Image of Robomart's grocery shopping vehicle
Photo: TechCrunch+

Robotmart claims to be the new solution for mobile food delivery by offering a “white label platform that allows for full customization” and caters to big brand stores like Target, 7-Eleven, and Walgreens.

As a seemingly alternative option to Instacart and Shipt, Robomart allows consumers to use the company’s app to shop the inventory of a nearby mobile van. When they confirm they’re ready to shop, the van drives to the user’s location with groceries and items in stock. Using RFID, the customer can open the Robomart van’s doors with the app, and when they close the doors, the Robomart automatically tracks what was taken and charges the credit card on file.

According to MarketWatch’s analysis, “The global artificial intelligence delivery robot market is forecasted to reach a multimillion-dollar valuation by 2030, exhibiting an unexpected CAGR during the forecast period of 2023-2030, as compared to data from 2018 to 2022.”

The Robomart van is driverless and was initially developed as an AI-controlled autonomous vehicle. However, due to regulations and other factors, it’s now planned to be teleoperated via a remote human who is always in full control of the van.

In an interview with TechCrunch+, founder Ali Ahmed stated how he’s “talked to wholesalers about equipping separate trucks to mimic different sections of a grocery aisle — from dairy, to poultry, to meat, to vegetables.” Additionally, “Grocers and other retailers who license the technology will retain all of the customer information rather than giving it away to Uber, Postmates, Instacart or others.”

According to FreightWaves, “No other company has embraced the store-hailing model quite like Robomart has, and that may be the case for the foreseeable future.” In January 2022, the company received a patent for “one-tap grocery ordering via a self-driving minimart with checkout-free technology,” so it will be difficult for other companies to compete once Robomart goes driverless. 

The Observer also shared the following research: “Online grocery ordering and delivery promised to be faster and more convenient by having someone else pick and deliver our goods. However, less than 4% of groceries are sold online in the U.S. because the vast majority of consumers don’t trust someone else picking their fresh groceries, especially when it comes to perishables like fruits and vegetables.”

Additionally, a driver would take the same amount of time, around an hour, to deliver groceries on-demand, but to most consumers, this small added convenience doesn’t outweigh the higher cost.

In the same article, Ahmed from Robomart expressed how “the rise of grocery stores had a direct negative impact on Americans’ health, as we ended up eating less fresh food every day and instead ate more processed foods with preservatives to increase shelf life.” He added that grocery stores also “resulted in an increase in road traffic and congestion, with trips in gasoline-powered cars generating carbon emissions. Worst of all, this has led to lower access to food as people need to travel greater distances and spend more time shopping.”

Robotmart seems like it could be a good alternative to traditional grocery shopping and delivery services, as it allows consumers to choose their own groceries without having to travel to the store themselves.

But there are still some questions that consumers should consider, such as how reliable the food will be monitored for temperature and what can be done to prevent possible tampering. Another aspect that has not been fully tested yet is how quickly and efficiently it will be to restock a Robomart van, especially during times of elevated shopping like during the holidays.

BrainTrust

“This is probably fine if you need an emergency zucchini, but it won’t substantially aid meal prep. I’m convinced that the people who dreamed this up don’t actually cook.”

Cathy Hotka

Principal, Cathy Hotka & Associates


“What happens when too many people want to shop Robomart simultaneously? Do some wait patiently while others are taken care of first?”

Gene Detroyer

Professor, International Business, Guizhou University of Finance & Economics and University of Sanya, China.


“I can see this having a place in the grocery ecosystem, but in my view the concept as configured by Robomart will remain niche. “

Neil Saunders

Managing Director, GlobalData

Discussion Questions

DISCUSSION QUESTIONS: Does a future with roads filled with hundreds of mobile vehicles stocked with retail inventory seem better or worse for consumers and quality of life? Do you foresee any other challenges that these mobile retail stores might face?

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Would you prefer shopping at a mobile retail vehicle instead of going to a store?

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14 responses to “Robomart Ushers in the Future of Retail Delivery”

  1. Neil Saunders Avatar
    Neil Saunders

    I don’t think this is a replacement for visiting the grocery store nor the traditional online grocery order. Why? Because the vehicles are relatively small and will only be able to stock a narrow range – around 300 SKUs according to the company. That’s fine for someone who needs a couple of basics or wants to do a bit of top-up shopping – but it doesn’t really work for anyone else. It also limits average transaction values which ultimately impacts profitability, even if the vehicle is automated. I can see this having a place in the grocery ecosystem, but in my view the concept as configured by Robomart will remain niche. 

    1. Bob Amster Avatar
      Bob Amster

      Agree…again…

      1. Neil Saunders Avatar
        Neil Saunders

        Our stars are in alignment! 🙂

  2. Bob Amster Avatar
    Bob Amster

    First, we must ask ‘what specific problem(s) does Robomart solve?’ By its own admission the Robomart solution has a limited audience: “…but, to most consumers, this small added convenience doesn’t outweigh the higher cost.” The service reminds me of many such services from as far back as 60+ years ago in Buenos Aires, Argentina, when the watermelon man came around in a horse-drawn wagon and the neighbors ran down the stairs to buy, or Mr. Softee, Good Humor, or the pizza truck in the streets of Queens, NY. Little new under the sun and, some of it, more hype than substance.

    1. Gene Detroyer Avatar
      Gene Detroyer

      Don’t forget the knife sharpener, the vegetable cart or the bakery man.

  3. Cathy Hotka Avatar
    Cathy Hotka

    Look how tiny! This is probably fine if you need an emergency zucchini, but it won’t substantially aid meal prep. I’m convinced that the people who dreamed this up don’t actually cook.

    1. Bob Amster Avatar
      Bob Amster

      This is the funniest for the week, I am sure!

  4. Gene Detroyer Avatar
    Gene Detroyer

    When I am ready to go to the supermarket, I go. When I am ready to order online, I do it.

    What happens when too many people want to shop Robocart simultaneously? Do some wait patiently while others are taken care of first?

  5. Keith Anderson Avatar
    Keith Anderson

    I think Robomart has the most potential at office parks, college campuses, condo and apartment buildings, and similar contexts.

    I have a tough time seeing it replacing a full-size basket for most households, but I can imagine it getting some traction with smaller, more affluent households that may not want to build a traditional online basket.

    And if this one-to-several model eliminates some of the conventional store trips that contribute to congestion and emissions, it could benefit customers and communities to some degree.  

  6. Melissa Minkow Avatar
    Melissa Minkow

    In general, grocery innovation has to be extremely compelling for consumers to adopt a new behavior. It’s a category where habits are such a part of routine that it’s very difficult to move the needle. I’m not sure I see this as being that exciting in the context of replacing grocery shopping. However, for convenience items this could work and potentially drive some impulse purchasing.

  7. Brandon Rael Avatar
    Brandon Rael

    It is commendable to see companies that attempt to find ways to reinvent the grocery in-store shopping experience and challenge the status quo of the micro-fulfillment operating model and home delivery strategies. Mitigating the last mile has been one of the main drivers of the grocery industry’s costs to serve, and companies have struggled with this element for years as it eats into the overall profitability and EBITDA.

    The Robomart model is an interesting innovation. However, it does not offer the depth, breadth of assortments, and value that a traditional grocery store provides. As it rolls out, it will serve a very niche customer, who may need just several food items at a time. Automation capabilities are rising, yet Robomart will only be a profitable business model once it reaches a certain economy of scale.

    It will be interesting to see how this plays out and if it will ever make a meaningful impact in a very competitive grocery industry.

  8. Brian Numainville Avatar
    Brian Numainville

    Not sure this fulfills much of a need. Only offers a limited assortment and not sure people will want to wait around for it to show up. There might be some application for offices and other places where people assemble, but again the assortment is a real limiting factor.

  9. Scott Jennings Avatar
    Scott Jennings

    I spent a lot of time in the last mile of delivery space. Labor was always a big challenge, in particular when operating vehicles. 1 in 3 Americans has a criminal records & certain types of convictions, like DUI, shrink the candidate pool for available drivers. What I experienced with autonomous delivery vehicles is they typically have a human in the vehicle, which didn’t really eliminate the labor challenges of crowd sourced &/or 1099 delivery drivers.

    Eliminating sourcing, hiring, & onboarding challenges would seem key to understanding whether store hailing has the chance to be successful. I am curious whether it would be more or less difficult/expensive to hire full time technicians at scale operating/overseeing the fleet vs crowdsourcing individuals delivering goods.

  10. Craig Sundstrom Avatar
    Craig Sundstrom

    It’s very cute, I’ll give it that, but I fail to see how a van that stocks maybe a few hundred items is in any meaningful way a “replacement” for a store that encompasses 20-150Kgsf, and carries tens of thousands of SKUs. Do I forsee “challenges”?? That’s ALL I forsee.

14 Comments
oldest
newest
Neil Saunders
Neil Saunders
3 days ago

I don’t think this is a replacement for visiting the grocery store nor the traditional online grocery order. Why? Because the vehicles are relatively small and will only be able to stock a narrow range – around 300 SKUs according to the company. That’s fine for someone who needs a couple of basics or wants to do a bit of top-up shopping – but it doesn’t really work for anyone else. It also limits average transaction values which ultimately impacts profitability, even if the vehicle is automated. I can see this having a place in the grocery ecosystem, but in my view the concept as configured by Robomart will remain niche. 

Bob Amster
Bob Amster
  Neil Saunders
3 days ago

Agree…again…

Neil Saunders
Neil Saunders
  Bob Amster
3 days ago

Our stars are in alignment! 🙂

Bob Amster
Bob Amster
3 days ago

First, we must ask ‘what specific problem(s) does Robomart solve?’ By its own admission the Robomart solution has a limited audience: “…but, to most consumers, this small added convenience doesn’t outweigh the higher cost.” The service reminds me of many such services from as far back as 60+ years ago in Buenos Aires, Argentina, when the watermelon man came around in a horse-drawn wagon and the neighbors ran down the stairs to buy, or Mr. Softee, Good Humor, or the pizza truck in the streets of Queens, NY. Little new under the sun and, some of it, more hype than substance.

Gene Detroyer
Gene Detroyer
  Bob Amster
3 days ago

Don’t forget the knife sharpener, the vegetable cart or the bakery man.

Cathy Hotka
Cathy Hotka
3 days ago

Look how tiny! This is probably fine if you need an emergency zucchini, but it won’t substantially aid meal prep. I’m convinced that the people who dreamed this up don’t actually cook.

Bob Amster
Bob Amster
  Cathy Hotka
3 days ago

This is the funniest for the week, I am sure!

Gene Detroyer
Gene Detroyer
3 days ago

When I am ready to go to the supermarket, I go. When I am ready to order online, I do it.

What happens when too many people want to shop Robocart simultaneously? Do some wait patiently while others are taken care of first?

Keith Anderson
Keith Anderson
3 days ago

I think Robomart has the most potential at office parks, college campuses, condo and apartment buildings, and similar contexts.

I have a tough time seeing it replacing a full-size basket for most households, but I can imagine it getting some traction with smaller, more affluent households that may not want to build a traditional online basket.

And if this one-to-several model eliminates some of the conventional store trips that contribute to congestion and emissions, it could benefit customers and communities to some degree.  

Melissa Minkow
Melissa Minkow
3 days ago

In general, grocery innovation has to be extremely compelling for consumers to adopt a new behavior. It’s a category where habits are such a part of routine that it’s very difficult to move the needle. I’m not sure I see this as being that exciting in the context of replacing grocery shopping. However, for convenience items this could work and potentially drive some impulse purchasing.

Brandon Rael
Brandon Rael
3 days ago

It is commendable to see companies that attempt to find ways to reinvent the grocery in-store shopping experience and challenge the status quo of the micro-fulfillment operating model and home delivery strategies. Mitigating the last mile has been one of the main drivers of the grocery industry’s costs to serve, and companies have struggled with this element for years as it eats into the overall profitability and EBITDA.

The Robomart model is an interesting innovation. However, it does not offer the depth, breadth of assortments, and value that a traditional grocery store provides. As it rolls out, it will serve a very niche customer, who may need just several food items at a time. Automation capabilities are rising, yet Robomart will only be a profitable business model once it reaches a certain economy of scale.

It will be interesting to see how this plays out and if it will ever make a meaningful impact in a very competitive grocery industry.

Brian Numainville
Brian Numainville
3 days ago

Not sure this fulfills much of a need. Only offers a limited assortment and not sure people will want to wait around for it to show up. There might be some application for offices and other places where people assemble, but again the assortment is a real limiting factor.

Scott Jennings
Scott Jennings
3 days ago

I spent a lot of time in the last mile of delivery space. Labor was always a big challenge, in particular when operating vehicles. 1 in 3 Americans has a criminal records & certain types of convictions, like DUI, shrink the candidate pool for available drivers. What I experienced with autonomous delivery vehicles is they typically have a human in the vehicle, which didn’t really eliminate the labor challenges of crowd sourced &/or 1099 delivery drivers.

Eliminating sourcing, hiring, & onboarding challenges would seem key to understanding whether store hailing has the chance to be successful. I am curious whether it would be more or less difficult/expensive to hire full time technicians at scale operating/overseeing the fleet vs crowdsourcing individuals delivering goods.

Craig Sundstrom
Craig Sundstrom
3 days ago

It’s very cute, I’ll give it that, but I fail to see how a van that stocks maybe a few hundred items is in any meaningful way a “replacement” for a store that encompasses 20-150Kgsf, and carries tens of thousands of SKUs. Do I forsee “challenges”?? That’s ALL I forsee.