Aurora partners with Fedex for test driverless vehicles

Aurora CEO Chris Urmson joins the Yahoo Finance Live panel to discuss the future of autonomous driving.

Video transcript

- FedEx teaming up with Aurora putting its self-driving technology to the test using self-driving trucks to transport goods between Dallas and Houston, Texas. Let's talk a little bit more about this pilot program and what we could expect from the company going forward.

For that, we want to bring in Chris Urmson. He is the CEO of Aurora. And Chris, it's good to speak with you again. A huge announcement a partnership with FedEx. Talk to us just about what this pilot program entails and what we can expect going forward.

CHRIS URMSON: No. Thank you really appreciate the chance to be here. What we've done is we put together three industry leaders. We've Aurora who's building the Aurora driver, which helps drive the vehicle, drives the vehicle.

We have Paccar and Peterbilt. The incredible brand that makes the truck. And FedEx the preeminent shipper and we're working together to introduce automation to the line haul operations and support FedEx and growing their business.

- How-- how soon might we be on the highway driving next to a driverless truck powered by your technology, whether it be FedEx or someone else?

CHRIS URMSON: So our trucks are on the road today out there driving. Today, we have our operators on board as we're developing the technology. We're working towards launching a driverless operation at the end of 23.

- Chris, how do you see this pilot program evolving? So right now, it's between Dallas and Houston. Certainly, a crowd of several miles. What's next for this?

CHRIS URMSON: Yeah. So initially, we'll be pulling loads on a weekly basis with FedEx, and we'll all together Arora pack our FedEx. We'll be learning about this and figuring out how we introduce it best.

And as we get those lessons, we'll scale up the operations together. We're really excited about it.

- Well, I would imagine National Highway Traffic Safety Administration. And if I'm wrong, tell us which agency gives you the green flag to-- to go past these kind of test shots. Because we've seen other haulers do similar kinds of driverless testing.

But I got to imagine. We just saw the FedEx earnings report. A day in which they could do the long haul without having to worry about the eight hours that the drivers have to, you know, take a break from is just a game changer for the business model. So who's going to approve it and when?

CHRIS URMSON: Yeah, so we work regularly with-- with the regulators and policymakers both at the state and federal levels throughout the United States. And we have an ongoing dialogue with them. And it's-- we're really proud to work with them.

Yeah, we think that the value of the automation of the Aurora driver is really profound. That in the US, we have a dramatic shortage of drivers today. We're 60,000 drivers by the end of the decade. We expect to be sure at 160,000 drivers.

And so for our partners being able to provide a driver to complement, the human drivers that they have out there to support that. That isn't limited by hours of service regulations, so that you can effectively shrink the country and make it easier for-- for-- for goods to move around and deliver those goods to consumers and manufacturing system, or manufacturing companies quicker. We think it's just profoundly valuable.

- And Chris, you're going public via SPAC. And it's at a time when SPACS have largely fallen out of favor with investors. Why was this the right move for you?

CHRIS URMSON: Yeah, so we started our SPAC process with the idea of trying to build it as a high quality IPO like process and just happen to use the SPAC vehicle to do that. We engage with some of the top growth investors out there. The folks like Baillie Gifford, M sim, tee Rowe Price. And those-- those are the folks that are leading the investment in our pipe.

For us, it was really about becoming part of the public markets, allowing others to engage and come along this journey with us. And then see the benefit from that. And to allow us to bring enough capital in to cross the chasm with this incredible technology.