Don Burnette, the CEO, and co-founder of Kodiak Robotics, a self-driving truck startup, had a breakthrough when the company began collaborating with the U.S. Department of Defense.
While Kodiak’s primary goal has always been to focus on long-haul autonomous trucking, their partnership with the DoD two years ago, which secured a $50 million contract to help automate ground vehicles for high-risk missions, opened new opportunities for the company. This collaboration not only provided Kodiak with much-needed capital during a tough funding climate but also allowed them to test their self-driving technology in challenging off-road environments.
The experience led to an innovative idea: driving off-road could offer a quicker route to market than traditional highway routes.
Recently, Kodiak announced its plans to launch a fully driverless commercial trucking service by late 2024 or early 2025 in partnership with Atlas Energy Solutions, a provider of proppant and oilfield logistics.
Kodiak and Atlas have been conducting driverless tests for several months now, including a successful driverless delivery run in West Texas’s remote Permian Basin. This stretch of land had no paved roads or structures, presenting unique challenges for autonomous vehicles.
Driving off-road poses distinctive challenges for autonomous vehicle companies, such as the lack of HD maps and changing terrains with varying weather conditions.
Don Burnette highlighted the dynamic nature of the off-road environment, particularly in desert regions like Texas, where sand constantly shifts, emphasizing the importance of the technology Kodiak developed through its work with the DoD.
While Kodiak still plans to pursue long-haul trucking, their current focus on off-road operations with Atlas aligns better with fulfilling immediate market demands. The need for autonomy in Atlas’s sand moving operations, which run 24/7, is higher than in traditional long-haul trucking and offers a faster path to deployment and revenue generation for Kodiak.
Kodiak’s deal with Atlas involves initially deploying two autonomous trucks, with more to follow. They will operate on a Driver-as-a-Service model, where Atlas purchases trucks directly from an OEM, and Kodiak equips them with their technology and provides ongoing support.
Kodiak’s strategic approach aligns with other autonomous driving startups leveraging DoD funding to explore off-road markets. Companies like Overland AI, which received a military contract to develop autonomous technology for combat vehicles, are also navigating this niche in the autonomous vehicle sector.
Burnette emphasized the importance of early profitability for companies in the autonomous driving space, highlighting the need for sustainable business models to succeed in the long run.
