Mobileye’s self-driving system will feature on Udelv autonomous electric delivery vehicles, known as Transporters.

The companies plan to produce more than 35,000 Mobileye-driven Transporters by 2028, with commercial operations starting in 2023.

“Our deal with Udelv is significant for its size, scope and rapid deployment timeline, demonstrating our ability to deliver Mobileye Drive for commercial use now and in volume,” said Mobileye president and CEO, Amnon Shashua.

“COVID-19 has accelerated demand for autonomous goods delivery and we are delighted to partner with Udelv to address this demand in the near term.”

For his part, Udelv CEO and co-founder, Daniel Laury, added: “Mobileye is the only company providing a full-stack self-driving system with commercial viability and scale today.

“The readiness of Mobileye Drive, along with its vast map coverage of North America, Europe and Asia, will allow us to ramp up the production and deployment of Udelv Transporters and rapidly offer the service at scale to our expanding list of customers.”

Last-mile delivery is the most expensive aspect of distribution, accounting for 53% of the overall cost of goods.

At the same time, consumers are buying more and more goods online which is expected to raise urban last-mile delivery volume by 75% to 80% by 2030 and require 36% more delivery vehicles.