Udelv, a Silicon Valley venture-backed company, is to use self-driving technology from Intel subsidiary Mobileye for its autonomous delivery vehicles (ADVs).

The companies plan to produce more than 35,000 Mobileye-driven Transporters by 2028, with commercial operations beginning in 2023. This is believed to be the first large-scale deal for a self-driving system and signals that Mobileye Drive could be ready for commercial deployment involving the autonomous movement of goods and people.

“Our deal with Udelv is significant for its size, scope and rapid deployment timeline, demonstrating our ability to deliver Mobileye Drive for commercial use now and in volume,” said Amnon Shashua, CEO of Israel-based Mobileye. “Covid-19 has accelerated demand for autonomous goods delivery, and we are delighted to partner with Udelv to address this demand in the near term.”

Daniel Laury, CEO of Udelv, added: “Mobileye is the only company providing a full-stack self-driving system with commercial viability and scale today. The readiness of Mobileye Drive, along with its vast map coverage of North America, Europe and Asia, will allow us to ramp up the production and deployment of Udelv Transporters and rapidly offer the service at scale to our expanding list of customers.”

Last-kilometre delivery is the most expensive aspect of distribution, accounting for 53% of the overall cost of goods. At the same time, consumers are buying more and more goods online which is expected to raise urban last-kilometre delivery volume by 75 to 80% by 2030 and require 36% more delivery vehicles. And a shortage of drivers is making it difficult for companies to keep pace. It is a service model that is ripe for improvement.

Udelv’s customers expect Transporters to improve the efficiency of last- and middle-kilometre delivery services for everything from baked goods and auto parts to groceries and medical supplies.

Donlen, one of America’s largest commercial fleet management companies at the forefront of fleet management innovation and technology, has placed the first pre-order for 1000 Transporters. This pre-order is believed to be the largest to date for an autonomous delivery vehicle.

“We are thrilled to be the first customer for the Udelv Transporter,” said Tom Callahan, president of Donlen. “The combination of Udelv’s zero-emissions Transporter and automated delivery management system with Mobileye Drive will enable sweeping delivery cost reductions, make our roads safer, and lower carbon emissions across America.”

Mobileye Drive comprises EyeQ system-on-chip-based level-four (L4) compute, sensors and software, the company’s proprietary Road Experience Management AV mapping, and responsibility-sensitive safety-based autonomous driving policy. Udelv will perform the integration with its delivery management system, with Mobileye providing technical oversight. Mobileye will also provide over-the-air software support.

Mobileye-driven Transporters will be capable of L4 self-driving, point-to-point operation. Udelv’s proprietary tele-operations system will allow for the manoeuvring of the vehicles at the edges of the mission, in parking lots, loading zones, apartment complexes and private roads.

Celebrated for creating the world’s first custom-made ADV that completed the first autonomous delivery in early 2018, Udelv has quietly performed deployment trials with customers across various industries.

As one of Udelv’s early customers, Mike Odell, CEO of XL Parts & Marubeni Automotive Aftermarket Holdings, said: “We placed our trust in Udelv’s technology two years ago and are thrilled to witness the progress this company has made in such a short period of time. XL Parts remains committed to expanding its partnership with Udelv and to being one of the first clients for the Transporters.”

The deal with Udelv advances Mobileye’s global mobility-as-a-service ambitions, validating the company’s technology and business approach. Mobileye plans to deploy autonomous shuttles with Transdev ATS and Lohr Group beginning in Europe. Mobileye also plans to begin operating an autonomous ride-hailing service in Israel in early 2022.