No Tipping Necessary: Hundreds of Delivery Robots Are Coming to Los Angeles

Ben Bergman

Ben Bergman is the newsroom's senior finance reporter. Previously he was a senior business reporter and host at KPCC, a senior producer at Gimlet Media, a producer at NPR's Morning Edition, and produced two investigative documentaries for KCET. He has been a frequent on-air contributor to business coverage on NPR and Marketplace and has written for The New York Times and Columbia Journalism Review. Ben was a 2017-2018 Knight-Bagehot Fellow in Economic and Business Journalism at Columbia Business School. In his free time, he enjoys skiing, playing poker, and cheering on The Seattle Seahawks.

No Tipping Necessary: Hundreds of Delivery Robots Are Coming to Los Angeles

On a recent crisp winter morning outside an empty office park in the San Fernando Valley, there were no workers to be seen. That is unless one counts the cooler-sized delivery robot slowly whirring down the sidewalk as Felipe Chavez, founder and CEO of Kiwibot, nervously watched to make sure the droid did not veer of course.

Just as no one now thinks twice about seeing e-scooters that were non-existent before late 2017, the sight of a robot ferrying salads, pizza, or groceries could become common on Los Angeles sidewalks before this year is over.


Kiwibot has quietly been testing its robots – specially designed to look cute and non-threatening – for the past few weeks in the Valley, as well as more recently at a major university campus the company won't yet name. If all goes well, Kiwibot will begin offering delivery to students through as early as next month before expanding to Santa Monica and other parts of the city after that.

"L.A. is going to be our most important city this year," Chavez said. "In the first five months of the year we plan to employ 100 robots here in the city, and we expect that by the end of the year we're going to have around 400 robots deployed."

Kiwibot robot delivery

Postmates, which is now owned by Uber, has been testing a handful of delivery robots in West Hollywood since April. While those are accompanied by a human chaperone, the Kiwibot robots set out on their own, though operators take over remotely for more complex tasks like crossing the street.

Kiwibot has already made over 120,000 deliveries since 2017 during rollouts at University of California, Berkeley, University of Denver, and San Jose, where it partnered with Shopify and Ordermark. But L.A., with its vast geographic footprint, is a whole new degree of difficulty.

"It's a great challenge for us," said Chavez.

Kiwibot chose L.A. because the city already has a high adoption of food delivery, it is home to potential partners like ChowNow and Ordermark, and the city has been a willing collaborator through its Urban Movement Labs (UML), mostly by sharing data on city streets and sidewalks.

"We trust L.A. to be the best new market for us because the food delivery habit is already there, and we feel backed to scale in an organized and socially responsible and sustainable manner," said David Rodriguez, Kiwibot's head of business.

After a confrontational approach between cities and ridesharing and e-scooter companies, Lilly Shoup, UML's interim executive director, says L.A. is trying to be more collaborative with delivery robots.

"I think we've learned that it's important for city transportation agencies to get ahead of new technology before they appear on city streets," Shoup said. "It's important to understand their business models and proactively develop policies."

UML is also working on a pilot to deliver goods via drone by 2022 and in both instances Shoup says the technology can help reduce pollution and congestion since most deliveries now are made via cars.

"It's really exciting to think about new ways to reduce the environmental impact of delivery," Shoup said.

Robots substantially bring down the cost of delivery, which could help restaurants that operate on thin margins during even the best of times and have been devastated this year. But it will also mean fewer delivery jobs, most of which have been preserved as contract work in California with the recently passed Proposition 22.

Restaurants typically pay between 15% to 30% on orders placed with delivery services like Postmates or Grubhub and drivers are hardly getting rich. In fact, they often make less than minimum wage.

Kiwibot charges fees of a couple dollars on each order – which can be absorbed by the restaurant or passed onto customers. The company says its cost per delivery is now $2.98 but as it scales and the technology improves it can shave the cost down to $1.23 by the end of 2022.

Right now, Kiwibot robots – which cost between $2,500 and $4,000 each – can only operate in a 1.5 mile radius but the company's next generation can go eight miles and is large enough to fit a 12-inch pizza.

Kiwibot

Courtesy Kiwibot

Will the Public Accept Robots?

Even when the technology is ready, Kiwibot has what may be a tougher obstacle to overcome – public acceptance. Public safety commissioners in West Hollywood raised concerns about Postmates' robots and even in tech-friendly San Francisco, a city lawmaker, worried they might run into pedestrians, tried to ban them.

Kiwibot warns potential investors on its crowdfunding page: "Delivery bots have proved controversial in some regulatory environments with some cities, like San Francisco, putting out laws that make it difficult for us to deploy. If this became widespread we would have trouble going to market."

Chavez says he spends a great deal of time thinking about how he can get the public to be comfortable with robots.

"There is a sector of people that are concerned about robots and I think that it is very important to listen to them and to get their feedback on everything. but robots are going to happen," Chavez said.

The robot also has a sign affixed to the back to clarify that it is not recording any video, something that was added after homeless people in San Jose feared they were being spied on.

There is a "black box," which records in case of an emergency, but none of the devices have been stolen — so far.

Even though local regulations can allow for robots to go as fast as 10 mph, Chavez has found a speed of 6 mph makes people feel safer.

There are also important visual considerations. Kiwibot's robots look nothing like the hulking devices conjured up in sci-fi movies like "Transformers" or "The Terminator." They are more like a plastic cooler on wheels with lights on the front that resemble a smiling face.

"The new version is even more cute," said Chavez. "It's like a squirrel on a rock."

Taking a page from nature, the design is deliberately playful and small.

"When you see an animal and it is bigger than the width of your shoulders you feel threatened," Chavez said. "So we have made sure that the robot is never going to be wider [than you] so that people don't feel threatened."

Coronavirus has also been helpful, helping accelerate the adoption not only of delivery but also of robots – who you don't have to worry about coughing on you.

Competition with Bigger Robot Deliveries

Kiwibot, which is based in San Jose, has raised more than half $1 million from more than 650 investors in its latest crowdfunding campaign, to bring its fundraising total to over $3 million.

That pales in comparison to not only Uber but also much larger rivals Starship, a robot food delivery service launched in 2014 by two Skype co-founders that plans to rollout deliver to 100 universities by next summer and Nuro – an autonomous vehicle startup founded by two ex-Google engineers valued at $4 billion. The company received regulatory approval last week to operate on city streets in the Bay Area.

But with global autonomous last-mile delivery projected to grow from $11.16 billion next year to $76 billion by 2030, Kiwibot sees room for multiple competitors.

"In L.A. right now we are talking with multiple partners, very big companies," said Chavez.

"Everything is moving very fast," he added, as his robot inched along the sidewalk, heading back to the lab to continue more testing.

https://twitter.com/thebenbergman
ben@dot.la
From Pitch Meetings to Power Lunches: LA’s Exclusive Membership Clubs 🗝️

Download the dot.LA App

Summer's here, so it's time to zhuzh up your work environment. Discovering the best membership and social clubs in Los Angeles for meetings can boost networking and collaboration, offering exclusive venues and premium amenities tailored for professionals and creatives to thrive amidst the city's vibrant backdrop. These clubs provide a sophisticated setting for productive gatherings and meaningful connections in LA. Here are some top private member clubs perfect for meetings and productive work sessions.

The Jonathan Club

Club Details: The Jonathan Club, one of Los Angeles' original membership clubs, has been a cornerstone of the city's elite social scene since its founding in the mid-1890s. Its legacy is intertwined with the growth and development of LA itself, most notably through a pivotal meeting held at the club that sparked the idea for a southern campus of the University of California—what would eventually become UCLA. Today, the Jonathan Club continues to offer its members an unparalleled experience of exclusivity and refinement. With locations in both DLTA and Santa Monica, members enjoy access to premium amenities and spaces and a calendar with hundreds of social events and workshops throughout the year, providing ample opportunities for networking, personal growth, and leisure activities.

Membership Details: Initiation fee is around $50,000, and admission typically requires that you be invited or know someone who is already a member.

Spring Place

Image Source: Spring Place

Neighborhood: Beverly Hills

Club Details: A mix between co-working space and social club, this Beverly Hills hotspot is a more exclusive version of similar clubs. Spring Place Beverly Hills spans three floors and offers a stunning art collection. The interior is filled with tons of natural light and has an intentional design that fuels members to harness some of their best work. Members also have access to luxurious dining and nightlife pop-ups that happen at Spring Place.

Membership Details: There is a non-refundable initiation fee of $500 and then local membership for people under 30 starts at $300 per month, while monthly membership for locals over 30 is $600.

Griffin Club

Image Source: Griffin Club

Neighborhood: Cheviot Hills

Club Details: Located in Cheviot Hills, Griffin Club LA is a sporty club with ample shared workspace. Following a $20M renovation in 2020, the club now boasts seven LED-lit tennis courts, four LED-lit pickleball courts, two recreational lap pools, a 25-meter family pool for kids, an adults-only resort pool, and childcare services. It's the ideal destination for a clientele looking to mix work with competitive sport.

Membership Details: Membership is by invitation only and is subject to approval. Membership prices at the club vary. A family membership entails a $12,000 initial fee plus a $450 monthly fee, while a junior membership only entails a $2,000 initiation fee and a $205 monthly fee.

Soho House West Hollywood

Image Source: Soho House West Hollywood

Neighborhood: West Hollywood

Club Details: Soho House West Hollywood provides a stylish and exclusive work and meeting destination, featuring chic meeting rooms and workspaces with panoramic views of Los Angeles. Combining luxury amenities with a creative atmosphere, it offers an ideal setting for networking, collaboration, productive sessions, and an amazing Sunday brunch!

Membership Details: Two current member referrals are needed, plus an online application, and a recent photo to confirm your identity. Quarterly memberships start at $675.25, but if you’re under 27, you can pay $337.75 quarterly. However, if you want access to every house, membership costs $5,250.00 annually, or $2,650.00 if you’re under 27.

Little Beach House Malibu

Image Source: Little Beach House Malibu

Neighborhood: Malibu

Club Details: The Little Beach House Malibu is a small, local club for the creative community of Malibu and the surrounding coastal areas. The club is known for its magnificent dining room, bar, sitting room and terrace. It is the perfect place for a truly memorable work meal.

Membership Details: Malibu Beach House is not included in the Soho House membership. If you are an existing member, you can apply for “Malibu Plus” for an additional $2,190 a year, or $1,095 if you’re under 27.

San Vicente Bungalows

Image Source: San Vicente Bungalows

Neighborhood: West Hollywood

Club Details: San Vicente Bungalows is an exclusive, members-only social club located in West Hollywood, California, offering a luxurious and private environment for its high-profile clientele. The club is renowned for its strict privacy policies, elegant decor, and high-end amenities, catering to celebrities (and royals) and industry elites seeking a discreet space to unwind and socialize.

Membership Details: You must be nominated by a current club member to apply. Applications are evaluated monthly and annual dues start at $4,200 plus a $1,800 initiation fee.

The Aster

Image Source: The Aster

Neighborhood: Hollywood

Club Details: The Aster, located at the iconic intersection of Hollywood Boulevard and Vine Street, redefines the modern members' club with its emphasis on warmth and hospitality, blending public hotel amenities with private club exclusivity. Featuring bright, airy spaces and top-notch facilities such as an outdoor pool, recording studio, and rooftop bar, it offers a fluid environment for work, relaxation, and socializing.

Membership Details: Memberships start at $3,600 per year and be acquired by filling out an application. In addition to uploading a photo, hopeful members also have to write a small bio while highlighting their interests, skills, profession, and hobbies.

NeueHouse

Image Source: NeueHouse

Neighborhood: Venice/Hollywood/DTLA

Club Details: NeueHouse in LA is a chic private workspace and cultural hub designed for creative professionals, offering sophisticated workspaces, a dynamic calendar of cultural programming, and luxurious amenities. Situated in three bustling neighborhoods across LA, it provides a collaborative environment where members can work, network, and unwind in style.

Membership Details: You have to apply for the Salon membership, which includes questions like “dream dinner guests (dead or alive?)." Annual dues for Salon memberships are $3,000 plus a $200 joining fee. You can also inquire about the Gallery membership for flexible workspaces and offices for individuals or teams, starting at $595 per month, with various options depending on your needs.

🧬🔬AI-Driven Drug Discovery

🔦 Spotlight

Terray Therapeutics is at the forefront of AI-assisted drug discovery and development, operating a cutting-edge laboratory in Monrovia, California. The facility, roughly two-thirds the size of a football field, functions as a data powerhouse, generating over 50 terabytes of raw data daily, which is an amount of information equivalent to 12,000 high definition movies, through its miniaturized automation processes.

Terray Therapeutics exemplifies a new wave of innovative companies harnessing artificial intelligence to revolutionize drug discovery and development. The key to their approach lies in generating vast amounts of high-quality experimental data to train their AI systems. This data-driven strategy enables rapid experimentation and pattern recognition, allowing the AI to make informed predictions about potential treatments. Terray's generative AI can digitally design drug molecules, which are then synthesized and tested in their high-speed automated laboratory. The platform measures the interaction between these molecules and target proteins, with both successful and unsuccessful results feeding back into the AI system.

This iterative process creates a powerful feedback loop, continuously refining the AI's predictive capabilities and accelerating the drug discovery process. Terray's tNova platform integrates chemical experimentation and computation at an unprecedented scale, producing massive amounts of precise, purpose-built data that becomes increasingly valuable with each cycle of design and experimentation. This unique blend of experimentation and computation allows Terray to efficiently explore a vast molecular space, potentially solving complex problems in drug discovery faster and more effectively than traditional methods.

🤝 Venture Deals

LA Companies

  • Fuze Technology, a provider of rentable portable phone chargers, has raised a $11.5M Series A led by Beverly Pacific and joined by Palm Tree Crew, Bain Capital Ventures Scout Fund, Dream Ventures, Live Nation, ASM Global, SCIENCE Ventures, Haslem Sports Group, and Simon Ventures. - learn more
  • Stanly, a platform that offers fan-to-fan and artist-to-fan communication and commerce, raised an $8M Funding Round led by C Capital and joined by AppWorks, Goodwater, and Palm Drive Capital. - learn more
  • GrayMatter, an industrial robotics company, raised a $45M Series B led by Wellington Management and joined by NGP Capital, Euclidean Capital, Advance Venture Partners, SQN Venture Partners, 3M Ventures, B Capital, Bow Capital, Calibrate Ventures, OCA Ventures, and Swift Ventures. - learn more

LA Venture Funds

LA Exits

  • Webtoon Entertainment, an online cartoon company based in LA carved out of South Korea's Naver, set IPO terms to 15m shares at $18-$21. It would have a $2.6b fully diluted market value, were it to price in the middle, and plans to list on the Nasdaq (WBTN). - learn more
  • EV maker Fisker has finally filed for bankruptcy. - learn more
Download the dot.LA App

Sony Pictures Experiences Division Formed After Alamo Drafthouse Acquisition

Christian Hetrick

Christian Hetrick is dot.LA's Entertainment Tech Reporter. He was formerly a business reporter for the Philadelphia Inquirer and reported on New Jersey politics for the Observer and the Press of Atlantic City.

Sony Pictures Experiences Division Formed After Alamo Drafthouse Acquisition

🔦 Spotlight

Sony Pictures Entertainment has acquired Alamo Drafthouse Cinema in a groundbreaking deal that marks the first time in over 75 years a major Hollywood studio will own a movie theater chain. This acquisition signals a potential shift towards vertical integration in the film industry, with Sony gaining more control over the distribution and exhibition of its films.

The deal allows Sony to expand its presence in experiential entertainment, aligning with its vision of engaging audiences outside the home through unique offerings. Alamo Drafthouse's innovative dine-in movie experience, devoted fanbase, and curated programming like Fantastic Fest make it an appealing acquisition target. Sony stressed that Alamo will continue operating its 35 locations under CEO Michael Kustermann, who will head the new Sony Pictures Experiences division.

While the move provides financial backing for Alamo after its bankruptcy struggles, questions remain about whether the chain can maintain its independent spirit and personality under Sony's ownership. Alamo is renowned for creative programming like themed events, interactive screenings, and a strict no-talking policy that has cultivated a passionate community of moviegoers. Balancing this distinct identity with Sony's corporate interests will be a key challenge moving forward.

From a technological standpoint, this move opens up possibilities for Sony to enhance the moviegoing experience at Alamo Drafthouse locations through integration of advanced audiovisual systems, immersive technologies, and projection/sound solutions. In addition, Sony could create a more seamless and connected experience for moviegoers, such as through integrated ticketing platforms, mobile apps, and personalization driven by data analytics. While specific technological plans are not detailed, the combination of Sony's resources and Alamo Drafthouse's innovative approach could foster synergies and drive the development of new technologies to differentiate the theatrical experience further.

🤝 Venture Deals

LA Companies

  • Apex, a satellite bus maker, raised a $95M funding round co-led by XYZ VC and CRV joined by Upfront Ventures, 8VC, Toyota Ventures, Point72 Ventures and others. - learn more
  • Regard, a developer of AI tools to help medical providers synthesize patient data, raised a $30M Series B led by Oak HC/FT at a $350M valuation. - learn more
  • Daisy, a small business tech installation startup, raised an $11M Series A co-led by Goldcrest and Bungalow. - learn more
  • Pyte, a startup that allows companies in highly regulated industries like finance and healthcare to perform computations on encrypted data without ever decrypting it, raised a $5M Funding Round led by Myriad Venture Partners. - learn more

LA Venture Funds

LA Exits

RELATEDEDITOR'S PICKS
Trending