Chipotle invests in self-driving startup Nuro

• The investment was part of Nuro's Series C funding round.
• This is the first "significant" investment that Chipotle made in a third-party technology since 2018, the company said.
• Chipotle's digital business rose 174% in 2020, almost half of which came from delivery, the company said.

Chipotle has invested in the autonomous delivery company Nuro as part of the startup's latest funding round, the company said on Thursday.

SoftBank-backed Nuro raised $500 million as part of the Series C funding round.

It is unclear if Chipotle will use Nuro for its own deliveries. Chipotle didn't immediately respond to Insider's request for comment and Nuro didn't disclose the terms of the investment when asked for details.

"Early investments in digital innovation have provided a competitive advantage operationally with digital kitchens and the brand's Chipotlanes," the company said in a statement. "Now the organization is exploring disruptive opportunities outside of traditional third-party partnerships."

The deal marks the first "significant" investment that the food chain restaurant made in a third-party technology company since Brian Niccol became CEO in 2018, the company added.

"Nuro could change the traditional delivery model and we believe consumers are going to continue to seek options and additional access points for how and where they enjoy their food," said Curt Garner, Chief Technology Officer at Chipotle.

Nuro uses driverless on-road robotic cars to deliver products to consumers. In December, the startup received a commercial permit for autonomous delivery of food, groceries, and medicine in California.

"With financial and strategic support from world-class companies like Chipotle, we can continue to advance our industry-leading autonomous technology, grow our team and expand our delivery service," said Dave Ferguson, Nuro Co-founder and President in the statement on Thursday.

The autonomous delivery startup has previously partnered with a number of retailers and restaurants for deliveries including Kroger, Walmart, Domino's Pizza, and CVS.

Chipotle highlighted the importance of delivery to digital sales. The restaurant said on Thursday that its digital business increased 174% year over year in 2020, almost half of which came from delivery.

Chipotle has been looking for ways to expand its footprint in digital innovation. Earlier this month, Chipotle added a new customizable quesadilla to its menu that customers can order online only.

Chipotle's digital orders made up 46.2% of its sales in 2020. The company posted $2.8 billion in digital sales last year.