Driverless trucks, dark stores, and getting groceries

How Americans get their groceries might be on the edge of a big change with the introduction of autonomous vehicles and dark stores into the mix:

Photo by Quintin Gellar on Pexels.com

Walmart and Silicon Valley start-up Gatik said that, since August, they’ve operated two autonomous box trucks — without a safety driver — on a 7-mile loop daily for 12 hours. The Gatik trucks are loaded with online grocery orders from a Walmart fulfillment center called a “dark store.” The orders are then taken to a nearby Walmart Neighborhood Market grocery store in Bentonville, Arkansas, where Walmart is headquartered…

Walmart, the nation’s biggest seller of grocery items, is testing the Gatik autonomous vehicles as part of its transition to a “hub and spoke” model for grocery delivery where dark stores are closer to the consumer and used to serve several retail stores. Walmart said the use of automated vehicles will also allow store associates more freedom to perform “higher level” tasks, including picking and packing online orders and customer assistance.

“The old architecture of delivery where you have a giant distribution center four or five hours away from the end consumer does not work anymore. Grocers are forced to set up these fulfilment centers close to the customer, and once you get close to the customer you have to shrink the size of your warehouse,” Narang said. “As the size shrinks there is a growing need for doing repeated trips from the fulfillment centers to the pickup points. That’s where we come in.”

The Kroger supermarket chain has tested autonomous delivery with start-up Nuro since 2018 and said it’s now completed thousands of “last mile” deliveries in the Houston, Texas area. Kroger is also using automated warehouses to launch online grocery delivery in Florida and other states where it does not have brick and mortar locations.

The driverless trucks are interesting in their own right. The United States needs a lot of trucks to move goods all over the place. They are a familiar sight on both local roads and highways. Would it matter much to the typical driver if the semi next to them had no driver?

Additionally, it would be worth hearing more about fulfillment centers/”dark stores.” Where are they located? How do they operate? How many of them are needed in a sizable metropolitan region to fulfill orders? Depending on some of these answers, this could change where warehouses are located (can they be as concentrated, such as in Will County?) How much more efficient is this system compared to now? Somewhere, a particular community could figure out how to maximize dark stores and reap the benefits.

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