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Amazon (AMZN) Ups Robotics Game With Launch of Proteus

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Amazon (AMZN - Free Report) ramps up its robotics initiatives by unveiling its fully autonomous mobile robot called Proteus.

The new robot, powered by the company’s advanced safety, perception and navigation technology, is capable of working in the same area where humans work and automatically moving around employees.

Proteus does not need to be confined to any restricted area and can carry out seamless and safe interaction between technology and employees.

It can easily detect any human in its proximity and it waits until the person moves away.

We note that Proteus will be deployed in the GoCart handing areas across the company’s fulfillment centers. This will automate the GoCart operations of Amazon, which, in turn, will add to the efficiency of its fulfillment facilities.

With the deployment of Proteus, Amazon is expected to benefit from improved efficiency at its fulfillment centers, which are the main pillars of its growing e-commerce business.

This is likely to aid Amazon in gaining customer momentum, as Proteus will help address the increasing online customer orders more quickly, contributing well to the company's sales.

This, in turn, will help Amazon win investors’ confidence in the near term. Notably, the company has lost 34.6% in the year-to-date period.

Amazon.com, Inc. Price and Consensus

 

Amazon.com, Inc. Price and Consensus

Amazon.com, Inc. price-consensus-chart | Amazon.com, Inc. Quote

Competitive Scenario

With the launch of Proteus, the e-commerce giant remains well-poised to capitalize on the growth prospects in the booming global market for retail robots, which, per a report from Verified Market Research, is expected to hit $69.04 billion by 2028, witnessing a CAGR of 31.6% between 2021 and 2028.

Moreover, this is expected to boost Amazon’s competitive prowess against prominent retailers like Walmart (WMT - Free Report) and Kroger (KR - Free Report) .

However, given the upbeat scenario, the retailers are making concerted efforts to boost their robotics efforts, intensifying the competition for Amazon.

Walmart has been ramping up its robotics initiatives, as evident from its increasing number of moving shelf-scanning robots across its stores. Designed by Bossa Nova Robotics, the robots are equipped with cameras to detect any shelving error such as out-of-stock items, incorrect prices, wrong or missing labels or things disarrayed by customers.

Walmart’s partnership with Symbotic to introduce supply-chain robotics and automation solution across its 25 regional distribution centers remains noteworthy.

Meanwhile, Kroger’s collaboration with Ocado to bolster its warehouse automation endeavors remains a major positive.

Late last year, the company opened its automated facilities, namely Sheds, in Ohio and Florida with Ocado. The facility acts as a customer fulfillment center.

Growing Robotics Initiatives

The latest move of Amazon bodes well for its deepening focus on strengthening its robotics efforts.

Apart from the latest move, the company’s recent launch of a home robot called Astro, which rolls around the house autonomously, remains noteworthy.

Astro, which marks itself as the first domestic robot, is embedded with cameras, a microphone, motion sensors and a rotating screen with digital eyes. Further, it is equipped with Alexa, which makes it ‘Alexa on wheels.’

Amazon’s acquisition of Canvas Technology, a robotics startup known for its fully autonomous cart system, remains another positive. Notably, these cart-type robots are of great use in fulfillment centers as they aid in shifting goods around warehouses.

The company’s recent launch of a $1-billion robotics and logistics venture fund is another positive.

Amazon is gearing up to launch Cardinal, its robotic work cell that is capable of reading and selecting the right package, and placing it in a GoCart.

All the endeavors are expected to boost the prospects of Amazon in the robotics space.

Zacks Rank & Stock to Consider

Currently, Amazon carries a Zacks Rank #5 (Strong Sell).

Investors interested in the retail-wholesale sector can consider Arcos Dorados (ARCO - Free Report) , carrying a Zacks Rank of 2 (Sell) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Arcos Dorados has gained 18.7% in the year-to-date period. The long-term earnings growth rate for the ARCO stock is currently projected at 34.4%.


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