FedEx to test package deliveries with self-driving startup Nuro

FILE PHOTO: The unmanned delivery vehicle, Nuro, is seen during the Kroger annual shareholders meeting in Cincinnati, Ohio, U.S., June 28, 2018. Courtesy of Kroger/Handout via REUTERS/File Photo

(Reuters) - FedEx Corp and robotics company Nuro on Tuesday announced a multi-year agreement to test self-driving vehicles in the package delivery company's network, starting with a pilot program in Houston.

The partnership comes as parcel companies race to reduce the cost of last-mile delivery, which surged during the pandemic.