Per Reuters, Ford Motor Company (F - Free Report) has announced that it is collaborating with Walmart Inc. (WMT - Free Report) and logistics company Postmates Inc. to develop automated delivery vehicles. Per the deal, the companies will design self-driving vehicle-based grocery delivery service for Walmart’s customers.

The project will allow Postmates to deliver goods ordered from Walmart stores at the doorsteps of customers. Per management, the companies are looking into products that can or cannot be delivered successfully through the project, perishable groceries in particular. The initial prototype of the delivery vehicle will be tested in the Miami, FL, using drivers to understand how an autonomous vehicle will conduct itself.

Like its peers in the goods delivery service, Walmart has also been looking for cost-effective options to offer last-mile deliveries to customers. Although the technology is expensive, altering human delivery with robotic ones will trim last-mile delivery costs for the company.

Ford Motor Company Price and Consensus

Ford Motor Company Price and Consensus | Ford Motor Company Quote

This project with Walmart is the latest initiative taken by Ford to widen its business of self-driving delivery vehicles. In January, Ford started working with Postmates to develop transportation service for people, food and packages through autonomous vehicles.

This U.S. automaker is emphasizing on the usage of autonomous vehicle technology for commercial purposes. By 2021, the company aims to launch the production of commercial self-driving vehicles. It has already created a separate business unit,Ford Autonomous Vehicles LLC that works on developing technology for self-driving vehicles. Through 2023, the company will invest $4 billion in this business unit.

Price Performance

Over the past six months, Ford’s stock has outperformed the industry it belongs to. During the period, the company’s shares have lost 16.8% compared with the industry’s decline of 0.8%.

Zacks Rank & Key Picks

Both Ford and Walmart currently carry a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space are Oshkosh Corporation (OSK - Free Report) and Cooper Tire & Rubber Company (CTB - Free Report) , both carrying a Zacks Rank #2 (Buy). 

Oshkosh has an expected long-term growth rate of 18.3%. The company’s stock has seen the Zacks Consensus Estimate for first-quarter fiscal 2019 earnings being revised 19.5% upward over the past 30 days.

Cooper Tire has an expected long-term growth rate of 12.3%. The company’s stock has seen the Zacks Consensus Estimate for fourth-quarter 2018 earnings being revised 9.8% upward over the past 30 days.