Kodiak Robotics has officially delivered two autonomous trucks to Atlas Energy Solutions, signalling the startup’s inaugural foray into commercial operations.
Atlas, a leading provider of proppant (sand) and oilfield logistics, received its first Kodiak-equipped trucks in December and swiftly commenced driverless operations in an off-road setting in the remote Permian Basin of West Texas. According to Kodiak’s founder and CEO Don Burnette, the company has successfully completed 100 loads utilising its self-driving trucks without a human safety driver present.
This initiative represents a pioneering approach, as noted by Burnette, with the customer operating the driverless vehicle rather than the autonomous vehicle company. This model is considered to be the future of autonomous logistics.
Historically, Kodiak, along with competitors like Aurora Innovation and Waabi, have conducted commercial trials on highways with human safety drivers overseeing operations. During these trials, Kodiak-owned trucks transported freight for shippers or carriers. The long-term goal is to offer the AI Driver-as-a-Solution to companies like Atlas. Essentially, Kodiak aims not to manage its own shipping operations but to concentrate on selling its self-driving technology.
In the robotaxi sector, entities like Waymo and formerly Cruise have traditionally owned and operated their own ride-hailing services. However, Waymo’s recent collaborations with Uber and Moovit suggest a potential shift away from direct service operation.
Kodiak and Atlas first announced their partnership in July 2024, following Kodiak’s successful first driverless delivery of frac sand in the unstructured and off-road regions of the Permian Basin. While Kodiak continues conducting pilot programs transporting freight on highways and plans to expand into long-haul autonomous trucking, the Atlas partnership is pivotal for the startup’s immediate market strategy.
Operating autonomously in off-road conditions poses distinct challenges, such as variable landscapes and the absence of high-definition maps. Nevertheless, according to Burnette, this approach may offer a quicker path to generating revenue compared to highway operations.
Early results indicate that this strategy is paying off.
Kodiak is now earning revenue from Atlas via a combined annual subscription for both hardware and software, covering the costs associated with Kodiak’s modular sensors installed on Atlas-owned trucks, along with the self-driving software, monitoring, and maintenance services.
Burnette explained that Kodiak integrates APIs into the customer’s transportation management system, enabling Atlas to leverage their existing tools for directing the driverless trucks. Importantly, Atlas manages the logistics independently. Kodiak’s role is to ensure the trucks are functioning correctly and safely, intervening for maintenance as necessary.
Atlas operates within the 75,000 square miles of the Permian Basin, spanning Texas and New Mexico, and aims to expand its driverless trucking initiatives throughout the year. To facilitate this growth, Kodiak has established a new office in Odessa, Texas, a facility spanning 18,000 square feet, employing a team of 12 staff members. Kodiak plans to increase this workforce to approximately 20 employees by the end of the first quarter.
