Amazon Acquires Kiva Systems For $775 Million
Amazon.com is a web site for a very popular and successful business on the Internet. They sell all kinds of products for cheaper prices than one would be able to find elsewhere. Their sales include books, clothes, mobile devices & accessories, and the list goes on and on. This no doubt could be a complicated process and a heavy work load on those that work for Amazon. Fortunately for them, Amazon recently acquired a new system for their business called Kiva Systems and with the help of some robots their job may be made easier and faster from now on! (Yes I said robots!) So read the below information on Amazon’s new acquisition and how it works:
“Kiva Systems’ interconnected hardware and software package is designed to streamline the process of picking, packing and shipping e-commerce products for delivery. The company uses hundreds of autonomous mobile robots and a sophisticated control software, to provide a fulfillment system for retailers.
Utilizing this system, robots scurry about the floor locating individual items before transporting them to workers who pack and ship. As founder Mick Mountz said, Kiva accounts for “two-to-four times as many orders per hour as they have done the old way”. The company has been growing at over 100% a year. And the average price per system? $5 million.
“Amazon has long used automation in its fulfillment centers, and Kiva’s technology is another way to improve productivity by bringing the products directly to employees to pick, pack and stow,” said Amazon’s VP of global customer fulfillment Dave Clark in a release. “Kiva shares our passion for invention, and we look forward to supporting their continued growth.””
Of course Amazon had to pay a pretty penny for such new and successful technology and the price tag for this specifically was a whopping $775 MILLION! But it certainly will help the company do business at least twice as fast and put less stress on their employees, so it will eventually pay for itself I’m sure.