Kroger to Use Gatik’s Autonomous Box Trucks in Dallas

Kroger will use Gatik’s autonomous box trucks to deliver goods to retail locations.

The operation is to launch in the second quarter in Dallas, Texas, and is part of a new multi-year commercial collaboration to transport goods within the grocer’s Dallas distribution network. The companies said in a Wednesday (March 15) press release.

“These autonomous box trucks will help us continue our commitment to creating a seamless shopping experience — where customers can access their favorite fresh foods, with zero compromise on value or convenience,” Raúl Bujalil, vice president of supply chain strategy and technology enablers at Kroger, said in the release.

The middle mile and the last mile have been getting a high-tech makeover as small manufacturers and distributors streamline their logistics approaches and get their goods moved without having to own a single truck.

The shift to technology has been driven by the rise of eCommerce which demands that merchants and carriers work to meet consumers’ expectations.

By using Gatik’s autonomous middle mile logistics, Kroger will be able to increase its delivery frequency, reliability and responsiveness and reduce costs as it moves goods from a fulfillment center to multiple retail locations, according to the press release.

The collaboration with Kroger is the latest addition to Gatik’s autonomous-transportation-as-a-service (ATaaS), which is offered in Texas, Arkansas and Ontario, Canada, the release said.

“Kroger’s commitment to redefining service levels for its customers through innovative technology meant that our collaboration came together very quickly,” Gatik Co-Founder and CEO Gautam Narang said in the release. “We’re deeply familiar with operating our autonomous fleet within the Dallas ecosystem, and we’re very excited to bring that experience to support Kroger in its mission to reshape the future of goods delivery.”

Firms such as Gatik are gaining traction because retailers are scrounging for efficiencies to control the rising cost of providing the unprecedented level of service demanded by consumers who want same-day delivery of everything, Narang told PYMNTS in an interview posted in September 2021.

“We handle everything from obviously the driving piece to the telematics piece, making sure that our customers have insight over their operations,” Narang said at the time. “All those needs are taken care of by our solution.”