Nuro, an autonomous vehicle technology company, has expanded its driverless testing operations in Mountain View, Palo Alto, and Houston. The company is using its third-generation R3 vehicles and retrofitted Toyota Priuses for the expanded testing program.

The testing expansion includes an 83% increase in deployment area in Mountain View and Palo Alto and a 70% increase in Houston. The vehicles can now operate at speeds up to 35 mph, handle multi-lane roads, navigate around emergency vehicles, drive through construction zones, respond to school buses, and operate at night without safety drivers.

This expansion comes as Nuro shifts its business strategy from robot delivery operations to licensing its autonomous vehicle technology to automakers and mobility providers. The company aims to demonstrate its technology's capabilities to potential customers for passenger vehicles and commercial applications.

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.