Aurora Innovation, Inc. (AUR)

Aurora Innovation, Inc. (Nasdaq: AUR), founded in 2017 and public since its November 2021 merger with Reinvent Technology Partners Y, is developing the Aurora Driver, a self-driving platform of hardware, software and data services designed to deliver Level 4 driverless operation without a human in the vehicle. The platform is built on a common architecture that adapts to different vehicle types, from passenger vehicles to light commercial vehicles to Class 8 trucks. Its custom hardware suite combines lidar, radar and cameras with high-performance computing, including the proprietary FirstLight Lidar, which uses frequency-modulated continuous-wave technology for long-range sensing and simultaneous measurement of object position and velocity, enabling safe operation at highway speeds.

Aurora also relies on a blend of machine-learned and engineered approaches in perception and planning, a proprietary Virtual Testing Suite that reduces reliance on on-road testing, and scalable high-definition maps. The company targets three markets: trucking, passenger mobility and local goods delivery. Trucking comes first through Aurora Horizon, a planned driverless trucking subscription service, which is expected to launch initially in Texas and then expand to other freight corridors.

Aurora Connect, a driverless ride-hailing subscription service, is planned to follow, leveraging its relationships with Toyota and Uber. Local goods delivery, which covers last-mile parcel, prepared food, grocery and business-to-business delivery, is the third market. Aurora plans to commercialize through a Driver as a Service model, earning fees per mile for supplying self-driving technology without owning or operating large vehicle fleets itself.

Fleet owners would buy Aurora Driver-powered vehicles from OEM partners and subscribe to the Aurora Driver, which includes hardware and software, map and software updates, Aurora Services tools, and access to certified third-party maintenance, roadside assistance and insurance. Strategic partners include PACCAR and Volvo, Toyota, Uber and Continental. In 2023 Aurora ran commercial trucking pilots with FedEx, Werner, Schneider, Hirschbach and Uber Freight, hauling freight autonomously under the supervision of vehicle operators, and collaborated with Ryder on fleet maintenance.

It operates test fleets in the Bay Area, Pittsburgh and Texas, and plans to start commercial operations in the United States before expanding to markets such as Canada, Europe, Japan, Australia and New Zealand. As of December 31, 2023, Aurora had about 1,800 employees, roughly 1,600 of them in engineering and product, and more than 1,600 awarded and pending patents. In 2021 it acquired and integrated Uber's self-driving unit.