Nuro is shifting its focus from producing its own autonomous delivery vehicles to licensing its autonomous driving technology to car manufacturers and mobility providers.

The company will offer its Nuro Driver platform, powered by Nvidia technology, for both robotaxis and personal vehicles. This system boasts level 4 autonomy, allowing fully driverless operation under certain conditions. Additionally, the plan for passenger cars will include level 2 (semi-autonomous driver assistance) and level 3 (autonomous with driver intervention required if necessary).

At the same time, Nuro will cease production of its well-known delivery vehicles. The company had already suspended a partnership with Chinese manufacturer BYD to develop the R3 delivery vehicle in 2023. Although it received approval from California to test the R3, it does not plan to use it.

So far, Nuro has not disclosed any specific agreements for its autonomous driving technology, although it has partnerships with Toyota and Uber through Toyota’s key investor, Woven Capital.

Nuro’s President, Dave Ferguson, described this shift as part of a strategy to expand its presence to “all roads and all trips.”

According to TechCrunch, Nuro is also under significant pressure to cut costs and improve revenues. Despite raising over $2 billion to date, the expense of producing its own delivery vehicles has been high. After a round of layoffs in 2023, the company stated that its focus on AI development would give it 3.5 years to achieve financial viability instead of just 1.5.

With years of experience in the sector, including delivery contracts with Domino’s, FedEx, and Uber Eats, Nuro may have an advantage in securing new partnerships. However, it also faces competition from other licensors like Intel’s Mobileye and established robotaxi operators such as Waymo.

By: Nestor Castillo, ForAllTechNews Director