Brave, New World of Robots-as-a-Service

In a nutshell, what is Robot-as-a-Service?

A complete robot-as-a-service solution goes beyond the simple leasing of industrial or service robotic hardware. It offers users continuous value while charging users based on what they use or need. The continuous value generation comes from the combination of a service app, a service cloud and a generally available fleet of robots that can be deployed as-needed.

Users access the service app, either on web browsers or mobile devices or both, to request for robotic services and obtain data reports on their usage. The service cloud acts as a co-ordination center for monitoring the general availability of robotic resources and for scheduling, dispatching and instructing robots to their tasks and locations. Under a RaaS service level agreement (SLA), it is the responsibility of the service provider to maintain and ensure the operational readiness and uptime of the robotic fleet.

How users benefit from Robot-as-a-Service offerings

Re-allocation of freed-up capital to other projects

Re-allocation of freed-up capital to other projects Ability to account recurring RaaS costs as operating expense

Ability to account recurring RaaS costs as operating expense No risk from asset deterioration and obsolescence

No risk from asset deterioration and obsolescence No costs arising from maintenance of equipment/cloud/apps Under the Robot-as-a-Service model, customers do not need to make upfront investments to purchase the robots and maintain them as assets that incur maintenance costs and depreciate over time. Instead, they purchase robotic services from RaaS companies and are billed on a recurring basis, based on usage, time or other metrics. The benefits to the customers are tremendous:

Why robotic companies pursue the Robot-as-a-Service model

One example of a RaaS provider is Avidbots, which provides its floor-scrubbing Neo service robots at US$4-6 per hour ( source ).

Lower friction in sales process

Lower friction in sales process Competitive edge over companies that sell robotics solutions as CAPEX model.

Competitive edge over companies that sell robotics solutions as CAPEX model. Accelerate and strengthen market share For robotics companies, RaaS reduces friction in the sales justification process and enables them to have a clear, sharp and compelling edge over traditional robotics company that require customers to make hefty upfront purchases. In addition, customers that have accepted and deployed the RaaS solution are generally less willing to switch to another robotics service provider, thus enabling robotics companies to strengthen their market share.

But can they really afford it?

Geek+ Robotics is an example of a RaaS provider that has expanded its fleet and operations rapidly in the warehouse and logistics market, with more than 7000 robots worldwide across over 200 projects. ( source ).

Financial capital to produce a robotic fleet?

Financial capital to produce a robotic fleet? Financial resources to scale up teams/operations for a RaaS strategy?

Financial resources to scale up teams/operations for a RaaS strategy? Cash-flow financing to sustain operating costs until RaaS turns in net positive income? For more insights, read our other report on Should every robotic company start rushing out a RaaS offering now? Not so fast - in the RaaS model, the downside is that the hefty, upfront costs of building up a robotic fleet (and risks of maintaining the fleet) are transferred from the customers to the robotics companies. Robotics companies intending to start a RaaS offering must ask these hard questions:For more insights, read our other report on 2019 Robot-as-a-Service Business Models and Monetization

Who and where are the RaaS Players today?

Robot as a Service, or RaaS, offerings compete very well in industries that are traditionally labor-dependent and sensitive to minimal labor wages. These industries include the cleaning services, safety and security services, delivery services, warehouse operations and manufacturing operations. For each industry, we will look at the industry-specific RaaS companies and the types of robots used in the industry below:

1 CLEANING ROBOTS-AS-A-SERVICE

Cleaning Robot-as-a-Service Solutions

There are at least 10 cleaning robot-as-a-service offerings in the global market, providing commercial floor cleaning/scrubbing, window/facade cleaning or room cleaning services. The RaaS pricing models range from hourly fees (US$4-$6 per hour) to monthly charges (US$215 to 1.5K per month).

List of Cleaning Robot-as-a-Service Companies (source)

Robotic companies in the commercial floor cleaning segment include Avidbots (Canada), Lionsbot (Singapore) and Softbank Robotics (Japan). Room-cleaning/housekeeping RaaS companies include Peanut Robotics (USA) and Mira Robotics (Japan). Window/facade cleaning RaaS companies include KITE Robotics (Netherlands), Skyline Robotics (Israel) and Wall Robotics (Finland).

Find out more about these companies and their RaaS business models in this list of cleaning robot-as-a-service companies worldwide

2 SECURITY ROBOTS-AS-A-SERVICE

Security Robot-as-a-Service Solutions

In cities where the security workforce is increasingly costly and aging, hiring and ensuring adequate security is becoming a serious challenge. Security robot-as-a-service (RaaS) enables companies and security contractors to fill gaps in their security coverage and yet avoid having to invest in high, upfront capital expenditure. The general security RaaS model is on monthly rental basis, with each robot costing easily from US$1.5K per month to as high as US$10K per month.

List of Security Robot-as-a-Service Companies (source)

Companies offering security robot-as-a-service solutions include Cobalt Robotics (USA), Knightscope (USA), SMP Robotics (USA), OTSAW Digital (Singapore) and Ademco (Singapore). Find out more about these security RaaS companies and their business models in this list of security robot-as-a-service companies worldwide

3 DELIVERY ROBOTS-AS-A-SERVICE

Delivery Robot-as-a-Service Solutions

Autonomous delivery vehicles (ADVs) can travel on public roads and are capable of handling city-range or town-range deliveries (5-20km radius). Companies in this segment include Robomart (USA), nuro (USA), AutoX (USA) and UDelv (USA).

List of Delivery Robot-as-a-Service Companies (source)

Local delivery robots make deliveries within 5-6km radius (typically using sidewalks and small-roads) and generally target local communities and campuses. RaaS companies in this segment include Starship (USA), HelloWorld (Malaysia), Kiwibot (USA) and Marble (USA). On-premise delivery robots help to deliver food or carry packages within a premise, such as a restaurant, hotel or hospital. RaaS companies in this space include general-purpose carrier robots such as Aethon TUG or Savioke Relay and specific waiter robots such as the Pudubot and Keenon Peanut Waiter.

Find out more about these delivery RaaS companies and their specific business models in this list of delivery robot-as-a-service companies worldwide

4 FACTORY ROBOTS-AS-A-SERVICE

Factory Robot-as-a-Service Solutions

With global initiatives on smart manufacturing, such as Industry 4.0 and "Made in China 2025", in high gear, one of the key trends in factory automation is the adoption of Cobots (or Collaborative Robots) and a diversity of robot types for different stages of manufacturing. There are several variants of the pay-as-you-use model here - from monthly rental (from Mobile Industrial Robots MiR and Ready Robotics), to pay per productive hour (from Hirerobotics and HAHN RobShare) to pay per intelligent action (from Kindred).

List of Factory Automation Robot-as-a-Service Companies (source)

Find out more about these factory automation RaaS companies and their specific business models in this list of factory automation robot-as-a-service companies worldwide

5 WAREHOUSE ROBOTS-AS-A-SERVICE

Warehouse Robot-as-a-Service Solutions

Warehouse management is one of the major industries that is being automated at a blazing speed - from fetching items around the warehouse, to sorting and shelving , to picking and packing, and eventually shipping off. Picker-as-a-service players include InVia Robotics, Magazino and Geek+ Robotics. Warehouse AMRaaS (Autonomous Mobile Robot as a Service) players include 6 River, Fetch Robotics, Locus Robotics and Ronavi Robotics.

List of Warehouse Automation Robot-as-a-Service Companies (source)

Find out more about these warehouse automation RaaS companies and their specific business models in this list of warehouse automation robot-as-a-service companies worldwide

Quick Industry Links (TLDR)

Conclusion

In this year-end report for 2019, we have compiled and looked at the state of Robot-as-a-Service markets as well as the up-and-coming players. We will continue to update this special report next year for 2020.

You may also like to continue to our other robotics report - 2019 Robot-as-a-Service Business Models

Gary Yates I cover and write all things robotics @ Insights. Like everyone else, what I do today may be performed by a robot writer one day. So, I get ahead by keeping abreast of what is happening in the robotics world. You should too!