FedEx has chosen to establish partnerships with specialized robotics companies like Berkshire Grey rather than developing proprietary automation technology. This strategy reflects the logistics giant's pragmatic approach to automation transformation, enabling rapid access to advanced technology while focusing on solving actual business problems.
Introduction: The Automation Crossroads for Logistics Giants
As the global logistics industry accelerates its automation journey, major corporations face a critical strategic choice: develop proprietary automation technology in-house or establish partnerships with specialized companies. With annual revenue of $84 billion, FedEx has recently made its position clear—opting for partnerships over proprietary development. This strategic decision not only reflects FedEx’s pragmatic approach to automation technology but also provides important insights for the broader logistics industry’s automation transformation.
Unlike companies like Amazon that choose to develop their own robotic fleets internally, FedEx has adopted a more open collaboration strategy. The company recently entered into a multi-year partnership with SoftBank-owned robotics company Berkshire Grey to co-develop Scoop, a bulk package unloading robot. This collaboration marks a significant milestone in FedEx’s automation strategy and embodies the company’s core philosophy of “letting experts do what they do best.”
Bulk Unloading: The Automation Breakthrough Point
Within FedEx’s warehouse operations, bulk unloading has consistently been one of the most challenging aspects. This work is not only physically demanding but also operates in complex and variable environments that pose potential safety risks to workers. Stephanie Cook, Director of Advanced Technology and Innovation, Robotics at FedEx, told TechCrunch that bulk unloading is “one of the most physically demanding and unpredictable jobs” in FedEx warehouses.
To address this challenge, FedEx collaborated with Berkshire Grey to develop the Scoop robot. This robot is specifically designed for bulk package unloading, capable of removing large bundles of multiple parcels from trucks at once. Unlike traditional single-pick robots, Scoop employs batch processing, significantly improving unloading efficiency. FedEx plans to begin deploying these robots in warehouses later this year through a pilot program.
O.P. Skaaksrud, Vice President of Advanced Technology and Innovation at FedEx, explained that bulk unloading represents an ideal application scenario for robotics. While this work requires robots to make decisions, the granularity of those decisions is less detailed than if the robot were picking or searching for specific packages, making automation relatively easier to implement. “Because we have such variety of package mix, to specialize individual picking, it’s just not gonna be fast enough,” Skaaksrud said, “That was one of the other tradeoffs that we went with here.”
A Diversified Partnership Network
Berkshire Grey isn’t FedEx’s only automation partner. In recent years, the company has secured several partnerships (and conducted pilots) as it works toward automating more processes both inside and outside warehouses.
Within warehouses, FedEx works with Dexterity, a robotics startup with billion-dollar unicorn status that specializes in robots with a “human-like” touch. Additionally, FedEx has a deal with another unicorn startup called Nimble that builds fully autonomous warehouses. These collaborations enable FedEx to leverage cutting-edge robotics technology without bearing the high risks and long cycles associated with proprietary development.
FedEx does develop certain technologies in-house, such as the FedEx SenseAware and SenseAware ID sensor systems, both of which help track packages. But Skaaksrud emphasized that developing sensors and developing robotics are not the same. “The entire package and developing sensor hardware is complicated, but developing robotics capabilities is next level,” he said, “It’s much better and faster to partner with other companies in the field to move faster.”
Autonomous Driving and Last-Mile Delivery Deployment
FedEx’s automation strategy extends beyond warehouse walls. The company has made significant deployments in autonomous delivery, including both last-mile delivery and long-haul transportation.
In 2021, FedEx signed a pilot deal with autonomous trucking startup Aurora Innovation to have the self-driving truck company haul packages on defined routes in Texas. The companies expanded their ongoing partnership in 2022 and have since completed more than 3,200 autonomous loads.
For last-mile delivery, FedEx partnered with Nuro, an autonomous last-mile delivery robotic company, in 2021. At the time, FedEx described it as a long-term commitment with plans to scale the last-mile delivery option. However, after Nuro shifted from delivery to licensing autonomous technology in 2025, FedEx no longer works with the company.
FedEx also attempted to develop last-mile delivery solutions in-house with mixed success. The company developed and released the SameDay Bot in 2019 to assist with last-mile delivery, but these robots didn’t receive a warm reception—even getting kicked out of New York City by former mayor Bill de Blasio. The company moved on from them a few years later but reiterated that this remains an area of focus.
Pragmatic Approach: Not Chasing “Shiny” Technology
In the automation race, FedEx demonstrates an impressively pragmatic attitude. Both Skaaksrud and Cook emphasize that the company won’t blindly chase “shiny” robots or technology simply because new technology is released.
“Don’t be too focused only on the technology, because then we’re going to fail,” Skaaksrud said, “This is really 3D chess that you’re playing here. You have to solve for all these different, often not so glamorous and interesting components, that are part of the overall solution. We are definitely doing what is required to not only have interesting technology, but interesting productive technology that’s going to solve business problems.”
The company also isn’t concerned that its partnership strategy won’t result in substantial proprietary technology. Skaaksrud believes that hardware itself is just hardware. He argued that FedEx trucks are just trucks, and it’s the network and intelligence behind the company’s delivery web that makes it FedEx.
Humanoid Robots: Cautious Observation
Amid the automation boom, humanoid robots have become a topic of intense interest. However, FedEx approaches this area with caution. Skaaksrud stated that the company is currently not interested in humanoid robots.
“The orchestration aspects of multiple humanoids in a limited space that is highly dynamic, you know how hard it is,” Skaaksrud said, “I think that humanoids are very interesting, and we’re definitely paying attention, but it’s this fit for purpose. You got to figure that out because the hype is just really high, but there’s a lot of potential there long-term. But you have to understand the limitations and set your expectations accordingly.”
Cook added that the primary focus of the company’s automation strategy remains the people working within warehouses. This means technology must be designed to work alongside these individuals, making their jobs easier while keeping them safe. Because of this, and because the company focuses first on areas with clear ROI, humanoid robots are not currently of interest.
Conclusion: The Wisdom of Partnership Strategy
FedEx’s choice of partnerships over proprietary development in automation strategy reflects the company’s mature thinking in technology adoption. By collaborating with specialized robotics companies like Berkshire Grey, Dexterity, and Nimble, FedEx can rapidly access cutting-edge automation technology while avoiding the high costs and long cycles of proprietary development.
At the core of this strategy is the “fit for purpose” philosophy. FedEx doesn’t pursue the “shiniest” technology but focuses on solving actual business problems. From bulk unloading robots to autonomous trucks, each of the company’s automation initiatives targets specific operational challenges.
As logistics industry automation accelerates, FedEx’s partnership strategy may serve as a reference template for other large logistics companies. In an era of rapid technological change, maintaining flexibility and openness while adhering to a pragmatic attitude may be key to success in automation transformation.
This article is AI-assisted and has been reviewed and verified by the SCI.AI editorial team before publication.
Source: TechCrunch
