Amazon and the French warehouse robot company Balyo reached an investment agreement

According to foreign media, Amazon and French warehouse robot company Balyo have reached an investment agreement, Amazon can hold nearly one-third of the latter in the next seven years. The agreement aims to promote the sale of the French company’s driverless forklift technology.

Warehouse automation has always been a key factor in Amazon’s cost cutting and speeding up delivery. The warehouse automation market is currently valued at more than $46 billion and is expected to nearly double in the next five years. This growth can be largely attributed directly to the boom in e-commerce and consumer soaring demand for fast and convenient online retail.

Consumers want to receive the goods they buy as soon as possible. It is a fact that both Amazon and Alibaba set high standards and promised that most products will be delivered the next day and the same day. Matching this accelerated pace of implementation requires advanced analysis, automation, and optimized supply chain solutions that can only be achieved through the use of AI.

The world’s largest online retailer currently uses robots developed by Kiva Systems, which was acquired by Amazon in 2012 for $775 million.

(Amazon Kiva Warehouse Robot)

“For Balyo, this is an unprecedented development opportunity. The company can develop its business and have a stable investment in a few years to complete the robot solution.” Balyo CEO Fabien Bardinet ) said on Thursday.

Under the terms of the agreement, Amazon will receive a 29% free share option from Balyo Capital. Based on the number of orders for the company’s products, Amazon can decide whether to exercise.

If Amazon orders Balyo products for an amount of 300 million euros ($346 million), then Amazon can exercise its options.

Balyo’s navigation system transforms forklifts into driverless vehicles. The company said revenue in 2018 reached 23.3 million euros, an increase of 40% year-on-year.

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