UPS’ venture capital arm UPS Ventures has made a minority investment in autonomous driving company TuSimple.
Together, both companies are testing self-driving tractor trailers on a route in Arizona to determine whether the vehicles can improve service and efficiency in the UPS network.
This is an extension of the ongoing commercial relationship between UPS and TuSimple in which UPS has purchased transportation services from TuSimple.
The work with autonomous driving company TuSimple began with the goal of helping UPS better understand the requirements for level 4 (L4) autonomous trucking in its network.
L4 Autonomous means the vehicle’s onboard computer is in complete control at all times, eliminating manual intervention. Currently, however, laws regulating L4 autonomous driving require a driver in the vehicle at all times to take over operation if needed.
Throughout the ongoing tests, UPS has been providing truckloads of goods for TuSimple to carry on a North American freight forwarding route between Phoenix and Tucson, Arizona.
The company initiated self-driving service in May, 2019, with a driver and engineer in the vehicle. TuSimple and UPS monitor distance and time the trucks travel autonomously, safety data and transport time.
“UPS is committed to developing and deploying technologies that enable us to operate our global logistics network more efficiently,” said chief strategy and transformation officer, Scott Price.
“While fully autonomous, driverless vehicles still have development and regulatory work ahead, we are excited by the advances in braking and other technologies that companies like TuSimple are mastering.
“All of these technologies offer significant safety and other benefits that will be realized long before the full vision of autonomous vehicles is brought to fruition – and UPS will be there, as a leader implementing these new technologies in our fleet.”
UPS contracts with third-party trucking companies during its peak shipping season. TuSimple believes it could cut average purchased transportation costs by 30 per cent.
UPS’s tests with TuSimple are part of an advanced technology evaluation for vehicles in the UPS Global Smart Logistics Network. UPS is investing in Internet of Things (IoT) technology, Artificial Intelligence (AI) and advanced analytics to increase fuel efficiency and improve customer service to ensure that UPS remains the shipper of choice.