Tortoise Robotic Delivery Expands to US Convenience Stores

Tortoise Expands Robotic Delivery Network Through New Partnership

Tortoise is broadening the reach of its remotely operated delivery robots to convenience stores nationwide, facilitated by a new two-year strategic alliance with KRS. KRS, an Idaho-based retail brand strategy firm boasting a substantial national presence, will act as a reseller and distributor. This collaboration will see over 500 of Tortoise’s sidewalk delivery vehicles deployed, enabling convenience store clients to provide cost-effective, same-day last-mile delivery services.

Recent Growth and Industry Shift

Recent collaborations with last-mile logistics provider AxelHire, the grocery chain Shoprite, and convenience store brand Choice Market signify a significant trend towards robotic delivery for Tortoise. This expansion allows the company to introduce its robots to an increasingly diverse array of markets.

Initially established in 2019 to remotely reposition shared scooters, Tortoise adapted its focus with the decline in micromobility during the pandemic. The company strategically pivoted to the delivery sector, an industry experiencing continuous growth as consumers increasingly anticipate deliveries within hours of placing their orders.

The Economics of Same-Day Delivery

“A widespread realization is occurring that same-day delivery is becoming standard, and fulfilling this expectation with personnel earning $20 per hour is simply unsustainable,” explains Dmitry Shevelenko, CEO and founder of Tortoise. “The financial calculations do not support this model.”

This is particularly true when considering the increasing trend of passing delivery costs onto the customer. For instance, Whole Foods Market shoppers in six major metropolitan areas will soon encounter a $9.95 charge for same-day delivery, a service previously included with Amazon Prime membership.

E-commerce as a Top Priority

“Just two years ago, e-commerce might have been the eighth most important concern for the average grocery executive,” Shevelenko notes. “Currently, it consistently ranks as the top priority for everyone.”

Growth in Convenience Store Delivery

Delivery services from convenience stores are experiencing substantial growth alongside the established on-demand food and grocery delivery markets. According to a report by Edison Trends, a consumer insights analytics company, online spending at convenience stores surged by 346% between the first and last weeks of 2020.

KRS and the Tortoise Partnership

KRS provides a comprehensive suite of solutions to convenience store clients, encompassing store management, self-checkout POS systems, app development, business intelligence, and omnichannel ordering. The company will purchase Tortoise’s delivery robots directly, at approximately $5,000 per unit.

These robots will then be leased to customers, potentially as part of a package deal with other KRS services. Tortoise, along with its network of independent contractors, will continue to manage the robot routes and charge a monthly fee based on mileage.

Robot Capabilities and Cost-Effectiveness

Tortoise’s vehicles are optimally suited for deliveries within a three-mile radius of the store, considering battery capacity, though they can manage five-mile deliveries when necessary. A retailer completing at least three deliveries of this distance daily could recoup the monthly lease cost, especially when factoring in the marketing advantages of a branded robot promoting the store’s offerings.

The robots operate at an average speed of four miles per hour, enabling them to reach a destination one mile away in under 20 minutes. They can typically complete eight to ten deliveries during standard delivery hours.

Customizable Ordering Experience

Tortoise provides retail customers with adaptable APIs and web portals, allowing for a customized ordering experience. Typically, consumers ordering items like Doritos and Ben & Jerry’s from a local convenience store won’t initially have the option of robotic delivery.

Instead, after completing their purchase, they will receive a text message inquiring if they would like their order delivered by robot. Upon confirmation, they will receive text updates or notifications within the retailer’s app tracking the robot’s progress. A unique SMS link unlocks the container, and prerecorded messages on the robot itself will inform the customer when access is granted.

A Flexible Business Model

A key strength of Tortoise’s business model is its adaptability to various use cases, ranging from urban to suburban environments, and encompassing both last-mile and middle-mile delivery.

“The core logic of our system remains consistent; we simply direct the robot to the specified destination,” Shevelenko explains. “We actively seek opportunities to collaborate with platform customers who can introduce us to diverse communities.”

Path to Full Autonomy

Expanding the deployment of its delivery robots across more communities will accelerate Tortoise’s long-term objective of achieving fully autonomous delivery. The company strategically targets markets before they legalize commercial autonomous vehicles, positioning itself for future opportunities.

Furthermore, access to diverse use cases allows Tortoise to continuously gather data essential for training its artificial intelligence. “A substantial amount of local routing data is crucial for achieving autonomy, and teleoperation is the most effective method for collecting it,” Shevelenko concludes.