Meet Nuro: The company right in the middle of the rise of autonomous vehicles

[Auto driving smart car in cyber space made of light trail]
Hiroshi Watanabe

The autonomous vehicle sector was rocked this week when Lucid Group (LCID [https://seekingalpha.com/symbol/LCID]) announced a three-way partnership with Uber Technologies (NYSE:UBER [https://seekingalpha.com/symbol/UBER]) and privately held Nuro to deploy at least 20,000 Lucid Gravity SUVs equipped with Nuro's L4 autonomous technology on the Uber (NYSE:UBER [https://seekingalpha.com/symbol/UBER]) network over the next six years.

Notably, prototypes of the vehicle are currently undergoing testing at Nuro's Las Vegas proving grounds, with the official launch expected later next year in a major U.S. city. Uber (NYSE:UBER [https://seekingalpha.com/symbol/UBER]) will license Nuro Driver technology and will own and operate the vehicles, along with its third-party fleet partners. Uber (UBER [https://seekingalpha.com/symbol/UBER]) also plans to fire off a $300 million investment in Lucid Group (LCID [https://seekingalpha.com/symbol/LCID]) as well as an additional investment in Nuro.

While Uber (UBER [https://seekingalpha.com/symbol/UBER]) and Lucid (LCID [https://seekingalpha.com/symbol/LCID]) are better known, Nuro is still a bit of a mystery. The robotics and autonomous vehicle technology company was founded in September 2016 by Jiajun Zhu and Dave Ferguson, two former engineers from Google's (GOOG [https://seekingalpha.com/symbol/GOOG]) self-driving car project, which evolved into Waymo. The Mountain View, California-based company initially focused on developing small, electric, self-driving vehicles optimized for last-mile delivery. Nuro gained early attention in 2018 with the launch of its R1 prototype, followed by real-world pilots with major retailers. The company later became the first to receive a federal exemption from the National Highway Traffic Safety Administration for operating autonomous vehicles without conventional controls such as steering wheels or pedals.

Nuro has a diverse investor base that includes Greylock Partners, Woven Capital, SoftBank Vision Fund, Sequoia Capital, Tiger Global, T. Rowe Price, Ballie Gifford, and Fidelity. Chipotle (CMG [https://seekingalpha.com/symbol/CMG]) is also reportedly a strategic investor. The company has secured strategic partnerships with major U.S. retailers and tech firms such as Kroger (KR [https://seekingalpha.com/symbol/KR]), Walmart (WMT [https://seekingalpha.com/symbol/WMT]), Domino’s Pizza (DPZ [https://seekingalpha.com/symbol/DPZ]), CVS Pharmacy (CVS [https://seekingalpha.com/symbol/CVS]), Chipotle (CMG [https://seekingalpha.com/symbol/CMG]), and Uber (UBER [https://seekingalpha.com/symbol/UBER]). Notably, Nuro has been working with its partners to deliver groceries, restaurant orders, and prescriptions through autonomous delivery vehicles across select U.S. cities.

Looking ahead, Nuro's long-term vision includes licensing its Level 4 autonomous driving system to OEMs, mobility providers, and even private vehicle manufacturers, aiming to scale its technology across delivery services, ride-hailing fleets, and future personal vehicles.

MORE ON THE AUTONOMOUS VEHICLE SECTOR

* Lucid X Uber: The Alliance That Could Rewrite Autonomy [https://seekingalpha.com/article/4802383-lucid-x-uber-the-alliance-that-could-rewrite-autonomy]
* Uber: The 'Netflix Of Mobility' Set To Gain Big From The Autonomous Vehicle Race [https://seekingalpha.com/article/4802052-uber-the-netflix-of-mobility-set-to-gain-big-from-the-autonomous-vehicle-race]
* Uber Looks Desperate With Lucid Robotaxi Move [https://seekingalpha.com/article/4802031-uber-looks-desperate-with-lucid-robotaxi-move]
* What analysts are saying about Uber and Lucid's big autonomous vehicle deal [https://seekingalpha.com/news/4468822-what-analysts-are-saying-about-uber-and-lucids-big-autonomous-vehicle-deal]
* Market Voices: Lucid-Uber robotaxis, Warsh on Fed "regime change" [https://seekingalpha.com/news/4468484-market-voices-lucid-uber-robotaxis-warsh-on-fed-regime-change]