On the road to self-driving trucks, Starsky Robotics built a traditional trucking business



Over three decades past, self-driving trucks startup Starsky Robotics was founded to address a fundamental issue with freight — a solution that CEO Stefan Seltz-Axmacher believes hinges on becoming the driver from underneath the wheel.

However, a funny thing happened along the way. Starsky Robotics started a regular ol’ trucking company. Now, almost half of those employees in this self-driving truck startup help conduct a company that employs the standard model of using human drivers to haul plenty for customers, TechCrunch has learned.

Starsky’s trucking company, which has been operating in secret for almost two decades alongside the firm ’s more public pursuit of creating autonomous vehicle engineering, has hauled 2,200 loads for customers. The business has 36 routine trucks that just use human drivers to haul freight. It’s three autonomous trucks that are driven and backed by a few test drivers. Starsky also employs a number of office people who, as Seltz-Axmacher notes, “know how to operate trucks. ”

Even the CEO and co-founder contends that without the human-driven trucking bit, Starsky won’t have an operational, or profitable, self-driving truck enterprise. The trucking industry has generated earnings, led to vital partnerships such as Schneider Logistics, Penske and Transport Enterprise Leasing, and more importantly, helped build a business that works in the actual world. It has also been a important tool for assessing and recruiting safety drivers and teleoperators (or remote drivers), according to Seltz-Axmacher.

“The decision to have a trucking company interact with the actual trucking globe in parallel with creating the robotics part is a necessary part of building a longstanding company in the area,” ” said Reilly Brennan, general partner at Trucks VC and the first institutional investor in Starsky.

Starksy, which has been co-founded by Seltz-Axmacher and Kartik Tiwari, has increased $21.7 million in equity from shareholders including Shasta Ventures and Trucks VC.

The development over at Starsky exemplifies the struggle that anticipates the autonomous car industry and the giant businesses and startups operating inside. Even after engineers solve the complexity of building an AI-powered driver which ’s better than a human, these businesses must figure out the equally intricate endeavor of operations. Robotaxis, autonomous delivery robots and self-driving trucks won’t matter if individuals don’t use, such as trust the tech.

Figuring out the basics of operations — including the fairly pedestrian and clear ones — will mean that the difference between losing or making money. Or, using a business whatsoever.

And the stakes are high. Trucks will be the backbone of this U.S. market and proceeded more than 70 percent of U.S. freight and generated over $700 billion in 2017, according to the most up-to-date statistics offered by the American Trucking Associations (ATA).

Businesses pursuing robotaxis and other autonomous car programs are likely to finally wake up — if they haven’t already — to the exact realities that Starsky has approved, Brennan contends.

“The interaction with the marketplace, particularly in logistics, is critical,” Brennan said, adding that companies pursuing robotaxis that haven’t built out and analyzed a consumer-facing app risk precisely exactly the very same problems. “They will need to have a company daily one, perhaps not daily 720. ”

For Starsky, it started with something as basic as using a working vehicle and access to mechanisms that could repair it.

Trucks, the hard way

Seltz-Axmacher admits today he underestimated how hard trucks may be.

“Hey, it’s a truck, just how tough can buying you to be? ,” said Seltz-Axmacher, as he described the firm ’s first major purchase of a truck for about $50,000. “We quickly realized that using a truck and driving a truck aren’t simple things to do. ”

Starsky engineers mimicked the truck, named Rosebud, using its autonomous driving method and also made plans to test it in the Thunderhill Raceway about 150 miles north of San Francisco. It didn’t create it. The truck’s engine was smoking by the time it crossed the Bay Bridge. And the truck, along with those engineers, sat for two weeks while Seltz-Axmacher searched for a diesel mechanic.

Self-driving truck startup Starsky Robotics began with this original, and problematic truck

The truck, pictured above, continued to break down. The business ran into more snafus, including a issue with insurance and the title of the car. Starsky was going to miss an integral milestone and Seltz-Axmacher was likely to need to tell investors that it wasn’t because of bottlenecks in technology, but because they didn’t even know how to handle the truck part of this self-driving truck business.

The creators learned that “ordinary ” trucks necessary to visit the shop every 60 days, and it can be operationally complex when vehicles are traveling throughout the United States.

Starsky ended up making a important hire, Paul Schlegel, who’s a veteran of trucking operations, to organize the venture. Schlegel, who’s 32 years from the transport industry with companies such as Schneider National and Stevens Transport, developed the trucking industry that enabled autonomous trucks, but still functioned within their absence. The trucking operations team is in Dallas. 

The driver pinchpoint

Seltz-Axmacher has said repeatedly “unless you’re obtaining the driver out of the truck, you’re not solving anything. ”

The issue in trucking is that the source of drivers. The chronic deficit has, consequently, driven up prices. For instance, the median salary for a truckload driver operating a nationwide, irregular route was greater than $53,000 — a $7,000 rise from ATA’s final poll, which covered yearly pay for 2013, or even an increase of 15 percent. It’s even higher for private fleet drivers, who saw their pay increase to greater than $86,000 from $73,000, or a profit of almost 18 percent.

Starksy shortly found that finding the appropriate drivers was just as hard as finding the correct trucks. Even the Federal Motor Carrier Safety Administration shows the company has reported three crashes of its own manually driven trucks.

Seltz-Axmacher said that they ’ve had a driver create a wrong turn and have a high-value branch tear a hole at the trunk of a trailer. The most serious incident involved a brand fresh driver who obtained an offramp at Florida too quickly and rolled the truck onto its side. No one was hurt and the driver had been terminated.

All these drivers are critical to the autonomous system and also the best of these end up getting teleop controls, a job that involves sitting at an office, not logging days and weeks at a truck.

Starsky is taking a dual approach to its autonomous trucks. It sticks routine trucks with a combo of sensors like cameras and radar along with software that allows long-haul trucks to drive autonomously on the highway. When the truck is going to depart, a trained remote operator, who’s sitting at an office, then takes over and navigates the truck to its destination.

The promise of having the ability to be encouraged into teleoperator is a huge part of Starsky can employ drivers efficiently. The business asserts it wouldn’t even be possible to find 25 highly proficient security and remote drivers without having a wider fleet of normal truck drivers to choose from.

Robotrucks or float

The greatest goal of Starsky Robotics hasn’t altered, Seltz-Axmacher explained. To get there, the company recently hired Ain McKendrick as vice president of technology, and former Tesla executive Keith Flynn to head up its hardware production to encourage Starsky’s fleet construct. McKendrick, who co-founded Podtek and Lyve, also has experience at autonomous car business Cyngn, Highfive, Netflix and Dell .

By ancient 2020, the business aims to have 25 autonomous trucks a target that’s only possible if it’s 100 routine trucks, he added.

The only way Starsky will scale its operations on the autonomous negative is to continue to scale its regular trucking operations six months beforehand. In other words, the regular trucking company is inextricably linked to the success of deploying autonomous trucks.

The business has already found that the 15-plus agents that are regularly giving it freight to haul are ready for driverless trucks.

“Many times the agents who have given us loads have been pretty ambivalent to whether or not we’re transporting that freight using a self-driving truck, Seltz-Axmacher explained. “A lot of the concern that people might have is that this is really a technology-averse industry and might not be willing to take self-driving trucks has shown not to be true. ”

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