Berkshire Grey Inc., a specialist in AI-enabled robotic solutions that automate supply chain processes, and package delivery giant FedEx Corp. announced they have expanded their strategic relationship.
As part of the expansion, Berkshire Grey and FedEx have entered into an agreement for new development activities that will provide broader AI robotic automation capabilities to help improve the safety and efficiency of FedEx package handling operations globally. The two companies also expect to execute a master system purchase agreement in 2022 that will streamline and expedite the procurement process for Berkshire Grey solutions across all FedEx operating companies around the world.
In addition, Berkshire Grey has granted FedEx a warrant to purchase common stock that vests incrementally, subject to certain terms that include ordering of and payment for Berkshire Grey AI-enabled robotic automation goods and services at any time prior to Dec. 31, 2025, with full vesting of all 25 million shares subject to the warrant upon the ordering of or payment for at least $200 million of such goods and services.
“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,” said Rebecca Yeung, corporate vice president of operations science and advanced technology at FedEx. “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.”
FedEx Ground and Berkshire Grey are already working together to deploy Berkshire Grey’s Robotic Product Sortation and Identification (RPSi) systems to robotically sort small packages that arrive daily and require distribution. In addition to the recent installations at eight sortation facilities, including Queens, N.Y.; Las Vegas and Columbus, Ohio, FedEx Ground plans to have RPSi systems in place at select additional facilities in the network over the next 12 months.
“Berkshire Grey and FedEx are strategically aligned,” Berkshire Grey Berkshire CEO Tom Wagner said. “These new agreements reflect our mutual commitment to innovations in robotic automation that can remove barriers within the supply chain, ease the physical burden on employees and streamline operations. We look forward to working together on this new program and to advancing other automation programs with FedEx moving forward.”
With annual revenue of $94 billion, FedEx provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce, and business services. The company has a goal to achieve carbon-neutral operations by 2040.
Berkshire Grey delivers technology that combines AI and robotics to automate fulfillment, supply chain and logistics operations. Berkshire Grey solutions transform pick, pack, move, store, organize and sort operations to deliver competitive advantage for enterprises serving today’s connected consumers.