From CNBC · Phil LeBeau,Meghan Reeder · · 2m
Aurora targets profitability with autonomous trucks
The self-driving truck company plans to reach positive free cash flow by 2028 as it expands its fleet from 20 to 200 vehicles.
In brief
The self-driving truck company plans to reach positive free cash flow by 2028 as it expands its fleet from 20 to 200 vehicles. Aurora Innovation is operating autonomous semis on Texas highways and targeting positive free cash flow by 2028, betting that driverless trucks can operate more cheaply than human-driven ones…
Aurora takes CNBC for a ride
Aurora Innovation operates completely autonomous semis on Interstate 45 between Houston and Dallas and I-20 between Fort Worth and El Paso, two of the busiest truck routes in the country.
How the trucks see the road
The autonomous trucks use lasers, radar and cameras to look all around and see other cars and trucks, then figure out how to drive safely, according to Chris Urmson, Aurora founder and CEO.
Aurora's growth plans
Aurora currently has twenty driverless trucks on the road and plans to grow the autonomous fleet to two hundred trucks by the end of this year, targeting major growth over the next several years.
The cost advantage
Bank of America estimates Aurora services will cost approximately eighty-five cents per mile versus approximately one dollar thirty per mile for human driver wages and benefits, before considering indirect labour costs.
“Aurora services will cost ~$0.85 per mile versus approximately $1.30 per mile for human driver wages and benefits, before considering indirect labour costs.”
Skeptics question the model
Sean Wu, CEO of uShip, questions how many shipping firms will want to ditch their drivers, saying drivers provide judgment, customer service and protection beyond simply moving cargo from point A to point B.
“The drivers do more than just move the rig. There is judgement. There is customer service. There is protection.”
Aurora's safety record
Since Aurora began testing its autonomous vehicle technology on public roads in twenty twenty-one, it has logged more than three million miles. Urmson said the company put the technology through fifteen million tests before putting it on the road.
“We've got millions of miles of experience. We put this through 15 million tests before we put it out on the road.”
The path to profitability
After losing more than eight hundred million dollars in twenty twenty-five, Aurora is targeting positive free cash flow in twenty twenty-eight, driven by a substantial increase in the number of autonomous trucks on the road.
The big picture
Aurora Innovation is operating autonomous semis on Texas highways and targeting positive free cash flow by 2028, betting that driverless trucks can operate more cheaply than human-driven ones.
