Walmart sold McLane to Warren Buffett in 2003. Now McLane is putting driverless trucks all over the Sun Belt.
The McLane news landed the same day Aurora posted earnings. The stock fell 9% on Wednesday.
The Expansion
McLane is one of the country's biggest distributors. It has more than 80 sites and 25,000 staff.
Its routes touch nearly every ZIP code in the U.S. It is growing its self-driving freight pilot with Aurora across the Sun Belt by year-end.
The pilot started in 2023. It runs two round-trips a day between Dallas and Houston, seven days a week.
Those routes have covered 280,000 self-driven miles. They have hauled 1,400 loads to restaurants.
McLane has now signed off on truly driverless trips on the Dallas-Houston run. The next step is to add new routes across the Sun Belt.
Walmart is still one of McLane's biggest clients. Buffett bought McLane from Walmart in 2003.
McLane also serves c-stores, mass shops, and chain restaurants. The driverless trucks will haul perishable goods and other supplies.
McLane drivers will still handle the last mile.
What "Driverless" Means Right Now
There is still a human in the cab on the McLane runs. But that person is just an "observer."
Truck maker Paccar asked for the observer. The observer never drives the truck.
Aurora's tech does every part of the trip. That includes pulling over if there's a problem.
Paccar wants the observer in the seat for now. The system needs more miles first.
Aurora is rolling out a new truck fleet from Volkswagen's International LT brand. That starts this quarter.
Those trucks will not have observers. Aurora plans 200 of them by year-end.
It is not yet clear if McLane will use them. Aurora declined to say.
Why Texas And The Sun Belt
Self-driving freight firms have crowded into Texas. The state has a friendly rule book, and there is no snow.
The Sun Belt also moves a huge amount of freight. Routes run between Texas, Arizona, and California.
That makes it a near-perfect test ground for long-haul self-driving. Aurora recently started a 1,000-mile route between Fort Worth and Phoenix.
That's more than a single human driver could legally cover without a break. Aurora also signed a deal this week with Volvo Autonomous Solutions.
It will run a 200-mile route between Dallas and Oklahoma City. Self-driving freight is set to scale fast this year.
Amazon and other large distributors are also working on the middle mile. McLane's middle-mile push is a sign the tech is moving from pilot to live work.
Aurora is McLane's only self-driving partner today. Both sides have hinted at more to come.
What To Watch
Aurora's stock closed down 9% on Wednesday. Both the McLane news and the firm's earnings hit the same day.
The firms did not say how many trucks would join the driverless fleet. The market wanted that number.
Investors got an expansion plan. They just did not get the truck count.
Berkshire shares ticked up a small bit on the day.
