FedEx and Amazon Shut their Last-Mile Delivery Robots Program : What Does the Future Hold?

15 Nov 2022

The evolution of e-commerce into quick deliveries (q-commerce) globally is leading to an increase in demand for quick home delivery and shipment of products and goods, generating a multibillion-dollar market. As a result, a growing number of robotics and automation companies and startups are working to develop mobile robotic units that can quickly and independently deliver mail, groceries, and other small products.

Additionally, with the increasing popularity of advanced delivery services, the "consumer experience" is undergoing rapid change. Now, consumers carefully assess how, where, and when a product will be delivered. This has caused the last mile of the shopping experience to alter more over the past five years.

However, the mass application of last-mile delivery robots across regions is full of challenges. For instance, e-commerce giants such as Amazon and FedEx have faced several challenges in taking their last-mile delivery robots program off the ground. The full story is discussed further in the article. 

Setback in FedEx and Amazon Last-Mile Delivery Robot Development

FedEx revealed in 2019 that it was working on an autonomous delivery system that would aid retailers in making same-day and last-mile deliveries to their customers. The last-mile delivery robot Roxo was created by FedEx in collaboration with Dean Kamen's DEKA Research and Development Corp, a New Hampshire-based company.

In addition to the robot's pedestrian-safe technologies, it included sophisticated features such as light detection and ranging (LiDAR) and multiple cameras that allowed it to be aware of its surroundings. These abilities were paired with machine learning algorithms to identify obstructions and avoid them, map a safe route, and make it possible for the bot to follow traffic and safety laws. 

It could also support up to 100 pounds of weight and had a top speed of 10 mph. Human controllers who had the power to physically maneuver the robot, if required, kept an eye on it. In the U.S., the U.A.E., and Japan, Roxo conducted deliveries three to five miles from neighborhood distribution hubs during its testing.

However, FedEx eventually made the decision to abandon the project in early October 2022. FedEx's chief transformation officer, Sriram Krishnasamy, informed employees of their decision in an email and described the company's new "DRIVE" corporate strategy.

According to internal emails obtained by Robotics 24/7, Krishnasamy stated, "Despite being an important pillar of our innovation strategy, robotics, and automation, Roxo did not achieve sufficient near-term value requirements for DRIVE. However, Roxo fulfilled a significant purpose: to expand our knowledge of and use of robotic technology swiftly, even though we are ceasing the research and development efforts.” 

Not only Roxo but another delivery bot has also performed poorly in testing. Amazon also disclosed earlier in October 2022 that it was curtailing the advancement of Scout, an autonomous robot. The robot, which was introduced three years ago, will no longer be tested for residential delivery, according to the e-commerce company. 
According to Amazon spokesperson Alisa Carroll, "During our Scout limited field test, we attempted to develop a unique delivery experience but realized through feedback that there were components of the program that were not meeting consumers' demands. We are discontinuing our field tests as a result and refocusing the initiative.”

Like FedEx, Amazon launched its Scout test in 2019, beginning in Seattle before expanding to Southern California, Georgia, and Tennessee. Scout was a delivery bot the size of a cooler that was meant to go right to people's houses.

What does the future hold for last-mile delivery robots?

The robotics industry is still evolving, and the last-mile delivery robot concept is at a nascent stage. Therefore, all the end-user industries are facing several challenges in the practical adoption of autonomous delivery robots. These challenges include: 

•    High Manufacturing Costs
•    Evaluation of Business Model Sustainability 
•    Scalability of the Delivery Solution
•    Financial Risks in Events of Robotics Malfunction
•    Infrastructure Challenges
•    Regulatory Challenges

Companies must develop improved programming, training, and virtual testing simulations for robots to meet these challenges because robotics is a complex and sophisticated technology, and human interaction in unpredictable environments will need to be understood, analyzed, and planned for.

Eventually, the success of last-mile delivery robots will depend on two major factors, i.e., experience driven by consumer demand and infrastructure investments.


Figure 1 Ways to improve last mile delivery services

According to the BIS Research market experts, during the COVID-19 pandemic, the adoption of last-mile delivery robots saw significant traction for applications such as healthcare and pharmaceutical delivery, food and beverage delivery, and retail delivery.  

Major factors such as the rise of e-commerce markets, online shopping, food and retail delivery platforms, and demand for faster and cost-effective last-mile deliveries provide huge growth opportunities for the global last-mile delivery robot market.

According to the BIS Research report, the global last-mile delivery robot market was valued at $18.1 million in 2021, and it is estimated to reach $36.2 million by 2032 at a compound annual growth rate (CAGR) of 6.22% during the forecast period 2022-2032. 

Conclusion

It will be challenging to accomplish the widespread availability of autonomous driving vehicles in communities by 2025.  However, the "last mile of the retail experience" is changing quickly, and autonomous delivery will shape how people purchase in the future. The greatest difficulties that autonomous vehicles will face in the future are those of distance and accuracy in crowded settings.

Interested to know more about the growing technologies in your industry vertical? Get the latest market studies and insights from BIS Research. Connect with us at  [email protected] to learn and understand more

 
 
 
 

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