The new venture investment program will back companies working on technology to increase e-commerce delivery speeds and improve the experience of workers in warehousing and logistics, the company said in a press release.
Amazon envisions a leading role in the use of technology to improve logistics, as more consumers demand ever faster deliveries and with the supply chain crisis becoming a top concern since the pandemic.
The move comes after a wave of bad press following criticism from politicians, employees, and labor unions over the accelerated pace of work, with a high rate of injury reported in several warehouse facilities.
Workers at Amazon facilities across the United States, meanwhile, have begun unionizing in an effort to improve working conditions.
Amazon stock has been down 7 percent over the past year.
“We see an opportunity to look beyond our own experience and empower companies that are developing emerging technologies in customer fulfillment operations, logistics, and the supply chain,” stated Alex Ceballos-Encarnacion, Amazon’s vice president of worldwide corporate development, in the release.
“With our scale, Amazon is committed to investing in companies that will ignite innovation in emerging technologies that can help improve employee experiences and safety while seamlessly coexisting with workforces across the supply chain, logistics, and other industries,” he said.
The investment program allows the mega-retailer to explore new and emerging technologies, with a share in profit growth in a mutual relationship with the company.
Since the start of the pandemic, industrial innovation and logistics, which was once neglected, has increasingly become a major area of investment.
Dozens of new companies have been springing up to improve warehousing and logistics, as well as the development of new technologies on the manufacturing side.
Amazon has yet to specify how many companies in the program it aimed to invest in over time, or how much will be allocated to each company.
Investment sizes will vary and be based on the opportunity and stage of growth of each company.
- South Carolina’s data analytics company Modjoul, which is developing technology that will help warehouse workers avoid musculoskeletal issues.
- Vimaan, a California robotics company working on artificial intelligence solutions for inventory management and logistics.
- Agility Robotics, which is creating a bipedal walking robot called “Digit.”
- Israel’s BionicHive, which is developing an autonomous robot that can stack existing shelving racks and boxes in warehouses.
- San Francisco-based Mantis Robotics, which is developing a robotic arm that uses sensor technology to work alongside employees.
“We’re excited to help advance these technologies as online shopping becomes even more important to people who are looking for more convenience and time savings,” he said.
Amazon has had a long track record of buying stakes in other companies, including several Amazon partners, and has made investments in robotics and automation at its warehouses a top corporate priority for years.
The company is also a leader in voice and speech recognition software through the Alexa Fund, a separate $2 billion fund to promote AI technology.
