Business

Ford to test deliveries by driverless cars

GM, Toyota, Alphabet also exploring ways to move people, goods

Reuters

Attendees get a glimpse into future automotive technology this week in the Panasonic Future Concept Zone during the 2018 CES electronics show in Las Vegas. Automakers are getting ready to test the delivery of food, packages and people by driverless cars.
Reuters Attendees get a glimpse into future automotive technology this week in the Panasonic Future Concept Zone during the 2018 CES electronics show in Las Vegas. Automakers are getting ready to test the delivery of food, packages and people by driverless cars.
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LAS VEGAS — Ford Motor Co. has announced it will partner with delivery service Postmates as the automaker starts testing later this year how to transport people, food and packages using its self-driving cars.

Ford’s plans challenge the ambitions of ride services companies, such as Uber, and highlight how automakers and those with roots in the tech industry are forging separate paths to build businesses enabled by self-driving cars.

While Ford has a partnership with ride-hailing company Lyft, the automaker is focusing on moving goods itself for businesses large and small, Jim Farley, president of global markets, told Reuters in an interview.

“We’re testing the business model” for goods delivery, Farley said.

Initially, Ford plans to use vehicles with human drivers to test how to run services that would eventually use automated vehicles.

Ford will expand delivery partners beyond Domino’s Pizza and San Francisco-based Postmates, Farley said.

The automaker sees small businesses as a significant potential market and a natural next step after decades of catering to commercial van and pickup buyers, he said.

In an address at the CES technology conference in Las Vegas this week, Farley outlined a concept for self-driving vehicles to pick up and deliver packages from multiple small businesses on a single trip. The key for making profit, Farley said, is keeping the cars moving.

Top California clean air regulator Mary Nichols has tweeted her objection to that plan.

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“Earth to Ford: what part of sustainability do you not understand?” Nichols tweeted. “Driverless hybrid vehicles running 24/7 delivering pizza and passengers means more tons of pollution/GHGs in cities!”

Marakby and Farley said the power demands from computers and sensors can cut the range of an all-electric self-driving car by half. Ford does not plan to use full electric systems until the second generation of its self-driving vehicles, Marakby said.

General Motors Co has trained its resources on developing self-driving, all-electric vehicles for use as taxis in big cities. GM has said it will begin launching robo-taxi services in cities by 2019.

Waymo, Alphabet Inc’s self-driving car unit, is launching its first public tests in the suburbs of Phoenix. Waymo is currently using hybrid minivans built by Fiat Chrysler.

Toyota Motor Corp used the backdrop of the CES technology show here to outline plans to develop services for moving goods and people and showed a prototype of a multipurpose self-driving vehicle called e-Palette that it intends to begin testing in the early 2020s.

Ford has said it will launch its own self-driving vehicles by 2021.

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