Updated: Feb 24
U.S. logistics giant UPS has taken a minority stake in self-driving truck start-up TuSimple, only a few months after the two of them initiated the testing and use of autonomous trucks in Arizona. The size of the deal was not disclosed but it was said to be a minority investment conducted through their venture capital arm UPS Ventures. The investment and the testing come as UPS looks for new ways to remain competitive, cut costs and boost its bottom line. TuSimple, was launched in 2015 and has operations in San Diego and Tucson, Arizona. They believe they can cut average purchased transportation costs by 30% with autonomous technology. TuSimple is also backed by Nvidia, ZP Capital and Sina Corp and is working on a “full-stack solution,” meaning that it wants to develop and bringing together all of the technological pieces required for autonomous driving from hardware to software. The start-up is currently developing a Level 4 system, a designation by the SAE that means the vehicle takes over all of the driving in certain conditions, in this case it would probably mean on highway travel while trickier urban driving is still handled by the driver.