Autonomous trucks have reached new heights in self-driving technology as they begin efficiently transporting prepared meats. This development is a testament to how technology can enhance, rather than replace, the careers of truck drivers.
Tyson Foods, a renowned meat giant that generates over $50 billion in annual sales, recently announced its collaboration with self-driving truck start-up Gatik. Together, they are deploying vehicles in northwest Arkansas to revolutionize the transportation of refrigerated trailers in the so-called “middle mile” routes.
This middle-mile route involves transporting goods from production plants to distribution centers. Patrick Simmons, Tyson’s Vice President of Transportation, highlights the advantages of this partnership: “It’s taking care of two things at once. The drivers aren’t particularly fond of short-haul trips.” Furthermore, since traditional drivers are restricted to driving for only 11 hours a day, autonomous trucks can significantly boost productivity by operating for 18 hours a day on less desirable routes.
Gatik specializes in middle-mile autonomous trucking applications, recognizing the complexities involved with long-haul and last-mile routes. Long-haul routes often have more variability and stringent safety regulations to navigate, while last-mile routes present challenges when delivering goods from retailers to customers. Gautam Narang, CEO and co-founder of Gatik, based in Mountain View, Calif., acknowledges the exponential increase in data requirements for handling the numerous route combinations within an area.
The advancements made in the autonomous trucking industry have proven to be a game-changer for the food industry. With companies like Tyson Foods embracing this technology, we can expect to see further enhancements in efficiency and productivity within the transportation sector.
Middle-Mile Autonomous Trucks Revolutionizing Transportation
In the realm of autonomous vehicles, middle-mile routes are emerging as the ideal testing ground for early applications. These routes are typically shorter and highly repetitive, making them perfect for honing the technology. Another advantage is that they usually do not cross state lines, simplifying the regulatory environment.
One company leading the charge in this space is Gatik. While their trucks are capable of driving autonomously, they initially rely on safety drivers. However, Gatik utilizes artificial intelligence to train their technology, allowing the trucks to improve their driving capabilities over time, reinforcing the safety of their operations.
Several major players have already recognized the potential of Gatik’s technology. For instance, Walmart and Canadian grocer Loblaw have already deployed Gatik trucks, with some instances completely removing human drivers from the equation. It typically takes 18 to 24 months to validate and refine the technology in collaboration with a customer before confidently transitioning to a fully driverless model.
In the case of Tyson, their choice of trucks falls on Gatik. Emphasizing their business model as “autonomous transportation as a service,” Narang, a representative from Gatik, mentions their practice of charging a fixed fee per drop per year to their customers.
While Gatik is currently privately held and does not have immediate plans for an initial public offering, investors could soon find themselves benefiting from this unmanned revolution. As they witness Gatik’s driverless trucks seamlessly operating on the roads of Arkansas or even potentially enjoying a meal hauled by one, it becomes evident that transportation is undergoing a profound transformation.
As premarket trading on Wednesday shows Tyson stock rising 1.3%, futures for the S&P 500 and Dow Jones Industrial Average indicate a slight decline of 0.3% and 0.2% respectively. Over the past year, Tyson stock has experienced a 29% decrease leading up to Wednesday’s trading session.
