Softbank Invests $940M In Driverless Delivery Startup Nuro
- by Chuck Martin , February 11, 2019
Softbank is investing $940 million into Nuro, the robotics company that makes self-driving vehicles for deliveries.
Nuro has now raised more than $1 billion from the Softbank Vision Fund, Greylock Partners and Gaorong Capital.
Nuro launched its custom unmanned vehicles last year and in December started working with Kroger for the delivery of groceries to the general public.
"Kroger customers are looking for new, convenient ways to feed their families and purchase the products they need quickly through services like pickup and delivery," Yael Cosset, Kroger's chief digital officer, stated at the time. "Our autonomous delivery pilot over the past few months continues to prove the benefit of the flexible and reliable technology."
In the Kroger program, customers of Fry’s Food Stores can place delivery orders for delivery seven days a week and can be scheduled for same-day or next-day delivery by Nuro’s fleet of R1s for a flat fee of $5.95.
Nuro has also recently partnered with the autonomous truck company Ike in a deal trading Nuro’s autonomy and infrastructure software for an equity stake in Ike.
“We’ve spent the last two and a half years launching our first unmanned service, working with partners and creating technology to fundamentally improve our daily lives,” stated Nuro co-founder Dave Ferguson. “This partnership gives us the opportunity to take the next step in realizing our vision for local commerce and the broad application of our technology.”
Nuro plans to use the new financing to expand to additional geographies, add partners and scale its fleet, according the company.
"Kroger customers are looking for new, convenient ways to feed their families and purchase the products they need quickly through services like pickup and delivery," Yael Cosset, Kroger's chief digital officer, stated at the time. "Our autonomous delivery pilot over the past few months continues to prove the benefit of the flexible and reliable technology."
Could you expect Mr. Cosset to say anything different to justify his job?
Let's see, the store has to have employees to "do the shopping" for the convience of the customer. I've seen them running around the store, trying to get the ice ceam in the bins last. how many $5.95 deliveries is it going to take to cover the employee? Will groceries go up for this "convienence"? And what about the "Nuro" vehicle, how much is one of thoise remote control grocery carts? NO ONE EVER SAYS WHAT THESE THINGS COST.
They also have eliminated the "impulse purchases" to pad the cart. My guess people using this service are not the fill-your-cart Sam's Club orders, instead it will be the one's who shop "fresh" daily, the millennials to be specific. Since they don't use cash EVER, the $5.95 charge won't phase them.
What about the coupon shoppers, who just throw stuff in the cart cause they have a coupon?
Mr. Cosset will have to make a new statement in the not too distant future:
"The management of Kroger, in an effort to always focus on our customer's needs, is discontinuing the on-line/unmanned delivery service. Continuous hijacking of groceries has become a problem that has warranted the discontinuing of the pilot-less program. We are sorry for the inconvience this has caused in your life. At the end of the day, we want to be your Grocery Supplier, so get off your lazy A**es and revisit the aisles as you remember them. Anyone looking for an autonomous grocery cart , please feel free to contact us. There are a number of them for sale at 10 cents on the dollar, behind the stores."