Gatik has secured $200 million to increase the number of driverless box trucks on roads in the United States.

      Gatik has secured $200 million in a Series D funding round that was led by the Qatar Investment Authority and Koch Disruptive Technologies. This marks the largest financial backing in the company’s history within the autonomous trucking sector. Other participants included Millennium Management, ARK Invest, and Intact Private Capital, bringing Gatik's total funding to approximately $500 million since it emerged from stealth mode in 2019. The company chose not to disclose its valuation.

      On Tuesday, David Welch interviewed the CEO for Bloomberg, with Gatik announcing the funding round in a press release on the same day.

      What the company claims to have already sold

      Gatik asserts that its contracted revenue exceeds $600 million. It reports completion of 85,000 fully driverless orders with a 99% on-time delivery rate. CEO and co-founder Gautam Narang mentioned to Bloomberg in January that the company secured contracts totaling $600 million over five years, adding this week that the backlog has increased since then, though he refrained from specifying the amount and did not disclose whether Gatik is profitable.

      The focus is the middle mile

      Gatik specializes in transporting goods between distribution centers and retail stores. It does not engage in long-haul, robotaxi, or sidewalk deliveries. Kirsten Korosec detailed the company's history at TechCrunch, noting that Gatik initially operated fixed routes under ten miles but has since adapted to dynamic routes with numerous pick-up and drop-off locations spanning up to 400 miles.

      The box trucks used are sourced from Isuzu Motors, while Gatik provides the driving system it calls the Gatik Driver. Narang stated to TechCrunch that the third-generation trucks operate around the clock on streets and highways, capable of handling light rain and snow.

      Clients of the company

      Walmart was the inaugural customer, revealed in 2019, followed by PepsiCo, Kroger, and Tyson Foods. The agreement with PepsiCo, signed in June, represents the largest public contract to date, with 41 driverless box trucks transporting Frito-Lay products from distribution centers to stores in Dallas, Phoenix, and Northwest Arkansas, which Gatik identifies as its most significant commercial deployment.

      Additionally, Gatik provides services for Loblaw in Ontario, where a safety driver remains in control. Its trucks operate nearly year-round, carrying ambient, refrigerated, and frozen goods. The company’s clients are among the Fortune 50 in retail, grocery, and consumer packaged goods.

      Fleet expansion plans

      Gatik claims to have numerous driverless trucks currently operating, with plans to scale to thousands in the coming years. A spokesperson informed Reuters that the goal is to exceed 100 trucks by the end of 2026. Narang indicated to Forbes in January that the fleet would grow from fewer than a dozen to hundreds of box trucks by the year's end.

      The driverless routes are active in the Dallas and Fort Worth areas, Phoenix, and Northwest Arkansas. Gatik removed its safety drivers from commercial routes last year, enabling those operations. The routes are characterized as high-frequency regional networks that are time-sensitive and operationally complex.

      Purpose of the funding

      Narang stated that the funding will support the acquisition of more trucks, the onboarding of additional customers, and expansion into new cities. Gatik plans to hire engineers and operational staff in addition to its existing workforce of 350, while also expanding both into new markets and deeper into its current ones.

      “These are sophisticated long-term financial investors who generally come on board when the business and its economics are established,” he remarked to Bloomberg. “It’s less about building a business and more about scaling the existing one.”

      Statements from the investors

      Cathie Wood, who leads ARK Invest, mentioned that autonomous freight is reaching a pivotal moment as AI and robotics continue to converge. Abdulla Al-Kuwari, head of industrials at QIA, noted that the fund is supporting companies that are shaping the future of freight infrastructure. Byron Knight, president of Koch Disruptive Technologies, stated that autonomy has progressed from a promising technology to actual commercial operations. His colleague Celeste Dauner highlighted that the firm first supported Gatik in 2021 and has observed its growth around a specific application. Justin Smith-Lorenzetti from Intact Private Capital mentioned that his firm has tripled its commitment in this funding round, and ARK's Tasha Keeney asserted that autonomous trucking will significantly reduce the cost of goods transportation.

      No European expansion yet

      Gatik operates in Texas, Arizona, Arkansas, and Canada, with plans for expansion into California, Michigan, Nebraska, Iowa, and Ontario. Narang shared with TechCrunch that scaling operations entails increasing the number of trucks, customers, and cities, with potential future operations beyond North America. Reuters reported a rising interest in driverless commercial freight in both North America and Europe.

      No routes in Europe have been announced, and the company has not specified which market it plans to enter first. Waymo indicated this month that it