What's Happening?
ALSO, a small electric vehicle company spun out of Rivian, has successfully raised $200 million in a Series C funding round led by Greenoaks Capital. The funding round also saw participation from Prysm Capital and a strategic investment from DoorDash.
This investment values ALSO at over $1 billion. As part of the deal, ALSO and DoorDash have entered into a multi-year commercial agreement to develop and deploy autonomous delivery vehicles at scale. DoorDash co-founder and Head of DoorDash Labs, Stanley Tang, will join ALSO as a Board Observer. The partnership aims to address delivery challenges in dense urban environments by utilizing purpose-built autonomous small EVs.
Why It's Important?
The partnership between ALSO and DoorDash represents a significant step forward in the deployment of autonomous delivery vehicles. By focusing on small EVs designed specifically for last-mile delivery in urban settings, the collaboration could revolutionize the logistics and delivery industry. This move is particularly important for DoorDash, which seeks to reduce per-delivery labor costs and improve efficiency as it scales its operations. The investment and partnership provide ALSO with a substantial proving ground for its technology, potentially setting a precedent for future autonomous delivery solutions.
What's Next?
ALSO plans to deliver its initial products in the U.S. by 2026, with international expansion to follow. The partnership with DoorDash provides a real-world testing environment, which could accelerate the adoption of autonomous delivery vehicles. As the deployment progresses, other logistics and delivery companies may follow suit, leading to broader industry changes. The success of this initiative could influence regulatory frameworks and public acceptance of autonomous vehicles in urban areas.
