Los Angeles-based robotics company Robomart is calling its latest invention, the patented Robomart RM5, an on-demand mobile grocery store. This new delivery robot that is about to hit the streets across America may upend the lucrative food delivery market. It only charges $3 for deliveries, making a big slice at the competition of DoorDash and Uber Eats. Founded in 2017, Robomart is at the forefront of autonomous technology delivery. Since 2020, they’ve been piloting their interesting “store on wheels” concept.
The Robomart RM5, courtesy of Robomart
At the heart of the Robomart is a level-four autonomous vehicle which can carry 500+ pounds of goods. The vehicle has ten private lockers with advanced RFID technology that protect customer orders until they reach their final stop. It’s this creative new design that makes innovative and cost effective delivery solutions possible, increasingly winning the day with retailers and consumers alike.
Through deep cost savings, Robomart’s vision is to transform the last mile delivery space. Ahmed, the CEO of the company admits their robots can cut delivery costs by up to 70 percent. He stated, “Our robots bring the cost of a delivery down by up to 70%. That is a critical difference. If you are paying a driver $18 an hour, your cost, just for that driver, is $9 to $10 an hour.”
What makes Robomart’s model attractive is the prospect of cutting out the hidden fees that come with most on-demand delivery services. Ahmed highlighted that customers “don’t even realize they are paying that markup and the other fees and the tips. This makes our model very attractive to the retailers and customers.”
Robomart’s creation story has been rapturously received with the support of under $5 million from a handful of venture capitalists. Other famous backers are Hustle Fund, SOSV, and Wasabi Ventures. Despite this relatively modest amount of funding, Ahmed emphasized its impact on the company’s progress: “We have raised almost $4 million in funding, and that has enabled us to build five generations of robots and now deploy the first autonomous marketplace for the road.”
The RM5 is a logical evolution from the company’s first “store on wheels” proof-of-concept pilot program. The company has indeed positioned itself as more than a last-mile delivery service, claiming the role of an early mover in building an autonomous marketplace. “We see this as building our own autonomous marketplace,” Ahmed explained, indicating a vision that goes beyond mere logistics to encompass a broader retail ecosystem.
The food delivery market is still going through a lot of changes. Technologies such as the Robomart RM5 are positioned to change how consumers access their grocery and meal orders. In addition to competitive pricing, Robomart provides fast delivery. That one-two punch is primed to catch the eyes of retailers looking to save a buck and consumers searching for more economical delivery solutions.