UPS Ventures, the venture capital arm of United Parcel Services, has acquired a minority stake 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 TuSimple began with the goal of helping UPS better understand the requirements for Level 4 autonomous trucking in its network. L4 autonomous means the vehicle‘s on-board 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 realised 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.”

Founded in 2015, TuSimple‘s mission is to bring the first self-driving truck to market, to increase safety, decrease transportation costs and reduce carbon emissions. 

“We are honoured by UPS‘s strategic investment and their vote of confidence in TuSimple, this proves their commitment to staying at the forefront of innovation,” says TuSimple‘s founder, president and CTO, Xiaodi Hou. 

“TuSimple is confident that it can accelerate bringing the first self-driving truck to market to increase road safety.”

The company believes it could cut average purchased transportation costs by 30%.