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
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Transcript
H E B is piloting autonomous vehicle delivery in Austin.
Speaker A:According to Grocery Dive.
Speaker A:H E B has partnered with autonomous vehicle maker Avride, which is headquartered in Austin for the pilot.
Speaker A:The bots have a delivery radius of roughly 1 mile and service customers living in the Austin Mueller district of the city.
Speaker A:Hopefully I said that right.
Speaker A:Mueller or Miller?
Speaker A:I don't know.
Speaker A:And you know, with the pilot customers, I don't know that much about Austin.
Speaker A:Believe it or not, with the pilot customers can get 10 small items delivered by the bots between 11am to 7pm daily.
Speaker A:The bot uses sensor sensors, lidar and cameras to navigate and has cameras that blur.
Speaker B:Sensor is the combination of lidar and sensors.
Speaker A:It is, yeah, we should just call that sensors.
Speaker A:It has copyright and the cameras blur faces and license plates to ensure privacy, according to the company.
Speaker A:Wow.
Speaker A:Who knew that that was even a thing?
Speaker A:The robots travel up to 5 mph and can cover 31 miles on a single charge.
Speaker A:And on past shows, you haven't been the biggest proponent of small lot autonomous robot delivery delivery.
Speaker A:Does the fact that H E B is now trying this change your opinion at all?
Speaker B:I mean, it definitely caught my attention.
Speaker B:It's why I thought this headline was worthy of being in the Fast 5.
Speaker B:I 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 B:Like it's.
Speaker B:This is like an Amazon or a Walmart story for sure.
Speaker B:And 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 B:And this particular location for them does make sense.
Speaker B:There's a hospital, there's a giant sports complex, there's a small residential neighborhood, there's hotels, there's retirement communities.
Speaker B:So within a one mile radius, yes.
Speaker B:An autonomous vehicle that can deliver 10 items or less makes complete sense.
Speaker B:I 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 B:Like they're so massive and they're in these like, right out, like suburban locations.
Speaker B:So that part to me is, is still a little mystifying.
Speaker B:But 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 B:I don't think they're going to see any long term.
Speaker B:Like, I don't think we're Going to see these rolling out of hebs everywhere.
Speaker A:So you think this is like a one and done.
Speaker A:This is a flash in the pan?
Speaker B:I think so.
Speaker B:I think so.
Speaker B:I mean, I think it's just, it's a, it's HEB getting in the news for doing something innovative.
Speaker B:So that's worth noting to me, which.
Speaker A:HB doesn't necessarily need to do either.
Speaker A:That's what's so interesting about this.
Speaker A:I mean, ETB is like one of the best run grocers, if not the best in the country.
Speaker A:But I mean, I kind of, I kind of think this is silly.
Speaker A:I 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 A:Because I just don't see it in the long run.
Speaker A:You've got drone delivery as an option.
Speaker A:You've got the limitations of this.
Speaker A:Like we've talked about on the show a lot of times, one to one delivery just doesn't always make that much sense.
Speaker A:Even with drones, it's an issue.
Speaker A:And then you've got like the autonomous, you know, vehicles in general, you know, growing in usage both from taxis.
Speaker A:So 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 A:So 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 B:It'S going to go the way, it's.
Speaker A:Going 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 B:What do you think they were thinking?
Speaker B:Like, how does somebody approve this?
Speaker B:Like, do you see any potential for like an H E B future of using these in real life?
Speaker A:I don't know.
Speaker A:My, 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 B:As we said, based company, right?
Speaker B:Yeah.
Speaker A:We need a place to test this and prove out the model.
Speaker A:So this is the, yeah, kind of the inside baseball and potentially how some of this works, we have no idea.
Speaker A:But I don't know.
Speaker A:That's just my take.
