Urbx, founded by Lincoln Cavalieri, capitalizes on the automated fulfillment trend in grocery without needing to invest in a lot of real estate space, reports Grocery Dive. The company’s first concept, Urbx Market, utilizes vertical space instead of horizonal; with an automated fulfillment system that reaches up to 150 feet and can also fit into an 1,800-square-foot space.
"I think the whole process of how a grocery store is laid out is going to change significantly in the future, and it's going to be driven by e-commerce," he said.
The first location, slated to be built in Boston by the end of 2022, will focus on filling e-commerce orders via pickup orders and e-bike deliveries. There will also be a small storefront where shoppers can order using kiosks or with their phones, and robots will bring their orders to them. Order picking and packing will happen on a basement level, furthering the vertical plan.
According to Cavalieri, the store will cost between $5 and $7 million to build, which is comparative to a Whole Foods location, but with lower real estate costs and higher e-commerce productivity.
Another way Urbx sets itself apart from other automated fulfillment centers is how it uses robots that travel vertically and horizontally along fixed tracks along with predictive pricing software that optimizes their routes. In addition, there won’t be any product aisles or service departments for shoppers to visit, making it even more efficient.
"If you go to a machine to order and then you still walk to the produce aisle, it's just not as efficient and you can't really drive costs down the way you can by putting it all into one system," Cavalieri said.
Currently, Urbx is focused on integrating its fulfillment technology with grocery retailers and scaling up as a service provider. Cavalieri said the company plans to announce pilots with a few grocers in the coming months, along with a series A funding round. It also plans to double its workforce of 10. Ultimately, Urbx hopes to open thousands of urban markets.
"Over the next five to 10 years, there's going to be a pretty rapid transformation in terms of how we shop at grocery and big box retailers. I think the trend to automation is going to happen rather quickly, and I think it's going to be the dominant trend moving forward," Cavalieri said. Full Story