Autonomous food delivery robots and drones could cut costs by several dollars to as low as US$1 (HK$7.8) per order, a shift that could unlock billions of dollars in profits for the global food delivery industry, Barclays said on Wednesday.
Global platforms such as DoorDash are partnering with autonomous delivery operators primarily through sidewalk delivery robots (SDRs) and drones to enhance their capabilities, which Barclays said signals a "clear strategic shift."
Autonomous delivery costs currently range from about US$5 to US$7 per order drop in early adoption markets with high labour costs, the British brokerage said, which is US$3 to US$4 cheaper than traditional rider delivery.
In the long term, autonomous delivery costs could decrease to US$1 per drop, implying potential savings of US$8 to US$9, compared with current rider deliveries in higher-labour-cost regions.
Assuming about US$4 cost savings per drop at long-term penetration levels, Barclays forecasts autonomous delivery could unlock about US$16 billion in an annual global profitability pool for food delivery platforms.
Autonomous delivery penetration is currently at a nascent stage, with less than 1 percent of global food delivery orders, Barclays estimates.
However, the brokerage expects it to rise to about 2 percent by the end of the decade and jump to roughly 10 percent by 2035.
Barclays expects DoorDash and Chinese food delivery leader Meituan to be near-term beneficiaries, given early commercial deployments, platform-level investment and exposure to higher labour costs that could be mitigated via automation.
It also projects Uber to be well-positioned, while it bets on Dutch technology investor Prosus to be a long-term beneficiary.
Delivery Hero, its Middle East unit Talabat, and Southeast Asia's Grab are positioned as medium- to longer-term beneficiaries, Barclays said, with automation developments being pilot-led and small.
Reuters
