Good year and autonomous trucking company Gatik have established a multi-year collaboration to advance the development of mobility solutions for the short-haul B2B driverless logistics sector.
As part of the collaboration, Goodyear Ventures participated in Gatik’s recently announced Series B funding, and companies will work together on several innovative projects.
âGatik’s mission to deliver goods safely and efficiently using autonomous vehicles aligns with our investment strategy, making it a great addition to our portfolio, which already includes key players in the industry. autonomous delivery in the long-distance and last-mile delivery markets, âAbhijit Ganguly, Managing Director of Goodyear Ventures, said in a Press release.
Building on technology
Ganguly added that the investment will help Goodyear learn more about the implications of autonomous technologies in mid-mile delivery and logistics.
In another part of the collaboration, Gatik’s mid-weight fleet will use tires equipped with tire intelligence technology powered by Goodyear line of sight, building on existing Goodyear connected tire management product offerings. Goodyear line of sight uses sensors with cloud-based algorithms to communicate with fleet operators in real time, helping drivers and fleet managers by predicting breakdowns, minimizing downtime and monitoring tire pressure and wear .
âThe benefits of Goodyear’s tire intelligence technology lie in improving safety, increasing efficiency and reducing costs, which are absolutely fundamental to Gatik’s mission and success,â said said Arjun Narang, CTO and co-founder of Gatik, in the press release.
$ 114.5 million in funding
The Series B funding that Goodyear participated in was announced on August 31 and raised $ 85 million, bringing Gatik’s total funding to $ 114.5 million.
Gatik has established an autonomous logistics network on the middle mile and is rapidly expanding its fleet of Class 3 to 6 autonomous box trucks for its customers in several markets including Texas, Arkansas, Louisiana and Ontario.
Speak with PYMNTS Shortly after the Series B funding announcement was announced, Gatik CEO and co-founder Gautam Narang said demand for mid-mile logistics has increased as retail customers around the world want lower costs, shorter delivery times and durable, reliable capacity.
See also: The demand for next day delivery drives the need for efficient logistics
A stand-alone solution
Driven by consumer expectations for same-day delivery, there is a mid-mile need for more trips, more drivers and more trucks.
“Operating costs are increasing [in] trying to serve several additional routes, trying to make these trips frequently, âNarang told PYMNTS. âAnd that’s where we come in. A stand-alone solution like ours can help these retailers operate and scale this service immediately.
This strategy and technology has resonated with investors, as evidenced by Gatik’s $ 114.5 million funding.
âThe logistics industry is experiencing unprecedented disruption due to the explosive growth of e-commerce and the demand for more efficient movement of goods,â said Chase Koch, president of lead investor Koch Disruptive Technologies, in a statement regarding Series B funding. “Nowhere is this more pronounced than on the middle mile.”