LG and Kakao Mobility Collaborate for Robot Last-Mile Delivery

Kakao Mobility Corp., a ride-hailing app operator in South Korea, is set to introduce an indoor robot delivery service in collaboration with LG Electronics Inc. The service, Bring, will utilize self-driving robots from LG to facilitate last-mile deliveries in various locations, including cultural and commercial buildings in Seoul.

LG Electronics and Kakao Mobility’s partnership will deploy autonomous delivery robots to various establishments, such as large offices, hotels, apartments, and hospitals, across South Korea. LG’s AI-powered CLOi ServeBot robots will be integrated into Kakao Mobility’s Bring delivery service. 

When customers place orders through the BRING app at restaurants or stores within a building, staff will load items into the robot’s compartments. These SubBots can independently navigate elevators and automatic doors, delivering to up to four destinations on a single trip, eliminating the need for human intervention during delivery.

Kakao Mobility’s AI-powered robot delivery platform reduces human involvement and enables seamless delivery within buildings not initially designed for robot navigation. This new service emerged two years after Kakao Mobility and LG Electronics initiated joint development efforts in 2022 for indoor and outdoor autonomous delivery models. 

With this latest offering, the two companies aim to expedite the creation of an all-in-one solution for last-mile delivery, responding to the anticipated surge in demand in the coming years.

According to forecasts by Hana Bank’s financial research institute, the global robot market is projected to expand from $54.0 billion in 2022 to $74.1 billion in 2026. Specifically, the autonomous last-mile delivery market is expected to grow from $900 million in 2023 to $4.2 billion by 2030, showing a compound annual growth rate of 22.7%, as indicated by research from MarketsandMarkets. 

These changes, encompassing laws pertaining to privacy protection, road traffic regulations, and the development of intelligent robots, reflect the government’s objective to quadruple the nation’s robot market by 2030. 

With the legalization of outdoor self-driving robots for delivery purposes, many large corporations are expected to enter the fray, joining smaller competitors in the race for a larger share of the autonomous last-mile delivery market.

Hyundai Motor Co. and Kia Corp. recently unveiled an updated version of their indoor delivery robot, DAL-e Delivery, slated to commence operations within IGIS Asset Management’s Seongsu-dong facility in Seoul during the second quarter. Concurrently, Mobinn, an autonomous robot developer backed by Hyundai Motor Group, is preparing to launch real robot delivery and patrol services later this year, with plans underway to develop a stair-navigating robot capable of independent movement.

Robot developers Robotis Co. and Neubility have recently secured safety certification for their outdoor mobile robots. Obtaining safety certification from the Korean government is a prerequisite for companies seeking to operate outdoor robot delivery services. 

With this certification, Robotis anticipates a significant uptick in sales, aiming to sell 1,500 units of its self-driving robots this year compared to just 50 units sold last year. 

These robots have already found applications within apartment complexes, camping sites, and parks across Korea. Similarly, Neubility plans to introduce its outdoor robot delivery service in Seoul during the first half of this year, with subsequent expansion to other regions later in the year. The startup previously collaborated with KT Corp. on a pilot project last year, jointly delivering groceries in select areas of Seoul.

LG Electronics views the collaboration as a strategic move to propel its ambitions in the commercial robotics sector, which is identified as a key growth area under its 2030 vision. In line with this vision, the company recently invested $60 million in Bear Robotics, a Silicon Valley-based startup specializing in AI-driven service robots. 

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