Autonomous Short

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In one of the latest signs of the self-driving truck market's potential, a West Coast short-haul autonomous trucking startup just raised $25 million in its Series A funding round.

Palo Alto, California-based Gatik, formed in 2017, announced the fundraising results on November 23, along with the company's expansion into Canada via a partnership with Loblaw, the country's largest retailer. Gatik, which also has offices in Toronto, is a provider of short-haul B2B logistics using a fleet of light- to medium-duty autonomous trucks. All Gatik vehicles — which include Class 1-6 automated light trucks and vans — operate with a human driver behind the wheel ready to take over driving if needed.

The company said the new funds will allow the expansion of operations across North America, along with boosting its headcount in Palo Alto and Toronto. The $25 million in funding was led by investors Wittington Ventures and Innovation Endeavors, along with FM Capital, Intact Ventures, and a few previous investors who participated in the round. Gatik said those financiers bring a wealth of experience in automotive, artificial intelligence, and supply chain.

Focusing on "middle-mile" delivery, Gatik caters to retail businesses by providing logistics within their supply chain. The company emphasizes that the supply chain segment between retailers’ micro-fulfillment centers and retail locations tends to be the biggest source of inefficiencies, and the company looks to thrive as a partner by reducing logistics costs, shortening delivery times, and providing contactless delivery.

With grocery retailer Loblaw, Gatik said the partnership marks the first-ever autonomous delivery fleet in Canada. The collaboration involves Gatik's trucks transporting Loblaw's multi-temperature goods from its picking facility to retail locations in the Toronto area starting in January 2021. Gatik will run the project through five of its vehicles on five new routes, hauling 12 hours per day, seven days per week.

In the summer of 2019, Gatik began piloting grocery delivery for Walmart, shuttling grocery orders from the retail giant's regional warehouses to local market stores in the company's home city of Bentonville, Arkansas.

Before the Series A round, Gatik had approximately $4 million in initial funding.

Image Credit: Gatik