"While fully autonomous, driverless vehicles still havedevelopment and regulatory work ahead, we are excited by theadvances in braking and other technologies that companies likeTuSimple are mastering," said UPS's chief strategy andtransformation officer, Scott Price. (Photo:Northfoto/Shutterstock)

In another step forward in the rise of autonomous vehicles, UPShas entered the self-driving market and has been deliveringpackages via self-driving trucks for the past few months.

Last week, the venture capital arm of UPS, UPS Ventures,announced that it made a minority investment in autonomousdriving company TuSimple. The news comes as questionscontinue to surround the safety and reliability of autonomousvehicles, as more and more companies adopt the technology.

In a statement, UPS said that, together, both companies aretesting self-driving tractor trailers on aroute in Arizona to determine whether the vehicles can improveservice and efficiency in the UPS network. UPS said that this wasan extension of the ongoing commercial relationship between UPS andTuSimple in which UPS has purchased transportation services fromTuSimple.

According to UPS, the work with TuSimple began with the goal ofhelping UPS better understand the requirements for Level 4autonomous trucking in its network. L4 autonomous means thevehicle's onboard computer is in complete control at all times,eliminating manual intervention. Currently, however, lawsregulating L4 autonomous driving require a driver in the vehicle atall times to take over operation if needed.

Throughout the ongoing tests, UPS said, it has been providingtruckloads of goods for TuSimple to carry on a North Americanfreight forwarding route between Phoenix and Tucson, Arizona.

The company initiated self-driving service in May 2019, with adriver and engineer in the vehicle. TuSimple and UPS monitordistance and time the trucks travel autonomously, safety data, andtransport time.

"UPS is committed to developing and deploying technologies thatenable us to operate our global logistics network moreefficiently," said UPS's chief strategy and transformation officer,Scott Price. "While fully autonomous, driverless vehicles stillhave development and regulatory work ahead, we are excited by theadvances in braking and other technologies that companies likeTuSimple are mastering. All of these technologies offer significant safety and otherbenefits that will be realized long before the full vision ofautonomous vehicles is brought to fruition —and UPS will be there,as a leader implementing these new technologies in our fleet."

Founded in 2015, TuSimple's stated mission is to bring the firstself-driving truck to market, to increase safety, decreasetransportation costs, and reduce carbon emissions. TuSimpledevelops technology that it expects will allow shipping companiesto operate self-driving class 8 tractor-trailers – those thatexceed 33,000 pounds and typically have three or more axles.

UPS contracts with third-party trucking companies during itspeak shipping season. TuSimple believes it could cut averagepurchased transportation costs by 30 percent.

"We are honored by UPS's strategic investment and their vote ofconfidence in TuSimple; this proves their commitment to staying atthe forefront of innovation," said TuSimple's founder, president,and chief technology officer, Xiaodi Hou. "TuSimple is confidentthat it can accelerate bringing the first self-driving truck tomarket to increase road safety."

UPS's tests with TuSimple are part of an advanced technology evaluation for vehicles in theUPS Global Smart Logistics Network. UPS is investing inInternet of Things technology, artificial intelligence, andadvanced analytics in a stated effort to increase fuel efficiencyand improve customer service. One way that UPS explores newtechnologies is via its internal venture capital group UPSVentures, which was established in 1997 as the UPS StrategicEnterprise Fund ("SEF").

In 2018, the SEF refined its objective and took the new name UPSVentures. The group now seeks specific capabilities that UPS canintegrate into its network immediately. UPS Ventures takes aminority stake in technology startups and actively partners withthese companies to achieve technology goals for the UPS SmartLogistics Network.

"The UPS Ventures mission is to build collaborativerelationships with early-stage companies that provide capabilitiesand insights that accelerate technological advancements within ournetwork," said Todd Lewis, the managing partner of UPS Ventures."UPS Ventures collaborates with startups to explore newtechnologies and tailor them to help meet our specific needs."

This piece first published at law.com.

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