Benzinga | Oct 19, 2021 06:59AM EDT

Ryder Invests In Gatik, Inks Partnership To Establish Autonomous Delivery Network

* Ryder System, Inc. (NYSE:R) entered a multi-year partnership to establish an autonomous logistics network for Gatik's customers in the U.S. and Canada. Gatik is an autonomous Middle Mile logistics provider.

* Gatik's latest funding round of $85 million included an investment from Ryder's corporate venture capital fund, RyderVentures. The funding represents RyderVentures' first investment in an autonomous trucking company.

* The partnership's goal is to expand quickly across the U.S. and Canada, with the initial focus on the Dallas-Fort Worth area.

* Gatik will lease from Ryder a fleet of medium-duty, multi-temperature box trucks designed for transporting goods to retail locations from micro-fulfillment centers or dark stores--distribution centers that cater exclusively to e-commerce.

* Gatik will integrate its commercial-grade autonomous driving technology into the leased fleet, enabling Gatik to provide its Autonomous Delivery as a Service (ADaaS) model. Ryder will service and maintain the trucks, including calibration of autonomous vehicle sensors and the necessary pre-and post-trip inspections.

* Price Action: R share closed higher by 1.54% at $85.04 on Monday.