Nuro, a California-based autonomous vehicle startup, has raised $600 million in its latest funding round. This Series D raise brings the company’s valuation to $6 billion and lifts its total funding since 2016, by Jiajun Zhu and Dave Ferguson, former Google engineers, to more than $2 billion. The round was led by Tiger Global Management and included Google, Kroger, SoftBank, Baillie Gifford, Fidelity Management & Research, and Chipotle Mexican Grill among its backers.
The company plans to use the funds to scale its autonomous delivery operations. Nuro focuses on small, driverless delivery vehicles built specifically to transport goods, not passengers. Its partnerships with retailers and food chains have helped position it as a key player in last-mile delivery solutions.
Technology and Operations
Unlike passenger-focused autonomous vehicle firms, Nuro designs compact vehicles meant solely for deliveries. These vehicles are built for safety, efficiency, and cost-effectiveness in neighborhood routes. The R2 model, approved by the U.S. Department of Transportation in 2020, operates without human controls such as a steering wheel or pedals.
The company has tested its vehicles in several U.S. cities, partnering with retailers and grocery chains to complete deliveries. In 2021, Nuro announced plans to build a manufacturing facility and test track in Nevada. The facility supports large-scale production and enables hands-on testing of vehicle performance and operational workflows.
Competitors and Market Landscape
Nuro operates in a competitive market for autonomous delivery and logistics. Companies such as Amazon’s Zoox, Gatik, Cruise (backed by General Motors), and Aurora are developing similar solutions. While many competitors also target passenger transport, Nuro’s focus on goods delivery creates a clear niche.
Amazon has invested in autonomous delivery through Zoox, while Walmart and other retailers are experimenting with smaller startups like Gatik for middle-mile transport. Cruise and Aurora are pursuing both passenger and freight applications. Nuro’s concentration on last-mile delivery allows it to focus on partnerships with retail and food service companies, avoiding direct competition with ride-hailing firms.
Strategic Partnerships
Nuro has formed partnerships with several major retailers and food companies. Kroger has worked with Nuro to deliver groceries in select markets. Domino’s has partnered with Nuro to test pizza deliveries using autonomous vehicles. Chipotle joined as an investor in the latest funding round, highlighting interest from the food sector in automated logistics.
Dave Ferguson, co-founder, noted, “With this investment, we’re well positioned to deliver new commercial partnerships that move autonomy forward for real-life use.”
These partnerships allow Nuro to test and deploy vehicles in real-world conditions, while also giving partner companies a way to reduce delivery costs and explore automation. Building reliable partnerships remains a core part of Nuro’s strategy to expand its presence in the delivery ecosystem.
Regulation and Challenges
Autonomous delivery vehicles operate under strict safety and regulatory guidelines. Nuro has received exemptions from the U.S. Department of Transportation for certain design features, given that its vehicles are smaller and operate at low speeds. Scaling operations across states requires navigating a complex mix of federal, state, and local rules.
Safety concerns, infrastructure readiness, and public acceptance shape the pace of deployment. Nuro’s delivery-only focus reduces some of the risks associated with passenger transport.
Industry Impact
Nuro’s work in autonomous delivery connects with broader changes in logistics and e-commerce. Demand for fast, efficient, and contactless delivery has increased over recent years. Retailers and food service companies are looking for solutions that reduce costs while meeting customer expectations. Autonomous delivery vehicles offer scalable and consistent operations to meet these requirements.
The company’s Nevada facility and ongoing testing demonstrate a move toward commercialization.
Jiajun Zhu, Nuro’s co-founder and CEO, said, “Autonomy is a generational shift. Our long-term approach and the team’s resilience have been essential to reaching this new chapter. Artificial intelligence has developed at a blistering pace, and 2024 was a pivotal moment for us to realign our business toward broader automotive applications.”
The latest funding round provides Nuro with additional resources to expand manufacturing, scale deployment, and enhance its technology. Capital supports the growth of production facilities, fleet development, and the infrastructure needed for larger-scale operations.
The company works closely with retail and logistics partners, ensuring delivery systems are integrated into existing supply chains. By focusing on manufacturing capacity, vehicle development, and operational partnerships, Nuro handles broader rollouts of its autonomous delivery services while maintaining safety and reliability.
