Walmart sells robotics business in Play for more automation system
Symbotic announced Thursday that it will acquire Walmart’s Advanced Systems and Robotics business unit. The two companies have collaborated on Walmart’s automation systems since 2017.
Symbotic will pay Walmart $200 million for the transfer, plus up to $350 million in future payments. The company was tasked with building and deploying Walmart’s Expedited Pickup and Delivery Centers (APDS) automation system, which helps speed up the retailer’s in-store pickup and same-day home delivery systems. Walmart will fund a development program to help Symbiosis develop that Technology; The retailer will pay the technology provider a total of $520 million for the development program.
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Greg Cathey, Walmart’s senior vice president of transformation and innovation, said implementing Symbiotic’s automated systems will provide Walmart shoppers with a better, faster experience.
“We’re excited about what this means for our customers. We look forward to the synergy between our nearly decade-long relationship in developing symbiotic expertise and supply chain technologies to enhance customer service and accelerate our in-store pick-up and delivery capabilities.
The transaction shows that the big players in retail and e-commerce have a strong desire to use it. Artificial intelligence and related technologies to facilitate operations in their stores. And it seems that consumers are very interested in in-store collection options; According to local data, nearly half of e-commerce shoppers will abandon their carts during the 2024 holiday season if local pickup isn’t available.
The AI-enabled robotics company has pledged to purchase and deploy symbiotic systems for 400 APDs across the United States if “performance requirements are met.” If results are promising, Walmart may add more APDs over the next several years. Symbotic did not disclose what strategic targets it would have to meet to please Walmart.
Symbotic expects that the transaction with Walmart will increase its backlog by $5 billion, and that the new solution could expand the total market to $100 billion. This is what Symbiotic Chairman and CEO Rick Cohen said to Wilmington, Mass.