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The Spoon

Daily news and analysis about the food tech revolution

Gatik

Kroger to Use Gatik Robotic Trucks for Middle-Mile Delivery of Fresh Products

This week Kroger announced a collaboration with Gatik, a company specializing in autonomous middle-mile logistics, to utilize autonomous box trucks in Dallas, Texas. According to the announcement, the partnership aims to enhance delivery frequency, reliability, and responsiveness for customers while streamlining costs and increasing efficiency throughout the supply chain.

Starting in the second quarter of 2023, Gatik’s medium-duty autonomous box trucks will be responsible for transporting fresh products from Kroger’s Customer Fulfillment Center (CFC) in Dallas to several retail locations. These trucks are fitted with a 20-foot cold chain-capable box, designed for the safe and efficient transportation of ambient, refrigerated, and frozen goods.

The two companies believe the collaboration will provide Kroger customers with an expanded range of same-day pick-up times and more flexible order cut-off times. Gatik will handle the transportation of groceries, foodstuffs, and general merchandise for 12 hours daily, seven days a week.

Gatik’s autonomous middle mile solution will assist Kroger in addressing the needs of customers who shop online and in-store, offering quicker and more dependable access to products. Since commencing commercial operations in 2019, Gatik says it has successfully delivered half a million customer orders using its robo-trucks.

The deal is another win for Gatik, which has previously secured middle-mile delivery contracts for Walmart in Louisiana and Arkansas and for Loblaws in Canada. The company, which raised over $121 million in funding, was recently rumored to be in talks with Microsoft to raise more funding at a $700 million valuation. The Microsoft deal would be a strategic investment that would result in the autonomous truck company using Microsoft’s Azure cloud computing platform to develop technology for autonomous delivery vehicles.

Walmart’s Had a Big Month When it Comes to Autonomous Robot Delivery

It’s bragging time in Bentonville.

That’s because America’s biggest grocery retailer recently achieved two big milestones in autonomous delivery.

The first milestone is on the autonomous middle-mile front where Walmart and partner Gatik announced they had initiated daily driverless-truck delivery in Walmart’s hometown of Bentonville, Arkansas. Walmart had started working with the maker of middle-mile autonomous box trucks in 2019 and by last December, the two received approval from the Arkansas State Highway Commission to remove drivers from the vehicles. In August, the two started trialing autonomous delivery runs between Walmart dark stores and local markets. And last week, the companies announced they are doing multiple driver-less truck runs per day, seven days a week.

The Gatik Autonomous Delivery Vehicle Delivering Products for Walmart

The other big autonomous delivery news for Walmart is the launch of the company’s drone delivery service.

This week the retailer’s drone partner Zipline announced the two had launched a drone delivery service in the northwestern Arkansas of Pea Ridge. Zipline’s technology utilizes a 25-foot take-off and landing platform which is located directly behind the Walmart Neighborhood Market location in Pea Ridge. There, a Walmart employee hands a package to a Zipline employee, who will then load the package into the belly of the drone for delivery. Once the drone reaches the delivery destination, the package is dropped over its target, where it will float down to earth thanks to an attached biodegradable parachute. The service area is within a 50-mile radius of the store.

The launch of drone delivery has been a long time in the making for Walmart. The company first started testing drones way back in 2015 and, ever since that time, has been running pilots and inking partnerships. In the meantime, Walmart’s competitors have been investigating drone delivery, which is perhaps why the giant retailer has picked up the pace over the past year.

Zipline Partners With Walmart on Commercial Drone Delivery

So Walmart appears to be making headway in drones and autonomous middle mile delivery, but what about road or sidewalk delivery to consumers? The last time we heard of Walmart making any moves in that space was when the company trialed with Nuro and Udelv in 2019, but they’ve been relatively quiet on that front. And as for sidewalk bots, the company hasn’t really shown any interest publicly, but that’s not to say they aren’t talking to folks.

Gatik Raises $85M Series B, Brings Automated Middle Mile Delivery to Texas

Autonomous middle mile delivery company, Gatik, announced today that it has raised an $85 million Series B round of funding. The round was led by Koch Disruptive Technologies, with participation from existing investors Innovation Endeavors, Wittington Ventures, FM Capital, Dynamo Ventures, Trucks VC among others. This brings the total amount raised by Gatik to $114.5 million

Despite its hum-drum name, the middle mile is far from middle of the road. In fact, the middle mile is perhaps one of the more exciting areas in autonomous vehicles right now. For those unfamiliar, the middle mile is the route between two business-to-business locations. Think: a retailers distribution warehouse to one of its store locations. Because the route is fixed, there are fewer variables a self-driving vehicle would encounter (same road, typically the same traffic conditions, etc.).

Because of these route limitations, it can be faster for a autonomous middle mile delivery company like Gatik to get to market. Local regulators don’t have to worry about self-driving cars learning and navigating complex situations and added safety concerns that come with delivering to a neighborhood house. Gatik now operates delivery routes in Toronto, Canada for Loblaws and for Walmart in Louisiana and Arkansas, where its middle mile route is fully driverless.

Along with today’s funding announcement, Gatik also said that it is expanding its operations into Dallas, Texas. Gautam Narang, Co-Founder and CEO of Gatik told me via video chat last week that as part of its move into Dallas, Gatik has signed undisclosed customers, which Gatik will be serving simultaneously, operating its trucks almost around the clock. “[We’ll be] moving goods for customer A during the day and customer B during the night,” Narang said.

The big funding and big move into Texas is the continuation of a big year for Gatik. So far this year the company has introduced an all-electric box truck, received $9 million (CAD) from the Canadian government to help winterize its technology, and partnered with Isuzu to develop autonomous medium-sized delivery trucks.

There isn’t a ton of competition right now in the autonomous middle mile space. Udelv unveiled its Transporter platform in April of this year. Unlike Gatik’s vehicles, which look like regular delivery trucks, Udelv’s Transporters are essentially giant pods, that don’t even have a place for a driver.

Between the investment and customers that Gatik is attracting, and the expanding willingness of local regulators to allow autonomous middle mile delivery, I suspect we’ll be seeing more players enter the space this year.

Gatik Partners with Isuzu North America to Develop Autonomous Medium Duty Trucks

Gatik, which makes self-driving delivery vehicles for the middle-mile, announced today that it is collaborating with Isuzu North America on a project to develop and evaluate fully autonomous medium-duty trucks.

The first vehicles the two companies will work on will integrate Gatik’s autonomous driving technology into a number of Isuzu’s N-Series trucks. Together the two companies will produce SAE Level 4 delivery vehicles with redundant systems.

Gatik has had a busy 2021 so far. In February, the company announced its electrification plans and debuted its first Electric Autonomous Box Truck built on Ford Transit 350 HDs. Earlier this month, Gatik announced that it received funding from Ontario’s (Canada) Autonomous Vehicle Innovation Network to help winterize its self-driving technology. (Driving in inclement weather requires a more sophisticated approach than driving in bright, sunny weather because of poor visibility, changing road conditions, etc.)

Unlike other self-driving startups, Gatik only works on autonomous vehicles for the middle-mile, which is typically between two destinations run by the same business. For example, Gatik trucks would go back and forth between a company’s distribution warehouse and a retail location. Because middle-mile routes are limited, fixed and repeatable, Gatik’s self-driving systems don’t have to deal with as many variables (new streets, different traffic patterns, etc.) as other, consumer-ended autonomous vehicles. This, in turn, helps its vehicles pass muster with regulators and allows Gatik get to market quickly. For instance, Gatik will make one of the Arkansas routes it drives for Walmart fully driverless this year.

In today’s press announcement, Gatik said that the first trucks from its collaboration with Isuzu North America will be deployed this year.

If you want to learn more about the autonomous middle mile, Gatik will be speaking at our upcoming ArticulATE virtual summit! Get your ticket today!

Gatik Gets $9 Million (CAD) to Winterize its Autonomous Middle-Mile Delivery Tech

Gatik, which makes autonomous delivery vehicles for the middle-mile, announced today that it has received $997,706 million CAD (~$788,511 USD) from Ontario’s Autonomous Vehicle Innovation Network (AVIN) R&D Partnership Fun, along with $8 million CAD (~$6.32 million USD) in unspecified “industry contribution.” The new funding will go towards winterizing Gatik’s autonomous driving technology.

Gatik develops self-driving delivery trucks for the middle mile, which typically means between two points within a company’s network, e.g. between a warehouse and a store.

The Ontario government will help Gatik’s autonomous driving technology withstand inclement weather. Right now, a lot of self-driving pilots and tests happen in sunny climates such as Arizona, Texas and California. Bright, sunny weather makes it easier for self-driving vehicles to navigate because road conditions are dry and the surrounding environment is clearer for the vehicle’s systems to “see.”

But if self-driving technology is ever to reach mass market scale, it must be able to operate in all kinds of weather. Not only will autonomous vehicles need to “see” in rain and fog and snow, they will also have to safely drive on wet and icy roads. Another self-driving delivery startup that has “ruggedized” their vehicles for harsh conditions include Refraction, which operates out of Ann Arbor, Michigan.

Gatik already operates a small fleet of autonomous delivery trucks in Canada. Last November, Canadian grocery chain Loblaw started using a five Gatik trucks to run food between automated picking facilities and retail stores. Gatik, which is headquarted in Palo Alto, CA, has been expanding its Canadian presence. The company recently moved into a 12,000 sq. ft. research facility in Toronto and expects to double its workforce there over the coming year. As part of its funding arrangement, AVIN will help Gatik attract and retain engineering talent in Ontario.

Last month, the company debuted its first electric delivery vehicle, which has a range of 120 miles and takes only 1.5 hours to charge. The company will also be running two delivery routes for Walmart in Arkansas and Louisina. The Arkansas route will go completely driverless (i.e., no human backup) this year, and the Louisiana route will be the first to use Gatik’s electric trucks.

Operating only within the middle mile makes it easier for Gatik to bring its autonomous driving tech to market. By focusing on the middle mile, the delivery trucks only need to navigate between two fixed points. By avoiding consumer delivery (the so-called “last mile”), Gatik limits the number of variables its trucks will encounter on a given route.

This narrow, middle-mile approach combined with winterized driving capability could give Gatik a huge boost in getting to more markets quickly.

Gatik Debuts Electric Version of its Autonomous Middle-Mile Delivery Truck

Gatik, which focuses on self-driving vehicles for middle-mile delivery, today announced its electrification strategy and introduced its new Electric Autonomous Box Truck.

The first of Gatik’s electric trucks will be Ford Transit 350 HDs that were developed in partnership with electric drive company Via Motors. The new trucks have an all-electric powertrain, a range of 120 miles and can charge in less than 1.5 hours.

Gatik’s self-driving vehicles handle middle mile delivery, meaning that they transports goods closer to a consumer, but not all the way to them. A typical middle-mile route might be between a warehouse and a store location, and Gatik’s trucks become, in essence, a self-driving conveyor belt between points. Since the trucks travel a fixed route, Gatik can eliminate some of the variables that come with self-driving technology. They don’t, for example, need to constantly calculate new routes through a bunch of different neighborhoods to people’s front doors.

Gatik has previously said that this limited scope makes it easier to get regulatory approval and therefore its self-driving trucks on the road. Walmart announced in December that the Gatik trucks on one of its Bentonville, Arkansas routes will be allowed to remove the safety driver altogether and go full driverless this year.

In December, Walmart also announced that it would be adding Gatik’s truck to a second delivery route between New Orleans and Metairie, LA. That route is where the first of Gatik’s electric trucks will be in operation starting this month.

Electrification of its vehicle fleet is actually a stated goal of Walmart as the giant retailer aims to reach zero emissions by 2040. In addition to fewer emissions, with a recharge time of just 1.5 hours, Gatik’s new electric vehicles can recharge as they are being unloaded and loaded allowing for continuous operation.

The middle mile isn’t the only area where Walmart is testing out electric, self-driving delivery. The retailer has also partnered with electric car maker Cruise to test autonomous grocery delivery in Scottsdale, Arizona.

Last- and middle-mile delivery may also begin to blur in new ways, thanks in part to automation. Walmart has indicated that the middle mile may include consumer pickup stations, allowing people who don’t live near a Walmart store to purchase items from the retailer and pick them up closer to their homes.

Gatik’s Autonomous Middle-Mile Trucks to Go Full Driverless for Walmart

Self-driving delivery vehicles along the middle mile just got a little more autonomous. Walmart announced today that the Gatik self-driving delivery box trucks it uses on one Arkansas delivery route will remove the safety driver from the vehicle in 2021.

Gatik had quietly revealed plans for this driverless delivery last week. As Gatik explained then, one of the reasons it was able to go full driverless is because of the company’s focus on the middle mile. The middle mile is the business-to-business path when moving goods — between a warehouse and a store, for example. Because this route is clearly defined, fixed and repeatable, it decreases the number of variables a self-driving car will encounter. Gatik said this limited autonomous scope made it easier to gain regulatory approval necessary to for true humanless driving.

In addition to driverless deliveries in Arkansas, Walmart is expanding where and how it will use Gatik trucks. From the Walmart blog post:

We’ve tested multi-temperature Autonomous Box Trucks on a small scale in Bentonville and have learned how we might use autonomous vehicles to transfer customer orders from a dark store to a live store. Now, we’re expanding our pilot with Gatik to a second location to test an even longer delivery route and a second use case – delivering items from a Supercenter to a Walmart pickup point, a designated location where customers can conveniently pick up their orders. The Autonomous Box Trucks in Louisiana will initially operate with a safety driver.

The new route will be between New Orleans and Metairie, LA. But more interesting than the geography is the new use cases Walmart is outlining. By delivering to a pickup location, Walmart could provide a way for people who don’t live near a Walmart to shop at one. People in these more remote areas could order online and pick their items up closer to home. As Walmart describes, the use of autonomous trucks could essentially create a constant conveyor belt style loop of of deliveries from supercenters to pickup points throughout the day.

Autonomous delivery has been making some nice, errr, inroads this year. Back in February, Nuro got federal approval for its pod-like autonomous delivery vehicles to operate on public roads, and in April the company got approval to operate on California’s roads. In October the company announced that its vehicles had been running in three states with no drivers, no occupants and no chase cars.

In addition to its middle mile, Walmart is also testing out autonomous grocery delivery with cars from Cruise in Scottsdale Arizona.

Part of what’s spurring all this autonomous action is, of course, the COVID pandemic. Autonomous delivery helps reduce the amount of human-to-human contact when transferring goods, and as noted above, could be a means for operating a continuous supply chain so there are fewer product shortages.

Autonomous Middle-Mile Company Gatik Raises $25M

Autonomous vehicle startup Gatik announced today that it has raised a $25 million Series A round of funding. The round was co-led by Wittington Ventures and Innovation Endeavors with participation from FM Capital and Intact Ventures, as well as existing investors Dynamo Ventures, Fontinalis Partners, AngelPad and others. This brings the total amount raised by Gatik to $29.5 million.

Unlike other players in the self-driving delivery space, the Palo Alto, California-based Gatik is focused on the middle-mile — that is, the intra-location routes for a business, for example warehouse to store, store to store, etc.

The advantage of this, from a self-driving vehicle perspective, is that these middle-mile routes are fixed and repeated. This reduces the amount of “thinking” that a self-driving vehicle has to do as it carries goods around because it’s not encountering as many new scenarios. These fixed routes can also help put regulators creating laws around self-driving vehicles more at ease because of their limited scope and reach.

From a business’ perspective, like a grocer, a fleet of autonomous middle-mile vehicles could run all day, every day, ensuring that locations are always fully stocked. In its press announcement, Gatik said that its autonomous vehicles are operating up to seven days a week, 12 hours a day, on single routes up to 300 miles.

Along with its funding announcement, Gatik today also announced that Canada’s Loblaw grocery chain will deploy a fleet of five Gatik vehicles for middle mile delivery in Toronto starting in January 2021. Gatik’s cargo trucks feature temperature control, so they can be used for the transport of cold and frozen foods as well.

In the Loblaw press announcement, Gatik said that its autonomous vehicles will run between automated picking facilities and retail stores, and allows for inventory pooling across multiple location, as well as contactless delivery.

November has been a busy month for autonomous delivery. Last week Walmart announced a partnership with Cruise for self-driving grocery delivery. Nuro announced it had raised another $500 million for its self-driving pod vehicle solution. Part of the reason for all of this is the COVID-19 pandemic, which has accelerated interest in contactless delivery options to reduce human-to-human interaction.

Gatik has previously worked with Walmart, and says it has conducted 30,000 autonomous orders for multiple Fortune 500 customers across North America.  

CORRECTION: An earlier version of this post said Gatik raised $22.5 million. We regret the error.

Gatik Launches Self-Driving Box Truck for Middle Mile Deliveries

Gatik, an autonomous vehicle startup focused on middle mile delivery, announced a new self-driving box truck today. The new trucks feature temperature control, allowing them to transport cold and frozen food and goods.

Don’t expect to see these self-driving box trucks in your neighborhood. Gatik’s service is meant for the middle mile, meaning it shuttles deliveries between business locations, not to a consumer’s front door. For example, last year Walmart announced it was using Gatik to move food between its own store locations.

The middle mile is actually ripe for autonomous driving. Self-driving vehicles are good with set routes that are heavily traveled. Keeping within a limited scope of travel means the vehicles’ self-driving systems don’t have to contend with the complexities of traveling through busy neighborhoods, and the limited geography can be more appealing to local regulators wary of unleashing fully autonomous vehicles on public roads.

Gatik’s new self-driving trucks are also arriving during a global pandemic when the world is trying to reduce human-to-human contact. Autonomous vehicles can remove at least one human from the supply chain equation, which, when multiplied across multiple industries, companies, and supply routes can add up pretty quickly.

Autonomous vehicles can also operate without breaks, helping keep stores better stocked, which we’ve seen can be an issue when people are panic shopping. Gatik said it’s been shuttling Walmart deliveries 12 hours each day, 7 days each week since July of last year. 

The COVID-19 outbreak could accelerate the acceptance of autonomous vehicles on the road. Nuro got the greenlight from the state of California to further test its self-driving pod-like vehicles on public roads. Refraction is using its autonomous REV-1 for restaurant and grocery delivery in Ann Arbor, MI. And Starship robots are making food deliveries in Tempe, AZ and in Fairfax, VA.

Gatik says that it has delivered more than 15,000 orders for multiple retail customers across North America and that its new box truck is the first autonomous delivery vehicle with temperature control capabilities. Gatik just might make the middle mile very cool for self-driving vehicles.

The “Middle Mile” in Food Delivery is Just Beginning

Perhaps the future of getting food and other goods delivered to your door isn’t actually in getting them to your door. A Walmart corporate blog post announcing the test of a new initiative with self-driving vehicle startup, Gatik, is the latest in this trend of moving goods between business locations. (hat tip to Grocery Dive)

Walmart’s post explained how it will pilot this self-driving vehicle program with Gatik:

In March, Arkansas passed legislation allowing for autonomous vehicles to operate in the state. With the help of Gatik, we’re making sure we stay on the cutting edge of grocery pickup by testing an autonomous vehicle to move customer orders on a two-mile route in Bentonville between two of our stores. We aim to learn more about the logistics of adding autonomous vehicles into our online grocery ecosystem, operation process changes and more opportunities to incorporate this emerging technology.

Gatik’s trucks will just be moving goods between stores along this “middle-mile” to get goods closer to your home, but not all the way there. Bloomberg reported on the promise of this middle-mile earlier this summer, writing:

As the buzz about human-carting robo-taxis starts to short-circuit, an unheralded segment of the driverless future is taking shape and showing promise: goods-moving robo-vans. Rather than serving up hot pizza pies or deploying headless robots to carry groceries to the doorstep, robo-vans travel on fixed routes from warehouse to warehouse or to a smaller pickup point, transporting packages to get them closer, but not all the way, to consumers.

Walmart is just the latest to explore the middle mile for getting people their stuff. When Uber unveiled its drone delivery program, one thing that stood out was the fact that drones wouldn’t fly burgers to people’s homes. Rather, drones would land at some kind of hub where Uber drivers would pick up the order and take it the last mile to people’s homes.

Zume Pizza operates in a similar fashion. Sifting through its vast amounts of data, Zume knows how many pizzas, and what types of pizza to make on a given night for any given geographic area it serves. Zume then pre-makes (not pre-cooks) those pizzas and sends them out in mobile kitchens parked in designated areas. As orders come in, pizzas are cooked and drivers come and pick up pizzas to take to people’s homes.

Amazon, being Amazon, is looking to bridge the middle-mile with the last mile. Spoon Founder Mike Wolf uncovered a patent this year for an autonomous Amazon robot that would live in people’s homes and automatically go and fetch packages delivered to a centralized pickup center.

The fact that big players like Walmart, Amazon and Uber are all looking at this type of two-step delivery logistics shows that we are at the beginning of the middle-mile, not the end.