H-E-B Tests Grocery Robots: Innovation or the Next Garmin Dash-Mounted GPS?
In this week's Fast Five Podcast, sponsored by the A&M Consumer and Retail Group, Simbe, Mirakl, Ocampo Capital, Infios, and ClearDemand, conservative grocery giant H-E-B surprises everyone by piloting autonomous delivery robots in Austin with Avride. We break down why this 1-mile radius test makes sense for this location but question whether robot delivery can scale beyond urban experiments.
Timestamps:
25:12 - H-E-B robot pilot details
26:21 - Why this location works
27:07 - Scaling challenges
27:45 - "Garminized" prediction
28:56 - Partnership speculation
Catch the full episode here: https://youtu.be/3lsaTBvBuMs
#HEB #AutonomousDelivery #GroceryRobots #RetailInnovation #LastMileDelivery
H E B is piloting autonomous vehicle delivery in Austin.
Speaker AAccording to Grocery Dive.
Speaker AH E B has partnered with autonomous vehicle maker Avride, which is headquartered in Austin for the pilot.
Speaker AThe bots have a delivery radius of roughly 1 mile and service customers living in the Austin Mueller district of the city.
Speaker AHopefully I said that right.
Speaker AMueller or Miller?
Speaker AI don't know.
Speaker AAnd you know, with the pilot customers, I don't know that much about Austin.
Speaker ABelieve it or not, with the pilot customers can get 10 small items delivered by the bots between 11am to 7pm daily.
Speaker AThe bot uses sensor sensors, lidar and cameras to navigate and has cameras that blur.
Speaker BSensor is the combination of lidar and sensors.
Speaker AIt is, yeah, we should just call that sensors.
Speaker AIt has copyright and the cameras blur faces and license plates to ensure privacy, according to the company.
Speaker AWow.
Speaker AWho knew that that was even a thing?
Speaker AThe robots travel up to 5 mph and can cover 31 miles on a single charge.
Speaker AAnd on past shows, you haven't been the biggest proponent of small lot autonomous robot delivery delivery.
Speaker ADoes the fact that H E B is now trying this change your opinion at all?
Speaker BI mean, it definitely caught my attention.
Speaker BIt's why I thought this headline was worthy of being in the Fast 5.
Speaker BI mean, it's not often we hear a retailer, especially a conservative retailer when it comes to technology innovation like H E B testing autonomous vehicles.
Speaker BLike it's.
Speaker BThis is like an Amazon or a Walmart story for sure.
Speaker BAnd while I don't know much about Austin, I did do a deep dive on Google Maps into the surrounding community around this particular H E B store.
Speaker BAnd this particular location for them does make sense.
Speaker BThere's a hospital, there's a giant sports complex, there's a small residential neighborhood, there's hotels, there's retirement communities.
Speaker BSo within a one mile radius, yes.
Speaker BAn autonomous vehicle that can deliver 10 items or less makes complete sense.
Speaker BI don't know how this scales to the rest of the H E B locations because when I first read the mile radius, I was like, does that even get you out of the parking lot of H E b?
Speaker BLike they're so massive and they're in these like, right out, like suburban locations.
Speaker BSo that part to me is, is still a little mystifying.
Speaker BBut I think from HB's perspective, like, if it makes sense for you to test this out in a smaller, more urban, you know, environment around your stores, go for it.
Speaker BI don't think they're going to see any long term.
Speaker BLike, I don't think we're Going to see these rolling out of hebs everywhere.
Speaker ASo you think this is like a one and done.
Speaker AThis is a flash in the pan?
Speaker BI think so.
Speaker BI think so.
Speaker BI mean, I think it's just, it's a, it's HEB getting in the news for doing something innovative.
Speaker BSo that's worth noting to me, which.
Speaker AHB doesn't necessarily need to do either.
Speaker AThat's what's so interesting about this.
Speaker AI mean, ETB is like one of the best run grocers, if not the best in the country.
Speaker ABut I mean, I kind of, I kind of think this is silly.
Speaker AI think it, I think this has just got through the media, you know, got out in the media, and it was probably just the benefit of some hard work of some individual inside H E B that got someone to approve this test.
Speaker ABecause I just don't see it in the long run.
Speaker AYou've got drone delivery as an option.
Speaker AYou've got the limitations of this.
Speaker ALike we've talked about on the show a lot of times, one to one delivery just doesn't always make that much sense.
Speaker AEven with drones, it's an issue.
Speaker AAnd then you've got like the autonomous, you know, vehicles in general, you know, growing in usage both from taxis.
Speaker ASo if we get taxis online and then we get delivery vehicles online and we figure that out, like, it seems like that's a better way to go in the long run.
Speaker ASo this just, I, I came up the word garminized and this feels like it's going to be Garmin out at some point, you know, like the Garmin, the Garmin GPS systems, you know, like.
Speaker BIt'S going to go the way, it's.
Speaker AGoing to go the way of Garmin, you know, because, like, it's just something that just doesn't feel, you know, what, ultimately that valuable in the long run.
Speaker BWhat do you think they were thinking?
Speaker BLike, how does somebody approve this?
Speaker BLike, do you see any potential for like an H E B future of using these in real life?
Speaker AI don't know.
Speaker AMy, my hunch is maybe that, that the, the, the Avrite came in and said, hey, we'll give you a smoking deal if you start piloting this with us.
Speaker BAs we said, based company, right?
Speaker BYeah.
Speaker AWe need a place to test this and prove out the model.
Speaker ASo this is the, yeah, kind of the inside baseball and potentially how some of this works, we have no idea.
Speaker ABut I don't know.
Speaker AThat's just my take.