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Dive Brief:
Amazon’s delivery robots could drive over $7.1 billion in annual savings by 2032, according to Bank of America Securities analysts.
“Robots present a large opportunity for retail cost savings, helping position Amazon retail as an AI play,” BofA analysts said in a Thursday research note.
The analysis comes on the heels of a report from The Information, a tech news publication, saying that Amazon is developing artificial intelligence-enabled software for humanoid robots that could eventually take the jobs of delivery workers. The report cited a “person familiar with the matter.” Amazon didn’t immediately respond to a request for comment.
Dive Insight:
According to The Information report, published last week, Amazon is designing an indoor obstacle course to train humanoid robots for package deliveries. The initial course is the size of a coffee shop but is expected to increase before testing expands to public roads, the report said. Ultimately, humanoids could hitch rides in the back of Amazon’s electric Rivian vans and deliver packages directly to customers’ doorsteps, it said.
“As with autonomous vehicles (AVs), we would expect several years of testing before trials could begin,” BofA’s research analysts, led by Justin Post, said. “Obtaining regulatory approval on a local basis could be a challenge, and would limit rapid geographic expansion.”
Consumer acceptance of robot delivery would likely take time as well, the analysts said.
Since acquiring Kiva Systems in 2012, Amazon has significantly built up its robotics fleet to include over 20 robot types and more than 750,000 units, according to a June 2 BofA research note. “While robots are already well entrenched into Amazon’s fulfillment centers, we believe the company is still in the early innings of robotics implementation,” the note said.
Amazon last month unveiled several new robots that it’s planning to deploy throughout its logistics network. The effort is largely focused on eliminating or reducing manual employee tasks.
In October 2023, Amazon announced a plan to begin testing a two-legged robot dubbed Digit for use in its warehouse operations. The robot was developed by Corvallis, Oregon-based Agility Robotics, one of the companies Amazon invested in through its $1 billion Industrial Innovation Fund as part of a decades-long push to invest in “next-generation technology” for its operations.