Nippon Express has invested in Gatik AI, a company developing self-driving technology for commercial vehicles and autonomous vehicle-based logistics services in North America.

Gatik, a start-up company founded in the USA in 2017, provides logistics services using autonomous trucks. The company has expertise not only in autonomous software development but also in the overall design, testing and evaluation of autonomous vehicles, and successfully completed the world’s first commercial deliveries using unmanned autonomous vehicles on public roads in 2021.

It specialises in short- and medium-haul business-to-business logistics, and provides logistics services using self-driving vehicles for middle-kilometre deliveries between shippers’ intermediate warehouses and between warehouses and stores. The company has been expanding its business in North America with major US retailers such as Walmart and Kroger as well as food and beverage manufacturers and other shippers that handle daily commodities and food products.

With its autonomous transportation network already operating in Texas and Arkansas in the USA, and Ontario in Canada, Gatik has made recent investment partnerships with Isuzu Motors and Itochu. The Nippon Express investment was made via the NX Global Innovation Fund.

“Middle-mile autonomy is undoubtedly the first application in autonomous trucking to achieve scale in commercial applications,” said Gautam Narang, CEO of Gatik. “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.”

Autonomous driving technology is attracting a great deal of attention for addressing social issues such as the aging of drivers, personnel shortages, soaring labour costs, traffic accidents caused by human error, and an increase in mobility-impaired people due to the aging of societies.

Japan’s government has announced a policy aiming for the year-round operation of autonomous vehicles on public roads in all prefectures by 2025, and efforts towards full-scale operations are accelerating. Increased operational efficiency is also expected to improve fuel efficiency vis-a-vis manned operations, helping satisfy rising social demand for decarbonisation.

The NX Group supports the logistics needs of various industries and provides many with middle-kilometre logistics services, especially for delivering raw materials to factories or shipping finished products.

By establishing capital ties with Gatik, whose efforts are compatible with such a business model, the group is seeking to deepen its knowledge of the autonomous trucking business. The group is also looking to work with Gatik (gatik.ai) in the USA and elsewhere globally.

The NX Group (thenxgroup.com) says it will continue co-creating businesses with start-up companies in Japan and overseas, and contributing to the realisation of sustainable societies where all people can lead productive and fulfilling lives.