August 22, 2024 -- NIPPON EXPRESS HOLDINGS, INC. (President: Satoshi Horikiri), on Tuesday, August 20 made an investment in Gatik AI Inc. (hereinafter "Gatik"), a company developing self-driving technologies for commercial vehicles and autonomous vehicle-based logistics services in North America, via the NX Global Innovation Fund.
■ Profile of Gatik
Gatik is a startup company founded in the United States in 2017 that provides logistics services using autonomous trucks. The company has expertise not only in autonomous software development but also in the overall design, testing and evaluation of autonomous vehicles, and successfully completed the world's first commercial deliveries using unmanned autonomous vehicles on public roads in 2021. It specializes in short- and medium-haul business-to-business (B-to-B) logistics, and provides logistics services using self-driving vehicles for "middle-mile" deliveries between shippers' intermediate warehouses and between warehouses and stores. The company has been expanding its business in North America with major US retailers such as Walmart and Kroger as well as food and beverage manufacturers and other shippers that handle daily commodities and food products.
At a glance
- Company
- NIPPON EXPRESS HOLDINGS, INC.
- Announcement
- Financing
People
- Satoshi HorikiriPresident
Products and programs
■ Investment background and objectives
Autonomous driving technology is attracting a great deal of attention as a solution to social issues such as the aging of drivers, human resource shortages, soaring labor costs, traffic accidents caused by human error, and an increase in mobility-impaired people due to the aging of societies. Japan's government has announced a policy aiming for year-round operation of autonomous vehicles on public roads in all prefectures by FY2025, and efforts toward full-scale operation are accelerating.
Increased operational efficiency is also expected to improve fuel efficiency vis-à-vis manned operations, helping to satisfy rising social demand for decarbonization.
The NX Group supports the logistics needs of customers in various industries and provides many of them with "middle-mile" logistics services, especially for delivering raw materials to factories or shipping finished products. By establishing capital ties with Gatik, whose efforts are compatible with such a business model, the Group is seeking to deepen its knowledge of the cutting-edge autonomous trucking business. The Group is also looking to work with Gatik in the US and elsewhere globally.
The NX Group will continue resolving social issues by co-creating businesses with startup companies in Japan and overseas, and contributing to the realization of sustainable societies where all people can lead productive and fulfilling lives.
■ Profile of investee
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In brief
NIPPON EXPRESS HOLDINGS, INC. says it invested in Gatik AI Inc. through the NX Global Innovation Fund. Gatik develops self-driving technology for commercial vehicles and provides logistics services using autonomous trucks in North America. The company specializes in short- and medium-haul business-to-business deliveries, including middle-mile shipments between warehouses and stores. NX Group says the investment is intended to build its knowledge of autonomous trucking and explore work with Gatik in the United States and other markets. The release links the investment to NX Group’s middle-mile logistics operations and to broader interest in autonomous vehicles as a response to driver shortages, labor costs and other social challenges. The investment amount was not disclosed.
Key takeaways
- NX Group invested in Gatik through the NX Global Innovation Fund; the amount was not disclosed.
- Gatik provides autonomous-truck logistics for short- and medium-haul business-to-business deliveries.
- NX Group says it aims to deepen its knowledge of autonomous trucking and explore collaboration with Gatik.
- Gatik’s services include middle-mile deliveries between warehouses and stores.
Earlier from NIPPON EXPRESS HOLDINGS, INC.
- NX Group invests in Singapore AI technology startup SWAT MOBILITY
- NIPPON EXPRESS HOLDINGS acquires stake in Instalimb, a company expanding its 3D-printed prosthetics business overseas
- NIPPON EXPRESS HOLDINGS expands its e-NX Quote digital forwarding service to cover more countries and regions, and adds a CO2 emissions calculation function
- NIPPON EXPRESS HOLDINGS re-identifies material issues
- NIPPON EXPRESS HOLDINGS participates in 6th China International Import Expo (CIIE)
