We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • Parcel Forum 2022
    • MODEX 2022
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • Parcel Forum 2022
    • MODEX 2022
    • Upload Your Video
Home » Uber shelves autonomous truck program to focus on driverless cars
transportation

Uber shelves autonomous truck program to focus on driverless cars

July 31, 2018
DC Velocity Staff
No Comments

Uber Technologies Inc. said last night it is closing its autonomous truck unit in order to focus the company's efforts on its self-driving car program, ending a two-year initiative that began in August 2016 when Uber acquired self-driving truck firm Otto for a reported $680 million.

In a statement, the San Francisco-based ride-hailing company said that it decided there was no near-term need to invest time and resources in developing self-driving trucks, and that its Uber Freight brokerage operation, which is unaffected by the news, can stay competitive without the future support of autonomous trucks.

The statement did not mention any specific problems in making the technology commercially viable. It has been accepted that autonomous cars would be allowed on American roads much sooner than commercial vehicles because of increased safety concerns surrounding a truck's immense size and weight. Many observers believed that lawmakers and regulators would never allow the operation of fully autonomous trucks, and that the most realistic scenario was an autonomous operation with a human driver accompanying the vehicle.

In Otto, Uber acquired the hardware and software needed to convert commercial motor vehicles to an autonomous operation. However, the company never publicly articulated a long-term vision for the unit. There was speculation that the trucks would eventually be utilized to move loads tendered by the brokerage unit. Uber would not comment on the speculation, however.

In March, an autonomous Uber truck hauled a load about 344 miles between two points in Arizona before the load was transferred near the California border to a traditional driver for the final leg to southern California. The vehicle was part of the fleet owned by Otto.

An Uber spokeswoman said the company will re-assign employees of the self-driving unit to comparable positions within its self-driving technology operations. The spokeswoman said the company may return to the autonomous truck segment at some point.

Steve Mitgang, CEO of SmartDrive, a road safety consultancy, said Uber's withdrawal is a setback but not a deathknell for progress in autonomous truck technology. "Uber was obviously a significant player in this space, but there are a number of other very sizable and reputable players committing immense resources to make driverless trucks a reality," Mitgang said in an e-mail. The absence of one player "will not likely have a material impact" on the future of autonomous truck development, he said.

The Uber brokerage unit, which launched in May 2017, now operates nationwide, the spokeswoman said. Load volume is doubling every quarter, she added.

However, an industry source said the unit is generating only 3 percent gross margins on annual revenue of about $500 million, an unsustainable ratio. The source, who works for a logistics technology company, said that more than a dozen Uber Freight employees, including executives, have applied for jobs there in the past two weeks.

Transportation Trucking Truckload Vehicle & Trailer Equipment & Services
KEYWORDS Uber Freight
  • Related Articles

    Uber Freight sends driverless truck on its inaugural trip across Arizona

    Autonomous brokerage dispatches freight to driverless truck

    Driverless cars could use lights and sounds to “communicate” with pedestrians

Recent Articles by DC Velocity Staff

Artificial intelligence creates real encyclopedia

Freight sector missed the boat on strong U.S. economy in Q3 and Q4, FTR says

Sloppy thieves botch trailer heist

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Fred Smith is not worried about Amazon

  • Outlook 2023: What’s in store for logistics/supply chain?

  • Ports, maritime operators see tide turning as ocean freight tsunami subsides

  • In Person: Steve Beverly of Penske

  • InPerson interview: Rob McKeel of Fortna

Now Playing on DCV-TV

89cfed30 8aac 4284 960d c8c8c1886e16

Have you checked your read rate lately?

DCV-TV 4: Viewer Contributed
No reads. Unaccounted for boxes. Boxes sent to the wrong place. A logistics nightmare! But this nightmare doesn’t have to come true. SICK’s linear line scan camera is what dreams are made of for your logistics operations. And if you’re worried about motion and vibration from conveyor belts...well, there’s no reason...

FEATURED WHITE PAPERS

  • The five best applications for robotic lift trucks in warehouse environments

  • Fulfillment Facility Improved Efficiencies by 4x

  • 3PLs: Complete Orders Faster with Flexible Automation

  • Reusable Packaging for the New Wave of Supply Chain Automation

View More

Subscribe to DC Velocity Magazine

GET YOUR FREE SUBSCRIPTION
  • SUBSCRIBE
  • NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing