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Gatik Level 4 Autonomous Vehicles Tackling Middle-Mile Logistics

Organization: Gatik
Country: United States
State: CA
Website: www.gatik.ai
Year Founded: 2017
Number of Employees: 11-50
Innovation Class: Applications & Markets Innovation
Innovation Subclass: Transportation

Gatik is proving commercialization and scalability of autonomous vehicles could happen first in B2B short-haul logistics.

Description:
Palo Alto, Calif.-based startup Gatik came out of stealth mode in July 2019 to address the pain point of middle-mile logistics for businesses. Middle-mile delivery is the most expensive part of the whole supply chain for businesses. With the rise of e-commerce and a short supply of drivers, businesses are struggling to meet the consumer expectations of an increasingly on-demand economy.

Gatik’s Level 4 autonomous vehicles, which include light trucks and vans, operate on fixed, repeatable routes about 15 times per day. The autonomous vehicles are restricted to the right-most lane as often as possible to eliminate technical challenges such as unprotected left turns. However, if needed, its vehicles will operate in left lanes and are capable of making lane changes and unprotected left turns. The vehicles also avoid routes with fire stations, hospitals, and schools to avoid unpredictability.

Analysis:
Gatik is implementing its solution with major retailers in North America, including Walmart, the world’s largest retailer. Gatik’s vehicles are responsible for shuttling groceries from a Walmart Supercenter to Neighborhood Stores in Bentonville, Ark. The company is helping retailers like Walmart reduce the high cost of middle-mile logistics, while improving safety, increasing efficiency, and reducing congestion and emissions. Gatik claims it makes “millions” per year in revenue.

The partnership and approach to autonomy are unique in the autonomous vehicle industry. They are also proof that commercialization and scalability of autonomous vehicles could happen first in B2B short-haul logistics and that viable business models do not require SAE Level 5 full autonomy. - Steve Crowe

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