What is the difference between Driver as a Service and Transport as a Service in Aurora's autonomous truck model?

Under Transport as a Service, Aurora owns and operates the trucks while charging customers approximately 2 dollars per mile including fuel surcharge. Under Driver as a Service, the carrier purchases the truck and pays Aurora for the autonomous driving capability at 85 cents or more per mile. The Charger deal uses Driver as a Service, shifting asset ownership to the carrier while Aurora focuses on providing autonomous driving software and operations.

Is the Charger Logistics MOU binding?

No, the MOU is nonbinding. Aurora's cautionary statement explicitly notes the risk that the agreement may not lead to a final binding agreement or orders on the anticipated timeframe or at all. The deal requires Charger and Aurora to negotiate final terms before orders become binding.

How does this 500-truck order fit into Aurora's 30,000-truck deployment goal?

Aurora expects to pass 200 driverless trucks by the end of February 2026 and still anticipates more than 1,000 by the end of 2027, despite production running six weeks behind plan. The Charger deal (500 trucks) and the earlier Hirschbach Motor Lines MOU (also 500 trucks) represent carrier-owned fleets that are central to Aurora's strategy to achieve over 30,000 driverless trucks by 2030. These MOUs show demand among established carriers for autonomous truck deployment.

What route has Charger already begun operating autonomous trucks on?

Charger Logistics launched autonomous operations along the Dallas-Laredo corridor in Texas in July 2025. Company president Andy Khera cited immediate operational benefits from this pilot as the rationale for the larger 500-truck order, indicating the carrier plans to scale geographically while integrating autonomy across its technology stack.

What challenges is Aurora facing with cost negotiations and deployment?

Aurora has pushed back its breakeven gross margin target to the first half of 2027 (at approximately 500 trucks) from the end of 2026. Werner Enterprises, another Aurora customer, was still negotiating economic terms as of September 2025, with executives indicating a cost gap that needs to be resolved. Aurora's production is also running approximately six weeks behind plan, which could affect delivery commitments.

Technology & Innovation

High Impact

Aurora, Charger Logistics ink 500-truck autonomous MOU

Oct 28, 2026

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The signal

Aurora Innovation and Charger Logistics announced a nonbinding memorandum of understanding for up to 500 autonomous trucks to be delivered in 2027 and 2028 under Aurora's Driver as a Service model, where Charger owns the trucks and pays Aurora for autonomous driving capabilities. This deal represents a significant step toward Aurora's goal of deploying more than 30,000 driverless trucks by 2030 and marks a shift from the earlier Transport as a Service model, where Aurora owned the assets. The agreement builds on Charger's successful pilot running driverless hauls between Dallas and Laredo, Texas, launched in July, demonstrating that carrier-owned autonomous fleets are becoming operationally viable for high-volume freight corridors. For supply chain professionals, this development signals that autonomous trucking is transitioning from proof-of-concept to scalable deployment.

The Driver as a Service model fundamentally changes the economics for carriers: Aurora generates 85 cents or more per mile on trucks running 250,000 miles annually, compared to the Transport as a Service model at approximately 2 dollars per mile. Charger's 500-truck order would exceed its current U.S. fleet size, indicating the company is willing to make significant capital commitments to driverless technology. However, the deal remains nonbinding, and Aurora is revising timelines (production six weeks behind plan) while managing cost negotiations with other customers like Werner Enterprises. The broader implications are structural.

If completed, this MOU demonstrates that established logistics carriers see autonomous trucking as essential for competitive positioning rather than an experimental technology. The deal's success depends on regulatory stability, persistent technical performance, and resolution of unit economics disputes with other customers. Supply chain teams should monitor Aurora's delivery timelines, pricing negotiations with other carriers, and whether regulatory environments (especially along the Dallas-Laredo corridor) continue to support autonomous operations.

Companies affected by this story:

Perdue Farms

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Uber Freight

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GXO Logistics Inc.

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Frequently Asked Questions

What This Means for Your Supply Chain

Simulation Suggestion

strategic

What if Driver as a Service per-mile rates increase due to regulatory or insurance costs?

Analyze the sensitivity of the Charger Logistics deal to changes in Aurora's per-mile pricing under Driver as a Service. Assume Aurora's cost structure requires raising the per-mile rate from 85 cents to 1.10 dollars due to unforeseen insurance, regulatory compliance, or liability costs. Model: (1) Charger's return on investment for the 500-truck fleet, (2) willingness to proceed with binding agreement, and (3) impact on Aurora's gross margin projections.

Run this scenario

Simulation Suggestion

this month

What if Aurora's truck delivery timelines slip further?

Model the impact of Aurora missing its 1,000-truck target by end of 2027 due to manufacturing or software delays. Assume a 3-month delay in first delivery to Charger Logistics. Simulate the effect on: (1) Charger's fleet growth projections and competitive positioning, (2) Aurora's ability to reach breakeven gross margin in H1 2027, and (3) adoption decisions by other carriers considering autonomous truck orders.

Run this scenario

Simulation Suggestion

strategic

What if regulatory obstacles delay autonomous operations beyond the Dallas-Laredo corridor?

Simulate the scenario where new state or federal regulations restrict autonomous truck operations to pilot corridors only, preventing Charger's planned geographic expansion across the country by 2027-2028. Assess: (1) the viability of Charger's 500-truck fleet deployment plan, (2) Aurora's ability to scale to 1,000+ trucks by end of 2027, and (3) impact on competitive positioning relative to other autonomous trucking vendors.

Run this scenario

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