Li Gen from Aofei Temple
Quantum Bit Report | Public Account QbitAI

TuSimple now carries the visible future of driverless trucks.

Today (September 17, 2019), Tucson officially announced a $120 million D2 round investment, and the D round was officially completed. Together with the previous D1 round of $95 million led by Sina, the total amount is $215 million .

When the D1 round was completed, TuSimple's valuation had exceeded that of unicorns. The D2 round was not disclosed, but it was heard that there was further growth.

However, TuSimple is currently the world's most highly valued driverless truck company.

After 4 rounds of financing, the total historical capital has reached 298 million US dollars .

Tucson D2 round financing details

In addition to the previously announced UPS , the specific investors in the D2 round include new investor CDH Capital and Tier 1 supplier Mando Corporation.

TuSimple said that the new round of capital will be used to expand TuSimple's driverless transportation services and further deepen the all-round cooperation between TuSimple and car manufacturers and Tier 1 suppliers.

Ying Wei, general manager and operating partner of CDH Capital, the new investor, said:

Behind every opportunity at a key development node in the logistics industry is the cost reduction and efficiency improvement brought about by technological progress. Grasping the essence of technology is the first step in investment. Although driverless driving is not a new concept, with the improvement of chip computing power and the rapid decline in hardware costs, the impact of driverless driving on logistics scenarios will definitely be subversive. We believe that driverless driving is an important way to solve the problem of sustainable development in the logistics industry.

Jae Chung, CFO of Mando Corporation, said:

TuSimple is building the world's first commercial self-driving truck solution and has impressed the automotive industry and investors. TuSimple's driverless technology is already very mature and has huge market potential, which is why we want to further deepen our relationship with TuSimple and become its strategic investor.

Tucson Commercial Operation Progress

In this round of financing, TuSimple also announced the latest progress in commercial operations.

It currently serves 18 customers and is conducting daily driverless trial operations with UPS between Phoenix and Tucson in Arizona, USA.

In China, TuSimple is also actively promoting the realization and implementation of autonomous driving commercialization.

TuSimple was previously selected as one of Shanghai's first batch of "AI+Transportation" demonstration scenarios for artificial intelligence pilot applications. It will explore unmanned container truck logistics and delivery demonstration operations in Shanghai's Lingang main urban area, logistics park, Donghai Bridge and other places.

At the same time, at the just-concluded 2019 World Artificial Intelligence Conference, TuSimple will also work with Shanghai Lingang Science and Technology City to jointly promote the Shanghai Lingang unmanned truck large-scale commercial demonstration project.

The Future of Tucson

For driverless car companies, the key to the future is large-scale commercial use.

From the current progress, we can see the longer-term future. In terms of commercial progress, especially in the field of driverless trucks, Tucson can be said to be the world leader, even faster than Waymo.

Since 2018, Tucson's driverless trucks have been running trial operations in Arizona, with total revenue of approximately $100,000.

Since March, Tucson has been the agent for UPS, the world's largest express logistics company, on its freight routes between Phoenix and Tucson in Arizona, using driverless trucks equipped with safety officers to transport goods for the company.

After the cooperation, UPS also invested in the company.

In May 2019, Tucson officially reached a cooperation with the United States Postal Service (USPS) to provide it with unmanned transportation services and transport goods back and forth on a transportation route of more than 1,600 kilometers between the Phoenix Postal Service Center in Arizona and the Dallas Distribution Center in Texas.

While delivering deliveries for the U.S. Postal Service, TuSimple’s driverless trucks will operate 22 hours a day, across day and night, on I-10, I-20, and I-30, across Arizona, New Mexico, and Texas.

In terms of revenue, TuSimple previously revealed that with the expansion of its truck fleet to 50 vehicles in June, TuSimple's operating income will reach US$1 million per month in the second half of 2019.

However, it is worth noting that this does not completely eliminate the income earned by security guards.

Currently, Tucson's commercial fleet is still equipped with safety officers, and its core business model lies in the conversion of driver costs through AI drivers.

Finally, there is one more piece of news.

Although TuSimple has currently accumulated a lot of financing and its commercialization has made great progress, it has already become the "number one" in the industry.

However, IPO has not yet been put on the agenda after this round of financing, and there may be another round of private equity financing.