FedEx Corp. and Nuro announced a multi-year, multi-phase agreement to test Nuro’s next-generation autonomous delivery vehicle within FedEx operations. The collaboration between FedEx and Nuro launched in April with a pilot program across the Houston area.

This pilot marks Nuro’s expansion into parcel logistics and allows FedEx the opportunity to explore various use cases for on-road autonomous vehicle logistics, including multi-stop and appointment-based deliveries. The Nuro pilot is the latest addition to the FedEx portfolio of autonomous same-day and specialty delivery devices.

The exponential growth of e-commerce has accelerated the demand for reliable, autonomous solutions throughout all stages of the supply chain. FedEx believes that continued innovation and automation will improve safety, efficiency, and productivity for the company’s more than 570,000 team members as they continue to move the world forward.

“FedEx was built on innovation, and it continues to be an integral part of our culture and business strategy,” said Rebecca Yeung, vice president, advanced technology and innovation, FedEx Corporation. “We are excited to collaborate with an industry leader like Nuro as we continue to explore the use of autonomous technologies within our operations.”

Nuro has been developing and testing its self-driving technology for nearly five years, including on-road deployment in multiple cities and industry-first regulatory approvals. The company has established partnerships with leaders in grocery, restaurant, and pharmacy verticals. This collaboration is a major step for Nuro in entering parcel logistics.

“Working with FedEx—the global leader in logistics—is an incredible opportunity to rethink every aspect of local delivery. This multi-year commitment will allow us to truly collaborate and bring Nuro’s powerful technology to more people in new ways, and eventually reach large-scale deployment,” said Cosimo Leipold, Nuro’s head of partnerships. “Our collaboration will enable innovative, industry-first product offerings that will better everyday life and help make communities safer and greener.”