Softbank and Symbotic Join Forces to Offer AI-Powered Warehouses as a Service
(Image Source: Symbotic)
In a groundbreaking collaboration, SoftBank Group Corp. and Symbotic Inc. have announced the formation of GreenBox Systems LLC, a dynamic joint venture aimed at tapping into the vast potential of the warehouse-as-a-service market, valued at over $500 billion annually. Symbotic, a leader in AI-powered automation technology for supply chains, will be the exclusive provider of its cutting-edge systems to GreenBox, fundamentally reshaping the economics of automated supply chain services.
GreenBox's mission is to automate supply chain networks on a global scale by deploying Symbotic's advanced AI and automation technology within single and multi-tenant facilities. The efficiency, agility, scalability, and density of Symbotic's system will allow GreenBox to manage supply chain facilities with unmatched precision and revolutionize the industry.
Through this joint venture, GreenBox aims to offer businesses the benefits of automation without the burden of heavy capital investments and operational complexities. Customers will experience reduced inventory and costs while enjoying improved SKU count and agility, thanks to the powerful potential of A.I. and other enabling technologies in supply chains.
“GreenBox taps into the powerful potential of A.I. and other enabling technologies in supply chains, while also making the benefits of automation accessible to more businesses through an ‘as-a-service’ offering. In partnership with Symbotic, GreenBox will equip customers with more intelligent, streamlined, and scalable warehousing solutions while eliminating the burden of major capital expenditures,” said Vikas J. Parekh, Managing Partner at SoftBank Investment Advisers.
GreenBox has placed a significant order for Symbotic's systems, to be implemented over a six-year period starting in fiscal year 2024. These systems will be deployed in larger-scale operations than Symbotic's current installed base, leading to an expected annual recurring revenue of over $500 million once fully operational.
GreenBox's board of managers will comprise representatives from Symbotic and SoftBank, as well as an independent manager to ensure impartial decision-making. The joint venture will be funded with $100 million of initial capital, contributed pro rata by Symbotic and SoftBank to cover operating expenses and initial system purchases. As part of the collaboration, SoftBank has also acquired approximately 17.8 million secondary shares from Symbotic Chairman and CEO, Rick Cohen, without resulting in any dilution to Symbotic shareholders.
All in all, the future looks promising for GreenBox Systems LLC as it sets out to revolutionize supply chain automation and transform the way businesses operate within the global market. With the combined expertise of SoftBank and Symbotic, the venture is poised for success in reshaping the warehouse-as-a-service landscape and enhancing the efficiency of supply chains worldwide.
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