Robot company that wants to deploy thousands of tiny delivery robots. Currently has 50 robots in production with the city of San Jose, generating ~$280k in revenue last year. Raises questions about whether the future of delivery is Kiwibots, Amazon drones, Uber’s network of drivers or autonomous vehicles.
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The 6 Calacanis Characteristics (91 161 18)
|1. A startup that is based in SV||Yes: Berkeley, CA (but also Medellin, Colombia)|
|2. Has at least 2 founders||Yes: 3|
|3. Has product in the market||Yes|
|4. 6 months of continuous user growth or 6 months of revenue.||Yes: Revenue doubled from 2018 (136k) to 2019 (279k).|
|5. Notable investors?||No: Don’t recognize any of the following (Berkeley Skydeck, Infinity, Prototype Capital, Urban.us & TYLT Ventures)|
|6. Post-funding, will have 18 months of runway||No: Only raised $323k and burned 2.6MM in 2019 (218k monthly.) At present, only has 1.5 months of burn.|
The 7 Thiel Questions (ETMPDDS)
- The Engineering question:
- Uncertain: is this driving robot really 10x better than Amazon’s flying drone deliveries? Link.
- The Timing question:
- Uncertain: Sensors and ubitquitous Internet help the connectivity side but uncertain if it helps the hardware side.
- The monopoly question:
- Uncertain: If Amazon’s drones are good enough, what’s to prevent them from going AmazonGo and licensing the technology out to competitors much like Tesla open sources its battery technology to own the standard?
- The people question:
- Good: CEO and COO seem very strong.
- The distribution question:
- Bad: Would be great if one of them had experience with a large delivery chain (e.g. Pizza Hut, which they referenced,) to secure hundreds of thousands of these robots to finish last mile delivery.
- The durability question:
- Good: Once you build the end to end robotic infrastructure to restaurants chains & food delivery aggregators, this is very defensive.
- *What is the hopeful secret?
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