Delivery Robots Are on the Horizon: Insights from Skype Co-Founder on His Fastest Venture, Starship

cResidents globally have adapted to take-out food and speedy grocery deliveries. However, many are still getting accustomed to seeing a robot arrive at their doorstep. Ahti Heinla, co-founder of Skype, is determined to change that with his new endeavor.

Heinla is the CEO of Starship Technologies, a startup he asserts is more cost-effective than using human delivery drivers, particularly in smaller towns and villages where delivery had previously been impractical.

“We addressed every challenge that existed,” Heinla remarked while having lunch at a London hotel. “You can mark the year and the months, but it’s clear: this will happen.”

Residents in Manchester, Leeds, Cambridge, and Milton Keynes in the UK, along with those in Estonia and Finland, have already begun receiving their food and groceries via these robots. They are becoming increasingly mainstream, even attending garden parties at 10 Downing Street and featuring in episodes of popular shows. Starship has executed 8 million deliveries with just 200 employees, aiming to expand significantly.

Heinla, having already made substantial profit from co-founding a company that became a household name, speaks of his ambition with enthusiasm.

In 2000, Heinla worked with Niklas Zennström, a video game developer and Skype co-founder, and fellow Estonian Jaan Tallin, to swiftly develop new coding. This effort led to the creation of the file-sharing software Kazaa, followed by similar techniques used for Skype. The six-member founding team sold Skype to eBay in 2005 for $3.1 billion (£2.3 billion).

Reflecting on the era of emerging tech, Heinla mentioned that Skype’s closure this year brought back memories. While he didn’t disclose his earnings, he indicated that he could travel in a private jet if he so desired.

Yet, he insists, “Even if they’re capable, I’m not just chasing after money. I don’t need more wealth. Why should I want a palace? What’s the purpose?”

Instead, Heinla emphasized that achieving effective autonomous driving is a key way robotics can “integrate into everyone’s lives.”

After departing from Skype, Heinla explored various ventures, including attempts at social networking. In 2014, he entered a NASA contest to design an affordable Mars rover. Although NASA didn’t select his design, it was capable of traversing both extraterrestrial and urban terrains using radar, cameras, and ultrasound sensors that learned from their experiences.

By 2017, the robot was navigating in Estonia, accompanied by a model referred to as the “Safety Walker.” Heinla boasts that it became the first unsupervised robot operating autonomously in public settings. In 2018, the company commenced a pilot commercial service on the predictable roads of Milton Keynes, collaborating with Estonia’s high-tech company Bolt, and UK co-op supermarket chains along with US food delivery companies like Grubhub.

Starship may boast the world’s largest fleet of self-driving vehicles; however, as technology progresses, competition intensifies. Rival companies include the Saudi Arabia-backed Noon, and US startups like Nuro. Additionally, there’s stiff competition from numerous firms developing autonomous vehicles, including Tesla and Baidu.

A compelling competitor is Manna Aero from Dublin, a startup already utilizing flying drones for deliveries like coffee and pizza. Amazon and Google’s sister company, Wing, have also ventured into drone-based services.

A recurring issue for many of these businesses is encountering inconsistent regulations. Starship has had to negotiate with various UK councils, while in Finland, they service one million residents under national laws established for robot use on sidewalks, serving a population of 5.6 million. Meanwhile, the UK has far fewer robots catering to its 69 million population.

“We’re ready to invest in the UK for large-scale expansion, but we require regulatory clarity,” Heinla stated. “The number of robots in the UK is lower than in Finland, but there’s potential for growth. Many more robots could operate here.”

He highlighted a potential client in the UK that initially plans to deploy robots at 200 locations, with aspirations to expand to 800 sites, including areas beyond major towns and cities.

“That’s the unique capability of a robot,” Heinla stated. “Our goal is to introduce delivery services to small towns in the UK. We are prepared to invest in scaling these operations.”

While many economists and futurists warn about robots replacing human jobs, Heinla contends that Starship robots are addressing the growing demand for deliveries, allowing humans to focus on longer and more complex tasks. He further asserts that these robots help smaller businesses “thrive economically and compete against larger establishments,” enhancing overall capabilities.

Starship has raised just 200 million euros (£175 million) in funding, a modest sum compared to the billions amassed recently by rapid delivery companies that still rely on human workers. Many of these companies have fizzled out after initially attracting substantial investments, such as Getir and Gorillas.

The initial investment in a robot is relatively high—thousands of pounds, though not exceeding 10,000 euros, according to Heinla. However, the cost per delivery can compete with traditional human services. He declined to provide precise figures but stated that the Starship delivery model is cash-generative.

“While we’re not fully profitable yet, we are confident,” he clarified.

Some retailers question whether robots can outperform human delivery services offered by companies like Recrioo and Uber Eats. Nonetheless, Heinla argues that robots eliminate costs associated with downtime, making them viable options for urban restaurants and retailers in low-density areas.

“Almost every delivery service could benefit from this,” he asserted. “At a certain point, using robots becomes significantly cheaper, making it the obvious choice.”