Ford Motor plans to launch its self-driving vehicle companies in 2022 with vehicles based on its Escape Hybrid crossover.
Ford
Walmart is expanding its self-driving vehicle program to include Ford Motor and Argo AI, an autonomous company started by the automaker.
The companies said Wednesday that the partnership will use Ford Escape hybrids with Argo AI technology for Walmart deliveries in Miami, the District of Columbia and Austin, Texas.
The program will allow Walmart customers to place grocery orders and other items online for stand-alone door-to-door delivery.
“We are excited to expand our self-delivery efforts in three new markets alongside Argo and Ford,” Tom Ward, Walmart’s senior U.S. vice president at the last mile delivery, said in a statement. “This collaboration will further our mission to get products to our customers’ homes with unparalleled speed and ease and, in turn, will continue to pave the way for autonomous delivery.”
Ford and Walmart operated a pilot program with self-driving vehicles in 2018. The retail giant currently operates self-driving delivery pilots with Gatik and Cruise with support from General Motors. In addition to the partnerships, Walmart acquired an undisclosed stake earlier this year in Cruise.
Online grocery orders are a central part of Walmart +, the large box retailer subscription program launched a year ago. One of the benefits of the program is the free and unlimited delivery of groceries to members ’homes. The subscription service competes with Amazon Prime.
Walmart, the country’s largest supermarket, saw dramatic growth in online sales during the pandemic as more consumers stayed home and refilled their couch refrigerators. Its e-commerce sales in the United States grew 79% in the last fiscal year, which ended Jan. 31. However, Walmart has not made any profit from its e-commerce business, pressuring the company to get more costs. effective ways to deliver boxes and arms of items to doors.
The new collaboration is the first multi-city service related to autonomous vehicles for Walmart. Bryan Salesky, founder and CEO of Argo AI, said focusing on three cities will show “the potential of large-scale autonomous vehicle delivery services.”
Initially, the companies will deploy a small fleet in each of the three cities, with the plan to expand over time, according to an Argo AI spokeswoman. Argo AI, owned by Ford in conjunction with German carmaker Volkswagen, is testing autonomous vehicles in all three cities and others.
The marketing of autonomous vehicles has been much more difficult than many predicted a few years ago. The challenges have led to the consolidation of the autonomous vehicle sector after years of enthusiasm promoting technology as the next multimillion-dollar market for transport companies.
Some companies, such as Uber Technologies, have given up developing systems at home, while others like Zoox sold on Amazon. Waymo remains the first top-level driver, operating a fleet of autonomous public vehicles in Arizona.
– CNBC Melissa Repko has contributed to this report.