Nuro has received approval from the California Department of Motor Vehicles to test its third-generation R3 autonomous delivery vehicles in four Bay Area cities. This marks a significant milestone for the AV startup, which has faced recent setbacks and financial challenges.
Testing in Key Bay Area Cities
The approved testing will take place in Mountain View, Palo Alto, Los Altos, and Menlo Park. Nuro’s driverless delivery vehicles, designed specifically for transporting goods, feature temperature-controlled storage and lack traditional car components such as seats, windows, steering wheels, or pedals. These vehicles, while operating on public roads, resemble large sidewalk delivery robots.
Expanding Autonomous Vehicle Deployment
This approval expands one of the largest fully driverless vehicle deployments in the U.S. Nuro co-founder Dave Ferguson noted that this deployment could become the second or third largest, following Waymo, especially since Cruise had to scale back its fleet last year.
Nuro has a 10-year commercial agreement with Uber Eats and is currently testing with third-party vehicles. After pausing a major manufacturing push with Chinese electric car maker BYD last year, Nuro restructured its team to focus on perfecting its autonomy technology amid financial constraints and layoffs.
Emphasis on AI and Autonomy
Ferguson explained that Nuro is dedicated to refining its new AI architecture, putting manufacturing and commercial operations on hold for now. Significant progress has been made in the company’s autonomy efforts, involving software and hardware advancements tied to Level 4 autonomy, which allows for driving without human intervention under certain conditions.
Testing and validation have been ongoing with a fleet of retrofitted Toyota Priuses, totaling around 100 vehicles, some of which continue making deliveries for Uber Eats. Despite pausing the BYD agreement, Nuro secured a few dozen R3 vehicles, set to roll out in the Bay Area and Houston in the coming months.
Enhanced Capabilities of the R3
Uber plans to start using the R3 for deliveries this fall. Ferguson noted that the R3 offers significant improvements over the R2, including the capability to drive up to 45 miles per hour, enhancing its operational design domain. This allows Nuro to conduct full Level 4 driverless testing and possibly commercial operations over a wider range, excluding freeways.
Advances in AI Models
Recent advancements in AI have facilitated Nuro’s progress. The company now utilizes one to two large foundational AI models that handle tasks like mapping, localization, perception, prediction, and planning, combined with traditional AI systems for real-time validation. This approach enhances the R3’s performance and sets the stage for future scaling.
Looking Ahead
Scaling is not expected this year, and Nuro may seek a new manufacturing partner due to potential tariffs on BYD-made vehicles. Ferguson expressed optimism about BYD as a partner but acknowledged the tariff concern.
In the meantime, Nuro is focused on perfecting its technology and optimizing its Uber Eats deliveries. While Ferguson hinted at potential non-delivery market opportunities for Nuro, no further details were disclosed.
