Same-Day Delivery Is Going To The Robots

Fourteen years ago, grocery delivery services Webvan crashed-and-burned when the dot.com bubble burst and it took the pre-mobile service down with it.

But now, Webvan founder Louis Borders is back and he’s bringing with him a plan to use a robot army to power same-day deliveries.

In a recent interview with Re/code, Borders said he has a shopping club in the works that will aim to deliver merchandise and grocers from partnering retailers to club members on the day they are ordered.

Borders, who was also behind the Borders bookstore chain, said the new $99 per month service he is developing will use a robotic warehousing system where humans are laying their hands on less than 10 percent of the orders.

“It takes out almost all of the human labor,” he told Re/code, adding that the model can potentially cut down on operating costs by 50 percent and also improve delivery times.

Borders explained that the system will allow the company to provide same-day delivery services within the annual membership price, while charging a small fee for one-hour delivery. The startup, which currently has the working name Home Delivery Service, will provide customers with access to fresh and packaged groceries as well as general merchandise.

When the Home Delivery Service startup gets up and running, it will be in direct competition with eCommerce giant Amazon, as well as grocery delivery businesses such as Instacart.

But Home Delivery Service still has some major things to address before any deliveries get underway.

According to Re/code, the company is still in the prototype phase of its robotic system buildout, despite the fact it has been in the works since last year. Home Delivery Service has also yet to lock down any retail brands to sell merchandise in the company’s online mall. But it seems as though Borders is under the impression that once the system is finished, the retailers will come.

Last, but certainly not least, Borders’ service will use execute deliveries with its own fleet of vehicles and drivers, which can be a very expensive undertaking.

Only time will tell what’s in store for Home Delivery Service, but if all goes right the service may launch in San Francisco next year, with other markets to follow.

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