Walmart Ends Contract with Bossa Nova Robotics - Inventory Robots

Interest in robotics and automation companies has grown significantly during the pandemic, as many businesses considered ways to continue operations during widespread closures. However, despite a long-stated commitment to increasing its use of automation technology, Walmart has reportedly ended a key partnership.

According to reports in The Wall Street Journal, the large retailer has terminated its contract with Bossa Nova Robotics. Walmart previously announced plans in January to expand the deployment of the Bay Area-based startup’s inventory-scanning robots to an additional 650 stores, reaching a total of 1,000 locations. This decision has led to approximately 50% of staff being laid off at the company, which originated as a spin-off from Carnegie Mellon University, as detailed in the WSJ report. This represents a substantial setback for the technology at a time when demand might be expected to be high.

Sarjoun Skaff, a co-founder of Bossa Nova, declined to either confirm or deny the WSJ report, offering no comment on the matter. He did, however, address the impact of the COVID-19 pandemic on the company, acknowledging that workforce reductions had taken place.

“I am unable to provide comment regarding Walmart,” Skaff stated. “However, the pandemic has necessitated a streamlining of our operations and a concentration on our primary technologies. We have achieved remarkable progress in the fields of AI and robotics. Our retail AI is the leading solution in the industry, functioning effectively with both robots and stationary cameras, and our hardware, autonomous systems, and operational capabilities have proven successful in over 500 of the most demanding retail environments. With the complete backing of the board, we are continuing to implement this technology with our partners in retail and other sectors.”

Bossa Nova has experienced internal changes in addition to the layoffs. Skaff assumed the role of CEO in October, replacing Stuart Pann, who had held the position for less than nine months. The agreement with Walmart was a significant achievement for the startup, which initially began in 2005 as a manufacturer of robotic toys before shifting its focus to more advanced applications. Bossa Nova first began working with Walmart in 2017, when the retailer initially ordered 50 robots. The more recent, larger order from Walmart served as a strong validation of Bossa Nova’s technology.

This shift in direction is likely to have a considerable impact on the company’s future.

Walmart determined that the partnership was not delivering sufficient value. By the time the contract concluded, Bossa Nova’s robots were operating in approximately 500 stores—roughly half the originally planned number. As the pandemic drove a surge in online orders, Walmart began investigating the use of its human workforce to manage inventory alongside fulfilling online purchases. The operations of Walmart, along with other major retailers, will continue to adapt as physical stores reopen and customers demonstrate a renewed interest in shopping in person. Despite the easing of pandemic-related disruptions, Walmart’s sudden change of course will still have a significant effect on Bossa Nova and its prospects for recovery.

Walmart’s exploration of robotics continues, however. The company’s Sam’s Club division recently announced that it would deploy Tennant’s floor scrubbing robots to all 599 of its stores. Notably, the company is also investigating the possibility of using these machines to simultaneously conduct in-store inventory checks; it remains uncertain whether this functionality will be limited to Sam’s Club locations or extended to Walmart stores as well.