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NUS Biomed Programme



NUS Biomed Programme

Forget Robotaxis. Upstart Gatik Sees Middle-Mile Deliveries As The Path To Profitable AVs - Forbes   

Self-driving vehicles were supposed to revolutionize transportation. But robotaxi fleets in San Francisco are being blamed for snarling intersections and creating headaches for emergency vehicles. Promising robot truck startups are either dialing back plans or failing outright. Industry giants like Alphabet’s Waymo and General Motors-backed Cruise have raised billions of dollars to improve the AI powering their systems but won’t share hard targets for profitability.

The upstart with a Sanskrit name meaning “progressive” or “fast” is headquartered in a small commercial building in Mountain View, California. Unlike bigger neighbor Waymo, based nearby at the Google X campus, it’s not developing robotic taxis or semis. Instead, its focus is unglamorous “middle mile” deliveries, using a fleet of some 50 trucks to haul goods from warehouses to grocery stores, big box retailers, post offices and fast food chains. Gatik’s raised at least $115 million — less than a tenth of the money that’s gone into Waymo, Cruise and Amazon’s self-driving competitor Zoox. But revenue should be in the “high single-digit millions” this year, CEO and cofounder Gautam Narang told Forbes. He’s targeting up to $100 million in revenue within five years based on multiyear contracts with Walmart, Kroger, Pitney Bowes, Canada’s Loblaws supermarket chain and a few other big retailers he declined to name. Narang’s also got a pretty good idea of how soon the company could be in the black.

“The end of 2025 or early 2026,” he said. “Our biggest challenge right now is being able to ramp up quickly.”

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