Gatik, a Silicon Valley-based autonomous driving startup, has announced a groundbreaking partnership with Isuzu to develop purpose-built robotic commercial vehicles. Through this partnership, Isuzu has also made a $30 million equity investment in Gatik. The next-generation trucks, which are set to go into production in 2027, will be built at a new Isuzu factory and will integrate Gatik’s technology. These trucks will have Level-4 autonomous capability, meaning they will be able to operate without a human driver.
This partnership marks a significant milestone in the autonomous vehicle industry, as it is the first time a truck manufacturer has committed to mass production of Level-4 autonomous trucks. Gatik’s CEO and co-founder, Gautam Narang, believes that this partnership validates their technology, use case, and economics. The company aims to scale across the $250 billion middle-mile market in North America. Gatik focuses on hauling commercial loads on fixed routes between warehouses and large supermarkets and big-box stores for customers such as Walmart, Kroger, and Tyson Foods.
Gatik’s fleet of 70 medium-duty trucks, many of which are modified Isuzus, currently operate autonomously on city streets at speeds of up to 45 miles per hour. They have also begun operating autonomously on highways at speeds of up to 65 mph with a human backup behind the wheel for now. Narang declined to provide specific revenue details but mentioned that Gatik’s revenue is growing. He expects the company to have hundreds of vehicles in commercial operation as a result of the Isuzu deal and aims to be profitable later this decade.
The autonomous vehicle industry has been facing challenges, with several companies either collapsing or struggling to scale up operations. Gatik’s ability to generate revenue with five-year commitments from its customers and commercialize its technology through the partnership with Isuzu sets it apart from many competitors. The company’s focus on profitable growth and freight-only operations at scale by the end of the year distinguishes it in a market where revenue generation is still not the highlight. Gatik’s commitment to commercializing its technology and focusing on profitable growth positions it as a leader in the autonomous driving space.
The partnership between Gatik and Isuzu represents a significant step forward in the development of autonomous commercial vehicles. The integration of Gatik’s technology into Isuzu’s trucks will enable Level-4 autonomous capability, allowing these vehicles to operate without a human driver. With a focus on the middle-mile market in North America, Gatik aims to scale its operations and become profitable in the coming years. By prioritizing revenue generation and commercialization, Gatik sets itself apart from competitors in the autonomous vehicle industry, positioning itself for success in the evolving market landscape.
