Delivery Robots Set to Invade America’s Sidewalks
Artificial intelligence (AI) is rapidly changing how we interact with the world around us. Through the power of AI, what was once the realm of science fiction is now becoming reality. Today we have self-driving cars and fully autonomous taxis. There are humanoid robots that can interact with humans and act on verbal commands. For those of us who view home maintenance as a tedious chore, we can buy a self-navigating robot to mow our lawn. And in a growing number of cities across the nation, we can even have robots deliver our food and groceries to our front door.
Autonomous delivery robots use a complex system of GPS, sensors, cameras, radar and AI technology. The size of these “robots on wheels” can vary but typically range from being the size of a small cooler to that of a large suitcase. They use advanced algorithms to identify and plan the quickest route to our home. The delivery robots can navigate crosswalks and traffic signals while detecting and avoiding any obstacles in their path. Powered by batteries, they motor along at about four miles per hour – roughly the average pace of a brisk walk.
The process begins when a customer places an order with a participating retailer, typically a restaurant or grocery store. The customer’s order is placed in a secure, insulated compartment within the robot. Then robot then heads out on its journey while the customer can track its progress. Once the delivery arrives, the customer simply unlocks the compartment using a code or app on their smartphone.
According to data from Fortune Business Insight, the global autonomous delivery robot market is expected to reach $520 million this year, up $120 million from 2024. By 2032, the market is projected to reach $4 billion. That equates to a compound annual growth rate of nearly 34%. The U.S. is expected to control about 35% of the global market.
One of the largest providers of autonomous delivery robots is San Francisco-based Starship Technologies. Founded in 2014, Starship Technologies’ robots have completed more than eight million autonomous deliveries, mostly for food and grocery orders. The company partners with and sells its robots to food delivery providers such as Grubhub and grocery retailers at a price range between $5,500-$2,250.
Starship Technologies has more than 2,000 fully autonomous robots in 100 locations across the U.S., the United Kingdom, Germany and Estonia. Most of these locations are concentrated across 60 U.S. college and university campuses. In Illinois, their delivery robots can be found zipping around the campus of the University of Illinois – Chicago. In Iowa, Starship Technologies currently doesn’t operate on any campus, but the company says it’s looking to expand its reach to other universities and colleges in the near future.
Another robot delivery service making its debut in Illinois is robotics company Coco. First launched in 2020, Coco’s delivery robots can be found in four cities – Chicago, Los Angeles, Miami and Helsinki, Florida. In December 2024, Coco started a pilot program in select neighborhoods on Chicago’s west side. Unlike Starship Technologies’ robots that are entirely autonomous, Coco uses a “hybrid” model where its robots operate autonomously but are still supervised remotely by a human operator.
The evolution of home delivery service is rapidly changing. In 2019, the Federal Aviation Administration first authorized the use of autonomous flying drones for commercial deliveries. Today, companies such as Amazon, Walmart, Alphabet and UPS are now operating their delivery drones in select markets across the country.
You may be thinking, what could possibly come next in the realm of home delivery service – flying cars? Rest assured, there are already several companies working on that new technology.
Mark M. Grywacheski, Investment Advisor
Quad Cities Investment Group is a Registered Investment Adviser.
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