German self-driving freight trucks startup Fernride said on Wednesday that it had raised $50 million in Series A funding to increase the use of its “human-assisted” autonomous freight trucks in customer’s logistics yards. Founded in 2019, the Munich-based startup has designed operating software for Level Four autonomous trucks, which can drive themselves within a designated area with human supervision. However, full autonomy is one step further at Level Five.
While investors have backed mainly off big bets on robotaxi and long-haul autonomous truck startups, they are still supporting ventures focusing on simpler self-driving vehicles for the commercial transportation industry, especially those operating in controlled environments far removed from pedestrians. For example, SoftBank invested $1 billion this month in a new self-driving freight startup called Stack AV.
Unlike those startups, Fernride focuses on automating terminal trucks used in ports and terminals to transport trailers and containers. The company has developed its fleet of autonomous trucks with Level 4 capabilities. Still, it also works with customers to help them automate their existing fleets of conventional diesel or electric terminal tractors.
Fernride’s customers include Hamburg port operator DB Schenker and Volkswagen, which employ autonomous terminal tractors in their facilities to move containers and semi-finished goods around their distribution centers and manufacturing plants. The company recently announced a partnership with Terberg Special Vehicles, which develops, produces, and modifies electric and diesel-powered special transport vehicles for logistical purposes. The deal combines Fernride’s automated terminal tractor with Terberg’s end-to-end vehicle management software suite to integrate its system into existing yard and terminal operations.
The new money will allow Fernride to expand the fleet of its fully automated trucking solution, which the company says will eventually grow to 1,000 vehicles. The startup’s fleet of Level 4 autonomous trucks is connected to a central server and monitored by a remote driver who can override the controls when necessary. Still, most of the time, the trucks operate on their own.
Because of the confined space in which Fernride’s trucks operate, the company primarily relies on cellular connectivity to keep its remote drivers in the loop. Most of the startup’s customers deploy private 4G and 5G networks in their yard facilities, which is what its trucks tap into to communicate with each other and the back-end system, according to Fernride CEO Hendrik Kramer.
This latest funding round was led by Germany’s Deep Tech and Climate Fonds (DTCF) in addition to Munich Re’s venture capital arm Munich Re Ventures, Bavarian venture capital firm Bayern Kapital, and former Deutsche Telekom executive Klaus Kleinfeld, who takes on the role of Chairman on the startup’s board. Existing investors 10x Founders, Promus Ventures, Fly Ventures, Speedinvest, Push Ventures, and corporate investor HHLA Next also participated in the round. The company has previously raised $31 million in total. The company said its financing was initially scheduled to close on March 31 but was extended due to high investor interest.
