Tech company inks 10-year deal with Uber to provide self-driving delivery service in Houston

automatic autos

Coming soon — autonomous food delivery on Uber Eats. Photo courtesy of Nuro and Uber

Houstonians will soon be able to get completely autonomous delivery of their dinners, groceries, and more thanks to a new 10-year partnership.

Uber Technologies, Inc. and Nuro have cut a deal that will provide autonomous, electric vehicles for food deliveries in Houston and Mountain View, California, beginning his fall, according to a news release. A Bay Area expansion will follow, but Houston's no stranger to Nuro-powered deliveries. California-based Nuro has launched five delivery pilot programs in Houston since 2019 with partners Kroger, Walmart, CVS, Domino's, and FedEx.

With this new partnership, users will have access to meals, groceries, and other goods available on the Uber Eats platform — as well as the opportunity to support local businesses.

“Nuro and Uber share a vision in which technology can make everyday life just a little bit easier,” says Noah Zych, global head of autonomous mobility and delivery at Uber, in the release. “Nuro’s distinctive autonomous vehicles are a great match for the Uber platform, and this partnership will bring a compelling combination of innovation alongside the convenience, affordability and reliability our customers and merchants have come to expect.”

Nuro, which recently closed a $600 million series D round just under a year ago, is reportedly the first company to operate fully autonomous vehicles in three states —Arizona, California, and Texas.

“Our partnership with Uber underscores Nuro’s track record of partnering with the world’s leading brands to make autonomous delivery a seamless experience,” says Cosimo Leipold, head of partnerships at Nuro, in the release. “With our unique autonomous delivery vehicles and Uber’s phenomenal scale and reach, we can expand food delivery options from your favorite local mom-and-pop restaurants all the way to nationwide chains.”

The company tapped Houston as its first full-scale operational city. Nuro previously told InnovationMap that was because the city offered a wide range of variation in the infrastructure across Houston's neighborhoods.

"Houston is our first full-scale operations city," Sola Lawal, product operations manager in Houston, told InnovationMap in January 2020. "All eyes at Nuro are focused on Houston."

Autonomous Uber Eats coming soon — thanks to Nuro. Photo courtesy of Nuro and Uber

Coco bites into Texas. Photo courtesy of Coco

California company zips into Texas with robot food delivery in 15 minutes

THE FUTURE IS NOW

A Los Angeles-based business is rolling out its fleet of food delivery robots into a Texas town with plans for expanding into other cities in the Lone Star State.

Coco, which offers a remotely piloted delivery service, has hit the streets of Austin with its food-delivery bots as part of its expansion to targeted markets. Fueled by a recent funding round that garnered the company $56 million, Coco’s expansion plans also include rolling out bots in the Houston, Dallas, and Miami markets soon.

“When evaluating markets for expansion, Austin stood out to the team as a perfect match,” says Zach Rash, co-founder and CEO of Coco, via a release. “Austin’s entrepreneurial spirit, top-notch food scene, and commitment to supporting small businesses makes it an ideal fit for Coco.”

Here’s how it works: Customers place a restaurant order like usual, then a Coco bot — operated by a “trained pilot” — drives to the restaurant to pick it up. The restaurant staff loads the bot as soon as the food is ready, and Coco arrives at the customer’s door within 15 minutes. Each bot is locked until it reaches the customer, so no one can tamper with your pizza or egg rolls.

The company claims that compared with traditional food-delivery methods, its bots decrease the time it takes food to reach the customer by 30 percent, and that the service has an on-time delivery rate of 97 percent. Coco bots work at shorter distances and on mostly pedestrian paths. As the company’s website notes, “A surprisingly large portion of deliveries are done within less than 2 miles. We believe there is no reason to have a 3,000-pound car deliver a burrito over short distances.”

Coco has rolled out with 10 Austin partners — mostly merchants that service the South Lamar Boulevard, South Congress Avenue, South Austin, downtown, North Austin, North Loop, and Domain neighborhoods — and aims to continue onboarding many more in the coming weeks “to accommodate the rapid influx of merchant interest.”

It’s Coco’s trained pilots and commitment to “perfecting the last-mile delivery experience” that helps set it apart from competitors, according to the company and its partners.

The company hasn't released when it plans to roll into other Texas cities, just that it has the intention to do so. Houston's no stranger to self-driving food deliveries. Another California-based company, Nuro, has several pilot programs from groceries and pharmaceuticals to pizza. The University of Houston also launched bots on campus in 2019.

------

This article originally ran on CultureMap.

FedEx and Nuro are bringing last-mile delivery to Houstonians. Photo courtesy of Nuro

Autonomous delivery company joins forces with FedEx for new pilot in Houston

self-driving mail

A tech company with self-driving robots deployed across Houston delivering pizza, groceries, and more has yet again launched a new pilot program — this time focused on parcel delivery.

Nuro and FedEx announced a new partnership to deploy Nuro's technology for last-mile delivery at a large scale with FedEx.

"FedEx was built on innovation, and it continues to be an integral part of our culture and business strategy," says Rebecca Yeung, vice president of advanced technology and innovation at FedEx, in a news release. "We are excited to collaborate with an industry leader like Nuro as we continue to explore the use of autonomous technologies within our operations."

The new pilot, which began in April, according to the release, is the latest in the FedEx portfolio of autonomous same-day and specialty delivery devices. The partnership allows for FedEx to be able to explore various use cases for autonomous vehicle logistics, like multi-stop and appointment-based deliveries. Meanwhile for Nuro, it's the company's first expansion into parcel logistics.

"Working with FedEx—the global leader in logistics—is an incredible opportunity to rethink every aspect of local delivery. This multi-year commitment will allow us to truly collaborate and bring Nuro's powerful technology to more people in new ways, and eventually reach large-scale deployment," says Cosimo Leipold, Nuro's head of partnerships, in the release. "Our collaboration will enable innovative, industry-first product offerings that will better everyday life and help make communities safer and greener."

California-based Nuro has launched a few delivery pilots in Houston over the past few years, including the first Nuro pilot program with Kroger in March 2019, grocery delivery from Walmart that was revealed in December 2019, and pharmacy delivery that launched last summer. The most recent pilot program — pizza delivery with Domino's — officially went live in Woodland Heights earlier this year.

Nuro's expansion in Houston has a lot to do with the legislation that's happening at the state level. Last year, Nuro was 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 allowed Nuro to roll out its vehicles on public roads without the features of traditional, passenger-carrying vehicles — like side mirrors or windshields, for instance.

The city also just offers a lot of opportunities to try out various neighborhoods and environments.

"As a company, we tried to find a city that would allow us to test a number of different things to figure out what really works and who it works for," Nuro Product Operations Manager Sola Lawal says an episode of the Houston Innovators Podcast. "It's hard to find cities that are better than Houston at enabling that level of testing."

Domino's and Nuro announced their partnership in 2019 — and now the robots are hitting the roads. Photo courtesy of Nuro

Self-driving pizza delivery goes live in Houston

innovation delivered

After announcing their partnership to work on pizza deliveries via self-driving robots in 2019, Dominos and Nuro have officially rolled out their technology to one part of town.

Beginning this week, if you place a prepaid order from Domino's in Woodland Heights (3209 Houston Ave.), you might have the option to have one of Nuro's R2 robot come to your door. This vehicle is the first do deliver completely autonomously without occupants with a regulatory approval by the U.S. Department of Transportation, according to a news release.

"We're excited to continue innovating the delivery experience for Domino's customers by testing autonomous delivery with Nuro in Houston," says Dennis Maloney, Domino's senior vice president and chief innovation officer, in the release. "There is still so much for our brand to learn about the autonomous delivery space. This program will allow us to better understand how customers respond to the deliveries, how they interact with the robot and how it affects store operations."

Orders placed at select dates and times will have the option to be delivered autonomously. Photo courtesy of Nuro

The Nuro deliveries will be available on select days and times, and users will be able to opt for the autonomous deliveries when they make their prepaid orders online. They will then receive a code via text message to use on the robot to open the hatch to retrieve their order.

"Nuro's mission is to better everyday life through robotics. Now, for the first time, we're launching real world, autonomous deliveries with R2 and Domino's," says Dave Ferguson, Nuro co-founder and president, in the release. "We're excited to introduce our autonomous delivery bots to a select set of Domino's customers in Houston. We can't wait to see what they think."

From being located in a state open to rolling out new AV regulations to Houston's diversity — both in its inhabitants to its roadways, the Bayou City stood out to Nuro, says Sola Lawal, product operations manager at Nuro.

"As a company, we tried to find a city that would allow us to test a number of different things to figure out what really works and who it works for," Lawal says on an episode of the Houston Innovators Podcast. "It's hard to find cities that are better than Houston at enabling that level of testing."

Steam the episode here.

Native Houstonian Sola Lawal is looking into how AI and robotics can help increase access to fresh foods in local food deserts. Photo courtesy of Nuro

Autonomous vehicle delivery service is driving access to food in Houston’s vulnerable communities

Houston Innovators Podcast Episode 42

When Silicon Valley-based artificial intelligence and robotics company Nuro was looking for a city to roll out its autonomous vehicle delivery technology, Houston checked off all the boxes.

"As a company, we tried to find a city that would allow us to test a number of different things to figure out what really works and who it works for," Lawal says on this week's episode of the Houston Innovators Podcast. "It's hard to find cities that are better than Houston at enabling that level of testing."

Since rolling out its first pilot program with Kroger in March 2019, launched three more across six of Houston's ZIP codes from Bellaire to the Heights, including pizza delivery from Domino's that was announced in June 2019, grocery delivery from Walmart that was revealed in December 2019, and pharmacy delivery that launched this summer.

Lately, Nuro's presence in Houston has expanded from these business development partnerships, and the tech company has started focusing on providing a service to the community.

"At the beginning of the pandemic, we started looking for ways we could contribute and help with the things we have — which includes a fleet of vehicles and product tools that allow that fleet to move around and do delivery."

This got Nuro in touch with the Houston Food Bank, and a partnership formed between the tech company and the nonprofit that has resulted in food deliveries across the city — including Third Ward and Acres Homes.

"That for us was eye opening as we went into those locations we started to understand and see that there really isn't any other grocery store that's in those areas," Lawal says. "It was a moment of reflection for us where we said, 'Hey, the AV works here. These are streets that are acceptable. What can we do?'"

In the future, Nuro, as Lawal explains, is moving forward these initiatives to use its AV technology to help increase access to fresh foods in Houston, as well as continuing developing the city as a leader in self-driving innovation.

"I think that autonomous vehicles are going to become an industry in the same way your standard vehicles are," Lawal says."One really strong way the Houston ecosystem and Nuro can partner is essentially building out the ancillary."

Lawal shares more about the future of AVs in Houston and the impact Nuro will continue to have on the city. Listen to the full interview below — or wherever you get your podcasts — and subscribe for weekly episodes.

Nuro's latest partnership in Houston is allowing prescription and essentials to be delivered to Houstonians across three ZIP codes. Photo courtesy of Nuro

Tech startup rolls out driverless prescription drug delivery in Houston

on a roll

The latest partnership from California-based Nuro, which has a fleet of driverless vehicles in Houston, means prescription drug delivery to certain parts of Houston.

Rhode Island-based CVS Pharmacy will offer the delivery option for prescriptions and essentials for free beginning in June for three ZIP codes near a CVS location in Bellaire (5430 Bissonnet St., Bellaire, TX 77401).

"We are seeing an increased demand for prescription delivery," says Ryan Rumbarger, senior vice president of store operations at CVS Health, in a release. "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 driverless delivery option will be made available through the CVS app, and recipients will have to prove their identity to retrieve their order.

Nuro has been expanding throughout the Houston market for over a year now — first entering the Houston market with its Kroger pilot program, but this partnership represents a whole new sector for the robotics company.

"Today, we are excited to expand into an entirely new vertical: health," says Dave Ferguson, Nuro's co-founder and president, in the release. "Through our partnership with CVS, we hope to make it easier for customers to get medicine, prescriptions, and the other things they need delivered directly to their homes."

Following Nuro's initial deal with Kroger, the company expanded to pizza delivery with Domino's Pizza before forming agreement with Walmart. Earlier this year, the company received approval from the United States Department of Transportation's National Highway Traffic Safety Administration that allowed Nuro's vehicles on public roads without the features of traditional, passenger-carrying vehicles — like side mirrors or windshields, for instance.

In January, InnovationMap spoke with Sola Lawal, Nuro product operations manager in Houston, and asked him about what types of partnerships Nuro is targeting.

"The way that we think about this is that this new technology and our mission of accelerating robotics for everyday life, is we will bring the people what they want," Lawal told InnovationMap.

And as far as continuing to expand in Houston, the city's diversity, varied roadscapes, and regulatory support makes it prime for robotics and self-driving technology.

"Houston is our first full-scale operations city," said Lawal. "All eyes at Nuro are focused on Houston."

Ad Placement 300x100

Ad Placement 300x600

CultureMap Emails are Awesome

Property Showcase

Houston innovator on seeing a greener future on built environment

HOUSTON INNOVATORS PODCAST EPISODE 162

An architect by trade, Anas Al Kassas says he was used to solving problems in his line of work. Each project architects take on requires building designers to be innovative and creative. A few years ago, Kassas took his problem-solving background into the entrepreneurship world to scale a process that allows for retrofitting window facades for energy efficiency.

“If you look at buildings today, they are the largest energy-consuming sector — more than industrial and more than transportation,” Kassas, founder and CEO of INOVUES, says on the Houston Innovators Podcast. “They account for up to 40 percent of energy consumption and carbon emissions.”

To meet their climate goals, companies within the built environment are making moves to transition to electric systems. This has to be done with energy efficiency in mind, otherwise it will result in grid instability.

"Energy efficiency goes hand in hand with energy transition," he explains.

Kassas says that he first had the idea for his company when he was living in Boston. He chose to start the business in Houston, attracted to the city by its central location, affordable labor market, and manufacturing opportunities here.

Last year, INOVUES raised its first round of funding — a $2.75 million seed round — to scale up the team and identify the best markets to target customers. Kassas says he was looking for regions with rising energy rates and sizable incentives for companies making energy efficient changes.

"We were able to now implement our technology in over 4 million square feet of building space — from Boston, Seattle, Los Angeles, New York City, Portland, and very soon in Canada," he says.

Notably missing from that list is any Texas cities. Kassas says that he believes Houston is a great city for startups and he has his operations and manufacturing is based here, but he's not yet seen the right opportunity and adaption

"Unfortunately most of our customers are not in Texas," "A lot of work can be done here to incentivize building owners. There are a lot of existing buildings and construction happening here, but there has to be more incentives."

Kassas shares more about his growth over the past year, as well as what he has planned for 2023 on the podcast. Listen to the interview below — or wherever you stream your podcasts — and subscribe for weekly episodes.

Houston SPAC announces merger with Beaumont-based tech company in deal valued at $100M

speaking of spacs

A Houston SPAC, or special purpose acquisition company, has announced the company it plans to merge with in the new year.

Beaumont-based Infrared Cameras Holdings Inc., a provider of thermal imaging platforms, and Houston-based SportsMap Tech Acquisition Corp. (NASDAQ: SMAP), a publicly-traded SPAC with $117 million held in trust, announced their agreement for ICI to IPO via SPAC.

Originally announced in the fall of last year, the blank-check company is led by David Gow, CEO and chairman. Gow is also chairman and CEO of Gow Media, which owns digital media outlets SportsMap, CultureMap, and InnovationMap, as well as the SportsMap Radio Network, ESPN 97.5 and 92.5.

The deal will close in the first half of 2023, according to a news release, and the combined company will be renamed Infrared Cameras Holdings Inc. and will be listed on NASDAQ under a new ticker symbol.

“ICI is extremely excited to partner with David Gow and SportsMap as we continue to deliver our innovative software and hardware solutions," says Gary Strahan, founder and CEO of ICI, in the release. "We believe our software and sensor technology can change the way companies across industries perform predictive maintenance to ensure reliability, environmental integrity, and safety through AI and machine learning.”

Strahan will continue to serve as CEO of the combined company, and Gow will become chairman of the board. The transaction values the combined company at a pre-money equity valuation of $100 million, according to the release, and existing ICI shareholders will roll 100 percent of their equity into the combined company as part of the transaction.

“We believe ICI is poised for strong growth," Gow says in the release. "The company has a strong value proposition, detecting the overheating of equipment in industrial settings. ICI also has assembled a strong management team to execute on the opportunity. We are delighted to combine our SPAC with ICI.”

Founded in 1995, ICI provides infrared and imaging technology — as well as service, training, and equipment repairs — to various businesses and individuals across industries.

Report: Federal funding, increased life science space drive industry growth in Houston

by the numbers

Federal funding, not venture capital, continues to be the main driver of growth in Houston’s life sciences sector, a new report suggests.

The new Houston Life Science Insight report from commercial real estate services company JLL shows Houston accounted for more than half (52.7 percent) of total funding from the National Institutes of Health (NIH) across major Texas markets through the third quarter of this year. NIH funding in the Houston area totaled $769.6 million for the first nine months of 2022, exceeding the five-year average by 19.3 percent.

VC funding for Houston’s life sciences sector pales in comparison.

For the first nine months of this year, companies in life sciences raised $147.3 million in VC, according to the report. Based on that figure, Houston is on pace in 2022 to meet or surpass recent life sciences VC totals for most other years except 2021. JLL describes 2021 as an “outlier” when it comes to annual VC hauls for the region’s life sciences companies.

JLL notes that “limited venture capital interest in private industry has remained a challenge for the city’s life sciences sector. Furthermore, it may persist as venture capital strategies are reevaluated and investment strategies shift toward near-term profits.”

While life sciences VC funding has a lot of ground to cover to catch up with NIH funding, there are other bright spots for the sector.

One of those bright spots is the region’s rising amount of life sciences space.

The Houston area boasts more than 2.4 million square feet of space for life sciences operations, with another 1.1 million under construction and an additional 1.5 million square feet on the drawing board, the report says. This includes a soon-to-open lab spanning 25,000 square feet in the first phase of Levit Green.

A second bright spot is the migration of life sciences companies to the region. Two Southern California-based life sciences companies, Cellipoint Bioservices and Obagi Cosmeceuticals, plan to move their headquarters and relocate more than half of their employees to The Woodlands by the first half of 2023, according to the report.

“Houston’s low tax rate and cost of living were primary drivers for the decisions, supported by a strong labor pool that creates advantages for companies’ expansion and relocation considerations,” JLL says.

View All Listings

INNOVATIONMAP EMAILS ARE AWESOME