Founded by two ex-Google engineers, Nuro has developed a fleet of autonomous vehicles that are getting the attention of Uber Eats and CVS. Both have elected to run pilots with Nuro as they determine how best to utilize the technology to deliver goods directly to customers without human drivers.
Uber announced earlier in the year their intentions to use Nuro’s competitors, Motional and Serve, in the LA market. However, Nuro’s driverless vehicles will start delivering Uber Eats in Houston, Texas and Mountain View, California. Uber and Nuro have entered into a 10-year partnership. Uber Eats consumers will be able to order meals and goods delivered by zero-occupant autonomous vehicles, which run on public roads and are built specifically to carry food and other goods. Serve only drive on sidewalks and is more for high-density urban areas.
The leading pharmacy retailer, CVS is testing Nuro in Houston as well. Working with CVS moves Nuro into a new vertical, health. The plan is to make it easier for customers to get medicine, prescriptions, and other things delivered directly to their homes.
“We are seeing an increased demand for prescription delivery,” said Ryan Rumbarger, senior vice president for store operations at CVS Health. “We want to give our customers more choice in how they can quickly access the medications they need when it’s not convenient for them to visit one of our pharmacy locations.”
The Vexnova Take
Nuro is making significant strides with these two announcements and headway amongst its top competitors. We find the CVS strategy the most substantial development as retailers start to discover value in autonomous deliveries.
In offering assistance for an aging population, CVS has the ability to address a real-life customer concern. Pharmaceutical workforce shortages have been reported and often older patients need assistance obtaining their medications. Driverless delivery can help those who don’t have the resources or necessary assistance while also help reduce human contact for high-risk customers.
