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Robomart Unveils New Delivery Robot With $3 Flat Fee To Challenge DoorDash, Uber Eats

In an attempt to turn on-demand delivery lucrative, Robomart, a business that creates self-driving delivery robots, is revealing its newest robot.

The Los Angeles-based startup revealed its patented Robomart RM5 on Monday. Ten separate lockers contain customer orders, and the level-four autonomous truck can handle up to 500 pounds.A robot can handle several deliveries at once because to this structure’s ability to support batch ordering.

Ali Ahmed, the CEO and co-founder of Robomart, told TechCrunch that the company intends to employ these new robots to run an on-demand delivery business model like to that of well-known food delivery companies. Under this strategy, retailers collaborate with Robomart to set up their own stores on Robomart’s app, which functions similarly to DoorDash or UberEats.

The cost structure for the clients is varied. The company expects that the flat $3 delivery fee that customers pay each time they place an order from Robomart would be a far more alluring alternative than the various fees that other delivery apps usually charge, Ahmed added.

According to Ahmed, “we see this as developing our own autonomous marketplace.” “An autonomous marketplace with self-driving robots for on-demand delivery is something that is really unique in this field.”

In order to launch the delivery service later this year, Robomart intends to begin onboarding retailers in Austin, Texas, its initial market, over the course of the upcoming months.

Robomart’s roots are being expanded with this announcement. The business was established in 2017 and began testing an autonomous “store on wheels” in 2020, delivering a mobile, self-sufficient store filled with products like ice cream and prescription drugs straight to consumers upon request.

According to Ahmed, the company’s transition to on-demand delivery was a logical step after its first “store on wheels” strategy. He went on to say that the business had always known it intended to address on-demand deliveries.

Ahmed established Dispatch Messenger, a U.K.-based on-demand delivery platform, in 2015 before Robomart. Ahmed claimed that his former business was unable to maintain profitability while continuing to use human delivery workers due to fiscal constraints. This led him to concentrate on cost-cutting automation. Ahmed thinks they have figured out the code now.

“Up to 70% less money is spent on deliveries thanks to our robots,” Ahmed stated. That is a crucial distinction. Just the driver costs you $9 to $10 per delivery if you are paying them $18 per hour.

Ahmed stated he is really proud of Robomart’s ability to reach this point with so little cash. The business has raised less than $5 million from a variety of investors, including Wasabi Ventures, SOSV, and Hustle Fund.

“We have raised about $4 million in investment, which has allowed us to implement the first autonomous marketplace for the road and create five generations of robots,” Ahmed stated. “I am pleased with our team, and it shows how much we have accomplished.”

Although there are many big, established companies in the congested on-demand delivery business, such as GrubHub and UberEats, Ahmed believes Robomart is introducing a completely new offering at a price that would appeal to customers.

“Just [pricing] markups in themselves can be too expensive to give them this great promise of $3 and no extra expenses,” Ahmed stated. They are unaware that they are paying the markup, additional fees, and tips. Because of this, [our concept] is highly appealing to both customers and retailers.

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