Intel's Mobileye Announces Deal With Autonomous Delivery Company: Could There Be A Stock Pop?

Intel Corp INTC business unit Mobileye announced a partnership with an autonomous delivery company that could highlight the potential of the company to be a major player in the industry.

What Happened: Mobileye announced a deal with Udelv for its autonomous delivery vehicle called Transporter.

The Transporter is expected to be used for last and middle mile autonomous delivery. The electric vehicle is expected to begin operations in 2023. More than 35,000 Transporter vehicles are expected to be produced from 2023 to 2028.

Large commercial fleet operator Donlen was announced as the first preorder customer with 1,000 Udelv Transporter vehicles reserved.

Transporter will use the Mobileye Drive system comprised of EyeQ system-on-chip Level 4 compute, sensors and software and the company’s proprietary Road Experience Management AV mapping solution. Mobileye will also provide technical oversight and over-the-air support.

Related Link: Microsoft, General Motors Strike Autonomous Vehicle Partnership: What Investors Need To Know

Why It’s Important: Last-mile delivery is the most expensive aspect of distribution, representing 53% of the overall cost of goods, according to the press release.

Consumers are buying more goods online, which is expected to increase urban last-mile delivery volume by 75% to 80% by 2030. The increase is expected to lead to a need for 36% more delivery vehicles. With a shortage of drivers and more vehicles needed, Udelv could become a player with its offering.

Mobileye is seeking to be a leader in the mobility as a service segment. Along with today’s Udelv deal, Mobileye has several other autonomous shuttle partners and plans to launch an autonomous ride-hail service in Israel in 2022.

Price Action: Shares of Intel are down 4.06% to $65.50 on Monday afternoon.

(Photo: Intel)