Walmart (WMT Get Walmart Inc. Report has teamed with robotic-technology startup Gatik on a pair of autonomous delivery trucks, which for the first time have begun making deliveries without human backup, media reports say.
Gatik has been making deliveries for Walmart since 2019 in the big box retailer's hometown of Bentonville, Ark.
Two Gatik vehicles have been hauling goods on a fixed 7.1 mile route between an e-commerce distribution center to a Walmart Neighborhood Market store in the city.
"Through our work with Gatik, we’ve identified that autonomous box trucks offer an efficient, safe and sustainable solution for transporting goods on repeatable routes between our stores,” Walmart Senior Vice President Tom Ward said in a statement.
Walmart is testing the vehicles as part of its transition to a so-called hub-and-spoke model for grocery delivery, where facilities are located near customers and serve several retail stores.
Walmart says the automated vehicles will also enable store associates the freedom to do "higher level" tasks, according to Walmart.
“The old architecture of delivery where you have a giant distribution center four or five hours away from the end consumer does not work anymore," Gatik Chief Executive Gautam Narang said.
"Grocers are forced to set up these fulfilment centers close to the customer, and once you get close to the customer you have to shrink the size of your warehouse."
Gatik says its autonomous vehicles can reduce logistics costs for grocery businesses by as much as 30%.
Walmart and Gatik, Palo Alto, Calif., are running similar tests in the New Orleans area using an electric box truck with a safety driver.
At last check Walmart shares were trading off 0.6% at $149.31.
