With lighter robots, Amazon is battling grocery giants like Kroger
Retail Tech Insights | Thursday, February 24, 2022
Ocado announced a new warehouse robot that is lighter and more energy-efficient than its predecessor. Ocado also unveiled a so-called virtual distribution centre, which the firm says will help slash delivery times
FREMONT, CA: Ocado, a British retail tech business, introduced a suite of new products aimed at helping huge grocery chains compete with Amazon and a slew of new rapid grocery delivery start-ups. Top merchants such as Kroger, Morrisons in the United Kingdom, and Casino in France use Ocado's technology.
As part of its innovation demonstration, the business unveiled two new robots. The first is the 600 Series bot, which, according to Ocado, is lighter and more energy-efficient than its predecessor and has over half of its parts 3D printed. The second is a set of advanced robotic arms that pick products in the company's warehouses right off the grid. Ocado claims to have developed artificial intelligence technologies to improve the arms' precision to that of human pickers.
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Meanwhile, Ocado advertised about their "virtual distribution centre," which is essentially a combination of software smarts and small micro-fulfilment centres linked by a single system. According to Ocado, the service is likely to increase item capacity in each warehouse while simultaneously reducing delivery times.
The move comes as shops face competition from a host of startups offering grocery delivery in minutes, in addition to Amazon, Getir and Gorillas, for example, have recently developed across Europe and parts of the United States, backed by a torrent of investment from venture capitalists. Such businesses rely on "dark store," which are small warehouses built to ship online orders rather than service clients in person.
Getir bought Weezy in the UK, and Gorillas bought Frichti in France, so some start-ups have recently been acquired by larger players.
When asked how the firm intends to fund the development of all of its new technology items, the CEO stated that cost was not an issue because the new robots are likely to be more capital-efficient than the company's present models. However, the company has enough cash on hand — as well as access to bank funding — to deploy them at scale in the future.
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