Tortoise expands remote-controlled robot delivery across US convenience stores
Tortoise is deploying its remote-controlled delivery robots across round-the-clock stores throughout the US under a new two-year strategic partnership with King Retail Solutions (KRS), an Idaho-based company that develops retail brand strategy with a national presence.
Under the agreement, KRS will resell and deploy more than 500 Tortoise sidewalk delivery devices to help its store clients offer affordable same-day "last mile" delivery options.
A recent partnership with last-mile logistics provider AxelHire, the Shoprite grocery chain and the Choice Market brand marks a major shift toward robotic delivery for Tortoise, allowing the company to bring its robots to an increasingly wide range of markets.
The company was founded in 2019 to remotely relocate rental scooters to parking spots or where demand was, but the drop in micromobility use during the coronavirus pandemic unexpectedly pushed Tortoise toward delivery, an industry that keeps growing as more customers expect their products to arrive within hours of ordering.
“Everyone recognizes this new reality and same-day delivery is becoming the new norm, and it is simply impossible to meet consumer expectations on every front when people earn $20 an hour making these deliveries. The math just doesn't work”
In some cases, delivery costs are being passed on to the customer. Online shoppers of Whole Foods Market in six cities will soon pay $9.95 for same-day delivery. Previously, the service was free with membership in Amazon's parent company Prime. According to Shevelenko, two years ago e-commerce was around eighth on the priority list for the head of an average grocery store, but now it is number one for everyone.
Delivery from round-the-clock stores is becoming a fast-growing segment alongside food and on-demand grocery delivery markets. According to a report by Edison Trends, a consumer analytics firm, online store spending rose 346% between the first and last weeks of 2020.
KRS offers its chain clients a range of solutions, from store management and self-checkout terminals to app development, business analytics and omnichannel ordering. The company will buy Tortoise delivery robots directly at about $5,000 each. The devices will then be leased to clients, most likely as a purchase bundled with other services. Tortoise and its "army of independent contractors," made up of several dozen people, will still manage robot routes and charge a monthly fee based on kilometers traveled.
Tortoise vehicles are best suited for deliveries within 5 km of the store, depending on battery life, but can handle 8 km deliveries in a pinch. According to the company's CEO, if a retailer makes at least three deliveries of that distance per day, it can easily cover the monthly lease cost, especially given the marketing value of a branded robot spreading information about store offers.
The robots travel at an average speed of 6 km/h, which means they can reach a delivery point 1.6 km away in under 20 minutes and complete 8 to 10 deliveries during regular operating hours.
Tortoise provides retail clients with flexible APIs and web portals so sellers can customize the ordering process. Shoppers who want to buy a pack of Doritos and a tub of Ben&Jerry's at a local store typically have no option to choose robot delivery at the point of sale. Instead, after making a purchase, the customer receives a text message asking whether they want the products delivered by robot.
If they reply yes, they will receive text or in-app updates from the seller saying the robot is on its way. A unique link sent in the text message opens the compartment, and prerecorded messages on the robot tell the buyer when it has been unlocked so they can access their items.
The beauty of Tortoise's business model is that it is flexible enough to serve many different use cases, from urban to suburban, and for last-mile or middle-mile delivery.
“Our system logic is simple: just say which robot to send and where. We really like this kind of customer interaction on the platform, where they involve us in various communities”
The more communities in which Tortoise can place its delivery robots, the faster the company can reach its long-term goal of creating truly autonomous delivery robots. A hallmark of all deployments is a strategy of establishing a presence in markets before they allow commercial autonomous vehicles. As a result, the company will already be there when these markets inevitably legalize driverless vehicles.
Meanwhile, access to various use cases allows Tortoise to continuously collect data, which it uses to train its artificial intelligence. Autonomous operation requires huge amounts of local routing data, and phone connectivity is the most efficient way to aggregate it.
