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Dispatch Startup building a fleet of self-driving delivery vehicles; Startup raises $2 million start round led by Andreessen Horowitz

| Apr 07, 2016 10:53 AM EDT

Dispatch Startup is set to power on-demand economy by building a fleet of self-driving delivery vehicles.

There are increased expectations among consumers for on-demand deliver. As a result, startup Dispatch is making a fleet of self-driving delivery vehicle meant for sidewalks and bike paths. The company has announced a $2 million seed round led by Andreessen Horowitz.

Speaking to Tech Crunch, the co-founder of Dispatch Uriah Baalke said, "The need for convenient low cost delivery is widespread. Our goal is to fulfill that demand and build a system at scale that can scale and that can operate in all these locales efficiently."

The company's first self-driving vehicle, "Carry," has four sections that can carry up to 100 pounds. It moves at a pedestrian's speed on sidewalks and bike paths, and it is heavy enough that it would require two people to pick it up. Besides being connected to a 4G network for precise location tracking, the weight does not allow someone to steal it.

Dispatch launched pilot programs at CSU Monterey Bay and Menlo College some weeks ago to deliver student mail and packages among other items. Students can use their phones to track the location of the vehicle and receive notifications when it arrives, after which they can unlock and access their package.

The vehicle has inbuilt sensors and utilizes artificial intelligence strategies to learn how to act safely. Dispatch is set to expand into new environments like major cities.

Baalke added, "This is all part of why we raised our round. We're really trying to grow our team, hire a team of expert people, grow out the product, and expand our fleet."

Vehicles being built by Dispatch could be useful to current on-demand companies, particularly those struggling with the expense of last-mile delivery. Dispatch in general, besides the autonomous car technology Lyft, Uber, and many others being worked on, could put many people depending on the on-demand economy for income out of work, according to another report by the same publication.

As soon as the company reaches a particular scale, Baalke envisages the platform working as more of utility that every person can access. The future with the company's technology as utility could include peer-to-peer delivery in addition to city-sanctioned delivery services.

Watch the clip below for more information on Dispatch self-driving delivery vehicles.

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