The new funds will reportedly be used to meet the company’s manufacturing and scaling needs. By RTN staff – 26.2.2023
Robotic delivery services have been a growing trend in recent years. Kiwibot is one such company that has made significant strides in the industry. Now, Kiwibot has reportedly secured a $10 million funding partnership with asset finance group Kineo Finance. That brings the company’s total funding to $24 million, including the same amount raised a year earlier in February 2022, according to Crunchbase.
The goal of this latest funding agreement, like the previous round, is to grow Kiwibot’s robotic fleet and revolutionize the Delivery-as-a-Service (DaaS) industry. The new funds will reportedly be used to meet the company’s manufacturing and scaling needs.
The Colombian startup, headquartered in Miami, was founded in 2017. The company launched its first pilot on the University of California-Berkeley campus. Today, with a presence in 27 US colleges and 41 cities worldwide, it strives to revolutionize food delivery with boot-up autonomous robots.
Kiwibot’s on-demand delivery service is already available through apps like Sodexo’s Grubhub and Everyday. These robots are equipped with GPS technology, advanced camera sensors and artificial intelligence (AI) to generate optimal routes, avoid obstacles and provide a cost-effective service. Kiwibot’s delivery service reduces grocery delivery costs by up to 65%.
Kineo Finance is known for providing smart asset financing for startups while limiting dilution. This funding group aims to build lasting, mutually beneficial alliances with the companies it supports and works with over the long term. This partnership marks Kineo’s first engagement in the DaaS industry and represents a significant opportunity for startups to consider alternatives to risk credit and venture capital funding.
Kiwibot’s growth in the DaaS sector has made it an attractive option for kineo finance, which is dedicated to driving automation and digitization initiatives across multiple industries to drive adoption of high-tech enterprise equipment.
With a presence in 27 US colleges and 41 cities worldwide, the company wants to revolutionize food delivery with boot-up autonomous robots. Kiwibot has delivered groceries for restaurants like Dunkin Donuts, Subway, Pizza Hut and Mr. Beast Burgers, and the service allows customers to start last-mile deliveries at a fraction of the time and cost, without having to hire a courier. Having served 6,942 students and connected 133 restaurants to customers in 2022, Kiwibot says it is committed to a carbon-free future, eliminating gas emissions from traditional delivery vehicles.
The trend towards delivery robots for restaurants has increased in recent years. Other companies in this space are Starship Technologies and Postmates. In 2021, Postmates launched its autonomous delivery robot, Serve, designed to deliver groceries, groceries, and other small items to customers. Starship Technologies has tested its delivery robots in various cities in the United States and the United Kingdom. Nuro is another notable player in this space with its autonomous delivery vehicles, which are also used to deliver groceries and other goods to select markets.
In related news, Flytrex, a provider of drone delivery services, received Standard Part 135 Air Carrier Certification from the Federal Aviation Administration (FAA) earlier this month, which grants certification to provide drone delivery services to Causey Aviation Unmanned (CAU), its partner beyond the line of sight. Certification enables Flytrex and CAU to ship goods to more than 82 million properties across the United States. His restaurant partnerships include Charleys Philly Steaks, Brinker International, Jersey Mike’s, Taco Bell, Starbucks, Papa Johns and Wendy’s.
Flytrex has gradually expanded its service to North Carolina and Texas as it receives FAA approvals. In July, the FAA gave Flytrex permission to expand its service to 100,000 customers by increasing its delivery radius from one to two nautical miles around its drone delivery stations in the two states. In September, Flytrex opened its fifth U.S. drone delivery station in Durham, North Carolina. It currently operates three other North Carolina stations in Fayetteville, Raeford, and Holly Springs, and one in Granbury, Texas just outside of Dallas-Fort Worth.
According to a recent report by MarketsandMarkets, the global market for autonomous last-mile delivery is expected to grow from $11.9 billion in 2021 to $75.7 billion in 2030, at a CAGR of 22.7% in the forecast period. The report finds that the increasing demand for faster delivery and the need to reduce delivery costs are driving the growth of this market. As consumers increasingly opt for online grocery delivery, demand for robotic delivery services for restaurants is expected to increase, which bodes well for companies like Kiwibot.
