Nuro, a startup developing autonomous delivery vehicles (ADVs), has announced a shift in its business strategy to focus on licensing its self-driving technology to automakers and mobility providers, including ride-hailing and delivery companies. The company will no longer build its delivery vehicle, "R3."

Nuro's new strategy involves two parallel approaches: Offering a full Level 4 autonomous driving product for goods delivery and passenger mobility services (i.e., fully autonomous vehicles limited to specific locations and/or conditions) and working with OEMs to build automated driving products for consumer vehicles, ranging from Level 2 to Level 4 driving systems (i.e., Level 2 vehicles can control speed and steering, but a safety driver must maintain full vigilance).

Nuro claims its autonomous driving system prioritizes safety through an AI architecture that generates actions with a backup traditional robotics system for real-time validation, ensuring compliance with road rules and vehicle limits.

Analyst QuickTake: Nuro, despite having raised more than USD 2 billion to date and being the most well-funded startup in the last-mile delivery automation space, faced financial strain and underwent restructurings and layoffs in 2022 and 2023. These conditions also signaled the strategic shift toward licensing its autonomous driving technology to extend its capital runway.