Close Ad

The Spoon

Daily news and analysis about the food tech revolution

Bolt

Robot Delivery Startup Starship Teams Up With European Food Delivery Company Bolt

Sidewalk robotic delivery Starship Technologies announced this week they are teaming up with Bolt, a European multiplatform delivery company, to launch a new food delivery service using Starship’s autonomous robots in Tallinn, Estonia.

The launch, centered in Tallinn, has the potential to reach up to 180,000 residents according to Bolt. Starship’s robots will operate from three Bolt Market locations—Tulika, Pallasti, and Mustika—via the Bolt Food app. During the launch period, customers will get to use the service for free (the companies did not disclose how much the service will cost post-launch).

Starship robots can carry up to three bags of groceries within a 3-kilometer radius. Bolt customers can opt for “robot delivery” through the app, meet the robot outside their location, and unlock it using the app to retrieve their items.

“This collaboration is not just about convenience and choice,” said Ahti Heinla, who cofounded Starship Technologies with fellow Skype cofounder Janus Friis. “Integrating our robots into Bolt’s service offers a scalable, sustainable delivery solution that reduces traffic and emissions. This is an exciting step forward toward greener cities across Europe.”

Starship, which was the first company to launch the first sidewalk delivery robot a decade ago, has completed over 7 million deliveries globally and traveled more than 14 million kilometers in 100 locations worldwide, according to the announcement. Operating at L4 autonomy since 2018, the company says its robots perform 150,000 crossings daily.

The two companies plan to expand beyond Tallin, but have yet to give a timetable for expansion. The news comes a week after Starship became the first sidewalk delivery platform approved for delivery in Minneapolis, delivering from Panda Express, Starbucks and Erbert & Gerbert’s.

Estonia: Ride Hailing Startup Bolt Raises €600M to Get Into Grocer Delivery

Bolt, an Uber-like rideshare company based in Estonia, has raised €600 million (~$713M USD) to branch out into grocery delivery, CNBC reported today. New investors in the round include Sequoia and fund managers Tekne and Ghisallo, along with existing investors G Squared, D1 Capital and Naya. With its new funding, Bolt is now valued at roughly $4.75 billion.

Just like Uber, Bolt saw its ride hailing business decimated by the pandemic last year. Bolt told CNBC that while its ride hailing business has recovered, the company has seen dramatic growth in its grocery delivery business. The company operates 15-minute grocery delivery and has plans to roll the service out to 10 more European countries including Sweden, Portugal and Croatia over the next few months.

But as it does expand its grocery delivery footprint, Bolt will be facing a fiercely competitive, well-funded landscape. Europe in particular has been a hot spot for grocery delivery this past year, with a number of startups bulking up their warchests with hundreds of millions in new funding. Spanish startup Glovo has raised $1.2 billion, Turkey-based Getir has raised $1 billion, Czech-based Rohlik has raised $402 million, and Germany-based Flink has raised $304 million.

The big question now looming for all these services is whether they can economically scale, a matter complicated by the fact that services such as 15-minute grocery delivery are fast becoming a commodity. If there are half a dozen speedy grocery delivery services in a city, customers will likely gravitate towards the cheapest option. This race to the bottom is driving some speedy grocery delivery services here in the U.S. to diversify more into ghost kitchens and private label ready-to-eat meals.

It’s also worth noting that here in the U.S., Uber is investing more heavily in the grocery delivery space. The company recently acquired the remaining 47 percent of grocery delivery startup Cornershop, and partnered with Albertsons to offer grocery delivery in 400 U.S. cities.