TuSimple and Ryder Partner to Expand Nationwide Autonomous Trucking

Rhea-AI Summary

TuSimple (Nasdaq: TSP) and Ryder (NYSE: R) have formed a groundbreaking partnership to utilize select Ryder fleet maintenance facilities as terminals in TuSimple's Autonomous Freight Network (AFN). This collaboration allows for expanded access to autonomous freight operations while leveraging Ryder's existing infrastructure, eliminating the need for new terminals. TuSimple currently operates over 50 autonomous trucks across Arizona, New Mexico, and Texas, with plans to extend services to the East Coast. The partnership positions both companies to capitalize on growing demand in the autonomous trucking sector.

Positive

• Partnership enables TuSimple to quickly scale operations across the U.S. using Ryder's existing facilities.
• Access to expanding consumer demands for reliable autonomous trucking solutions.
• Potential for Ryder to become a leader in servicing autonomous trucks.

Negative

• None.

SAN DIEGO, July 29, 2021 /PRNewswire/ -- TuSimple (Nasdaq: TSP), global autonomous driving technology company, and Ryder System, Inc. (NYSE: R), leader in supply chain, dedicated transportation, and fleet management solutions, today announce an industry-first partnership that aims to leverage select Ryder fleet maintenance facilities to serve as terminals on TuSimple's Autonomous Freight Network (AFN). The announcement comes as TuSimple expands its footprint across the U.S. to meet rising consumer demands.  

Through the partnership, TuSimple and Ryder will work together to identify existing Ryder facilities to serve as terminals along the TuSimple AFN. Terminals are secure facilities and serve as the start and end point for autonomous driving missions. These facilities can have multiple heavy-duty trucks and trailers come and go 24 hours per day, 365 days per year. By adding more terminals to TuSimple's AFN, shippers and fleets will have greater access to autonomous freight operations. Leveraging Ryder's existing freight trucking terminals, TuSimple can quickly scale across the country without needing to build new facilities. 

Today, TuSimple's fleet of more than 50 autonomous trucks (SAE L4) transport freight for customers across the states of Arizona, New Mexico and Texas. Later this year, TuSimple expects to expand operations to the East Coast, carrying freight between Phoenix, Ariz., and Orlando, Fla. By working closely with Ryder to utilize its existing infrastructure, the partnership offers a win-win scenario for both companies.

"The trucking industry is on the verge of a massive disruption, and we're seeing strong demand for access to reliable autonomous capacity from shippers, carriers, and fleets," said Cheng Lu, President and CEO at TuSimple. "The partnership with Ryder will enable us to grow our operational footprint to continue to meet these needs and set the pace for industry adoption."

Initially, the partnership will focus on Ryder's facilities in the Southern U.S. However, with Ryder's nationwide network of more than 500 maintenance facilities, the partnership has the potential to rapidly scale.

"With this partnership we believe Ryder is positioned to become a leader in the servicing of autonomous trucks," said Karen Jones, EVP, CMO, and Head of New Product Innovation at Ryder. "Ryder is focused on how to best leverage our vast location footprint, maintenance operations, and visibility tools to lead in the future world of autonomy. Partnering with TuSimple will help bring autonomous operations to market more quickly, while also providing Ryder access to new and emerging revenue streams." 

About TuSimple

TuSimple is a global autonomous driving technology company, headquartered in San Diego, California, with operations in Arizona, Texas, Europe, and China. Founded in 2015, TuSimple is developing a commercial-ready Level 4 (SAE) fully autonomous driving solution for long-haul heavy-duty trucks. TuSimple aims to transform the $4 trillion global truck freight industry through the company's leading proprietary AI technology, which makes it possible for trucks to see 1,000 meters away, operate nearly continuously and consume 10% less fuel than manually driven trucks. Visit us at www.tusimple.com

About Ryder

Ryder System, Inc. is a leading logistics and transportation company. It provides supply chain, dedicated transportation, and fleet management solutions, including full service leasing, rental, and maintenance, used vehicle sales, professional drivers, transportation services, freight brokerage, warehousing and distribution, e-commerce fulfillment, and last mile delivery services, to some world's most-recognized brands. Ryder provides services throughout the United States, Mexico, Canada, and the United Kingdom. In addition, Ryder manages nearly 235,000 commercial vehicles and operates more than 300 warehouses encompassing approximately 64 million square feet. Ryder is regularly recognized for its industry-leading practices in third-party logistics, technology-driven innovations, commercial vehicle maintenance, environmentally friendly solutions, corporate social responsibility, world-class safety and security programs, military veteran recruitment initiatives, and the hiring of a diverse workforce. www.ryder.com

 

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SOURCE TuSimple Holdings Inc.

FAQ

What is the partnership between TuSimple and Ryder about?

The partnership aims to use Ryder's fleet maintenance facilities as terminals in TuSimple's Autonomous Freight Network, facilitating a national expansion of autonomous trucking services.

How will the TuSimple and Ryder partnership impact autonomous trucking?

The partnership is set to enhance operational efficiency, providing greater access to autonomous freight operations by leveraging Ryder's infrastructure.

What regions will TuSimple's autonomous trucks operate in following the partnership?

TuSimple currently operates in Arizona, New Mexico, and Texas, with plans to expand to the East Coast, specifically between Phoenix and Orlando.

What is the significance of this partnership for investors in TSP?

This collaboration could enhance TuSimple's growth potential and market position in the autonomous trucking sector, which may positively influence investor sentiment.