Amazon (NASDAQ: AMZN) launched its new delivery robot, Scout, on Thursday.
Scout will be tested in Snohomish County, Washington, for Prime customers who request same-day, one-day, or two-day delivery. Testing will be limited to daylight hours on weekdays, as sidewalk traffic is the lowest then. The robot will have a human chaperone initially.
"We're starting with six Amazon Scout devices, delivering packages Monday through Friday, during daylight hours," Amazon said in a statement. "The devices will autonomously follow their delivery route but will initially be accompanied by an Amazon employee. We developed Amazon Scout at our research and development lab in Seattle, ensuring the devices can safely and efficiently navigate around pets, pedestrians and anything else in their path."
The announcement caused Amazon's stock to rise by 14.91 points per share, as investors lauded the new development.
Amazon hasn't stopped innovating in its consumer goods and e-commerce business, even as it expands into other B2B avenues such as Amazon Web Services. Scout will also save costs, as it streamlines delivery processes, reduces the need for human capital, and limits potential human error. Moreover, the company's Delivery Service Partners has impressive implications for potential new partnerships in the form of smaller logistics companies that can work with the e-commerce behemoth.
"We are delighted to welcome Amazon Scout into our community. Similar to Amazon, we are always looking for new ways to better deliver service to our residents," said Snohomish County Executive Dave Somers in a statement. "From the latest Amazon innovation to cutting edge technology, Snohomish County is a great place for entrepreneurial creativity."
Amazon is not the first to launch a delivery robot. Multiple smaller players have already entered the space. One such startup is Starship, which was launched in 2014 and has clocked in 62,000, robot-driven miles by October 2017. Another example is Marble, which delivered falafel through robotic means for Yelp Eat24. Kiwi has also dabbled in delivering food around UC Berkley's campus. Various companies have developed drones for use in delivery. Amazon began its own delivery drone project in 2013, which is still in development.
Amazon is, however, the first company with enough scale and power to fundamentally change the shipping world.