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Daily Newsletter

09 October 2023

Daily Newsletter

09 October 2023

Magna and Marco’s Pizza to test autonomous delivery options

Pilot projects to take place in parts of North America

Dani Cole October 09 2023

Marco's Pizza and Tier 1 automotive supplier Magna have announced they will explore new mobility solutions in last-mile food delivery.

The two firms have signed a memorandum of understanding that will test last-mile delivery platform options, including autonomous options.

Magna and Marco's will discuss proof-of-concept followed by beginning in-market pilot projects with participating franchisees.

Rick Stanbridge, Executive Vice President and Chief Information Officer for Marco's Pizza said: "As one of the largest pizza brands, we invest in innovations that drive our franchisees' businesses forward while meeting the needs of today's modern customer. Our strategic collaboration with Magna exemplifies this forward-thinking approach, and we plan to leverage their expertise to amplify our operations and elevate customer satisfaction."

Matteo Del Sorbo, Executive Vice President at Magna and Global Lead for Magna New Mobility said: "As we look at how people and goods will move in the future, we are continuously identifying new applications and technologies to match the needs of the expanded mobility landscape, the last-mile delivery market being one of them."

The pilot projects will take place in certain locations throughout North America. The autonomous, electric on-road delivery vehicle can drive up to 20mph.

High upfront costs could be detrimental towards the growth of the off-highway EV market

The global off-highway electric market is expected to grow at a CAGR of 17.4% by 2030, per GlobalData. Despite the strong growth, high upfront costs may pose a challenge. Due to the high capacity of these vehicles, they consume large amounts of power from a number of battery packs installed on the vehicle, whose high cost in turn adds to the cost of the vehicle, thereby increasing the initial cost. However, governments worldwide are offering subsidies and tax exemptions in order to help customers to counter the initial purchase cost.

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