Robomart Challenges DoorDash & Uber Eats with $3 Delivery Robot

Robomart's New Autonomous Delivery Robot

Robomart, a company specializing in the development of self-driving delivery robots, has recently unveiled its newest robot, the RM5. The primary objective behind this innovation is to establish a financially viable model for on-demand delivery services.

Introducing the Robomart RM5

The Los Angeles-based firm announced the arrival of its patented Robomart RM5 on Monday. This level-four autonomous vehicle boasts a carrying capacity of up to 500 pounds. It’s constructed with 10 separate lockers designed to securely hold customer orders.

This compartmentalized design facilitates efficient batch ordering, enabling the robot to manage multiple deliveries concurrently. This approach optimizes delivery routes and reduces overall operational time.

A New Autonomous Marketplace

Robomart intends to leverage these robots to create an on-demand delivery system mirroring the functionality of established food delivery platforms, as explained by Ali Ahmed, Robomart’s co-founder and CEO, in a statement to TechCrunch.

The proposed system will involve collaborations with retailers who will establish their own virtual storefronts within the Robomart application – functioning similarly to popular apps like UberEats or DoorDash.

Cost-Effective Delivery

A key differentiator lies in the pricing structure for customers. Robomart will implement a flat $3 delivery fee for each order. The company anticipates this will be a more appealing alternative to the variable and often higher fees associated with competing delivery applications, according to Ahmed.

“We are focused on constructing our own autonomous marketplace,” Ahmed stated. “This represents a unique offering within the current landscape, an autonomous marketplace specifically designed for on-demand delivery utilizing self-driving robots.”

Launch in Austin, Texas

Robomart is planning to begin integrating retailers into its system within its initial target market, Austin, Texas, over the coming months. The official launch of the delivery service is scheduled for later this year.

From Store on Wheels to On-Demand Delivery

This announcement signifies a broadening of Robomart’s initial focus. Founded in 2017, the company initially piloted an autonomous “store on wheels” concept in 2020. This mobile store brought a selection of goods, including pharmacy items and ice cream, directly to customers upon request.

The transition to on-demand delivery represents a logical evolution of the company’s capabilities, Ahmed explained. He further noted that the company had always envisioned tackling on-demand delivery as a core component of its business strategy.

Leveraging Past Experience

Prior to Robomart, Ahmed established Dispatch Messenger, an on-demand delivery platform in the U.K., in 2015. Ahmed observed that his previous venture struggled to maintain profitability while relying on human delivery personnel.

This realization spurred his focus on automation as a means to reduce operational costs. He now believes Robomart has successfully addressed this challenge.

Significant Cost Reduction

“Our robots can reduce the cost of each delivery by as much as 70%,” Ahmed emphasized. “This is a substantial advantage. Employing a driver at a rate of $18 per hour translates to a delivery cost of $9 to $10 per delivery, solely for labor.”

Funding and Achievements

Robomart has achieved this progress with relatively limited financial backing, a point of pride for Ahmed. The company has secured less than $5 million in funding from investors including Hustle Fund, SOSV, and Wasabi Ventures.

“We’ve raised approximately $4 million in funding, which has allowed us to develop five iterations of our robots and now deploy the first autonomous marketplace for real-world application,” Ahmed said. “I commend our team for their dedication and the significant accomplishments we’ve achieved.”

Competing in a Crowded Market

Despite the competitive landscape of the on-demand delivery sector, which includes major players like UberEats and GrubHub, Ahmed is confident that Robomart is introducing a novel product with a price point that will resonate with consumers.

“Offering a flat $3 delivery fee, with no hidden charges, is a compelling proposition. The markups applied by other services can be surprisingly high, often without customers fully realizing the additional costs,” Ahmed explained. “This makes our model particularly attractive to both retailers and end-users.”