Walmart Goes Robo: New $200M Bet To Keep Up With Amazon

Walmart's story over the past decade has been a relentless race to keep up with Amazon. So, in its latest bid to stay competitive, Walmart is pouring a staggering $200 million into self-driving forklifts. Yep, you heard that right. The world's biggest retailer is looking to turn its warehouses into a scene straight out of "The Jetsons," and they've got their eyes on hundreds of these robotic lift-trucks from a startup called Fox Robotics.

(Source: Yarn)

Here’s the goal. Walmart’s vision is to unleash the next phase of their automation plan with "FoxBots". (cute name, right?) Sounds like something I saw on the news about that Furry convention in Pittsburgh a few weeks ago. 

(Source: Yam)

They’ve already thrown $25 million at Fox Robotics, an Austin-based startup, with the aim of rolling out these robots in stages over the next few years. Of course, if the bots start acting more like WALL-E than a well-oiled machine, Walmart can pull the plug on the deal. It’s a classic case of “try before you buy” – if the bots play nice, they get to stay.

(Source: Disney)

During my research, I discovered that Amazon already has over 200,000 robots zipping around their warehouses worldwide. So, to put it mildly, Walmart has quite a bit of catching up to do. 

And it's not just Amazon that Walmart is playing cat and mouse with. The whole world seems to be jumping on the automation bandwagon. Elon Musk, never one to miss a headline, recently made news for his plan to deploy humanoid robots in his Tesla factories within the next year.

(Source: Luxus Magazine)

Now, you might be scratching your head and thinking, "Why haven’t I heard about this?" Well, these details have been kept under wraps until now. This move is all part of Walmart’s grand strategy to automate their warehouses, boost profits, and give Amazon a run for its money.

(Source: Reuters)

Why is Walmart going all-in on robotic forklifts? It boils down to two key reasons: efficiency and safety. Every day, 95 people in the U.S. find themselves in accidents with forklifts. And let’s not forget those viral videos where a single forklift mishap triggers a domino effect, toppling an entire warehouse floor like a set of giant Jenga blocks. If you’ve ever worked in a factory or warehouse, you’ll understand why Wally World is prioritizing the automation of their forklifts.

(Source: Make A Gif)

Now, Walmart's robotic revolution isn’t a new gig. They’ve been all in on automation to keep their shelves stocked, costs low, and prices competitive. In fact, analysts at Jefferies are even predicting that this robo-push could add a whopping $20 billion to Walmart’s profit by 2029. 

(Source: Reuters)

Remember back in 2022 when Walmart teamed up with Symbotic to automate 42 distribution centers? Well, Walmart owns a piece of Symbotic too – over 13% as of a January filing. And now they’re doing the same with Fox Robotics. 

(Source: Tenor)

Of course, both the Fox and Symbotic deals come with strings attached. They’ve got clauses to keep the tech out of the hands of Walmart’s biggest rivals. It’s kind of like having a backstage pass that only Walmart can use. Plus, key employees at Symbotic are locked into non-compete agreements and get competitive pay to keep them loyal.

(Source: Yarn)

So, how’s this affecting Walmart stock? Well, it seems like Wall Street isn't sold on the news just yet, as the stock has dipped over 1% in the past 5 days, proving that even robots can’t always lift investor spirits.

Stocks.News holds positions in Amazon, Tesla, and Walmart.