Dallas is set to become a hub of autonomous trucking, as self-driving shipping startup TuSimple eyes the creation of a nationwide network.
After hiring Morgan Stanley to help it raise $250 million, the San Diego-based startup announced its four-year plan to develop the network in partnership with logistic giants like UPS, Xpress Enterprises, Penske Truck Leasing and Berkshire Hathaway, which includes coast-to-coast shipping routes and terminal hubs to support the operation.
“Our ultimate goal is to have a nationwide transportation network consisting of mapped routes connecting hundreds of terminals to enable efficient, low-cost long-haul autonomous freight operations,” said Cheng Lu, president of TuSimple, in a prepared statement. “By launching the [network] with our strategic partners, we will be able to quickly scale operations and expand autonomous shipping lanes to provide users access to autonomous capacity anywhere and 24/7 on-demand.”
TuSimple was launched in 2015. The company has raised more than $298 million since its founding, most recently with a $15 million Series D that was joined by UPS Ventures, Mando Corporation and Lavender Hill Capital. TuSimple is also backed by Nvidia and China-based tech company Sina.
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While TuSimple already operates some trucks between El Paso and Dallas, with a human safety operator ready to take the wheel in an emergency, the newly announced plan would see the creation of a Dallas shipping terminal by the end of 2021. The move coincides with new terminals in the Texas Triangle, including San Antonio and Houston.
The second phase of the plan, which will be rolled out between 2022-23, will expand the network into Los Angeles and Jacksonville, Fla. Phase III will complete the nationwide network expansion and begin allowing customers use their own vehicles equipped with TuSimple’s technology. All in all, the roll out is expected to be completed by the end of 2024. Coinciding with the creation of the network, the company is planning to launch TuSimple Connect, which will allow customers to ensure operational safety and monitor freight in real-time.
Currently, TuSimple has a fleet of 40 autonomous trucks and is planning on adding 10 more this year, with the goal of doubling its number of deliveries to 100 per week.
If all goes according to plan, the company said it is planning to replicate the strategy in Europe and Asia. However, it should be noted other autonomous trucking companies like San Francisco-based Otto have made similar large promises without following through. Otto was acquired by Uber in 2016, merging it with its Uber Freight endeavor. It eventually shuttered the business two years later, after killing a pedestrian in Arizona. Another similar company Starsky was forced to close its doors after seeing a Series B fall through in 2019.
“We are interested in understanding how TuSimple technology can make our fleet safer and more fuel efficient as well as how it can improve the overall delivery experience for our professional drivers and customers,” said Eric Fuller, president and CEO of U.S. Xpress, in a prepared statement.
There has been a renewed interest in autonomous trucking, as the Covid-19 pandemic has many companies looking for ways to increase contactless options while decreasing human interaction. However, with it comes concerns that it could create more job loss at a time when unemployment has spiked due to economic uncertainty. According to Vox’s Recode, the Teamsters union has already expressed concern about safety, transparency and job loss.
“None of these [companies’] speculations take into account the reality of driving or reflect the understanding of the industry from the perspective of someone who actually does the job day in and out,” Kara Deniz, press secretary for the Teamsters told Recode in an email.
