Off the Kuff Rotating Header Image

How Nuro is doing in the pandemic

An interesting update on the little driverless grocery (and other things) delivery serives.

As recently as last fall, Nuro appeared to be years away from widespread adoption. The company, which operated in Arizona and California, arrived in Houston in 2018 to test its vehicles on a city known for its diversity, with a wide range of neighborhoods and types of customers. Though the cars were overseen by two human employees in the front seat, the goal was to develop the world’s preeminent fully autonomous delivery service. The robotically piloted Toyota Priuses, equipped with remote sensing equipment on top, became a fairly common sight in central Houston neighborhoods. But before the pandemic, most people didn’t pay them much attention.

Last fall, only 3 percent of the nation’s households were placing frequent online orders for grocery delivery. The low rate was attributed to shoppers’ concerns about higher prices online and delivery drivers showing up late. In May of this year, however, that number had skyrocketed to 33 percent, a stunning increase that—in even the best case scenarios—was expected to take many years to reach, not months. In Houston alone, Nuro has seen its deliveries triple into the thousands since the pandemic turned in-person shopping into risky activity. Suddenly, Nuro was no longer a novelty, but an important aid for many Houstonians sheltering in place.

[…]

In addition to partnering with Kroger, the nation’s largest operator of traditional supermarkets, Nuro delivers Domino’s pizza and prescriptions from CVS. The company expects much of its new customer base to remain after the pandemic, believing that quarantine has only amplified an existing trend toward on-demand grocery delivery. Sola Lawal, a Nuro product operations manager based in Houston who formerly worked for Uber, cites high customer appreciation scores as evidence that new users will remain loyal to the brand.

When I spoke to Lawal, I asked him what he would have thought if someone had shown him those heightened delivery numbers last fall.

“I’m not sure what I would’ve thought,” he said. “I just know I would’ve been very confused.”

The pandemic hasn’t just rapidly expanded the company’s customer base and delivery volume, it’s also forced them to adapt. The company still relies on Nuro employees to oversee the autonomous vehicles, collect valuable information about how they perform on the road, and unload groceries gathered by workers at Kroger. Last fall, when driverless vehicles arrived at a home with groceries in tow, a human operator sitting in the passenger seat would hand the goods over to customers or deliver them to the front door. In Houston, some families had a habit of meeting the vehicles at the curb with a red wagon. “It was like a mini family celebration,” Lawal explained.

With person-to-person interaction no longer safe, Nuro’s engineers rushed to develop a new system that would allow customers to open a delivery vehicle’s doors by flashing a thumbs-up sign or using a setting on their mobile phone. (Both the hand gesture and smartphone features are available only on vehicles in California for now.)

“Creating contact-less delivery was a long-term goal that got sped up when it became clear that, yeah, we need to be able to do this now!” Lawal said.

That was specifically one of the things I wondered about when Nuro expanded its service a couple of months ago. I still think there will be demand for having a human person bring the groceries to your door, but perhaps the demand for contactless delivery will be greater than I might have thought. We still mostly go to the store ourselves – early mornings are fairly uncrowded, and it’s the only way to be sure you’re getting exactly what you want, including when what you originally wanted isn’t available – but the allure of delivery is easy to see. Have any of you tried this service?

Related Posts:

Comments are closed.