The delivery industry may soon be disrupted. Indeed, Robomart, a startup that is based in Los Angeles, has introduced its newest delivery robot, the Robomart RM5, with the goal of making on-demand delivery more affordable and profitable. The RM5 is a level-four self-driving vehicle that can carry up to 500 pounds and has 10 individual lockers to hold different customer orders. As a result, this design allows the robot to handle multiple deliveries in one trip in order to make it more efficient. Robomart hopes that this batch-delivery system will solve the challenge of high costs that make it hard for delivery companies to turn a profit.
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Notably, CEO and co-founder Ali Ahmed told TechCrunch that Robomart wants to build its own version of a delivery app, similar to Uber Eats (UBER) or DoorDash (DASH), where retailers can open storefronts on the Robomart app. But unlike those platforms, Robomart offers a flat $3 delivery fee, with no extra charges like service fees or tips. Ahmed believes that this lower-cost structure will appeal to both customers and retailers. In addition, he described the platform as an “autonomous marketplace” built specifically for on-demand delivery using robots, a concept that he says is new in the delivery space.
Moreover, Robomart plans to launch its service in Austin, Texas, later this year and will begin working with local retailers in the coming months. It is worth noting that the company started in 2017 and first tested a “store on wheels” concept in 2020 that brought products like snacks and pharmacy items directly to customers. Ahmed said moving into full delivery was always the plan. Interestingly, his earlier company, Dispatch Messenger, couldn’t stay profitable due to the high cost of paying human drivers. Now, he says Robomart’s robots reduce delivery costs by up to 70%.
Which Delivery Stock Is the Better Buy?
Turning to Wall Street, out of the two stocks mentioned above, analysts think that DASH stock has more room to run than UBER. In fact, DASH’s price target of $303.61 per share implies almost 23% upside versus UBER’s 14.7%.
