Rivian electric delivery vans (EDVs) for Amazon (Source: Rivian)
2024 was a big year for Amazon – in addition to being the first online seller of Hyundai cars, the company kept busy with a series of autonomous forklifts, order picking robots with AI capabilities, and a milestone of 20,000 electric delivery vans on the road.
Let's start with the vans. Amazon recently reached the milestone of putting 20,000 of its AI-enhanced delivery vans on US roads.
Amazon famously partnered with Rivian to develop those vans, pouring a lot of money into an idea that (at the time) was more than a sketch. Less than three years later, the vans were on the road, delivering free, 2-day trash deliveries to customers who couldn't be bothered to drag themselves to Costco — and it's hard to argue with the success of the vans.
Amazon EVs are everywhere
To date, Amazon vans from Rivian have delivered nearly one billion packages to US customers. Amazon plans to roll out 100,000+ delivery vans by 2030.
On the warehouse side, the self-driving forklift market is growing tremendously, and is expected to expand at a compound annual growth rate (CAGR) of 11.4%, putting the self-driving forklift market at something like $12.5 billion by 2034 with 2- The 4-ton segment accounts for about 53% of total revenue.
Like the Fox Robotics forklifts used in rival Walmart's warehouses, the autonomous forklifts used in Amazon's smart warehouses are equipped with advanced sensors to help them navigate complex terrain and perform critical tasks.
Despite the high upfront costs of autonomous forklifts, they can provide companies like Amazon with long-term benefits. As EV Magazine writes:
At Amazon's fulfillment centers, autonomous forklifts play an important role in optimizing the flow of goods. By reducing the reliance on manual labor, they reduce human errors, improve accuracy in material handling and allow for faster order processing … forklifts work continuously without breaks, increasing productivity and ensuring the fulfillment of customer orders quickly and efficiently.
STELLA NOLAN, EV MAGAZINE
Amazon entered into a seven-year deal with Balyo, a French company that makes autonomous forklifts based on the Yale and Hyster models, back in 2019. Supply Chain Dive reported that the deal could be worth $346 million and see the online retailer acquire 29% of the robotics company's stock.
Electrek's Take
It seems strange to be discussing a robotic forklift just weeks after reporting on VW and Audi threatening to close factories.
That said, we are a long way from the days when Sam Walton would go on TV to talk about Walmart being the place to buy “Made in America” products. But, while it's easy enough to dismiss Amazon's automation efforts as anti-labor, the reality is more complex as the nationwide operator shortage continues to impact transportation and construction.
SOURCES: EV Magazine, Supply Chain Dive, the Buzz, Market Research Future.
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