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With Self-Driving Cars Still Years Away, Phantom Auto Finds New Niche Teleoperating Robots

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Phantom Auto

So maybe automotive companies were a bit too bullish on their timelines for releasing self-driving vehicles. This uncertainty isn't just impacting consumers waiting for cheap robotaxis--automotive suppliers hoping to ride the autonomous wave to success also have to cool their heels. In the mean time, at least one AV-related start-up has identified logistics as a new market for their technology with much lower hanging fruit.

Phantom Auto has developed a teleoperations system that enables human oversight of automated vehicles over cellular network. Initially marketed to major automotive manufacturers, their embedded software is being integrated into vehicles as a failsafe that can deal with edge cases or whenever human intervention is needed. But given the recently revised timelines for consumer release of robocars, its unlikely drivers will be ceding control to remote operators any time soon. That's why Phantom Auto is looking to the logistics industry for a new revenue stream.

It turns out that closed environments, such as warehouses and loading docks that don't need to worry about pedestrian safety (as much), are ideal proving grounds for this Silicon Valley startup's remote operation technology, and supply-chain customers are ready and eager to automate.

Terberg is one of Phantom Auto's first public customers, and is integrating their technology into many of its specialty vehicles, such as yard trucks. The company demonstrated a truck in Atlanta being remotely controlled over public cellular networks by an operator 2,500 miles away. At that demonstration were many potential customers, including major retailers and delivery companies that have been reaching out to them, rather than the other way around.

After all, a fully autonomous warehouse is the holy grail of the supply-chain market. Optimizing their labor force by consolidating the oversight of multiple autonomous vehicles in several location by just a few people brings this dream closer to reality. That said, remote operators would would need to obtain all the necessary licenses to operate that vehicle type, so humans are still needed for part of the process.

Heavy machinery isn't the only way Phantom Auto will make the supply chain move more quickly and cheaply. The company has been working with several retailers and services to integrate their technology with autonomous delivery robots.

"If you see a delivery robot on the ground today there is a solid chance that our teleoperations technology is being utilized to make sure that delivery or food or package can make it to your door, and make it to your door efficiently," says Phantom Auto co-founder Elliot Katz.

That's because as complex and capable autonomous systems are, these robo-delivery vehicles haven't figured everything out just yet. Phantom Auto's software enables human oversight of these robots so a human can intervene when they get stuck or encounter an obstacle, and make decisions to resolve issues without being physically present. By bridging this technology gap, Phantom Auto makes autonomous delivery more feasible.

It's no secret that major players are already testing robotic delivery of packages and food, including Postmates, FedEx, and Amazon. Although Katz can't divulge customer names or launch dates, he predicts that by 2020 there will be tens of thousands of robots with teleoperations capability that consumers could potentially interact with on streets and at their homes.

This transition to automated delivery and operations in the logistics space will generate millions of dollars over the next few years, says Katz, and to help further develop the product and support its growing logistics customer base, Phantom Auto announced it closed on a $13 million Series A round of fundraising, bringing total investments to $19 million to date.

"We continue to work with AV customers, but its going to take some time," says Katz. "With logistics, its here and now."

 

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