Gatik AI gains third funding round of 2024 for its autonomous trucks

The California self-driving truck maker Gatik AI Inc. has announced its third investment round of 2024, collecting the new funding from Japanese logistics provider Nippon Express Holdings Inc. (NX Group).

Terms of the deal were not disclosed, but Gatik said it would use the backing to strengthen its position in the North American logistics landscape, accelerating the deployment of its autonomous technology across the region.

The fresh funding follows investments from two other Japanese companies earlier this year, including an unspecified amount of money from the global trading company Itochu and $30 million from automaker Isuzu Motors Ltd.

Gatik provides autonomous trucks for the middle-mile segment of the supply chain, shuttling “often-overlooked” routes between distribution centers, fulfillment centers, and retail locations. Once those vehicles arrive at Gatik hubs, human drivers taker over and drive the load to its final destination.

According to Gatik, that approach addresses critical challenges like driver shortages and supply chain inefficiencies, resulting in faster deliveries and reduced costs. The company says its autonomous transportation network is already operating successfully in regions such as Texas and Arkansas in the U.S., and Ontario in Canada.

Covering highway miles with self-driving trucks and leaving the first and last mile legs to human drivers is a similar approach to several other autonomous vehicle vendors, such as Kodiak Robotics and Volvo Autonomous Solutions (V.A.S.).

“Middle-mile autonomy is undoubtedly the first application in autonomous trucking to achieve scale in commercial applications. It’s also critical for solving the most pressing logistics issues businesses are facing today—ensuring faster deliveries, addressing growing labor shortages, reducing costs, and meeting the rising demand for goods in this era of rapid e-commerce growth,” Gautam Narang, CEO and co-founder of Gatik, said in a release. “Our investment partnership with NX Group is a testament to the impact we’re making in North America and the confidence of global partners in our ability to meet the evolving needs of our customers.”