Zebra Technologies has announced its decision to exit the robotics automation sector, signaling the conclusion of its foray into mobile robots for warehouses. This decision follows the company’s 2021 acquisition of Fetch Robotics.

Details of the Decision

This development was revealed in Zebra’s December SEC filing, where it stated its intention to wind down or dispose of the robotics automation unit, which includes autonomous mobile robots (AMRs) that assist with warehouse picking operations.

Background on Fetch Robotics Acquisition

Zebra’s entry into the robotics space was marked by the $290 million acquisition of Fetch Robotics in 2021. Fetch was recognized for its development of AMRs designed to navigate warehouses in coordination with human workers, optimizing walking distances to accelerate order picking processes. Post-acquisition, Zebra integrated this technology into its own product line, rebranding it as Symmetry Fulfillment, and continued to invest in enhancements to both hardware and software.

Investments and Customer Deployments

Following the acquisition, Zebra rolled out new features and software updates for the robots, including a detachable cart option introduced early this year to broaden their functionality in picking workflows. The company also showcased successful customer deployments, one notable example being a rollout at ODW Logistics.

Shifting Strategic Focus

Despite these initiatives, Zebra has opted to pivot away from the robotics sector to recalibrate its strategic focus. In a statement to Modern Materials Handling, Zebra stated:

“Zebra Technologies has decided to explore strategic options for our robotics automation business. This move will enable Zebra to further sharpen our strategic focus on digitizing and automating frontline workflows while investing in key growth areas, including our core markets such as mobile computing, printing, and scanning as well as RFID, machine vision, AI, and software solutions.”

The Growing Yet Complex Robot Market

Interestingly, the warehouse robotics market is experiencing growth, albeit with increasing segmentation that complicates scalability. While AMRs have become prevalent among major retailers and third-party logistics providers, not every robot solution aligns with all operational workflows or customer needs.

Industry Insights

Ash Sharma, VP of research at Interact Analysis, remarked on Zebra’s acquisition of Fetch during a peak period of enthusiasm for AMRs, suggesting that the company paid a premium for that acquisition. He noted:

“In reality, the industry comprises multiple segments, each requiring specific AMR form factors tailored to distinct workflows. The segment targeted by Zebra through Fetch’s technology was worth only a few hundred million dollars.”

Sharma further emphasized that the landscape for large-scale deployments has evolved, altering the economics and expectations for AMR vendors. The requirements of larger clients and their procurement processes diverge significantly from those of early adopters, necessitating a fundamentally different approach to scaling.