Future of Fleet: Autonomy for the Middle Mile

Every now and then I get the opportunity to talk to somebody who is truly shaping the future of the fleet industry. For this episode, the stars aligned and I got to talk to two separate companies who fit this bill, each working together to make autonomous vehicles a reality.

Welcome to The Fleet Code, a podcast brought to you by Fleetio where we dive into the latest fleet industry trends, technologies and best practices.

My name is Zach Searcy and I recently had the opportunity to talk to Brian Tabel, the VP of Marketing at Isuzu and Adam Campbell, the Senior Manager of Safety Innovation & Impact at Gatik – a leader in developing autonomous trucking technology. This conversation is the first in what I hope to become a series of conversations called Future of Fleet, where we spotlight individuals and companies who are doing great things to shape the future of the fleet industry.

Back in May, Isuzu invested $30 million in Gatik to drive the development of self-driving delivery trucks. This partnership aims to address driver shortages and the rising need for deliveries by developing autonomous vehicles, specifically for the middle mile.

I want to share some of the highlights of our conversation and also give you some insight into the current status, barriers and timeline for autonomous vehicle technology.

Let's get into it.

Isuzu + Gatik

So first, let me tell you more about Isuzu and Gatik's partnership.

Gatik was founded in 2017 and specializes in autonomous transportation technology, and they are specifically focused on the "middle mile" segment of logistics, focusing on developing self-driving box trucks that transport goods between distribution centers, fulfillment centers and retail locations.

Isuzu has not only invested in Gatik, but they are working directly with Gatik to develop fully autonomous trucks, built on existing Isuzu commercial vehicles.

Adam

"Our partnership with Isuzu is allowing us, you know, in collaboration with them, an opportunity to further elevate the safety of the platform.

And so there is an enormous amount of safety and reliability that comes by interacting so closely with an OEM partner at this level."

And here's Brian Tabel with Isuzu talking about the decision to work with Gatik.

Brian

"We're super excited about the opportunity. Gatik is certainly a well-proven supplier into the autonomous vehicle – certainly in the middle-mile.

I think as we want to continue to evolve, we see that technology advancing in the future, not only here in the US, but certainly around the world.

You know, I think as things grow, you really want to align yourself with somebody that is the expert, because to think that the each OEM can, you know, come up with their own solutions and engines, transmissions, technology, advanced technologies, all that – it's probably not realistic. So, you know, a great move by Isuzu Motors Limited perspective to partner with Gatik for that and give us that technology and give us that access to that. Because I think in the long run, that's going to be super beneficial for us, but in turn for the dealer, our Isuzu dealers, but also all the Isuzu customers out there."

Adapting to AV Tech: Current State

Now, I don't think it's a stretch to say that we're still several, several years away from autonomy being a reality for every fleet, but that doesn't mean that we write it off completely. Autonomy in trucking might not yet be suited for downtown urban environments or hazardous road conditions, but it does have a purpose right now, and the work being done today is paving the way for more widespread autonomy in the future.

So how do we decide where to implement autonomous vehicles today? We start by finding the best current application for this technology.

Adam

"It's not just about technology, it's about what pain point you're solving for. And there are a lot of pain points in the middle mile and a lot of value that they – our customers – can provide to their customers by unlocking value, safety and efficiency and cost, by adopting autonomy.

We are very intentional with our deployment. We had the world of potential options in front of us, you know, back in our founding in 2017, and it was intentional that we selected – and I say we, the Royal We – our cofounder or our founders here, selected the middle mile as the application for autonomy – not just what was available to be developed back then, but, you know, what was projected to be available in present day.

You know, while, you know, it isn't the entirety of all supply chain, it's a sizable chunk of the supply chain. The market is enormous from our standpoint, and it is an incredibly important one. From, you know, in the middle mile is an incredibly important one for our customers to be successful at what they do, which is providing, you know, a healthy SKU count to their customers at as low cost as possible.

With the likes of, you know, multiple Fortune 500 companies – some of the largest retailers that come to mind, you know, the Kroger's, the Walmarts, the Pitney Bowes's, the Tyson's, these are companies that have committed to us in the middle mile, because the middle mile is important to them."

The middle mile is the ideal proving ground for autonomous vehicles because the roads are favorable and predictable. The US interstate and highway system is well-marked with signs, the roads are straight with multiple lanes, and the speeds stay fairly consistent.

You can still have humans load and unload at a controlled environment – warehouses and other similar facilities – and then the last-mile delivery can be handled by the local couriers or delivery partners. The longest part of the delivery can be handled with minimal human intervention.

Addressing Hesitancy and Safety in the Fleet Industry

Fleet Hesitancy

I've talked with many fleet managers around the potential of this technology and it seems that feelings vary from hopeful, to skeptical, to calling it the future, to calling it a pipedream. It's creating a spectrum of emotions, and honestly, all of those feelings are valid.

It seems the hesitation comes from one of two places: a concern in the impact on jobs in the industry, and a distrust in the technology to perform the job safely.

As humans, we like to be in control of the world around us. We all have had experiences while driving where there was a unique variable thrown in and we had to take corrective action ourselves in order to avoid a dangerous situation. Can the technology make similar, quick decisions?

Even Brian sounded a little uneasy when recounting his first experience in an autonomous vehicle.

Brian

"I was in Japan probably about five, six years ago. And we had an experience in our own truck on our proving grounds of where there was no driver – it was an autonomous driving vehicle. And I think that was my first experience doing it, and I think I was a little nervous as it was going through, but, you know, went through all the simulations – everything worked.

Was in Phoenix and had the Waymo experience where, you know, it's basically a taxi cab or a Lyft vehicle. And, you know, you get in and there's no driver at all, and it takes you to your location. And again, just a unique experience to experience that."

But Brian went on to say that the experience has been extremely positive each time he's put his trust in an autonomous vehicle. The Waymo vehicle even thanked him for his ride, which I think is an adorably human thing to program into the vehicle.

As for whether or not the rest of the population needs to trust these vehicles, I actually asked Brian about that feeling of hesitation and you could tell that he welcomes it – views it as a great opportunity to prove themselves and the technology.

Brian

"I always say actions speak louder than words. So I think over time, as the vehicles improve and the technology improves, it will be kind of proof in the pudding – that it is a proven technology. And if you can have a middle-mile truck going from depot to depot without having a driver, and it goes and does its routes. Think of that savings that you're going to have and just have people there to load or unload those vehicles. It certainly will be advantageous for the customers as they continue to move merchandise.

It's location to location or depot to depot, And that's where this is really going to strive."

The Focus on Safety

And this is not a technology being created in some lab without any kind of regulations or requirements.

Brian

"That's paramount for sure is safety, not only for the truck, but everyone that's around it. And, you know, depending on what, where the truck's being run, or any vehicle for that matter. You know, it could interact with thousands of people in that way. So certainly, the safety of everybody around it is paramount for a community."

Plus, it's creating better roads for all of us. When talking with both Adam and Brian, they told me how they've been working with the DOT and other regulators to help identify safe-driving conditions for these vehicles. This helps us not only identify the best existing routes to operate these vehicles safely, but it also allows us to start optimizing our infrastructure for a future with these vehicles.

Brian

"As we drive around the roads of today, I think, you know, we're certainly in need of redoing our roads. And they've kind of been patched so many times that you don't know where the real road is and where the patch is. So you know, as technology continues, you know, hopefully the roads will adapt to that technology and all the different vehicles that will be operating on them."

And a safer environment for autonomous vehicles – well-marked, well-lit, ideal road conditions, etc. – is a safer environment for all of us. The progress that is being made to support autonomous technology will create plenty of downstream benefits.

What this Means for Fleets

Okay, so now that you know more about the current state of the technology, I'd like to share a little bit about what this means for you as a fleet manager who might be a few streets ahead of me – after all, this is a fleet management podcast.

The Impact on Technicians

First off, many fleets are responsible for managing maintenance in-house. Does this technology make your teams unnecessary? I'll let Adam cover that one.

Adam

"I mean, first and foremost, what I wanted to dispel is this, I guess presumption, that sort of what folks in this space from the service and maintenance side know and do so well is going to be sort of somehow made irrelevant in any way. If anything, this industry and the movement that we're making towards adding even further complexity to what is an incredibly complex thing already, which is a commercial truck, is only going to rely more and more on that expertise.

So we're welcoming of those folks. The industry needs them. We, Gatik and other agencies, that develop technology and other supporting stakeholders are actively in the process of developing approaches, standardization, certifications around what it will look like to be a, you know, call it mechanic with a specialization in servicing an autonomous truck. That is something that is ongoing and many AV players are in support of that and actively engaged in the development of that program."

At the end of the day, this technology is still being built on top of vehicles and vehicles will always need somebody to perform basic service and maintenance in order to extend the life of the asset.

Brian

"So again, really all that technology goes for a longer term to help not only for the driver, but for the long term of the vehicle, because as these vehicles get more expensive, you know, the length that someone's going to have to keep them is going to be much longer as well."

If anything, the cost of the technology will make it even more valuable to get the most out of your vehicles. And having somebody overseeing the fleet who knows how to take care of your assets and perform maintenance will become more valuable than ever.

Yes, there will end up being specialized situations where work needs to be outsourced due to limitations of your technicians, but that's not any different than today.

I've talked to numerous fleet managers who have in-house technicians who mostly focus on the quick jobs that allow them to keep the core fleet on the road. They'll send a vehicle to a shop if they feel like it's a complicated or time-intensive repair, because it's not helpful to take up a bay in the on-site shop for days or weeks at a time.

The Right Fleets for Autonomy

So how do you decide if your fleet is a good fit for autonomy?

The first step is to follow industry publications and attend conferences in order to understand the current state of the technology. Fleet Forward in November is a conference fully dedicated to the future of fleet and you can even find us there,

Autonomy of today has limited, but highly practical, applications. Middle mile delivery is a great example, but so is the likes of Waymo and these short-route ride-hailing services. More and more applications will pop up as the technology evolves and becomes more affordable, but you also don't need to try to fit a square peg in a round hole – not yet at least.

But today, I'd be encouraging you to start thinking about the benefits that autonomy can have for you. I know we all love the control of being behind the wheel, but there are also some inherently negative traits that come with human-controlled vehicles.

Zach

"Reading between the lines, I mean, a couple of the things that you touched on, such as hard braking and aggressive driving – those are two things that are uniquely human about us – that in addition to being polite. And so I think that, as you bring autonomy into the situation, you remove some of those elements and reduce the wear and tear on vehicles. Maybe standardization of life becomes a lot more predictable because you're removing some of the variables that can shorten or lengthen a life.

And yeah, I just, I could continue down this rabbit hole of like, vehicle utilization and replacement and monitoring and prediction and budgeting and all that. But I think that there's something really interesting about the predictability of that becoming much more, not to use the word predictable again, but predictable, that that's really interesting to me."

Brian

"Yeah, definitely. And you know, not to use predictable again, but it will be very predictable of what, how the vehicle is being operated. And again, due to these costs that will be associated with today's technology, but let alone tomorrow's technology, you know, and vehicles will operate no matter what much longer than what we've ever been used to."

Conclusion & Key Takeaways

That's all I have for today's episode of The Fleet Code. Here's one last thought from Adam when it comes to exploring AVs and other emerging technologies for your fleet.

Adam

"Don't be enamored with the technology first. Focus on what problems that need to be solved first. Where are you losing money? Where are you losing time? Where are you losing customer satisfaction? And then from there, understand whether or not autonomy can solve those problems for you."

Key Takeaways

If you're looking for some practical takeaways for your fleet, here's what stood out to me:

• The current application, middle-mile logistics, allows a controlled environment for the technology to develop and improve, eventually leading the way to more advanced or intricate applications.
• When deciding which new and emerging technologies to add to your fleet, you need to first consider what problems need to be solved in your fleet. Once you do that, you can survey the current technology landscape to see what's worth investing in.
• And while AVs will change the landscape of fleets, the responsibilities of a fleet manager will be consistent: your job is to maximize the profitability of your fleet operation while promoting a culture of safety.

So many thanks to Adam with Gatik and Brian with Isuzu for taking time to chat with us. I've included links to the press release announcing their partnership in the podcast description so you can learn more about what they're cooking up.

As a reminder, The Fleet Code is brought to you by Fleetio. If you're looking for the best way to run reports and track the success of your fleet operation, Fleetio's fleet management system brings all of your fleet data into one system so you can set goals and surface any gaps immediately. You can learn more about Fleetio at fleetio.com - that's f-l-e-e-t-i-o.com.

I've also included a few resources around future-proofing your fleet in the podcast description, so you can have a plan for when the technologies meet your needs.

Make sure you subscribe to The Fleet Code on your podcast platform of choice to keep up with the latest tips and tricks for fleet managers. Leave a review or rating if you're into that kind of thing. If you have a topic that you'd like us to cover, send us an email to podcast@fleetio.com and let us know. Subscribe to our newsletter and follow at-fleetio on social media for even more fleet management best practices.

Guests

• Adam Campbell, Senior Manager of Safety, Innovation and Impact, Gatik
• Brian Tabel, Assistant VP of Marketing, Isuzu Commercial Truck of America

Additional Links and Resources

• About the Gatik + Isuzu Partnership (press release)
• The Importance of Understanding Different Fleet Technologies (blog)
• How Fleets can Take Advantage of Incoming Automotive Technologies (blog)