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FedEx (FDX) & Nuro Pair Up to Test Autonomous Delivery Vehicles

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FedEx Corporation (FDX - Free Report) announced a multi-year, multi-phase agreement with Nuro, an autonomous delivery company, to test self-driving vehicles in its network. The two companies have already launched a pilot program across the Houston, TX area in April.

This pilot program builds on FedEx’s portfolio of autonomous same-day and specialty delivery devices, such as Roxo, the FedEx SameDay Bot. Roxo provides autonomous last-mile delivery services to customers’ doorsteps within a radius of three to five miles from the retailers’ location.

Nuro’s autonomous delivery vehicles are expected to reduce the surging costs of last-mile deliveries. Cosimo Leipold, Nuro's head of partnerships, reportedly told Reuters that the two companies will aim for deliveries where Nuro's low-speed, unmanned vehicles can provide "the biggest bang for your buck."


With e-commerce growing at an exponential rate, especially amid the pandemic, FedEx believes that autonomous solutions will help improve the company’s safety, efficiency and productivity.

FedEx has been thriving on the back of higher volumes across all its segments, thanks to strong e-commerce demand. This is reflected in the 23% year-over-year rise in total revenues in the third quarter of fiscal 2021. In such a scenario, the company’s move to strengthen its last-mile delivery network is prudent.

Zacks Rank & Other Key Picks

FedEx carries a Zacks Rank #2 (Buy). Some other top-ranked stocks in the broader Transportation sector are C.H. Robinson Worldwide (CHRW - Free Report) , Expeditors International of Washington (EXPD - Free Report) and Covenant Logistics Group (CVLG - Free Report) . While Covenant Logistics sports a Zacks Rank #1 (Strong Buy), C.H. Robinson and Expeditors carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of C.H. Robinson, Expeditors and Covenant Logistics have rallied more than 27%, 69% and 77% in a year’s time, respectively.

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