Recently Amazon announced that it would soon be investing in a French-based company, Baylo for self driving forklifts trucks to boost up sales tremendously. Warehouse automation is an excellent way by which Amazon speed up its deliveries by cutting down the cost.
At present Amazon features floor automation (in only about 13 of its fulfillment centers out of 75 as of till June 2016), involving robots developed by Kiva Sytems, which Amazon bought at a price of $775 million in 2012. Amazon has more than 100,000 robots in its branches around the globe as recorded till 2017.
Amazon is a marketing giant, and the largest retailer in the world; so they are always in search of ways to extract maximum efficiency to maintain their reputation and dominance. Through this deal, Amazon will redouble their efficiency, providing faster deliveries; and at the same time cutting down their revenues spend on manual management.
The chief executive of Baylo, Fabien Bardinet stated on Thursday that,
“This agreement represents an unprecedented opportunity for Baylo to grow its business and support the soundness of our investments over the years to perfect our robotic solutions.”
The terms of the deals as stated by Amazon is that Amazon will receive free stock warrants. These warrants represent up to 29 percent of Baylo’s total capital; upon which it will exercise, depending on orders of the company’s products.
What’s the benefit for Amazon in getting self driving forklifts trucks?
In the intervening time, Amazon can use the full 29 percent; if Amazon places orders up to EUR 300 million ($346 million) of Baylo’s Enabled products.
Baylo’s navigation system turns manual forklifts into self driving forklifts trucks. And further adding to this is an amazing financial fact which is; Baylo’s members had expected that the 2018 revenue to be around 23.3 million Euros; which is up by 40 percent than the previous year.
The deal is expected to benefit both the ends by cutting their expenditure cost; while boosting up their revenues massively than the previous years.