Yandex N.V.’s ( YNDX Quick Quote YNDX - Free Report) division Yandex Self-Driving Group is leaving no stone unturned to strengthen presence in the autonomous vehicle space through partnerships and product expansion.
This is evident from Self-Driving Group’s latest collaboration with
Just Eat Takeaway.com’s ( GRUB Quick Quote GRUB - Free Report) Grubhub for quicker and low-cost food deliveries on college campuses in the United States via its autonomous delivery robots.
Notably, Grubhub has partnerships with more than 250 college campuses across the United States. Students of these campuses can access restaurants both on and off campus for pickup and delivery by putting their meal plans into their Grubhub accounts.
The collaboration will be providing food delivery to the campuses by Yandex robots later this fall.
Yandex robots can easily move to any area of the campus wherein cars cannot go and, operate in any weather and pedestrian crossing conditions. Also, these can be easily operated through the Grubhub app.
Yandex robots have already been delivering food and grocery orders in Russia. Recently, Yandex has started delivering food orders in Ann Arbor, MI.
We note that the latest collaboration will bolster Yandex’s presence in the United States by expanding its reach to college campuses.
Autonomous Delivery Robots Market Holds Promise
The latest move poises Yandex well to expand presence in the booming autonomous delivery robots market.
The market is growing in recent times due to increasing adoption of autonomous delivery robots in various industries including healthcare, hospitality, retail and logistics.
Consumers are now looking for better and efficient delivery service, which is driving e-commerce players and omnichannel retailers to adopt these robots for better last-mile delivery experience.
The coronavirus pandemic is propelling this market further due to increasing demand for contactless delivery.
According to the Mordor Intelligence
report, this market is likely to hit $3.82 million by 2026, witnessing a CAGR of 49.01% between 2021 and 2026. Competitive Scenario
Given this upbeat scenario, not only Yandex but also other players including Starship Technologies, Nuro,
Amazon ( AMZN Quick Quote AMZN - Free Report) and Aethon are making strong efforts to expand their autonomous delivery initiatives.
Early this year, Starship Technologies collaborated with 16 college campuses across the United States to deliver food by its autonomous miniature coolers on wheels.
Additionally, Nuro partnered with Domino’s,
Kroger ( KR Quick Quote KR - Free Report) and Walmart to deliver food and other products to customers — who place order with one of the partners — via its autonomous vehicle, R2.
Moreover, retail giant Amazon continues contactless delivery of products to customers amid the pandemic by Scout vehicle robots.
Further, Aethon’s mobile robots are playing a major role in healthcare organizations amid the pandemic for delivering medications, lab specimens, meals, and larger loads including linens and trash.
To conclude, the latest move of Yandex is expected toboost its competitive prowess against other companies.
However, the pandemic-induced uncertainties are creating challenges in the semiconductor market, thereby affecting the availability of raw materials required for manufacturing autonomous robots. This remains a major risk for the company.
Currently, Yandex has a Zacks Rank #4 (Sell).
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