure on its employees for late-night services in remote areas. Improvisation is the foundation of FedEx and will continue to be an indispensable part of its environment and business operations, she added.
The California-based Nuro has now entered the logistics space through the strategic partnership with FedEx. The company is planning to use its heavier model R2 considering it is bigger and can travel longer distances while carrying heavier loads.
Meanwhile, FedEx is working on developing an automated vehicle tech ‘Roxo’ in alliance with DEKA Development and Research Corporation which is expected to be a sidewalk delivery prototype. The same-day bot consists of a sensing technology that is integrated with relevant algorithms that further assists in locating obstacles and making a safe path for itself.
According to the sources, FedEx’s rival United Parcel Service (UPS) has opted for drones to carry out unmanned deliveries. However, it has ordered a fleet of electric delivery vans from British startup Arrival which gradually are expected to carry automated features.
This partnership has come at a time when several logistics companies are strategically cutting costs and exploring ingenious ways to inculcate some advanced technologies to execute services on easier routes.
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