Skip to content
Search AI Powered
Human content, AI powered search.

Latest Stories

FedEx agrees to buy 10% stake in Berkshire Grey

In pursuit of better way to robotically sort small packages, parcel giant would buy 25 million shares after ordering $200 million worth of equipment.

Berkshire-Grey-Robot-Picking-and-Sorting-FedEx-Packages2-sized.jpeg
Ben Ames
By Ben AmesAug 02, 2022
Ben Ames
Ben Ames has spent 20 years as a journalist since starting out as a daily newspaper reporter in Pennsylvania in 1995. From 1999 forward, he has focused on business and technology reporting for a number of trade journals, beginning when he joined Design News and Modern Materials Handling magazines. Ames is author of the trail guide "Hiking Massachusetts" and is a graduate of the Columbia School of Journalism.
See Full Bio

Parcel delivery giant FedEx Corp. has agreed to buy an ownership stake in the logistics technology vendor Berkshire Grey as part of a multi-year deal to stock its fulfillment centers with the tech firm’s robotic order fulfillment systems.

Under terms of the deal, Memphis-based FedEx could buy 25 million shares of Berkshire Grey stock after it orders or pays for at least $200 million of Berkshire Grey’s artificial intelligence (AI)-enabled robotic automation goods and services, Bedford, Massachusetts-based Berkshire Grey said. Based on the stock’s value after today’s announcement, that would represent a $61 million purchase worth about 10% of the company. 

The move could show good timing for FedEx. Founded in 2013, Berkshire Grey went public in 2021 by merging with a special purpose acquisition company (SPAC), a financial maneuver that lets private companies list their stock much faster than going through the formal process for an initial public offering (IPO). Since that time, Berkshire Grey’s stock has dropped 77% from an initial posting of $10.81 to $2.39 after today’s announcement. By comparison, the NASDAQ composite index has dropped 12% over the same time period.

According to the company, adding more robotics to its operations could help improve the safety and efficiency of FedEx package handling operations globally. “Our growing relationship with Berkshire Grey for robotic automation is a direct response to the growth of e-commerce, which has accelerated the demand for reliable automated solutions throughout all stages of the supply chain,” Rebecca Yeung, FedEx’ Corporate VP of Operations Science and Advanced Technology, said in a release. “FedEx believes that continued innovation and automation will improve efficiency, productivity and safety for its team members as they continue to keep the global supply chain moving.”

The deal extends an existing relationship between the two companies. FedEx in 2021 began to deploy Berkshire Grey’s Robotic Product Sortation and Identification (RPSi) systems to robotically sort small packages that arrive daily and require distribution. Those systems are now installed at eight sortation facilities—including Queens, NY, Las Vegas, Nev., and Columbus, Ohio—with plans for additional rollouts over the next 12 months.


 

ArticleRoboticsTechnologyMaterial Handling
berkshire greyfedex
ArticleRoboticsTechnologyMaterial Handling
berkshire greyfedex

The Latest

map of Roadrunner freight routes
Trucking

Roadrunner CEO and partner buy ownership stake in company

chart of port of oakland container traffic
Ports

Port of Oakland import volume approaches pre-pandemic level

office workers using GenAI
Artificial Intelligence

Companies feel growing pressure to invest in GenAI

Worker in warehouse scans item with wearable scanner; in the background is an AMR assisting another worker.
Zebra

Pick the Winning Path

More Stories

port of oakland port improvement plans

Port of Oakland to modernize wharves with $50 million grant

The Port of Oakland has been awarded $50 million from the U.S. Department of Transportation’s Maritime Administration (MARAD) to modernize wharves and terminal infrastructure at its Outer Harbor facility, the port said today.

Those upgrades would enable the Outer Harbor to accommodate Ultra Large Container Vessels (ULCVs), which are now a regular part of the shipping fleet calling on West Coast ports. Each of these ships has a handling capacity of up to 24,000 TEUs (20-foot containers) but are currently restricted at portions of Oakland’s Outer Harbor by aging wharves which were originally designed for smaller ships.

Keep ReadingShow less

Featured

chart of global supplier capacity
Article

Suppliers report spare capacity for fourth straight month

graphic of coverage areas for US DOT
Article

Trump nominates former Wisconsin Congressman Duffy for DOT

cma cgm container freight ship
Technology

CMA CGM crowns seven winners in startup awards

Report: SMEs hopeful ahead of holiday peak
Featured

Report: SMEs hopeful ahead of holiday peak

screen shot of onerail tech

OneRail raises $42 million backing for fulfillment orchestration tech

The Florida logistics technology startup OneRail has raised $42 million in venture backing to lift the fulfillment software company its next level of growth, the company said today.

The “series C” round was led by Los Angeles-based Aliment Capital, with additional participation from new investors eGateway Capital and Florida Opportunity Fund, as well as current investors Arsenal Growth Equity, Piva Capital, Bullpen Capital, Las Olas Venture Capital, Chicago Ventures, Gaingels and Mana Ventures. According to OneRail, the funding comes amidst a challenging funding environment where venture capital funding in the logistics sector has seen a 90% decline over the past two years.

Keep ReadingShow less
screen display of GPS fleet tracking

Commercial fleets drawn to GPS fleet tracking, in-cab video

Commercial fleet operators are steadily increasing their use of GPS fleet tracking, in-cab video solutions, and predictive analytics, driven by rising costs, evolving regulations, and competitive pressures, according to an industry report from Verizon Connect.

Those conclusions come from the company’s fifth annual “Fleet Technology Trends Report,” conducted in partnership with Bobit Business Media, and based on responses from 543 fleet management professionals.

Keep ReadingShow less
forklifts working in a warehouse

Averitt tracks three hurdles for international trade in 2025

Businesses engaged in international trade face three major supply chain hurdles as they head into 2025: the disruptions caused by Chinese New Year (CNY), the looming threat of potential tariffs on foreign-made products that could be imposed by the incoming Trump Administration, and the unresolved contract negotiations between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX), according to an analysis from trucking and logistics provider Averitt.

Each of those factors could lead to significant shipping delays, production slowdowns, and increased costs, Averitt said.

Keep ReadingShow less
legal scales and gavel

FMCSA rule would require greater broker transparency

A move by federal regulators to reinforce requirements for broker transparency in freight transactions is stirring debate among transportation groups, after the Federal Motor Carrier Safety Administration (FMCSA) published a “notice of proposed rulemaking” this week.

According to FMCSA, its draft rule would strive to make broker transparency more common, requiring greater sharing of the material information necessary for transportation industry parties to make informed business decisions and to support the efficient resolution of disputes.

Keep ReadingShow less
Copyright ©2024.