Aurora Innovation (NASDAQ: AUR) announced Thursday an expansion of its strategic partnership with Hirschbach Motor Lines. This includes plans for the Iowa-based refrigerated truckload carrier to own 500 autonomous trucks powered by Aurora’s virtual driver, called the Aurora Driver. Deliveries of these Aurora Driver-powered driverless trucks are expected to begin in 2027.
A MOU and the path to 500 Autonomous Trucks
The first step involves a memorandum of understanding (MOU). The MOU outlines the path to autonomous scale. The final commercial terms and timing for a binding agreement are expected to close later this year. Once finalized, the deal will help Hirschbach scale a nationwide network estimated to create 500 million driverless miles. For Aurora, this establishes a multi-year revenue stream, valued in the hundreds of millions of dollars.
“When early adopters see the benefits the Aurora Driver delivers for their business and their drivers, they don’t just stay the course – they scale quickly,” said Chris Urmson, co-founder and CEO of Aurora. “We’ve been lucky to have such a thoughtful and innovative partner since our early days and we look forward to growing with them. The industry is primed for this product, and our momentum toward meaningful commercial revenue is hitting a new gear.”
Driver as a Service Model Powers the Hybrid Network
Hirschbach is a leader in the refrigerated space and has 2,948 power units according to FMCSA SAFER data. The carrier will subscribe to Aurora’s Driver as a Service (DaaS) model, where Hirschbach owns the assets while Aurora supplies the virtual driver.
The release notes, “Customers have control and ownership over assets in DaaS, allowing them to maximize Total Cost of Ownership (TCO) savings while Aurora benefits from an expected high-margin and capital-efficient business.”
“The Aurora Driver will provide consistent 24/7 service to our customers, making it an important growth lever for our business,” said Richard Stocking, CEO of Hirschbach Motor Lines. “But autonomy isn’t just a business move – it’s a quality-of-life investment for our people. The Aurora Driver will handle the lengthier, less desirable routes, providing our drivers with greater flexibility. It’s a win-win.”
Hirschbach is an important customer for Aurora’s 1,000-mile route between Fort Worth and Phoenix. Aurora has delivered over 2,000 loads for Hirschbach totaling over 800,000 miles to date.
The expansion strategy is part of a hybrid network, with autonomous trucks handling long-haul Sun Belt routes, allowing Hirschbach drivers more focus on shorter routes and getting them home daily.
Hirschbach enlisted the help of its million-mile drivers in evaluating Aurora’s virtual driver performance before the launch of Aurora’s driverless operations along its inaugural Dallas-to-Houston route.
“We’re proud to deploy a hybrid network with our drivers and autonomous trucks as we move toward a safer, more efficient future for refrigerated freight,” added Stocking.
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