Ahead of its public listing, the self-driving start-up Aurora says it found an effective way to make self-driving cars a profitable business. They will be showcasing their technology to get funding. The companies want to work on both autonomous trucks and robotaxi services. Both the services will focus on lower costs and improves revenues. By allowing technology transfer the company plans to make its autonomous driving business a profitable business.
This move comes along as many autonomous companies are working on trucking and have also prepared driverless routes to launch in the coming years. They have also begun signing up partners and customers so that in long run, the business will turn to a profitable one.
Aurora’s co-founder, Sterling Anderson said, “Trucking allows us to build a profitable, scalable business that funds the further development of ride-hailing and brings down the cost of hardware.” He said this while speaking at the company’s South Dallas truck terminal. Many investors and journalists ride in one of the autonomous driving trucks to experience the technology. The rides took place with two safety drivers in the vehicles. Unlike robotaxis, autonomous trucks are less complex without the involvement of humans being in danger. In the case of robotaxis or driver-assist features, the safety of people needs many rules are regulations to monitor the situation. Like Tesla’s FSD software being only a driver assist feature, for now, is implementing technology that doesn’t allow the driver to get diverted.
Trucking as commercial AVs
Though companies have stated they have a profitable model with autonomous trucking. They are yet to generate revenue on the same. Trucking emerged as the one opportunity to make businesses profitable, as the e-commerce sector growth keeps increasing. Meanwhile, there is a shortage of drivers impacting many businesses. Driver costs are more than 40% for trucks for each mile, and the driver can drive a vehicle for 11 hours per day. Automated trucks would reduce costs and increase drive time.
Aurora plans to go public with blank-check firm Reinvent Technology Partners Y by this year. It is at a Pro-forma market capitalization of $13 billion. More details on the net profit were not revealed. Aurora plans to launch its fully driverless trucks by the end of 2023. Later after a year, robotaxis will also be launched into the market. Aurora also adds that initially, they will focus on providing services to high-margin airports and businesses-district trips. They do not need complex urban rides.