Supply chain technology vendor Zebra Technologies is looking for a potential buyer of its robotics arm, which was expanded when it acquired the autonomous mobile robot (AMR) maker Fetch Robotics in 2021 for some $300 million.
At the time that it bought the company, Lincolnshire, Illinois-based Zebra said the technology could apply intelligent industrial automation to help reduce the impact of labor shortages in fulfillment, distribution, and manufacturing environments.
But the company now says that selling it off would allow it to focus more on digital workflows, scanning software, and inventory management.
In a statement, a Zebra spokesperson said: “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 and on our investments 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.”
Zebra added that over the long term, it will “continue to provide solutions that empower organizations to increase productivity, optimize inventory, and automate workflows to better serve consumers and patients across our key industries.”
In support of that vision, Zebra has been developing technologies such as the connected factory and the connected frontline workforce. And the company in October acquired Elo Touch Solutions Inc., a provider of solutions that engage customers, enhance self-service, and accelerate automation across retail, hospitality, quick service restaurants (QSR), healthcare, and industrial markets.
Zebra’s move marks a retreat by several companies from the initial hype about the value of AMRs in logistics, according to comments from Ash Sharma, VP of research at market intelligence company Interact Analysis.
At the time that Zebra purchased Fetch, many companies were rushing to secure a share of the fast-growing AMR sector, including ABB Robotics acquiring Spanish firm ASTI, and Teradyne purchasing Mobile Industrial Robots (MiR). But Sharma said that all three have since faced challenges integrating and scaling these startups, leading to divestments or significant reductions in investment.
“The greatest challenge lies in scaling AMR operations. Five years ago, most AMRs were sold to small organisations purchasing only a handful of robots. This fragmented customer base made scaling difficult for companies lacking broad distribution and sales networks,” Sharma said in an email. “However, the market has since evolved. While small customers remain, most AMR volume now comes from major retailers and 3PLs, which deploy hundreds of robots per site and thousands across networks. Their requirements and procurement processes differ significantly from early adopters, demanding a fundamentally different approach to achieve scale.”
