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

Houston Innovators Podcast Episode 42

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

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.

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 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."
Aatonomy sees autonomous vehicles as inefficient and unsafe. That's why the Houston startup is doing something differently. Sean Pavone/Getty Images

This tech startup envisions Houston as a self-driving city

smart cities

When there isn't a global pandemic, nearly 7 million people drive around Houston, and an estimated 77,000 people commute for more than an hour and a half to work. Drivers spend $1,376 and waste 31 gallons of fuel a year — to sit in traffic for what adds up to 75 hours each year.

When Wilson Pulling moved to the city two summers ago, he set out to fix all that traffic-sitting using autonomously driven cars, but not the high-priced ones that Uber and Tesla have designed. These are your regular, three- or four-year-old Honda Civics and Kia Sorentos — the cars you already own.

In 2016, Pulling founded had Aatonomy with his partner, Yang Hu, based on their thesis work from Cornell's Computer Science program. Moving the company south after two years operating out of San Francisco, they aimed not to build the self-driving car of the future, but to make the cars that Houstonians are wading through congested freeways in today drive themselves.

"Everyone doesn't get to buy a Tesla. They're driving their Corollas," Pulling says. "The way autonomy is going right now, that person is never going to benefit. We are the only way."

The company's technology attaches a wireless receiver to the car, which has to be from at least 2016 to work with them. Then, Aatonomy places sensors all along the roads and streetlights. The sensors and receiver communicate with each other, and enable autonomous driving.

Imagine, Pulling says, a 30-mile of I-45 with Aatonomy's sensors. You'd roar up the freeway, handling the controls. Then, the car's computer, under guidance from Aatonomy's network of sensors, would take over. You'd sit back, the car will navigate the traffic along with the other cars — and if all the cars are autonomous, Pulling says, the algorithm could slash congestion. When your car exits the freeway, you'd take back control.

That stretch of freeway would cost $26 million for 200,000 commuters across Houston, Pulling says, but other self-driving cars cost around $250,000 per vehicle — summing up to $50 billion for those same commuters. And Pulling says the Aatonomy system is a safer bet than the way Uber's autonomous driving. Uber's car once killed a pedestrian because, somehow, the company didn't program it to avoid people jaywalking. But because Aatonomy will manage sensors all over the street, the company will be able to monitor potential accidents more quickly than an Uber car would.

"This is a really radically different approach to a technology that, frankly, a lot of people have lost a lot of faith in," Pulling says.

Aatonomy's approach requires a smart city commitment — but the city of Houston is already buying in. First, Aatonomy, a member of the Ion Smart and Resilient Cities accelerator's inaugural cohort, got a short-term project with Aatonomy and Verizon to mount intersection cameras for studying how to prevent collisions with pedestrians on the Northside.

Additionally, the city has also greenlit a two-year pilot with Aatonomy to automate a bus route in downtown Houston. The aim, Pulling says, is making a "proof-of-concept" before rolling out sensors across I-45 — but it's also to use Houston as proof that autonomous driving can be achieved, but from a different angle than Uber.

"Self driving cars don't work. That's our thesis," Pulling says. "That's why we're building self-driving cities."
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

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

hit the road

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
Last year, California-based Nuro, a self-driving car tech company, launched three pilots in Houston. Courtesy of Nuro

California self-driving vehicle startup has all eyes on Houston — here's why

On a roll

Houston — with its sprawl and winding roads broken up across various neighborhoods — is particularly challenging when it comes to self-driving car navigation. And that's exactly why Nuro, a California-based tech startup that's raised over $1 billion in funding, decided to focus on the Bayou City for its autonomous vehicle delivery pilot programs.

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

Last year alone, Nuro launched three pilots in six of Houston's ZIP codes from Bellaire to the Heights. The first of which was a partnership with Kroger in March, followed by the announcement of autonomous pizza delivery from Domino's in June. Last month, Nuro announced its latest delivery partner was Walmart.

Lawal explains Houston's appeal to Nuro in a few ways, but the challenging landscape is key. Nuro cars are learning from the narrow, tree-laden streets of West University or the pedestrian-heavy, ditch-lined paths in the Heights.

"There's a ton for us to learn, but it's a great microcosm of the United States in a number of different ways," he says.

In addition to its diversity within its street types, Houston, named the most diverse city in the country, represents an ideal customer base, says Lawal, a Houston native himself. Houstonians are open minded about new experiences.

"If you think and look across Houston, the average commute is over 60 minutes for people to get back and forth," Lawal tells InnovationMap. "As we surveyed across major cities we were interested in, Houston stood out as a place where customers said they don't want go to the grocery store if they don't have to or get in their cars again to pick up their pizza."

The third reason Houston was a great market for Nuro is the amount of regulatory support the state of Texas has — Gov. Greg Abbott announced the launch of the Texas Connected and Autonomous Vehicle task force a year ago — as well as the support at the city level.

"It's been a welcoming environment from the mayor's office down for us to be here," Lawal says.

Since entering the Houston market, Nuro's local operations have grown to over 100 employees. The company still has software operations out of California, and some work being done in Arizona, but the Houston is the largest — and growing as the company seeks new partnerships with more stores with a goal of eliminating errands once and for all.

"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 says when asked about what types of stores Nuro is looking to partner with.

Eventually, Lawal says, the plan would be to have every errand be delivery optimized with Nuro technology — from big-box stores like Walmart to your local florist.

"Our goal is to have a platform that retailers can connect to in order to provide easy and inexpensive delivery," he says.

Currently, Nuro's technology is still in learning mode. Nuro's fleet of Prius cars with staff onboard are driving up and down Houston streets mapping and taking notes on a daily basis. The company also has bots, called the R2 fleet, that are designed to be unmanned.

These bots are smaller than normal cars and are completely electric. Rather than being designed to protect passengers inside like traditional automobiles, the R2s are designed to be safe for people outside the vehicle.

"It's a new way of thinking about transportation and what our vehicles can and should do," Lawal says.

2020 is the year of these R2 bots, and some areas can expect to see them in action — specifically focused on Domino's pizza delivery — in just a matter of weeks.

Nuro has teamed up with Walmart for self-driving grocery delivery. Courtesy of Nuro

Nuro and Walmart select Houston for self-driving delivery pilot program

Look ma, no hands

A California-based autonomous vehicle robotics company that has deployed self-driving delivery cars in Houston already has announced another pilot program.

Nuro and Walmart announced a new collaboration for high-tech, affordable grocery delivery — first to a select group of shoppers, and then, later in 2020, to a wider range of customers.

"Walmart is committed to serving our customers whenever and however they choose to shop," says Tom Ward, Walmart's senior vice president of digital operations, in a news release. "We are excited to work with Nuro and continue to learn as we are incorporating self-driving technology in our delivery options, learning more about our customers' needs, and evolving Walmart's future delivery offerings."

Nuro's fleet of custom R2 delivery vehicles as well as its autonomous Toyota Priuses powered by Nuro's software have already been deployed in Houston through a couple of partnerships launched earlier this year. This summer, Nuro premiered its pizza-delivery option through a collaboration with Dominos after first entering the Houston market in March with its Kroger grocery delivery.

The new Walmart partnership adds variety and affordability to Nuro's suite of partnerships.

"Walmart's dedication to its customers aligns with our desire to help people save time and money while making shopping easier. We are excited to join forces with Walmart to help provide the best possible delivery experience to customers," says Cosimo Leipold, Nuro's head of partner relations, in the release. "Working alongside Walmart gives us an incredible opportunity to improve our door-to-door operations, serve Walmart's loyal customers, and continue to integrate and engage with the Houston community."

The new opportunity comes for Walmart as the company is expanding its access. The company has expanded to offer pickup options at 3,100 locations and deliveries from more than 1,600 stores — all supported by a team of over 50,000 personal shoppers, Ward writes in a blog post.

"We're already bringing the best of Walmart to our customers through Grocery Pickup and Delivery," Ward writes. "By continuing to test autonomous vehicle capabilities, we're better able to understand the path self-driving technology can take us down the road."
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Innovative Texas-based ride-share rolls into Houston with new cars and delivery service

Alto is a go

Houstonians who are interested in an alternative to Uber — and don't mind giving a Dallas-based company a shot — can now look for a new ride. Alto, the ride-share and delivery company based in Big D, has announced its expansion plans to Houston. The company is now offering pre-scheduled rides; Houston residents will be able to book on-demand rides starting October 1, according to a press release.

As CultureMap previously reported, Alto touts itself as a safer, more consistent approach to hailing a ride. Founded in 2018, Alto brands itself as "the first employee-based, on-demand ride-share company." Employees receive salaries and benefits, each company-owned car is branded with the Alto logo (so riders can be sure they're stepping into the right vehicle), and cloud-based cameras capture both interior and exterior videos of the ride.

The company offers ride memberships and also shops, purchases, and delivers from local brands directly to consumers with same-day delivery available.

For safety during the pandemic, all Alto drivers wear masks and gloves during every trip and each Alto vehicle is fitted with a HEPA cabin air filter which removes 99.9 percent of airborne particles, the company claims. Car interiors are also treated with PermaSafe, an EPA-registered hospital-grade sanitizing mist that is said to kill pathogens like COVID-19.

"Alto is thrilled to announce our expansion plans to Houston and offer the same clean, safe ride-share experience that's revolutionizing the industry to this new market," said Will Coleman, founder and CEO of Alto. "We're confident Houston residents will find Alto to be unlike any other ride-share experiences they've had to date, and find comfort in Alto's leading safety and health precautions, as well as elevated rider experience."

Locals who are interested in more information and getting on the Houston launch waitlist can the official site. The Alto app is available for download on the App Store and Google Play.

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This article originally ran on CultureMap.

3 crisis management tips for Houston business leaders

houston voices

The great pandemic of 2020 has brought to the surface the issue of crisis management. Especially with nationwide business shut downs in the last eight months, many companies are on a rocky road of uncertainty. Entrepreneurs are unsure of what the future holds after seeing revenues slow or halt in some cases. Layoffs, RIFs, budget cuts, departmental downsizing; all inevitable.

Way too many startup founders aren't equipped or experienced when it comes to crisis management. "In order to keep your startup going, you have to know how to identify a crisis before it spreads like a cancer and how to make big changes and big decisions fast and often," says Gael O'Brien, the ethics coach for Entrepreneur.com.

"Any time in which the world stops functioning in a way we're used to, a deviation from the norm, that might be the biggest early sign of a crisis about to rear its head," she continued.

Admitting you have a problem

O'Brien stresses that a leader should create an easy process whereby one can identify a crisis in its infancy. The key here, she says, is to make sure to recognize a crisis before it starts to consume your company. You'll have to learn how to contain the crisis by leading the charge in rapid decision making. Many entrepreneurs simply refuse to admit there's a problem at hand. Many times, admitting there's a crisis means admitting one was wrong. It also means they may have been wrong for years.

These entrepreneurs that refuse admitting there's a crisis often do so with common refrains like "I didn't want to scare anyone" or "if I admit I was wrong this whole time I'll lose respect."

"Great leaders aren't afraid to put their company first, even if it means a blow to the ego. These leaders are not afraid to inform everyone that might be affected know there is a crisis," O'Brien explained.

"They contain the problem and prevent it from becoming unmanageable. Good leaders don't opt for a temporary Band-Aid-like fix either. They aim for a permanent solution."

Casting for a crisis management team

There are two common mistakes startup leaders make when it comes to crisis management. The first is that they can miscast a crisis management team. Meaning, they put the wrong people in decision-making roles. You want people on your crisis management team who are not going to feel they will be blamed for a crisis or for controversial decisions.

When one is afraid of being blamed for something, they are more likely to obstruct and lie so that the team's focus is diverted. "These are people that will omit objective and relevant information if it means saving their own reputation or job. You want people that put the team first," said O'Brien.

Communication during a crisis

The second common mistake startup leaders make during a crisis is that they tend to under-communicate. It becomes habitual to keep things close to the chest. To become secretive during a crisis. Managers might feel that the less people know, the less chance there is of panic. However, doing this opens your company up to wild speculation among employees. Assumptions. And these assumptions are never good.

"You have to be forthright. It's not just that people have a right to know what's going on in their own company. It's also that if you leave yourself up to speculation, people will grow frustrated and worse, scared. Scared people make crises worse," said O'Brien.

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This article originally appeared on the University of Houston's The Big Idea. Rene Cantu, the author of this piece, is the writer and editor at UH Division of Research.

Cleantech incubator announces location in Houston, names newest partners

Greentown's moving in

After announcing its plans to expand to Houston in June, Boston-based Greentown Labs has selected its site for its cleantech startup and tech incubator.

Houston Mayor Sylvester Turner and the Greater Houston Partnership announced that Greentown Houston will be opening in the Innovation District, being developed by Rice Management Co. and home to The Ion. The site is located at 4200 San Jacinto St., which was Houston's last remaining Fiesta grocery story before it closed in July.

The facility is expected to open this coming spring and will feature 40,000 square feet of prototyping lab, office, and community space that can house about 50 startups, totaling 200 to 300 employees.

"We are thrilled to announce the selection of Greentown Labs' inaugural location in partnership with RMC, the City of Houston, the Partnership, and leading global energy and climate impact-focused companies," says Emily Reichert, CEO of Greentown Labs, in a press release. "In order to meet the urgent challenge of climate change, we must engage the talent and assets of major ecosystems around the country. We look forward to catalyzing the Houston ecosystem's support for climatetech startups as we work together toward a sustainable future for all."

Emily Reichert is the CEO of Greentown Labs. Photo courtesy of Greentown Labs

Greentown Labs launched in 2011 as community of climatetech and cleantech innovators bringing together startups, corporates, investors, policymakers, and more to focus on scaling climate solutions. Greentown Labs' first location is 100,000 square feet and located just outside of Boston in Somerville, Massachusetts. Currently, it's home to more than 100 startups and has supported more than 280 startups since the incubator's founding. According to the release, these startups have created more than 6,500 jobs and raised over $850 million in funding

"We are so pleased that Greentown Houston will locate in the heart of the Innovation District, where they will seamlessly integrate into the region's robust energy innovation ecosystem of major corporate energy R&D centers, corporate venture arms, VC-backed energy startups, and other startup development organizations supporting energy technology," says Susan Davenport, chief economic development officer at the Greater Houston Partnership, in the release. "Houston truly is the hub of the global energy industry, and Greentown Houston will ensure we continue to attract the next generation of energy leaders who will create and scale innovations that will change the world."

Greentown Houston, which previously announced several founding partners in June, has just named new partners, including: RMC, Microsoft, Saint-Gobain, and Direct Energy. According to the release, Greentown Houston is also looking for Grand Opening Partners. Naturgy and and FCC Environmental Services (FCC) are the first to join on as a grand opening partners, and startups and prospective partners can reach out for more information via this form.

Reichert previously told InnovationMap that it was looking for an existing industrial-type building that could be retrofitted to meet the needs of industrial startups that need lab space. She also said that this approach is very similar to how they opened their first location.

Rice Management Company is developing the Innovation District in the center of Houston. Screenshot via ionhouston.com

The new location will be in the 16-acre Innovation District that's being developed by RMC, which will be anchored by The Ion, a 270,000-square-foot hub that is being renovated from the former Sears building.

"What we love about Greentown Labs as much as its commitment to helping Houston become a leader in energy transition and climate change action is its proven track record of job creation through the support of local visionaries and entrepreneurs," says Ryan LeVasseur, managing director of Direct Real Estate at RMC, in the release. "Greentown Houston, like The Ion, is a great catalyst for growing the Innovation District and expanding economic opportunities for all Houstonians. We're thrilled Greentown Labs selected Houston for its first expansion and are honored it will be such a big part of the Innovation District moving forward."

Acquiring the new Greentown location is a big win for the mayor, who released the city's Climate Action Plan earlier this year. The plan lays out a goal to make Houston carbon neutral by 2050.

"We are proud to welcome Greentown Labs to Houston, and we are excited about the new possibilities this expansion will bring to our City's growing innovation ecosystem," says Turner in the release. "Organizations and partners like Greentown Labs will play a vital role in helping our City meet the goals outlined in the Climate Action Plan and will put us on the right track for becoming a leader in the global energy transition. The City of Houston looks forward to witnessing the innovation, growth, and prosperity Greentown Labs will bring to the Energy Capital of the World."

Greentown Labs will host a celebratory networking event on September 24 at 4 p.m. Registration for the EnergyBar is open here.

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