German startup Fernride raises $50M for autonomous trucking
German startup Fernride raises $50M for autonomous trucking
Fernride Raises $19 Million in Series A Funding Round, Bringing Total to $50 Million
Munich-based autonomous trucking startup, Fernride, has successfully secured an additional $19 million in its Series A funding round. This latest investment brings the total amount raised in the round to an impressive $50 million.
Founded in 2019, Fernride has developed cutting-edge autonomous vehicle software that transforms trucks into self-driving machines. These autonomous haulers operate at Level 4 autonomy, meaning they are capable of driving themselves within a specific area, albeit with some supervision from a remote driver.
The future of trucking is at stake – it is estimated that there is currently a shortage of 400,000 truck drivers in Europe, a figure that is projected to increase to a staggering two million by 2026. Although autonomous driving shows promise as a potential solution to these challenges, many attempts to introduce such autonomy have failed due to various regulatory roadblocks.
Fernride, a spin-off from the Technical University of Munich, has ingeniously sidestepped some of these obstacles by focusing primarily on trucks for private industrial sites, such as factories, terminals, and shipyards. This strategic approach allows the company to scale its product now, while also tackling the multitude of issues associated with deploying autonomous vehicles on public roads at a later stage.
Currently, Fernride is collaborating with four prominent companies, including Volkswagen’s logistics unit and DB Schenker, a subsidiary of the German rail group Deutsche Bahn. The startup currently operates a fleet of six autonomous trucks, with plans to expand to 20 by the end of 2023. These yard trucks are limited to a speed of 30 km/h and are programmed to halt and call a remote operator if they encounter a situation they do not fully understand. In fact, Fernride even provides training to a remote operator at each site where its trucks are deployed.
With the infusion of fresh funding, Fernride is now poised to scale its operations with existing customers, who alone possess a combined fleet of 1,000 yard trucks suitable for automation. Additionally, the startup intends to explore new customers and markets, with plans to enter the United States market in 2025.
New investors in this funding round include Germany’s DeepTech and Climate Fonds (DTCF), the ERP special fund, Munich Re Ventures, Bayern Kapital, and Klaus Kleinfeld, who will assume the position of chair on Fernride’s board. This influx of capital will enable Fernride to pursue its gradual approach towards building fully autonomous capabilities, with teleoperations serving as an initial step that keeps a human in the loop.
The transportation industry is on the cusp of a monumental transformation, and Fernride is at the forefront of this revolution. With its innovative autonomous trucking technology, the company is set to alleviate the truck driver shortage crisis and propel the industry into the future. As Fernride scales up its operations and expands into new markets, it promises to change the face of trucking as we know it.
