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Nuro is shifting from the production of its own self-driving delivery vehicles to licensing its autonomous technology for robotaxis and passenger cars.
The company will make its Nuro Driver platform available to both automakers and “mobility providers.” The latest Nvidia-powered system is capable of Level 4 autonomy, or completely driverless operation under certain conditions. The passenger car plan will also include Level 2 (semi-autonomous driver aids) and Level 3 (autonomous, but requires you to be ready to intervene).
At the same time, Nuro will stop making its signature delivery cars. It had already frozen a partnership with China’s BYD to make the R3 courier vehicle in 2023. The firm got permission from California to test R3, but doesn’t plan to use it.
Nuro hasn’t announced any deals for its self-driving tech so far. However, it already has alliances with Toyota and Uber through Toyota-owned key investor Woven Capital.
Company president Dave Ferguson characterized the move as part of a strategy to bring its business to “all roads, all rides.”
As TechCrunch explains, Nuro is also under substantial pressure to cut costs and improve revenue. While it has raised over $2 billion to date, the need to make its own delivery cars has chewed through money. When it conducted a round of layoffs in 2023, it said that the pivot to AI development would give it 3.5 years to be financially viable rather than just 1.5.
Nuro’s years of experience in the field, including delivery deals with Domino’s, FedEx, and Uber Eats, could give it an edge in securing partnerships. However, it’s also competing against licensors like Intel’s Mobileye. Any robotaxi customers will also have to take on more established operators like Waymo.
