Truck startup TuSimple to run pilot program with US Postal Service

Autonomous truck startup TuSimple signed a contract with the United States Postal Service to run its self-driving trucks for mail delivery in a two-week pilot program in Arizona and Texas, a move that analysts said can speed up commercialization of the technology.

The company, with dual headquarters in Beijing and Shanghai, will run a series of its self-driving trucks for 22 hours each, including overnight driving and will involve five round trips in those two US states.

The move is an important milestone for TuSimple as it scales its autonomous operations beyond Arizona and marks its self-driving debut in Texas, the company said.

"It is exciting to think that before many people will ride in a robo-taxi, their mail and packages may be carried in a self-driving truck," said Hou Xiaodi, founder, president and chief technology officer of TuSimple.

"Performing for the USPS on this pilot in this particular commercial corridor gives us specific use cases to help us validate our system, and expedite the technological development and commercialization progress," Hou said.

USPS spokeswoman Kim Frum said the move is the company's first initiative in autonomous long-haul transportation.

"We are conducting research and testing as part of our efforts to operate a future class of vehicles that will incorporate new technology to accommodate a diverse mail mix, enhance safety, improve service, reduce emissions and produce operational savings," Frum told cable television outlet CNBC.

According to a recent announcement, TuSimple will haul USPS trailers more than 1,000 miles between the Postal Service's Phoenix, Arizona, and Dallas, Texas distribution centers. The truck will have a safety engineer and driver on board for the duration of the program to monitor vehicle performance and ensure public safety.

Song Jin, a senior analyst in the auto industry with internet consultancy Analysys, said the move marks a solid step forward in the effort to commercialize the technology and improve delivery efficiency.

"The mass adoption of self-driving vehicles in designated areas will become a reality within three years. The rapid development of 5G and substantial reduction in radar's costs can expedite progress," Song said.

The fact that USPS chose TuSimple for a two-week test showed that the company's technology has stayed ahead of the competition, Song said. "The two sides will likely continue their cooperation if the test goes smoothly," he added.

TuSimple aims to boost the $800 billion trucking industry by increasing safety, reducing carbon emissions and transportation costs and optimizing logistics for fleet operators.

Long-haul routes with short turnaround times are well suited for self-driving trucks because they are normally accomplished with driving teams of two people.

Driving teams are facing challenges in recruitment due to overnight driving requirements, the need to share close quarters with another person and a significant shortage in truck drivers. The American Trucking Association said the driver shortage could reach 175,000 by 2024.