Amazon's $775 million deal for robotics company Kiva is starting to look really smart

Eugene Kim for Business Insider:  It wasn't until 2014 that Amazon really started to use the machines made by Kiva, the robotics company it bought for $775 million in 2012. Kiva makes robots that automate the picking and packing process at large warehouses.

But in the short two years they've been deployed across Amazon's warehouses, Kiva's robots have been a real cost saver, according to a new note published by Deutsche Bank on Wednesday.

The note says Kiva robots have cut operating expenses by about 20%, quoting Amazon exec Dave Clark, adding that it would translate to roughly $22 million in cost savings for each fulfillment center. 

Additionally, Deutsche Bank estimates Amazon could cut another $800 million in one-time cost savings once it deploys more Kiva robots across the 110 fulfillment centers that don't have them yet. Amazon uses Kiva robots in only 13 of its fulfillment centers currently.  Cont'd...

Comments (0)

This post does not have any comments. Be the first to leave a comment below.


Post A Comment

You must be logged in before you can post a comment. Login now.

Featured Product

Stäubli - New TX2 Robotic Series

Stäubli - New TX2 Robotic Series

TX2 series of robots: the next generation of fast and precise 6-axis robots. This new robot range is redefining performance with the optimum balance of speed, rigidity, size and envelope. Those pioneer robots can be used in all areas, including sensitive and restrictive environments thanks to their unique features. Known worldwide for the quality of our design and innovation for more than a century, the Stäubli Group has brought its renowned engineering expertise and technological ingenuity to the forefront of robotics. Since 1982, we have built a highly regarded robotics business, and more significantly, transformed the way thousands of manufacturing operations perform. Today Stäubli Robotics is a leading player in robotics around the world, consistently delivering engineering as effective and reliable as our service and support.