Autonomous vehicles are taking to the streets, which means big changes to the delivery industry. Not only could it be a safer and more cost-effective option, but also an efficient way of getting more items to customers within a short period of time.
Gatik, the global leader in autonomous middle mile logistics, has announced a multi-year commercial cooperation to carry customer orders within Kroger’s Dallas distribution network.
In accordance with the partnership, fresh, customer-favorite products will be delivered from a Kroger Customer Fulfillment Center (CFC) in Dallas, Texas, to several retail locations by Gatik’s medium-duty autonomous box trucks.
Each Gatik truck has a 20-foot box with cold chain capabilities that can move ambient, chilled, and frozen items. The cooperation will include delivery trips over Kroger’s Dallas distribution network several times per day, seven days per week.
The operations will start in the second quarter of 2023, and as the routes become more familiar, the drivers will gradually be dropped from the autonomous fleet.
Nowadays, customers expect more delivery options if they’re going to commit to a purchase. The employment of autonomous vehicles is anticipated to speed up and improve the responsiveness of order fulfillment for online orders. In doing so, customers have a wider variety of same-day pick-up options and more flexibility with order cut-off periods.
Offering this level of flexibility, especially a same day experience, is going to be increasingly beneficial for customers as they can have more control over their delivery experience. Giving the opportunity to choose when and where is one of the best ways to maintain loyalty and ensure repeat purchases.
The middle mile of the supply chain can also now boast a dedicated capacity thanks to the use of autonomous cars, which is anticipated to result in significant cost reductions. These savings can then be transferred to customers for competitive pricing. It’s a win, win for both parties!
No more hands on the steering wheel.
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Marketing Coordinator at Locate2u having completed a Bachelor of Creative Arts, majoring in English Literature and Creative Writing. I have extensive experience in editing and proofreading, as well as creating content for a range of audiences.
