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FedEx says it will test package deliveries using autonomous vehicles under a new multi-year partnership with Nuro, a leading self-driving startup.

Why it matters: The explosion of e-commerce has accelerated demand for reliable, autonomous transportation throughout the supply chain, FedEx says. With Nuro, it will explore different uses for AVs, including multi-stop and appointment-based deliveries.

Details: The pilot started in April in Houston, where Nuro has already been running pilots delivering groceries and pizza with Kroger, Dominos and others. But the FedEx collaboration is Nuro’s first foray into parcel logistics.

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