Segway and Coco Partner for Sidewalk Robot Delivery

Segway Targets Sidewalk Delivery Robot Manufacturing

Segway anticipates significant growth in the sidewalk delivery robot sector and is positioning itself as a primary manufacturer for this emerging industry.

Having previously supplied electric scooters to nearly all major shared micromobility companies, Segway is collaborating with Coco, a Los Angeles-based delivery robot startup, to produce 1,000 partially automated, remotely operated sidewalk robots. Coco plans to initiate robot deployment in Los Angeles and two additional U.S. cities during the first quarter of 2022.

Coco's Expansion and Future Orders

This new batch of Coco 1 robots will supplement the company’s current fleet of 100 Coco 0 units, initially developed to validate their business concept.

Furthermore, Coco has submitted an order for an additional 1,200 vehicles, with anticipated deployment by May or June 2022, contingent upon securing relevant contracts, as stated by Sahil Sharma, SVP of vehicles at Coco.

Segway's Robotics Development

Segway has invested in robotics research and development for several years, establishing a dedicated division in 2016.

That same year saw the unveiling of the Loomo robot, essentially a scooter platform integrated with a robotic head featuring an Intel RealSense RGB-D camera, speech recognition, and autonomous navigation capabilities.

From Experiment to Scaled Deployment

While Loomo served primarily as an experimental project, this partnership with Coco marks the first instance of Segway deploying its “robotic mobile platforms” on a large scale for delivery services. Tony Ho, Segway’s VP of global business development, indicated this signifies a broader strategic shift towards the robotic delivery market.

“This collaboration represents just the initial phase,” Ho explained to TechCrunch. “We will concentrate on the product development aspect, while Coco will manage operations. This mirrors the micromobility model where we provide the vehicles and hardware, and they handle city relations, staffing, and overall operations.”

Leveraging Existing Infrastructure and a Booming Market

Ho noted the current market resembles the scooter boom of 2017, describing it as a “land grab.” Segway’s successful e-scooter and e-bike business will provide a foundation for scaling robotics growth by sharing vehicle insights and supply chain resources.

“Coco’s focus on their core competencies and outsourcing supply chain scaling to Segway demonstrates a strategic approach,” Ho commented, adding that the partnership is non-exclusive. “We are fully committed to this venture and prioritize supporting promising companies for rapid expansion.”

Market Projections and Competitive Landscape

The global market for autonomous delivery robots is projected to reach $236.59 million by 2027, attracting numerous companies vying for market share. Competitors like Starship Technologies, with $102 million in funding, Kiwibot, and Nuro, which recently secured $600 million and a partnership with 7-Eleven, are also actively involved.

Coco recently raised $36 million in Series A funding, bringing its total funding to $43 million, partially allocated to the Segway vehicle order.

Efficiency and Urban Delivery

Segway believes sidewalk robots offer the most effective solution for first and last-mile delivery, especially in congested urban environments during peak hours.

“A streamlined design enhances operational reliability, reduces breakdowns, and lowers initial investment costs,” Ho stated. “The pandemic-induced labor shortages have further accelerated the acceptance of robotic solutions. Smaller, slower-moving vehicles with limited payloads are pedestrian-friendly and generally welcomed by cities.”

Remote Piloting and Automation

Currently, most robotic delivery startups, including Coco, rely on remote piloting rather than full autonomy. Coco’s vehicles utilize cameras, GPS, and processing power, enabling remote operation with basic automated functions like maintaining a straight course and stopping for obstacles.

This allows a single pilot to oversee multiple deliveries simultaneously, intervening for complex situations like pedestrian crossings.

A Business-Focused Approach

“We are prioritizing a practical, business-oriented strategy,” Zach Rash, co-founder and CEO of Coco, told TechCrunch. “Waiting for complete autonomy would unnecessarily delay market entry.”

“Many focus on Levels 4 and 5 autonomy, aiming for 90% self-sufficiency. We are focused on determining the number of pilots needed to achieve a specific delivery volume in a given area. We designed our system from the outset to support our business model and enhance pilot efficiency.”

Data Collection and Route Optimization

Coco’s system leverages data gathered from its delivery routes to refine the machine learning algorithms powering its self-driving software. The ability to map larger areas and identify faster routes is a key advantage of operating a large fleet, according to Rash.

“We analyze fleet data to identify the most efficient routes, considering delivery time, connectivity, sidewalk conditions, pedestrian and vehicle traffic,” Rash explained. “This comprehensive data collection enables us to navigate the city as effectively as possible.”