autonomy | mobility services | analysis …...and the legislation has yet to move forward. as a...

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AUTONOMOUS VEHICLE TECHNOLOGY | JULY 2020 The COVID-19 pandemic has been described as the worst global health crisis in a generation, and the ways various countries are attempting to slow the disease’s spread while still assuring access to food, medicines, and other necessities are wide-ranging. In China, rapid implementation of driverless delivery technologies has increased access to food and key medical supplies with less human-to-human contact. In the U.S., state and local governments are currently working to implement driverless delivery technolo- gies to similar ends; however, they must work within the strictures of federal law. The pandemic has created a huge increase in demand for delivery services. As people around the world self-isolate and practice social distancing mea- sures, suddenly, food, household items, and medical supplies need to be delivered to millions of homes. Medical facilities also continue to face logistical chal- lenges in receiving needed supplies. This increased demand has already strained the existing supply chain and delivery infrastructures of many medical providers. It also creates a con- siderable risk of exposure for delivery drivers and increases the potential for the spread of infection. This pressing risk of exposure, as well as the strain on existing delivery services, has the potential to be addressed by driverless delivery initiatives. China, which has reported fewer new confirmed cases over the past few weeks, was quick to use driverless delivery technologies in its response to the pandemic. There, the government incentivized in- vestments in driverless delivery to support the social distancing necessary to reduce spread of the virus. Following implementation of the incentives, Chinese driverless delivery company Neolix experienced a more than 100% increase in demand. The company now operates vehicles that sanitize the streets as they deliver key medical supplies to the Wuhan region. In the U.S., a combination of publicity over accidents involving autonomous vehicles and a lack of action at the federal level has hampered the widespread imple- mentation of driverless delivery. The first attempts at passing federal autonomous mobility legislation came during the fall 2017 congressional session. The U.S. House of Representatives bill, called the SELF DRIVE Act, created uniform design safety regu- lations and would have allowed for a greater number of annual “exemptions” from the FMVSSs (Federal Motor Vehicle Safety Standards). It also provided that the National Highway Traffic Safety Ad- AUTONOMY | MOBILITY SERVICES | ANALYSIS COVID-19 and driverless delivery Kiwibot uses its self-driving robots to deliver sanitary supplies, masks, hand sanitizer, and hygiene products.

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Page 1: AUTONOMY | MOBILITY SERVICES | ANALYSIS …...and the legislation has yet to move forward. As a result, although forty states currently have some form of autonomous vehicle legislation

AUTO N O M OUS V E H I C L E T EC H N O LO GY | J U LY 2020

The COVID-19 pandemic has been described as the worst global health crisis in a generation, and the ways various countries are attempting to slow the disease’s spread while still assuring access to food, medicines, and other necessities are wide-ranging. In China, rapid implementation of driverless delivery technologies has increased access to food and key medical supplies with less human-to-human contact. In the U.S., state and local governments are currently working to implement driverless delivery technolo-gies to similar ends; however, they must work within the strictures of federal law.

The pandemic has created a huge increase in demand for delivery services. As people around the world self-isolate and practice social distancing mea-sures, suddenly, food, household items, and medical supplies need to be delivered to millions of homes. Medical facilities also continue to face logistical chal-lenges in receiving needed supplies.

This increased demand has already strained the existing supply chain and delivery infrastructures of many medical providers. It also creates a con-siderable risk of exposure for delivery drivers and increases the potential for the spread of infection. This pressing risk of exposure, as well as the strain

on existing delivery services, has the potential to be addressed by driverless delivery initiatives.

China, which has reported fewer new confirmed cases over the past few weeks, was quick to use driverless delivery technologies in its response to the pandemic. There, the government incentivized in-vestments in driverless delivery to support the social distancing necessary to reduce spread of the virus. Following implementation of the incentives, Chinese driverless delivery company Neolix experienced a more than 100% increase in demand. The company now operates vehicles that sanitize the streets as they deliver key medical supplies to the Wuhan region.

In the U.S., a combination of publicity over accidents involving autonomous vehicles and a lack of action at the federal level has hampered the widespread imple-mentation of driverless delivery. The first attempts at passing federal autonomous mobility legislation came during the fall 2017 congressional session.

The U.S. House of Representatives bill, called the SELF DRIVE Act, created uniform design safety regu-lations and would have allowed for a greater number of annual “exemptions” from the FMVSSs (Federal Motor Vehicle Safety Standards). It also provided that the National Highway Traffic Safety Ad-

AUTONOMY | MOBILITY SERVICES | ANALYSIS

COVID-19 and driverless delivery

Kiwibot uses its self-driving robots to deliver sanitary supplies, masks, hand sanitizer, and hygiene products.

Page 2: AUTONOMY | MOBILITY SERVICES | ANALYSIS …...and the legislation has yet to move forward. As a result, although forty states currently have some form of autonomous vehicle legislation

WWW.AUTO N O M OUSV E H I C L ET EC H .C O M

ministration (NHTSA) would create and enforce regulations, and states would continue to perform traditional functions, such as licensing requirements.

Despite success in the House, the U.S. Senate’s complementary bill, the American Vision for Safer Transportation through Advancement of Revolu-tionary Technologies (AV START) Act, failed. Law-makers cited safety concerns, specifically that the bill permitted too many exemptions and lacked a transparent application process.

In the fall of 2019, before the COVID-19 outbreak reached the U.S., the House began to consider the draft of a new autonomous vehicle bill. This represent-ed an attempt to revive previous eff orts at regulating autonomous mobility. However, the discussion draft did not address an expansion of NHTSA’s authority to off er exemptions. Lawmakers continue to grapple with numerous safety concerns, including cybersecurity, and the legislation has yet to move forward.

As a result, although forty states currently have some form of autonomous vehicle legislation in place, there is still no federal autonomous vehicle law. While legislation has stalled on the federal level, states like California have stepped in to get autonomous vehi-cles on the road—even where they cannot be com-

pletely driverless. Under the current regime, FMVSSs generally do not allow driverless delivery vehicles to operate on public roadways—not even during a pan-demic—unless NHTSA off ers the manufacturer an exemption. However, NHTSA may only off er exemp-tions to 2500 vehicles per manufacturer per year.

In February 2020, NHTSA issued the fi rst-ever such exemption, allowing a robotics company, Nuro, to operate its driverless grocery delivery vehicle on pub-lic roadways. The exemption allows Nuro to deploy low-speed electric delivery vehicles, which operate without mirrors or steering wheels. However, due to the limited number of exemptions available, Nuro’s

360° overlapping cameras

Thermal imaging camera

Lidar

Short & long range radar

Ultrasonics

Emergency vehicle audio detection

Narrow Width

The vehicle body takes up less road space,

making it safer for those around us

Pedestrian-Protecting Front End

Specially designed panel at the vehicle’s

front absorbs energy, better protecting

pedestrians

360° View

Embedded sensor placement creates

redundant, simultaneous views in all directions

Redundant braking and control systems

Automotive lighting and signals

Touch screen for customer access or law

enforcement interaction

Sound generator for pedestrian safety

Max Speed: 25mph

Battery Size: 31kWh

Charge Speed: L2, 6.6kWh/hr

Gross Vehicle Weight: 1150kg

Payload: 190kg

Carrying Capacity: 22.38 ft3

Nuro R2S E N S O R SS A F E T Y I N N O VAT I O N

V E H I C L E E Q U I P M E N T

V E H I C L E S P E C I F I C AT I O N S

www.nuro.ai

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101.86m

2.74m1.10m

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Curbside Delivery Doors

Customers can retrieve goods without

stepping into tra�c

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Nuro received the first-ever NHTSA exemption to operate its driverless grocery delivery vehicle on public roadways.

Pony.ai retooled its robotaxi fleet and teamed with Yamibuy to launch contactless delivery to customers.

Page 3: AUTONOMY | MOBILITY SERVICES | ANALYSIS …...and the legislation has yet to move forward. As a result, although forty states currently have some form of autonomous vehicle legislation

initial operations have been limited to Texas. Nuro also planned to use its exemption in Cali-

fornia. On December 16, 2019, California revised its regulations to allow for the testing and deployment of autonomous delivery vehicles weighing less than 10,001 lb on public roads with an approved permit. California began approving new applications on Jan-uary 16, 2020, and on April 7, 2020, the California De-partment of Motor Vehicles granted Nuro a permit to begin testing on California’s public roads. However, due to stay-at-home orders related to the COVID-19 pandemic, Nuro cannot immediately begin testing without drivers. The company is therefore planning to commence road tests with safety drivers as soon as possible.

The logistical challenges COVID-19 has created for deliveries have sparked other innovations.

One such example is Toyota-backed Pony.ai, a Fremont, CA, startup. The company retooled its robo-taxi fl eet and teamed with Yamibuy, a company spe-cializing in Asian food and home goods, to launch a new service on April 17, 2020, that brings contactless delivery to customers in the Irvine, CA, area. The con-tactless and autonomous deliveries will go directly to customers’ doorsteps, with Yamibuy automatically assigning orders from its platform to Pony.ai vehicles in Irvine. However due to existing federal regulations, a safety driver will need to be present at all times.

Kiwibot, another California-based tech startup, also started using its self-driving robots to deliver sanitary supplies, masks, hand sanitizer, and hygiene products in Berkeley, CA, and Denver a few weeks af-ter the start of the COVID-19 outbreak. However, the Kiwibot is a small vehicle that can be kept off public roadways, operating on sidewalks.

In Florida, the Mayo Clinic recently partnered with the Jacksonville Transportation Author-ity and the private sector to start using driverless shuttles to transport COVID-19 samples within the clinic campus.

As demonstrated by these developments, autono-mous vehicles could play a signifi cant role in helping alleviate the strain on existing delivery services while helping reduce the risk of exposure to COVID-19. In the U.S., unlike China, regulatory hurdles at both the state and federal level continue to hamper wide-spread use of driverless delivery initiatives.

However, companies off ering essential services such as food and medical supplies may be able to use driverless fl eets in places like Texas. They also may be able to utilize technologies that are not sub-ject to the same federal motor vehicle regulations, like Kiwibot, which operates on sidewalks. Similarly, opportunities may exist to partner with local author-ities, as occurred in Florida between the Jacksonville Transportation Authority and private companies Beep and Navya.

|| DIANE LIFTON, MAYA JACOB, and VICTOR SAN-DOVAL of Hughes Hubbard & Reed LLP wrote this article for Autonomous Vehicle Technology. Reprinted with permission from the July 2020 issue of Autonomous Vehicle Technology.

Maya Jacob and Victor Sandoval are law clerks in the litigation department at Hughes Hubbard & Reed LLP.

AUTONOMY | MOBILITY SERVICES | ANALYSIS

Diane Lifton is Co-Chair of the Life Sciences and Product Liabili-ty Groups at Hughes Hubbard & Reed LLP.