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Woowa Bros.

April 15, 2020

From Michigan to Korea, Robots Keep Food Rolling When People Can’t

Prior to this pandemic, the big ethical questions surrounding food robotics and automation was their impact on loss of human jobs. But as COVID-19 has forced us to social distance and rethink our regular activities, replacing humans with robots for food delivery seems like a more ethical choice. Robots, after all, don’t need face masks, can be placed in frontline situations and won’t accidentally cough on your groceries.

As it’s done with many other aspects of the meal journey, the coronavirus is accelerating the adoption of certain types of food tech — like robots — that otherwise would have come to market on a much longer timeline.

The Detroit News posted a story yesterday about the increased demand for Refraction’s delivery robots in Michigan. Refraction makes the rugged, three-wheeled, self-driving REV-1 delivery bot. It’s bigger than Starship’s cooler-sized robots, yet not as big as Nuro’s self-driving pod vehicles.

At the end of last year, Refraction kicked off a beta program to deliver takeout meals from four different Ann Arbor restaurants. The Detroit News reports that Refraction now has more than 400 restaurant partners and the company’s fleet of five robots is running at capacity. Refraction is also working to get into grocery delivery.

The robots are cleaned between deliveries, and Refraction has added UV lights to the interior of the robot to further sanitize the cargo compartment. The robot is also contactless as consumers use their phone to unlock and open the robot to retrieve their food.

Refraction’s robots also, obviously, reduce human-to-human contact for people receiving food while sheltering in place. Our country may regain a certain amount of freedom to move in the coming months, but we’ve had a pretty healthy fear of other people pumped into us for the past couple of months. Robots may be more welcome once we’re past this.

These robotic advantages could also be applied beyond restaurant delivery and into restaurants themselves. The Korea Times reports that this week Woowa Bros. announced it would offer free rentals of its “Dilly” server robot to 50 restaurants in Korea for two months starting in mid-April.

The Dilly is an autonomous robot with a series of racks meant to work the front of house, delivering food from the kitchen to tables and bringing empty plates back.

Woowa Bros. launched the Dilly server program back in November and charged roughly $773 a month (with a two-year contract) for the robot. The Korea Times writes that 164 restaurants applied for the program, and currently Woowa has 23 robots operating in 16 restaurants across Korea.

It’s entirely likely that we’ll see more server robots in restaurants here in the U.S. as well. Though coronavirus has permanently shuttered at least 3 percent of restaurants across the nation, there’s already talk of what restaurants will look like when dine-in rooms re-open. Expect fewer people, disposable menus, and possibly servers wearing masks.

One has to wonder what people will prefer interacting with: a server wearing a mask or a robot? To be fair, a lot more of us will probably be wearing masks in public in the near future, but the cold, sterility of a robot may be more appealing to nervous people just starting to come out from sheltering in place.

Refraction and Woowa aren’t the only examples of robots gaining more popularity. Starship recently expanded the use of its food delivery robots beyond college campuses and onto city streets in Arizona and around Washington DC. And Nuro just got the greenlight to test its autonomous delivery vehicles on public streets in California.

But it’s not just the consumer end of the robotic equation that we should be thinking about. While robots may help reduce human-to-human contact when accepting your food, they also relieve some of the new dangers of being a delivery person. Let’s face it, delivery people have worked hard during this outbreak and have often gotten the short end of the gig economy stick. Ideally the food industry can use any savings from automation to help fund new job opportunities for humans.

The ethical questions surrounding the availability of human jobs in an increasingly automated world will remain and need to be addressed in a thoughtful manner after this virus recedes. But in the shorter term, robots may help reduce transmission of a deadly virus and perhaps ease a little bit of anxiety around getting our food delivered.

December 13, 2019

Delivery Hero Agrees to Buy South Korean Food Delivery Service Woowa Bros. for $4B

Delivery Hero announced today that it has has agreed to buy South Korean food delivery rival Woowa Bros. for $4 billion, according to an article published on The Wall Street Journal. 

Berlin, Germany-based Delivery Hero is one of the largest restaurant food delivery companies in the world, operating in over 40 markets across Europe, Latin America, Asia, and the Middle East. But in South Korea, Woowa Bros. is even bigger, with its Baedal Minjok service holding a 75 percent share of the food delivery market. The company also builds its own food delivery robots (for which it raised $320 million in 2018) and is an investor in restaurant robotics company Bear Robotics.  

Currently, Delivery Hero’s Yogiyo food delivery app ranks second behind Woowa Bros.’ Baedal Minjok service in South Korea. The consolidation of the two companies means Delivery Hero will gain an even wider reach in Asia and especially South Korea — the world’s fourth-largest market for food delivery.

Competition in that market is fierce but rapidly consolidating. Even with 10 million active users in Korea, Baedal Minjok is still competing with e-commerce company Coupang, which is backed by SoftBank and launched a food delivery service this year. It will not, however, go toe-to-toe with Uber Eats, which shuttered its business in South Korea in September citing “competitive pressures.” The deal with Delivery Hero will be a boost for Woowa Bros. and also give Delivery Hero access to more potential users. It will also intensify competition within the food delivery space even more.

Even so, Delivery Hero CEO Niklas Oestberg said on an analyst call that he does not expect antitrust issues to surface as they have with Amazon’s recent investment in Deliveroo in the UK.

November 18, 2019

Woowa Bros. to Rent Out In-Restaurant Bots that Deliver Food to Your Table

When we’ve written about Korean company Woowa Bros.’ robotic ambitions in the past, it’s been around delivering food from restaurants to your customers’ own homes. But the company announced a new plan on Monday to have its Dilly ‘bots deliver food inside restaurants to your table, too.

The Aju Business Daily reports that Woowa is launching a robot rental program wherein restaurants can pay 900,000 won (~$773 USD) per month with a two-year contract.

Aju Business Daily is light on details, saying only that the Dilly can carry food to four tables at a time and bus dirty dishes back to the kitchen. That sounds a lot like the Penny robot Bear Robotics offers (and tested out at a Pizza Hut in Seoul last year). Woowa is an investor in Bear Robotics, and we’ve reached out to Bear’s to see if its technology is involved in Woowa’s new offering.

As off-premises dining continues to play an increasingly important role for restaurants, many players look to build autonomous robots for food delivery (Postmates, Kiwi, Starship, etc.). There aren’t as many focused on in-store dining, which presents an opportunity for companies like Woowa and Bear.

Woowa Brothers operates the popular Baedal Minjok food delivery app in South Korea, and the company has not been shy about building out its robot fleet. Last December the company received a $320 million investment round in part to help it develop more autonomous robots, and this past July the company formed a partnership with UCLA to research and develop cooking robots.

April 16, 2019

Here’s The Spoon’s 2019 Food Robotics Market Map

Today we head to San Francisco for The Spoon’s first-ever food-robotics event. ArticulAte kicks off at 9:05 a.m. sharp at the General Assembly venue in SF, and throughout the daylong event talk will be about all things robots, from the technology itself to business and regulatory issues surrounding it.

When you stop and look around the food industry, whether it’s new restaurants embracing automation or companies changing the way we get our groceries, it’s easy to see why the food robotics market is projected to be a $3.1 billion market by 2025.

But there’s no one way to make a robot, and so to give you a sense of who’s who in this space, and to celebrate the start of ArticulAte, The Spoon’s editors put together this market map of the food robotics landscape.

This is the first edition of this map, which we’ll improve and build upon as the market changes and grows. If you have any suggestions for other companies or see ones we missed you think should be in there, let us know by leaving a comment below or emailing us at tips@thespoon.tech.

Click on the map below to enlarge it.

The Food Robotics Market 2019:

December 21, 2018

South Korea’s Woowa Bros. Gets $320M Investment to Build More Robots

South Korean company Woowa Bros., which runs the Baedal Minjok food delivery app, announced yesterday that it has received a $320 million from Hillhouse Capital, Sequoia Capital and GIC. This brings the total amount raised by Woowa to $482.8 million.

According to Reuters, Woowa says it will use the new funding to expand internationally and, (more excitingly, from my perspective) develop more autonomous delivery robots like its Dilly (pictured above).

Robots are so hot right now, and there’s a wave of li’l rover bots that will be hitting the streets next year. In addition to players like Kiwi, Starship and Marble, Postmates recently introduced its own delivery robot. Postmates is actually the most apt comparison as both Woowa and Postmates offer delivery businesses. Adding robot transport to their existing businesses gives them more control of deliveries further up the stack.

As I wrote back in July, Kim Bong-jin, CEO and Founder of Korean company Woowa Brothers is actually quite thoughtful and forward thinking when it comes to delivery ‘bots. In addition to making delivery cheaper and more secure, Bong-jin wants Woowa robots to double up their work. In addition to dropping off food, the robots would then take back your recycling. Taking that one step further, it’s not too hard to imagine restaurants employing re-usable food containers that could be retrieved, cleaned and loaded up with another delivery meal to cut down on waste.

Woowa isn’t just interested in delivery robots. Earlier this year, the company invested $2 million in Bear Robotics, which makes Penny the front of house restaurant robot. Penny got a job shuttling food and empty dishes at Seoul Pizza Hut location, and was a big hit on-stage at our recent Smart Kitchen Summit in Seattle.

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