Canadian grocery giant Loblaw has significantly expanded its partnership with U.S.-based autonomous vehicle startup Gatik through a first-of-its-kind, multi-year growth agreement. This deal, marking the largest planned rollout of autonomous trucks in North America, will see Gatik’s fleet deployed across Loblaw’s distribution network in the Greater Toronto Area (GTA) to service more than 300 stores with time-sensitive goods.
The total contract value for Gatik’s autonomy services is approximately CA$50 million.
Under the agreement, the companies will transition from initial deployment to full-scale commercial operations—an industry-first in the autonomous vehicle sector. The expansion will begin with 20 next-generation autonomous trucks deployed by the end of 2025, followed by an additional 30 trucks by the end of 2026. Currently, 10 trucks are already in operation, building on a pilot program that started in 2020 with just five vehicles.
Gautam Narang, CEO and co-founder of Gatik, described the partnership as a “transformational moment” for the autonomous trucking sector. “It’s the first time a major retailer has transitioned from pilot to commercial scale with autonomous trucks, directly addressing Canada’s growing driver shortage,” he said. “This delivers the true benefits of autonomous logistics—reliability, safety, and scalability—to millions of Canadians.”
As part of the expanded collaboration, Loblaw has also made a strategic investment in Gatik, reinforcing its commitment to scaling autonomous technology within its supply chain. Rob Wiebe, Chief Administrator of Loblaw Companies Limited, stated that the move represents “a significant step forward in our commitment to innovation and supply chain sustainability,” enabling the company to “move more orders more frequently for our customers.”
During initial deployments, each truck will operate with a safety driver onboard. Gatik reports a flawless safety record with no incidents while in autonomous mode on public roads. Drivers will be phased out once AI validation is complete, transitioning the fleet to fully driverless operations. While the vehicles can already handle typical road scenarios and light precipitation, operations in heavy rain or snow remain part of the longer-term development roadmap.
The initiative is supported by Ontario’s Commercial Automated Vehicle Pilot Program, which runs through 2035. Gatik participated in shaping the program, underscoring the deepening collaboration between industry and government in advancing smart logistics innovation.
