In recent years, robotic delivery services have been gaining popularity due to their efficiency, speed, and cost-effectiveness. One of the most successful companies in this space is Kiwibot, a Colombian startup with headquarters in Miami that specializes in high-driving autonomous robots for food delivery.
Kiwibot has been making significant strides in the industry, and it recently secured a $10 million financing partnership with asset financing group Kineo Finance. This brings the company’s total funding amount to $24 million, including the same amount raised one year earlier, in February 2022.
The goal of this latest financing agreement, as with the previous round, is to grow Kiwibot’s robotic fleet and disrupt the delivery-as-a-service (DaaS) industry. The new funds will reportedly be used to help with the company’s manufacturing and scaling needs, allowing it to expand its service to more locations.
Kiwibot’s delivery service is already available via apps like Grubhub and Sodexo’s Everyday, and it reduces food delivery costs by up to 65%. These robots are equipped with GPS technology, advanced camera sensors, and artificial intelligence (AI) to generate optimal routes, avoid obstacles, and provide cost-effective service. Kiwibot’s service lets customers launch last-mile deliveries at a fraction of the time and cost without the hassle of hiring a courier.
The partnership with Kineo Finance is significant because the financing group is known for providing smart asset financing for startups while limiting dilution. This financing group aims to build lasting mutually beneficial alliances with the companies they support and partner with them in the long run. This partnership marks Kineo’s first involvement in the DaaS industry, presenting a significant opportunity for startups to consider alternatives to venture lending and venture capital funding.
Kiwibot’s growth in the DaaS sector has made it an attractive option for Kineo Finance, which is committed to encouraging automation and digitalization initiatives in various industries to drive the adoption of high-tech companies’ equipment.
Kiwibot has already delivered food for restaurants like Dunkin Donuts, Subway, Pizza Hut, and Mr. Beast Burgers. Having served 6,942 students and connected 133 restaurants with customers in 2022, Kiwibot is committed to a zero-carbon future, eliminating the gas emissions of common delivery vehicles.
Other companies in this space include Starship Technologies and Postmates, who have also been testing their delivery robots in various cities across the United States and the United Kingdom. Nuro is another notable player in this space, with its autonomous delivery vehicles that have been used to deliver groceries and other goods in select markets.
In related news, Flytrex, a drone delivery service provider, recently received the Standard Part 135 Air Carrier Certification from the Federal Aviation Administration (FAA), granting Causey Aviation Unmanned (CAU), its partner, the certification to provide drone delivery services beyond the line of sight. The certification allows Flytrex and CAU to deliver goods to more than 82 million properties across the United States. Its restaurant partnerships include Charleys Philly Steaks, Brinker International, Jersey Mike’s, Taco Bell, Starbucks, Papa Johns, and Wendy’s.
According to a recent report by MarketsandMarkets, the global autonomous last-mile delivery market is expected to grow from $11.9 billion in 2021 to $75.7 billion by 2030, at a CAGR of 22.7% during the forecast period. As consumers increasingly opt for online food delivery, the demand for restaurant food robotic delivery services is expected to rise, which bodes well for companies like Kiwibot.
