How may a four-mile-per-hour cooler on wheels affect logistics?

Last-mile delivery -the transportation of products from distribution hubs to consumers –is the most expensive leg of logistics since it does not benefit from economies of scale. The cost of last-mile delivery by human drivers is now $1.60, but this figure might plummet to $0.06 if autonomous delivery robots multiply.

On a mile per kilowatt basis, autonomous delivery robots are nearly seven times more efficient than electric automobiles. Hardware, power, and remote operators are the critical expenditures for self-driving delivery robots.

Unlike in electric cars, the battery is not the most expensive component in slow-moving robots. Because air resistance is a function of velocity squared, a robot going at four miles per hour loses significantly less energy to air resistance than a car travelling at highway speeds. Consequently, unlike more typical electric cars, rolling robots do not require big batteries, cutting both hardware and electrical costs.

Artificial intelligence may progress sufficiently to enhance their unit economics if rolling robots can provide last-mile delivery at $0.06 per mile. A remote operator in charge of directing robots in challenging or perplexing scenarios would most likely supervise around 100 robots, accounting for more than half of the cost per mile, as indicated below.

Remote operators should handle bigger fleets of robots as autonomous capability develops, lowering expenses per robot.With low-cost last-mile delivery, heretofore, incredible business opportunities should emerge.

Because the typical American home resides 2.14 miles from the nearest supermarket, robots should be able to transport groceries at a reasonable cost, and supermarket meal plans might threaten firms like Blue Apron[APRN] and HelloFresh[HFG.F].

While individuals carrying available products cannot wait, robots will present clothes and accessory options and wait for customers to choose and choose. E-commerce enterprises should be early adopters as they shift to last-mile delivery, intending to exceed a 9% share of total retail sales.