There has been a great deal of discussion about drones to make deliveries, mostly focused around Amazon, but Fedex, Walmart, and Pizza Hut are also working on a similar solution. They are not the only ones, as many restaurants, retailers, and shippers are all experimenting with various applications of automation. The idea is that automation will reduce the cost of delivery since no humans are involved, so no paychecks are needed.

A FedEx Partnership

FedEx will begin testing of a robot that can handle the deliveries for Walmart, Pizza Hut, and other partners. This comes as part of a team-up with DEKA Development & Research. The founder of DEKA, Dean Kamen, has a history of innovation, as he created both the Segway and the iBot (a stair-climbing wheelchair).

About the Robots

The Robots are powered by batteries and appear very similar to a cooler that happens to be on wheels. The robots can reach top speeds of 10 mph and travel on both roadways and sidewalks. Thanks to software and camera, they are ready to detect and then avoid obstacles in their way.

Plans and Hopes for Testing

FedEx hopes that the robots will eventually become part of their strategy for those who pay for same day service. This service is currently offered in 1,900 cities worldwide. Before this happens, the project will need to be approved in the test cities. One of these cities will be Memphis, Tennessee, which is the hometown of FedEx. The initial deliveries in the tests will all occur between various FedEx stores.

The Potential Impact of the Robots’ Success

Assuming that the robots that FedEx will be testing are successful, this can have dramatic implications for so-called “last-mile” deliveries, which cover very short distances. Over 60 percent of customers live within just three miles of a merchant’s store location, meaning that these last-mile deliveries account for a majority of purchases.

To further underscore the potential impact of the robots, the final mile of a delivery accounts for at least half of all package delivery costs. From the perspective of the retailer, restaurants typically pay third-party delivery businesses a commission of between 10 and 30 percent. Unsurprisingly, companies and investors are doing whatever they can to find a solution that reduces these costs.

Other Similar Projects From Other Companies

As mentioned, FedEx and DEKA Development & Research are far from the only companies to research last-mile delivery solutions with robots. Starship Technologies deployed robots last year for package delivery within the San Francisco Bay Area and began a partnership with Sodexo at the George Mason University in Fairfax, Virginia. Amazon is working toward Scout, its delivery robot. The United Parcel Service is testing out drone deliveries. Door Dash is working with Cruise Automation from General Motors, and Kroger is working with Nuro, a self-driving car start-up.

With so many companies committed to drone and robotic deliveries, it will likely become a reality in the near future.

Sources:

https://www.cnbc.com/2019/02/27/fedex-partners-with-walmart-pizza-hut-to-test-last-mile-delivery-robot.html

The post FedEx, Pizza Hut, and Walmart Are Testing Last-Mile Delivery Robots appeared first on Subastral Inc..