Autonomous trucks trained with artificial intelligence are revolutionizing the trucking industry by successfully hauling prepared meats. This groundbreaking adoption showcases how self-driving technology can complement, rather than disrupt, truck drivers' careers.
Tyson Foods Partners with Gatik
On Wednesday, Tyson Foods announced its collaboration with self-driving truck start-up Gatik to deploy autonomous vehicles in northwest Arkansas. Tyson Foods, a meat giant generating over $50 billion in annual sales, relies on chicken, beef, and pork for more than 80% of its total revenue. With a private fleet of trucks and third-party trucking services, Tyson is at the forefront of embracing innovative solutions.
Middle Mile Operations
The Gatik trucks will operate in the middle mile, focusing on short-haul routes from production plants to distribution centers. These trucks will be equipped with refrigerated trailers, ensuring the safe transportation of perishable goods. By handling the less-desirable short-haul trips, the autonomous trucks free up human drivers for longer, more rewarding routes.
Enhancing Productivity with Longer Operating Hours
One significant advantage of autonomous trucks is their potential to operate for longer hours compared to human drivers. While drivers are subject to an 11-hour driving limit per day, autonomous trucks have the capability to operate for 18 hours a day. This considerable increase in operating time translates to enhanced productivity and efficiency on less-desirable routes.
Gatik's Expertise in Middle-Mile Autonomous Trucking
Gatik specializes in middle-mile autonomous trucking applications, choosing to focus on routes that are shorter and more predictable. Long-haul routes tend to have greater variability and are subjected to stricter safety regulations. Last-mile routes, on the other hand, involve complex logistics between retailers and customers. Gautam Narang, CEO and co-founder of Gatik, highlights the exponential increase in route combinations within a specific area when addressing last-mile operations.
In conclusion, autonomous trucks are making tremendous strides in the trucking industry, promising to redefine the roles of truck drivers and revolutionize the efficiency of goods transportation. With Tyson Foods' partnership with Gatik, it is clear that self-driving technology is paving the way for a successful and collaborative future in the realm of trucking.
Middle-Mile Routes and Autonomous Trucking
Middle-mile routes play a crucial role in the early stages of autonomous trucking due to their shorter distance and repetitive nature. These routes are particularly suitable for initial applications of autonomous technology, as they generally do not cross state lines, simplifying regulatory requirements.
Gatik, a leading company in this field, employs a unique approach. While their trucks have the capability to drive autonomously, they initially operate with safety drivers. Through the use of artificial intelligence (AI), Gatik trains its technology to continuously improve. The longer the trucks spend on a specific route, the more proficient they become at navigating it.
Gatik has already deployed its trucks with major retailers like Walmart and Canadian grocer Loblaw. In some cases, the drivers have been phased out entirely. Validating the technology with customers and removing the need for a driver can take up to 18 or even 24 months.
When it comes to Tyson's transportation needs, they will be utilizing Gatik trucks. Adopting an autonomous transportation-as-a-service model, Gatik charges its customers a fixed fee per drop per year, providing a cost-effective and reliable solution.
Although Gatik is currently privately held and not planning an initial public offering in the near future, investors might soon find themselves benefiting from this technology indirectly. They could unknowingly enjoy food transported by driverless Gatik trucks, especially if they reside in Arkansas, where the technology is actively being put into action.
As of premarket trading on Wednesday, Tyson stock has experienced a 1.3% increase. However, S&P 500 and Dow Jones Industrial Average futures are down 0.3% and 0.2% respectively. Over the past 12 months, Tyson stock has declined by approximately 29%.
NEXT POST
