Business & Investment

TuSimple expands routes to Florida with over 160,000 autonomous miles on UPS

Autonomous truck software maker TuSimple Holdings is expanding its load-loading routes from Arizona and Texas to Florida with more than 160,000 UPS robot-driven miles.

“The paid freight portion is good and we want to get paid for the work,” Tu Simple CEO Cheng Lu told Freight Waves. “After all, the revenue generated by UPS is negligible compared to UPS and the industry as a whole. Given how much they charge each year, it’s really almost funny.

“But the ability to map routes and operate autonomously away from Tucson and Dallas shows the maturity of operations,” he said.

TuSimple (NASDAQ: TSP), The first autonomous truck company released in April was UPS (NYSE: UPS) For two and a half years, we have been running a revenue-generating route supervised by a human driver in the southwest.

Double digit fuel savings

The robot-driven route from Phoenix to Tucson, Arizona and Dallas has improved fuel efficiency by 13%, TuSimple said in a third-quarter shareholder letter Wednesday.

Fuel accounts for 25% to 30% of truck operating costs, second only to driver wages and allowances.

“Everyone likes to make big claims about fuel savings, but does anyone have 160,000 miles of third-party empirical data showing 13% fuel efficiency?” Asked.

TuSimple trucks travel on interstate highways at 55-68 mph. The maximum speed that UPS allows.

Lu convinced autonomous trucking just to save fuel, as oil prices have risen from the pandemic’s lowest of $ 30 a barrel a year ago to $ 80 a barrel now. He said it would be a powerful example.

“Fuel surcharges are getting higher and higher,” he said. “Double-digit savings from fuel alone can save billions across the industry.”

Network expansion

TuSimple maps UPS (and eventually other shippers) routes from Arizona to Florida by the end of the year.

“We are leveraging it to expand our network,” Lu said. “Because it’s the same highway for everyone, it improves network scalability. We may work with additional partners in the future, and some of that lane work has already been done.”

Lou said the announcement of partnerships from his company and other start-ups would benefit autonomous trucks as a whole, but follow-through is really important.

“As far as we know, 160,000 miles is an order of magnitude larger than any other collaboration in the industry, and it’s important to dig deeper to actually bring this technology to market.”

Cheng lu, ceo, tusimple holdings

“As far as we know, 160,000 miles is an order of magnitude larger than any other collaboration in the industry,” Lu said. “And it’s important to dig deeper to actually bring this technology to market.”

TuSimple’s competitors are at various stages of truck testing towards the goal of eliminating human drivers in 2023. Some of TuSimple’s competitors generate freight revenue, but we haven’t provided details.

TuSimple itself does not disclose all freight customers, but two, named USXpress and Werner Enterprises, have also invested in TuSimple.

“Early adopters and visionary people are good for the industry as a whole, whether they’re working with us or with someone else,” Lu said. increase. “Exclusive rights are not good, so it does not mean exclusive.”

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TuSimple expands routes to Florida with over 160,000 autonomous miles on UPS

https://www.freightwaves.com/news/tusimple-tops-160000-autonomous-miles-with-ups-expands-routes-to-florida TuSimple expands routes to Florida with over 160,000 autonomous miles on UPS

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