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6 River Techniques’ Chuch autonomous cell robots. | Supply: 6 River Techniques
When Shopify offered 6 River Techniques, many assumed Ocado paid pennies on the greenback to accumulate the autonomous cell robotic (AMR) maker. Now we all know precisely how good of a deal Ocado received.
In its 2023 mid-year monetary report, Ocado mentioned it paid simply $12.7 million to accumulate 6 River Techniques. For comparability, Shopify paid $450 million to accumulate 6 River Techniques in September 2019. Ocado paid roughly 2.8% of what Shopify paid for six River.
Ocado mentioned the 6 River enterprise “has an excellent consumer checklist, is debt-free, money move constructive, and generates constructive EBITDA.” I’m no mathematician, however taking a $437.3 million loss can’t be good, even if you happen to’re attempting to dump a enterprise that’s now not a part of future plans to chop prices.
Based in 2015, 6 River Techniques builds AMRs for the logistics and non-grocery retail sectors. The AMRs present automated help to human pickers in a warehouse, working collaboratively with them. In line with Ocado’s monetary report, at press time, 6 Rivers’ Chuck AMRs have been deployed in additional than 100 warehouses worldwide,
with greater than 70 prospects.
Primarily based in Massachusetts, 6 River Techniques was based by Rylan Hamilton, Jerome Dubois and Chris Cacioppo, who’ve deep information of robotics, software program and success operations. Dubois and Hamilton are former staff of Kiva Techniques, the well-known AGV maker acquired by Amazon in 2012 for $775 million.
Rising robotics portfolio
6 River will change into a part of Ocado’s Clever Automation (OIA) division. Ocado mentioned OIA was established to deliver Ocado’s automation applied sciences to shoppers exterior grocery. OIA will function a capital-light materials dealing with gear gross sales mannequin designed in order that upfront charges higher match Ocado’s money outflows and can largely leverage current OSP know-how. Ocado mentioned discussions have progressed with a number of potential shoppers throughout a spread of industries.
The 6 River acquisition additionally provides a brand new kind of robotic – AMRs – to Ocado’s portfolio. The corporate has developed its personal automated storage and retrieval system (ASRS) for years for its on-line grocery enterprise. Ocado not too long ago received a lawsuit in opposition to fellow ASRS developer AutoStore, wherein AutoStore should pay Ocado a $256 million settlement over the subsequent two years.
In 2020, Ocado acquired two U.S.-based robotics corporations for $287 million. It bought San Francisco-based Kindred Techniques, which focuses on robotic piece-picking, for about $262 million and Las Vegas-based Haddington Dynamics, a developer of low-cost robotic arms, for about $25 million. Ocado mentioned the acquisitions will allow it to enter new robotics markets exterior of grocery.
Pulling all of it collectively
I not too long ago spoke to an investor who was concerned in promoting a robotics firm to Ocado. This investor, who wished to stay nameless, mentioned the 6 River acquisition makes strategic sense for Ocado, however that it’s going to take time for the plan to come back collectively.
“Ocado doesn’t care concerning the $40-50 million in yearly income that 6 River’s AMRs produce,” the investor mentioned. “Ocado desires to have the ability to provide Kroger’s and others a soup-to-nuts resolution. However every of these programs – 6 River’s AMRs, Kindred’s piece-picking robots and Ocado’s ASRS – have been initially designed for various finish markets.”
One supply advised The Robotic Report “the entire 6 River Techniques robotics staff was axed” earlier than the acquisition by Ocado. Absolutely Ocado has engineers who can look below the hood of 6 River’s AMRs and make sense of all of it. However it should possible be a very long time earlier than Ocado’s robotics platforms will all work seamlessly collectively.
