We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • Parcel Forum 2022
    • MODEX 2022
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • Parcel Forum 2022
    • MODEX 2022
    • Upload Your Video
Home » FedEx agrees to buy 10% stake in Berkshire Grey

FedEx agrees to buy 10% stake in Berkshire Grey

In pursuit of better way to robotically sort small packages, parcel giant would buy 25 million shares after ordering $200 million worth of equipment.

Berkshire-Grey-Robot-Picking-and-Sorting-FedEx-Packages2-sized.jpeg
August 2, 2022
Ben Ames
No Comments

Parcel delivery giant FedEx Corp. has agreed to buy an ownership stake in the logistics technology vendor Berkshire Grey as part of a multi-year deal to stock its fulfillment centers with the tech firm’s robotic order fulfillment systems.

Under terms of the deal, Memphis-based FedEx could buy 25 million shares of Berkshire Grey stock after it orders or pays for at least $200 million of Berkshire Grey’s artificial intelligence (AI)-enabled robotic automation goods and services, Bedford, Massachusetts-based Berkshire Grey said. Based on the stock’s value after today’s announcement, that would represent a $61 million purchase worth about 10% of the company. 

The move could show good timing for FedEx. Founded in 2013, Berkshire Grey went public in 2021 by merging with a special purpose acquisition company (SPAC), a financial maneuver that lets private companies list their stock much faster than going through the formal process for an initial public offering (IPO). Since that time, Berkshire Grey’s stock has dropped 77% from an initial posting of $10.81 to $2.39 after today’s announcement. By comparison, the NASDAQ composite index has dropped 12% over the same time period.

According to the company, adding more robotics to its operations could help improve the safety and efficiency of FedEx package handling operations globally. “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,” Rebecca Yeung, FedEx’ Corporate VP of Operations Science and Advanced Technology, said in a release. “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.”

The deal extends an existing relationship between the two companies. FedEx in 2021 began to deploy Berkshire Grey’s Robotic Product Sortation and Identification (RPSi) systems to robotically sort small packages that arrive daily and require distribution. Those systems are now installed at eight sortation facilities—including Queens, NY, Las Vegas, Nev., and Columbus, Ohio—with plans for additional rollouts over the next 12 months.


 

Berkshire Grey and @FedEx have entered into an agreement for new development activities that will provide broader #AI #RoboticAutomation capabilities to help improve the safety and efficiency of FedEx #PackageHandling operations globally: https://t.co/enYvopQGLl pic.twitter.com/QbpZT2GhtP

— Berkshire Grey (@BerkshireGrey) August 2, 2022
Robotics Artificial Intelligence
KEYWORDS Berkshire Grey FedEx
  • Related Articles

    Trimble agrees to buy TMS vendor Kuebix in bid to build unified logistics platform

    CMA CGM to buy 9% stake in Air France-KLM and operate combined air freight fleet

    FedEx Ground agrees to settle all claims in independent-contractor case

Benames
Ben Ames has spent 20 years as a journalist since starting out as a daily newspaper reporter in Pennsylvania in 1995. From 1999 forward, he has focused on business and technology reporting for a number of trade journals, beginning when he joined Design News and Modern Materials Handling magazines. Ames is author of the trail guide "Hiking Massachusetts" and is a graduate of the Columbia School of Journalism.

Recent Articles by Ben Ames

Hundreds of shipping containers burn at Turkish port after earthquake

ATA gains chassis freedom in legal win over ocean carriers

Norfolk Southern train derailment sparks blaze in Ohio

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Schneider welcomes first battery-electric truck

  • RJW LOGISTICS GROUP EXPANDS RETAIL LOGISTICS OPERATION TO DALLAS

  • Fred Smith is not worried about Amazon

  • Researchers: Ships can look to Mother Nature for energy-saving ideas

  • Maersk deploys indoor drones for warehouse inventory counts

Now Playing on DCV-TV

7c7193e4 b12e 4233 9a95 df9b80d7eeab

State of the Industry: Oil & Inflation

DCV-TV 4: Viewer Contributed
In this third of a four-part series, Greg Orr speaks to oil’s surprisingly far-reaching impacts on inflation. A year’s worth of persistently high inflation has taken its toll on trucking operators, particularly those in the irregular route, long-haul full truckload segment. Over the past year, fleet operators have...

FEATURED WHITE PAPERS

  • The five best applications for robotic lift trucks in warehouse environments

  • Fulfillment Facility Improved Efficiencies by 4x

  • 3PLs: Complete Orders Faster with Flexible Automation

  • Reusable Packaging for the New Wave of Supply Chain Automation

View More

Subscribe to DC Velocity Magazine

GET YOUR FREE SUBSCRIPTION
  • SUBSCRIBE
  • NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing