Ford expands partnership with Argo AI to focus on middle-mile autonomous delivery

       Ford and autonomous vehicle technology company Argo AI have been working together for years to bring high-level autonomous driving features to Ford vehicles. So far, most of the cooperation has been testing autonomous taxi services and trialing last-mile delivery. According to foreign media reports, Ford seems to be interested in expanding this partnership recently to focus on middle-mile delivery.

Image credit: Ford

       "Ford is increasingly interested in delivery logistics," said Ford CEO Jim Farley. "This strategic shift is consistent with our commercial vehicle business as our customers are increasingly interested in the middle mile."

       Farley also noted that Ford is interested in continuing to work strategically with partners who use Ford vehicles to bring Argo apps to life. According to an Argo spokesperson, Argo and Ford are working with Lyft to launch self-driving cars on its ride-hailing platform in Miami and Austin, and the two companies are also working with Walmart on a grocery delivery pilot program in the same city, with plans to expand to Washington later this year.

       Part of Ford's Ford+ growth plan is using disruptive technologies, such as the FordLiive connected uptime system that helps with fleet management, to advance its commercial offerings. A year ago, when Ford launched Ford Pro, the automaker's global vehicle service and distribution business, the company said it expected the unit to generate $45 billion in revenue by 2025 from hardware and adjacent and new services.

       Farley said: "Level 2 or Level 3 and Level 4 are two different products. Argo can help us achieve semi-autonomous driving capabilities."

       Revenue and costs from autonomous driving development fall under the separate Mobility line on Ford's balance sheet, which used to include micromobility company Spin and public transportation software and planning company Transloc, which were sold to Tier and Modaxo, respectively, in March.

       Ford's mobility business losses were flat compared to the same period last year, with smaller losses quarter-on-quarter. In the first quarter of 2022, Ford reported a mobility business loss of $242 million, down from $342 million in the fourth quarter of 2021, likely due to Ford's divestiture of the two businesses mentioned above. Revenue in the first quarter increased by $84 million compared to the same period last year, compared to $11 million in 2021.