AI-Powered Delivery Robots Aim to Slash Costs

A new contender has entered the increasingly crowded field of autonomous delivery robots, hoping to automate last-mile logistics for eCommerce. Bay Area startup Vayu Robotics unveiled its artificial intelligence (AI)-powered delivery robot, touting a novel approach that could potentially reduce costs for online retailers.

The announcement comes as eCommerce continues its rapid growth. Experts say this expansion has intensified the search for more efficient and cost-effective delivery solutions.

“Lower costs for robots and other supply chain automation tools ensures smaller and niche carriers and third-party logistics can offer solutions that compete with the mega spend of the largest players,” Keith Biondo, publisher of  Inbound Logistics magazine, told PYMNTS. “That development opens up the latest solutions for direct-to-consumer companies of all sizes, including startups and new entrants, to speed and reduce inventory and serve customers fast while keeping fulfillment costs low.”

Vayu’s robot distinguishes itself by using a combination of AI and low-cost passive sensors, eschewing the expensive lidar technology standard in many autonomous vehicles. “We’ve combined a transformer-based mobility foundation model with a powerful passive sensor that, together, eliminate the need for lidar,” Vayu Robotics CEO Anand Gopalan said in a Tuesday (July 23) news release.

Battle for Sidewalk Supremacy

Vayu isn’t alone in the robot delivery space. Starship Technologies, an early entrant founded in 2014, operates small, cooler-sized robots on college campuses and in select urban areas. Nuro, another well-funded startup, has been testing larger, vehicle-sized robots capable of carrying multiple orders.

However, these existing players have faced challenges. Starship’s robots are limited in carrying capacity and speed, while Nuro’s larger vehicles have encountered regulatory hurdles in some jurisdictions. Vayu claims its robot strikes a balance, carrying up to 100 pounds at speeds under 20 mph while navigating both sidewalks and streets without pre-mapping.

Vayu Robotics’ compact electric delivery pod, dubbed “The One,” measures 3.3 feet tall, 5.9 feet long and 2.2 feet wide, designed to navigate urban environments with minimal disruption. Capable of speeds up to 20 mph and a range of 60 to 70 miles per charge, it employs a proprietary vision system and AI model for autonomous navigation.

The robot can transition from street to sidewalk or driveway, utilizing its robotic arm to retrieve and deliver packages from its storage compartment. Vayu Robotics suggests this capacity could potentially double with further development.

An eCommerce company has reportedly already agreed to deploy 2,500 of Vayu’s robots, suggesting significant industry interest. Yet questions remain about public acceptance and regulatory approval for the widespread deployment of autonomous delivery vehicles.

Beyond the Last Mile

While the immediate focus is eCommerce delivery, Vayu’s ambitions extend further. “In the near future, Vayu’s software technology will enable the movement of quadrupedal and bipedal robots, allowing us to expand into those markets as well,” Gopalan said.

This broader vision aligns with industry trends. Boston Dynamics, known for its advanced humanoid and quadrupedal robots, has been exploring commercial applications for its technologies. Amazon has also been testing its delivery robot, Scout, though deployments have been limited.

The potential impact of successful autonomous delivery systems extends beyond just reducing costs. Small and medium-sized businesses (SMBs), often at a disadvantage in eCommerce, could benefit from more affordable delivery options. However, concerns about job displacement in logistics remain a significant issue.

As these AI-powered robots appear on city streets, they represent more than just a new delivery method. They offer a glimpse into a future where autonomous systems play an increasingly central role in urban logistics and the broader economy. The success or failure of companies like Vayu could shape the future of eCommerce and the fabric of our cities and workforce.

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