This is a sub-branch of self-driving cars and represents autonomous vehicles that can move along public roads. The technology used is similar to self-driving cars. ADVs have a higher load capacity and travel at a faster speed than vehicles like droids.

Refers to autonomous vehicles that use pedestrian walkways and travel a little faster than average walking speed (generally 3-6 miles an hour). These vehicles can usually carry up to around 20 lb. and use a camera, radar, and sensors to move autonomously. 

Refers to unmanned aerial vehicles (UAVs) that deliver packages. Drones are already in commercial use in many other industries (such as photography, construction, and agriculture). The use of drones for goods delivery has emerged with the gradual advancement of battery and connectivity technologies.

Automation and robotics are finally creating solutions for the complexities of doorstep deliveries.

Last-mile Delivery Automation

Overview

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  <h3>
    How droids, drones, and ADVs  automate last-mile delivery
  </h3>
  <p>
    Last-mile delivery (LMD) covers the process of transporting products from a distribution center—usually a retail store or warehouse—to the end consumer. This process has become increasingly automated due to the introduction of robots and autonomous vehicles into the supply chain, allowing companies to distribute goods with reduced labor and costs while improving  efficiency. Furthermore,  due to the Covid-19 pandemic, delivery options that limit the risk of contamination through human contact have become a priority.
  </p>
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The total market for LMD automation in the US could reach USD 2.6 billion–5.2 billion by 2031

Market Sizing

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  <ul>
    <li>
      <p>
        Given that automation methods are pre-designed to minimize human involvement in the delivery of goods, LMD automation has emerged as a vital tool to fulfill social distancing and contactless delivery.
      </p>
    </li>
    <li>
      <p>
        There has been a surge of demand for LMD automation, which will continue to be especially strong while the Covid-19 outbreak continues to impact the economy.
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    </li>
    <li>
      <p>
        Starships, Nuro, Kiwibot, Robby, and Zipline are among the LMD automation operators to start Covid-19 driven operations.
      </p>
    </li>
  </ul>
  <p>
  </p>
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COVID19-IMPACT

Market Mapping

<p>There are two general categories of companies that are adopting automated LMD services: those that partner with startups and those that develop the technology internally. Because most companies are logistics companies and not technology companies, most of those that have chosen to develop the product themselves have outsourced the majority of the process to third parties.</p>

The Disruptors

<p>A handful of early-stage companies are at the forefront of developing technology for droids and ADVs, and they are predominantly located in the San Francisco Bay Area. Most of the companies received their initial funding in 2016 and 2017, and a flurry of partnerships have been announced since 2018.</p><p>Nuro is, by far, the largest and most well-funded company in the last mile delivery automation space and ADV segment with a total of USD 1.5 billion in funding. Ree Automotive is another prominent ADV startup, listed via a SPAC that raised USD 500 million in February 2021. Other startups in the ADV segment are much smaller, topping out at USD 10 million or less.</p><p>The drone segment has the highest number of distributors of any segment. Collectively, they’ve raised around USD 728 million as of August 2021. Zipline leads the segment in terms of funding with USD 483 million raised. Most of these companies are yet to reach commercial-scale operations with only Zipline operating as a growth-stage business. Other prominent startups in the space include Matternet, Flytrex, and Flirtey which are all in the early stages of operations.</p><p>A considerable number of disruptors cater to the droid segment as well, having collectively raised more than USD 192 million as of August 2021. Starship Technologies, with approximately USD 100 million raised in funding as of August 2021, is the most prominent startup in the droid segment and one of the first companies to commercially test a working droid.</p>

Disruptor Funding History

The Incumbents

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  <p>
    There are two main options for offering an automated LMD service for incumbent players in the logistics and delivery space: partner with startups emerging in the space, or develop the technology internally.
  </p>
  <p>
    Many companies that have chosen to develop their products internally have needed to outsource the majority of the process to third parties, as they are primarily logistics companies or non-tech enterprises and therefore lack the required skills and expertise. For instance, Amazon acquired the autonomous droid company Dispatch to support its droid development and also outsourced US drone development to third-party suppliers, Fedex used DEKA Development & Research Corporation to develop its delivery droid, and Yum! Brands acquired Dragontail Systems to develop their own drone-based delivery solutions.
  </p>
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Last-mile Delivery Automation

Last-mile Delivery Automation

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