Self-driving delivery company with Houston pilots gets historic government approval for new model

hit the road

Nuro is now able to roll out its new model of self-driving vehicles in Houston thanks to a recent announcement from the government. Photo courtesy of Nuro

A California-based tech company has got the green light today to move forward a new line of autonomous vehicles that will soon hit Houston streets.

Nuro, which has a few self-driving delivery pilot programs across Houston, has been granted its exemption petition from the United States Department of Transportation's National Highway Traffic Safety Administration. This move is a first for DOT, and it allows Nuro to roll out its vehicles on public roads without the features of traditional, passenger-carrying vehicles — like side mirrors or windshields, for instance.

"Since this is a low-speed self-driving delivery vehicle, certain features that the Department traditionally required – such as mirrors and windshield for vehicles carrying drivers – no longer make sense," says U.S. Secretary of Transportation Elaine L. Chao in a news release.

Now, with this permission, Nuro has unveiled its newest model — the R2. The new model is more narrow than the R1, and has 65 percent more climate-controlled space for its food deliveries. The vehicle also has new safety features, like 360-degree vision using lidar, radar, and cameras and even has a pedestrian-protecting feature that enables the car to collapse on impact.

Image courtesy of Nuro

"We founded Nuro on the belief that we could reimagine, design, and develop an autonomous vehicle that would make the world a safer place," says Nuro co-founder and president, Dave Ferguson, in a release. "Our second-generation vehicle will advance our goal of transforming local commerce, and we are gratified that the Department of Transportation, under Secretary Chao's leadership, is promoting public safety and providing regulatory certainty for the self-driving industry."

The R2 models are being assembled in the U.S. with Nuro's partner, Roush Enterprises, which is based in Michigan. Per the NHTSA announcement, Nuro can deploy up to 5,000 R2 vehicles during the two-year exemption period. According to the DOT release, the organization will be monitoring Nuro's work throughout those two years.

"NHTSA is dedicated to facilitating the safe testing and deployment of advanced vehicle technologies, including innovative vehicle designs, which hold great promise for future safety improvements," says NHTSA Acting Administrator James Owens in the release. "As always, we will not hesitate to use defect authority to protect public safety as necessary."

Nuro currently has three pilot programs — all of which were announced last year. The company is working with Domino's, Kroger, and Walmart on food and grocery deliveries in six Houston ZIP codes. Since entering the Houston market, Nuro has been using its fleet of self-driving Prius vehicles to research and map the city's roads.

With this permission granted from DOT, Nuro can start making deliveries using its R2 fleet with its three retail and restaurant partners.

"Today's decision shows that 'exemption' can mean more safety," says Ferguson. "Our world-class team solved countless novel problems to create this design, and, after extensive modeling, research, and testing, created a vehicle unlike any other on the road today."

Photo courtesy of Nuro

Kroger's self-driving cars are coming to Houston. Courtesy of Kroger

Kroger's autonomous car fleet heads to Houston for a new grocery delivery service

Look ma, no hands

Hold on to your hats, Houston. Autonomous cars are hitting the streets this spring as Kroger rolls out its fleet of self-driving, grocery-delivery cars.

Two Houston Kroger locations will provide the service to four ZIP codes — 10306 South Post Oak Road, servicing 77401 and 77096, and 5150 Buffalo Speedway, servicing 77005 and 77025.

Kroger, along with California-based robotics company, Nuro, has been operating self-driving cars delivering groceries in Scottsdale. Arizona since August. According to the release, the service has delivered thousands of orders in the self-driving vehicles.

"We've seen first-hand in Arizona how enthusiastic customers are about getting their Kroger groceries delivered by a Nuro self-driving vehicle," says Nuro co-founder, Dave Ferguson, in a release. "Texas has been a leader in encouraging self-driving innovation, and we're excited to help deliver that future for Houston — a dynamic, diverse, and welcoming metropolitan city that we're excited to soon explore and serve with this autonomous delivery service."

The service costs a flat fee of $5.95, and users can order in the app or online for same-day or next-day delivery, seven days a week. The program will launch using Toyota Prius vehicles. Currently, the exact start date of the service hasn't been provided.

"Our Arizona pilot program confirmed the flexibility and benefits provided by autonomous vehicles and how much customers are open to more innovative solutions," says Yael Cosset, Kroger's chief digital officer, in a release. "It's always been our shared vision to scale this initiative to new markets, using world-changing technology to enable a new type of delivery service for our customers. We operate 102 stores in Houston—an energetic market that embraces digital and technology advancement. The launch is one more way we are committed to sustainably providing our customers with anything, anytime, and anywhere, the way they want it."

In January, the Texas Department of Transportation created the Connected and Autonomous Vehicle Task Force to focus on being a comprehensive resource for information on all Texas CAV projects, investments, and initiatives.

"With our world-class universities, top-notch workforce and startup culture, Texas is a national leader in the development of new technologies," says Gov. Greg Abbott in the release. "As transportation technology advances, the CAV Task Force will ensure that the Lone Star State remains at the forefront of innovation."

Courtesy of Kroger

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8+ can't-miss Houston business and innovation events in April

where to be

Editor’s note: Houston's weeklong innovation festival kicks off April, followed by Rice University's globally recognized pitch competition returning for its 26th year. Plus, find coworking pop-ups, industry meetups, pitch battles and even a crawfish boil on the calendar. Here’s what not to miss and how to register. Please note: this article might be updated to add more events.

March 30-April 4 — H-Town Roundup

Celebrate innovation, entrepreneurship and collaboration at Houston Exponential's sixth-annual H-Town Roundup. During the free event series, previously known as Houston Tech Rodeo, attendees can expect insightful talks, workshops and networking events at venues across the city.

This event began March 30. Register here.

April 2 — Industrious Coworking Day

Enjoy a complimentary day of cowering at Industrious and network with professionals at the Ion. Breakfast, snacks, wifi and workspace tours are included. Following the cowering day, Industrious will host happy hour at Second Draught from 4-6 p.m.

This event is Thursday, April 2, from 8:30 a.m.-5 p.m. at the Ion. Register here.

April 2 — Technology Summit for Women

The fourth annual Women in Tech Cummil will feature speakers across three core tracks: Transformation + Digital strategy, Cyber + Risk + Resilience, and AI in Practice. Pearl Chu, director of technical domains and university relations at SLB, will give the opening remarks. Other panelists come from CenterPoint Energy, BP, Technip Energies and other leading companies.

This event is Thursday, April 2, from 2-5 p.m. at the Ion. Register here.

April 8 — Veterans Business Battle

Hear pitches from veterans and entrepreneurs as they compete for more than $10 million in investments at Rice Businesses' 12th annual Veterans Business Battle. This year, the two-day event will also feature a Small Business Expo, which invites Houston-based, veteran-owned businesses to participate in education, networking and the opportunity to showcase their business. Moonshots Capital and Mercury Fund will also host a fireside chat.

This event begins Wednesday, April 8, at 11 a.m. at the Ion. Click here to register.

April 9-11 — Rice Business Plan Competition

The Rice Alliance for Technology and Entrepreneurship will host the 26th annual Rice Business Plan Competition this month. Forty-two student-led teams from around the world, including one team from Rice, will present their plans before more than 300 angel, venture capital, and corporate investors to compete for more than $1 million in prizes.

This event begins Thursday, April 9. Find more information here.

April 10 — BioHouston Chili Cookoff

Connect with Houston's life sciences community at BioHouston's 21st annual chili cookout. This event is geared toward startup founders, researchers and industry veterans alike.

This event is Friday, April 10, from noon-4 p.m. at Bayou City Event Center. Register here.

April 14 — Mercury Fund Day at the Ion: Agentic Commerce

Don’t miss the latest installment of Mercury Fund Day at the Ion, previously known as Software Day. The recurring monthly event features office hours (by application), a keynote and networking opportunities. This month's topic focuses on agentic commerce.

This event is Tuesday, April 14, from 3:30-7 p.m. at the Ion. Register here.

April 19 – UH Energy Industry Crawfish Boil

Head to the UH Cullen College of Engineering Green Space for the 35th annual UH Energy Industry Crawfish Boil. The event will include a student showcase, STEM activities, a kids zone, live music, networking and, of course, crawfish. Proceeds from the event will support the multidisciplinary capstone fund that aims to increase professional readiness for Cullen College engineering and technology students.

This event is Sunday, April 19, from 1-5 p.m. at the Cullen College of Engineering Green Space. Find more information here.

April 24 — Rice Business Healthcare Conference

Leading experts, innovators and the next generation of healthcare leaders will converge at the Rice Business Healthcare Conference. Hosted by the Rice Business Healthcare Association, the conference will explore AI's potential impact on the sector.

This event is Friday, April 24, from 8 a.m.-2 p.m. at McNair Hall on Rice University's campus. Find more information here.

Houston unicorn closes $421M to fuel first phase of flagship energy project

Heating Up

Houston geothermal unicorn Fervo Energy has closed $421 million in non-recourse debt financing for the first phase of its flagship Cape Station project in Beaver County, Utah.

Fervo believes Cape Station can meet the needs of surging power demand from data centers, domestic manufacturing and an energy market aiming to use clean and reliable power. According to the company, Cape Station will begin delivering its first power to the grid this year and is expected to reach approximately 100 megwatts of operating capacity by early 2027. Fervo added that it plans to scale to 500 megawatts.

The $421 million financing package includes a $309 million construction-to-term loan, a $61 million tax credit bridge loan, and a $51 million letter of credit facility. The facilities will fund the remaining construction costs for the first phase of Cape Station, and will also support the project’s counterparty credit support requirements.

Coordinating lead arrangers include Barclays, BBVA, HSBC, MUFG, RBC and Société Générale, with additional participation from Bank of America, J.P. Morgan and Sumitomo Mitsui Trust Bank, Limited, New York Branch.

“As demand for firm, clean, affordable power accelerates, EGS (Enhanced Geothermal Systems) is set to become a core energy asset class for infrastructure lenders,” Sean Pollock, managing director, project Finance at RBC Capital Markets, said in a news release. “Fervo is pioneering this step change with Cape Station, a vital contribution to American energy security that RBC is proud to support.”

The oversubscribed financing marks Cape Station’s shift from early-stage and bridge funding to a long-term, non-recourse capital structure, according to the news release.

“Non-recourse financing has historically been considered out of reach for first-of-a-kind projects,” David Ulrey, CFO of Fervo Energy, said in a news release. “Cape Station disrupts that narrative. With proven oil and gas technology paired with AI-enabled drilling and exploration, robust commercial offtake, operational consistency, and an unrelenting focus on health and safety, we have shown that EGS is a highly bankable asset class.”

Fervo continues to be one of the top-funded startups in the Houston area. The company has raised about $1.5 billion prior to the latest $421 million. It also closed a $462 million Series E in December.

According to Axios Pro, Fervo filed for an IPO that would value the company between $2 billion and $3 billion in January.

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This article first appeared on EnergyCapitalHTX.com.

Houston food giant Sysco to acquire competitor in $29 billion deal

Mergers & Acquisitions

Sysco, the nation's largest food distributor, will acquire supplier Restaurant Depot in a deal worth more than $29 billion.

The acquisition would create a closer link between Sysco and its customers that right now turn to Restaurant Depot for supplies needed quickly in an industry segment known as “cash-and-carry wholesale.”

Sysco, based in Houston, serves more than 700,000 restaurants, hospitals, schools, and hotels, supplying them with everything from butter and eggs to napkins. Those goods are typically acquired ahead of time based on how much traffic that restaurants typically see.

Restaurant Depot offers memberships to mom-and-pop restaurants and other businesses, giving them access to warehouses stocked with supplies for when they run short of what they've purchased from suppliers like Sysco.

It is a fast growing and high-margin segment that will likely mean thousands of restaurants will rely increasingly on Sysco for day-to-day needs.

Restaurant Depot shareholders will receive $21.6 billion in cash and 91.5 million Sysco shares. Based on Sysco’s closing share price of $81.80 as of March 27, 2026, the deal has an enterprise value of about $29.1 billion.

Restaurant Depot was founded in Brooklyn in 1976. The family-run business then known as Jetro Restaurant Depot, has become the nation's largest cash-and-carry wholesaler.

The boards of both companies have approved the acquisition, but it would still need regulatory approval.

Shares of Sysco Corp. tumbled 13% Monday to $71.26, an initial decline some industry analysts expected given the cost of the deal.

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