“We saw an opportunity to improve people’s lives by building a new class of vehicle designed from the ground up to move things instead of people,” says Dave Ferguson, co-founder of Nuro.
Since 2016, the Mountain View startup has gone from a sketch by two former Waymo engineers to one of Silicon Valley’s most closely watched robotics bets. Its compact machines have delivered groceries, prescriptions, and pizza. Now its software is being licensed to power autonomous ride-hailing fleets.
It’s an ironic twist for Ferguson and his co-founder Jiajun Zhu, both veterans of Google’s self-driving car project, later spun out as Waymo, which made headlines chasing the robotaxi dream. At Nuro, they decided to aim lower and in the process, may have found a clearer path.
Betting on Boxes, Not People
Inside Google’s self-driving car project, Dave Ferguson worked on algorithms that could help machines make sense of the unpredictability of traffic. His co-founder, Jiajun Zhu, focused on building the perception systems that allowed vehicles to recognize and respond to their surroundings. Both saw up close how far passenger autonomy still had to go. Regulators were cautious, the public was torn between curiosity and concern, and the cost of even a single mistake was measured in human lives.
Delivery, by contrast, seemed like an open lane. Smaller vehicles meant simpler designs and lower risks. The environments were more controlled, the use cases clearer, and the stakes more practical. Instead of carrying commuters, these machines could carry groceries, hot meals, or prescriptions. That difference mattered.
At a time when most of Silicon Valley was fixated on robotaxis, Ferguson and Zhu recognized an opening in the quieter world of logistics. They believed autonomy would gain acceptance more quickly if it began with moving goods, rather than people.
Building Robots on Wheels
Nuro’s first prototype, the R1, debuted in 2018. Half the width of a typical sedan, it carried two temperature-controlled compartments designed for grocery bags or takeout meals. There were no seats, steering wheel, or pedals. It was, in every respect, a vehicle built for packages, not people.
The R2 followed in 2020. It was the first autonomous vehicle to receive an exemption from the U.S. National Highway Traffic Safety Administration, which allowed it to operate without traditional human-centered features such as side mirrors or a windshield. For Nuro, it was validation that regulators were wiling to accept a new class of machine.
The most recent generation, R3, brought better sensors, upgraded storage systems, and an electric powertrain designed for durability. Yet the real engine of Nuro’s innovation is its software. The company’s autonomy platform, called the ‘Nuro Driver’, integrates perception, prediction, planning, and control. It runs on an Arm-based compute stack with NVIDIA’s DRIVE technology, providing the processing power needed to make split-second decisions in complex city environments.
In 2024, Nuro shifted its strategy. Rather than limiting itself to operating fleets of delivery robots, the company announced it would license the Nuro Driver to automakers and mobility providers. This pivot aligned with broader industry dynamics. Vehicle manufacturing was capital-intensive and slow. By focusing on autonomy software, Nuro could expand its reach without the burden of producing and maintaining thousands of vehicles itself. The licensing model also positioned it to enter markets beyond delivery, including ride-hailing and personal vehicles.
“By focusing on software, we can bring autonomy to more partners, more vehicles, and more communities than we ever could on our own,” Zhu noted.
Big Money, Big Partners
Investment has played a central role in Nuro’s rise. The company closed a $92 million Series A in 2018. The following year, it secured a $940 million investment from SoftBank’s Vision Fund, which valued Nuro at $2.7 billion. In 2020, it raised $500 million in a Series C, and in 2021 another $600 million in Series D, pushing its valuation to $8.6 billion.
While market conditions later cooled, Nuro continued to attract capital. In 2025, it raised $203 million in Series E funding, establishing a valuation of $6 billion. Altogether, the company has secured more than $2.3 billion, a rare level of financial backing in the autonomous vehicle sector.
Partnerships have been equally pivotal. In 2018, Nuro launched its first pilot with Kroger, delivering groceries in Scottsdale, Arizona. The following year it partnered with Domino’s in Houston, testing pizza delivery with the R1. In 2020, CVS worked with Nuro to deliver prescriptions in Texas and a year later, 7-Eleven joined as a partner for pilot deliveries in California.
In 2022, Uber Eats signed a ten-year agreement to deploy Nuro’s vehicles in California and Texas. In 2025, Uber, Lucid Motors, and Nuro unveiled a collaboration to launch a new autonomous ride-hail service. Uber is committed to purchasing more than 20,000 Lucid Gravity SUVs over six years, all equipped with Nuro Driver. Uber also invested directly in Nuro and took a seat on its board.
Ferguson called the deal “a very, very big deal” that validated Nuro’s licensing model.
Business Challenges and Evolution
Despite its high-profile partners and funding, Nuro has faced significant hurdles. Building and operating fleets of autonomous vehicles consumed large amounts of capital. In 2022, the company laid off roughly 300 employees, about 20 percent of its workforce. A year later, it cut another 30 percent, signaling a need to conserve cash and refine strategy.
The valuation indicated these pressures. From a high of $8.6 billion in 2021, Nuro’s worth adjusted to $6 billion by 2025. But the decision to pivot toward licensing reshaped its trajectory. The company could generate recurring revenue and scale through partners, rather than carrying the heavy costs of fleet ownership by focusing on software.
Regulation has been both a challenge and an advantage. Gaining exemptions and permits required careful negotiation with federal and state agencies. Yet Nuro became the first company to receive NHTSA approval to operate vehicles without traditional human equipment.
Robots on the Streets
For consumers, the impact of Nuro’s technology is direct. In Houston, residents have received groceries and pizza from compact R2 vehicles that pulled up silently to the curb. In Phoenix, CVS customers had prescriptions delivered without human contact. Feedback from communities has highlighted both novelty and convenience.
Businesses benefited, too. Deliveries became faster and more cost-efficient. The compact vehicles reduced congestion and emissions. During the pandemic, their contactless design became a selling point.
Finding Space in a Crowded Field
Nuro’s position is distinct in the competitive world of autonomous mobility. Waymo and Cruise operate full fleets, bearing the expense of vehicles and drivers for testing. Tesla pursues autonomy as part of consumer cars. Starship Technologies and Serve Robotics build small sidewalk robots. Gatik specializes in middle-mile logistics between warehouses and retail locations.
The irony is that Nuro’s founders once built those passenger systems at Waymo but chose a different lane. While Waymo continues chasing the dream of robotaxis with deep pockets and endless pilots, Nuro has put quiet delivery bots on the road actually doing the job. The contrast is hard to miss. One company is still seeking regulatory approval to transport people. The other is already dropping off dinner.
What Comes Next
The Uber and Lucid partnership points to the next stage of Nuro’s growth. Pilot testing of Lucid vehicles equipped with the Nuro Driver has already begun in Las Vegas, with deployment in a major U.S. city expected in 2026. The plan involves scaling to tens of thousands of vehicles, potentially creating one of the largest autonomous fleets in operation.
Nuro also envisions expansion beyond ride-hailing. The same software can power commercial delivery vans and even personal vehicles, broadening its addressable market. Geographic growth will depend on regulatory approvals, but the company has positioned itself as a key supplier of autonomy in the U.S. ecosystem.
As co-founder Jiajun Zhu put it, “Nuro is uniquely positioned to be a major player in the future of autonomous mobility.”
