Self-Driving Truck Company With Plan to Replace Truckers Seeks $250 MILLION
San Diego, CA – A self-driving truck company that is making its mission to replace many professional truck drivers is once again seeking a massive infusion of capital.
According to a new report by TechCrunch, San Diego-based TuSimple has hired investment bank Morgan Stanley to help raise $250 million from investors.
The driverless technology startup made headlines last year when logistics behemoth United Parcel Service (UPS) announced its venture capital arm, UPS Ventures, made a minority investment in the company.
The two companies have been working together since May of 2019.
UPS confirmed it provides truckloads of goods for TuSimple to carry on a North American Freight Forwarding route between Phoenix and Tucson, AZ.
In March of this year, TuSimple announced it was expanding its self-driving delivery services for UPS into Texas.
TuSimple says it now making 20 trips per week from Phoenix, AZ to El Paso, TX, delivering to a UPS distribution center.
The company released a video earlier this year demonstrating this run.
WATCH it below.
The partnership, which began in April 2020, covers the world’s largest markets including North America, Europe and China.
Chuck Price, Chief Product Officer with TuSimple, called the partnership an “important milestone” as the company prepares to “bring autonomous-ready trucks to market.”
Price is famously (or infamously) known for pronouncing TuSimple would begin to put truck drivers out of work as soon as this year.
Transportation Nation Network (TNN) has reported extensively on TuSimple’s stated goal of beginning to replace team drivers by 2021.
TuSimple believes long-haul routes with short turnaround times are well suited for self-driving trucks which is why the company acknowledges it is zeroing in on replacing team truckers first.
Last June, TuSimple successfully completed a two-week test delivering mail along a 1,000 mile route from Phoenix, AZ to Dallas, TX for the United States Postal Service (USPS).
During the USPS test, TuSimple ran its self-driving trucks for 22 hours each, which included overnight driving along the Interstate 10, 20, and 30 corridors.
TNN has also reported that TuSimple is currently operating under non-disclosure agreements with dozens of carriers, hauling three loads per day.
TuSimple is promising its trucks are safer for the motoring public and will reduce transportation costs for motor carriers and shippers by up to 30%.