What is happening: Amazon have announced a seven year deal with Balyo, a company that provides autonomous forklifts.
Balyo: The French company offer two different forklifts (Yale and Hyster), both of which can load between 3,000 to 15,000 pounds, depending on the configurations. Balyo’s new expected revenue for 2018 is $26.9 million.
Deal: The deal includes an interesting clause that if Amazon purchase at least $346 million worth of product in the seven years, they will be able to acquire up to 29% of Balyo’s stock at its current price.
Automation: This continues a trend of automation investment, as companies look to increase efficiency in their warehouses. DHL alone claim robotics has helped towards a 25% increase in productivity over three years.
What did a report from Deloitte say: “Autonomous robots can be used to improve the speed and accuracy of routine operations, particularly in warehousing and manufacturing spaces; work side-by-side with humans for added efficiency; and reduce the risk of employee injury in dangerous environments.”