The California Department of Motor Vehicles has granted Nuro permission to test its third-generation R3 autonomous delivery vehicles in four cities within the Bay Area. This marks a significant comeback for the startup, which has faced financial challenges and setbacks in recent years.
Testing in Key Bay Area Locations
The approval allows Nuro to test its driverless delivery vehicles in Mountain View, Palo Alto, Los Altos, and Menlo Park. These vehicles, designed exclusively for transporting goods, lack seats, windows, steering wheels, and pedals. Despite operating on public roads, they resemble large sidewalk delivery robots, complete with temperature-controlled storage units for food.
Third Largest Deployment of Driverless Vehicles
The newly approved geographic area will be the third largest deployment of fully driverless vehicles in the United States, according to Nuro co-founder Dave Ferguson. Only Waymo has a larger deployment, though Cruise might have had a more extensive reach before halting its fleet last year. Nuro also has a 10-year commercial partnership with Uber Eats, which they have been testing using third-party vehicles.
Challenges and Strategic Shifts
Nuro had planned to ramp up manufacturing of its R3 vehicles in collaboration with Chinese electric car maker BYD. However, the startup paused these plans last year due to financial strain and two rounds of layoffs. Instead, Nuro restructured its team to focus on improving its autonomous technology. According to Ferguson, this shift is already yielding positive results.
“We’ve dramatically accelerated our autonomy progress,” Ferguson told TechCrunch. “That includes both the software and hardware elements tied to our Level 4 autonomy setting.”
What is Level 4 Autonomy?
The Society of Automotive Engineers (SAE) defines Level 4 autonomy as a vehicle’s ability to drive itself without human intervention in certain conditions. Nuro has been testing its R3’s new hardware and software on a fleet of retrofitted Toyota Priuses, including delivering food for Uber Eats.
Upcoming Rollout and Future Plans
Despite halting its partnership with BYD for large-scale manufacturing, Nuro has acquired a few dozen R3 vehicles from the electric car maker. These vehicles will be rolled out in the Bay Area and Houston in the coming months. Uber expects to start using the R3 for deliveries this fall.
Ferguson highlighted that the R3 model offers significant improvements over the R2, including a higher maximum speed of 45 miles per hour, compared to the R2’s 25 miles per hour. This capability allows Nuro to conduct more extensive L4 driverless testing and commercial operations.
Advancements in AI
Recent advancements in artificial intelligence have been instrumental in Nuro’s progress. The company has shifted to using one or two large foundational AI models to handle various tasks such as mapping, localization, perception, prediction, and planning. This approach enhances performance and efficiency. Nuro also uses traditional systems to validate its AI in real-time.
These advancements enable the R3 to operate faster and cover larger areas in the Bay Area and Houston, setting the stage for future scaling. However, Nuro has no immediate plans to restart large-scale manufacturing or heavy commercial operations this year. The company might need a new manufacturing partner in the future, as BYD-made vehicles could face steep tariffs.
Looking Ahead
For now, Nuro remains focused on perfecting its technology and maximizing its Uber Eats deliveries. Ferguson also mentioned that the company is exploring new market opportunities beyond autonomous deliveries, though he did not provide further details.
As Nuro continues to refine its autonomous delivery technology, the Bay Area testing approval marks an important milestone in the company’s journey toward a comeback.
