Robomart, a startup specializing in autonomous delivery robots, has unveiled its latest robot, aiming to make on-demand delivery profitable.
The Los Angeles-based company introduced the Robomart RM5 on Monday. This level-four autonomous vehicle can carry up to 500 pounds and features 10 separate lockers for customer orders, enabling the robot to handle multiple deliveries at once efficiently.
Partnerships with Retailers and Simple Pricing for Customers
Robomart plans to use these robots for an on-demand delivery model similar to Uber Eats and DoorDash, said Ali Ahmed, co-founder and CEO. Retailers can open virtual storefronts on the Robomart app, selling products directly to customers.
The key difference is pricing for customers. Every delivery carries a flat $3 fee, which the company hopes will be more appealing than the multiple fees typically charged by other delivery apps.
“We are building our own autonomous marketplace,” said Ahmed. “It’s unique in this space: an on-demand marketplace powered by self-driving robots.”
Robomart will start onboarding retailers in its first market, Austin, Texas, over the coming months, ahead of a full service launch later this year.
Robomart’s Evolution
Founded in 2017, Robomart began piloting a “store on wheels” in 2020, delivering items like pharmacy goods and ice cream directly to customers. Moving into on-demand delivery was a natural next step, Ahmed said, noting the company’s early focus on automation.
Before Robomart, Ahmed founded Dispatch Messenger in the U.K. in 2015. The company struggled to remain profitable with human delivery drivers, prompting a shift to automation. Ahmed believes they have now cracked the code.
“Our robots reduce delivery costs by up to 70%,” Ahmed said. “Paying a driver $18 an hour can mean $9–10 per delivery just in labor costs.”
Minimal Funding, Major Achievements
Robomart has reached this point with very limited funding, which Ahmed considers a major achievement. The company raised under $5 million from investors including Hustle Fund, SOSV, and Wasabi Ventures.
“With nearly $4 million in funding, we’ve built five generations of robots and launched the first autonomous marketplace on the road,” Ahmed said.
While the on-demand delivery sector is crowded with players like Uber Eats and GrubHub, Ahmed believes Robomart offers a completely new product at a price that appeals to consumers.
“The $3 flat fee with no additional charges is a very attractive proposition for both retailers and customers,” Ahmed said. “Many don’t even realize how much they pay in markups, fees, and tips elsewhere.”
