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Home - AI News - Robomart Launches RM5 Robot to Power $3 On-Demand Delivery

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Robomart Launches RM5 Robot to Power $3 On-Demand Delivery

The self-driving delivery startup is betting its new autonomous marketplace can make on-demand delivery finally profitable.

Emmanuella Madu
Last updated: August 26, 2025 8:25 pm
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Emmanuella Madu
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Robomart, a Los Angeles-based startup building self-driving delivery robots, has unveiled its latest model, the Robomart RM5, designed to bring profitability to on-demand delivery.

The new vehicle, announced Monday, is a level-four autonomous robot that can carry up to 500 pounds. It’s equipped with 10 individual lockers that allow batch ordering, enabling one robot to fulfill multiple deliveries at the same time.

Robomart’s approach blends autonomy with a marketplace model. Retailers will be able to open storefronts on Robomart’s app, similar to UberEats or DoorDash, but customers will pay only a flat $3 delivery fee, instead of the multiple charges that come with traditional delivery apps.

“We see this as building our own autonomous marketplace,” said Ali Ahmed, co-founder and CEO of Robomart. “That is something unique in this space, an autonomous marketplace for on-demand delivery using self-driving robots.”

The startup will begin onboarding retailers in Austin, Texas, in the coming months, ahead of a full launch later this year.

Founded in 2017, Robomart initially piloted an autonomous “store on wheels” in 2020, delivering goods like pharmacy items and ice cream directly to customers. But Ahmed said on-demand delivery was always part of the long-term vision.

Ahmed, who previously founded the U.K. delivery service Dispatch Messenger in 2015, said reliance on human drivers made that business model unprofitable. Automation, he argues, is the missing piece. “Our robots bring the cost of delivery down by up to 70%,” he explained, noting that paying drivers $18 an hour often translates to $9–$10 per delivery.

Related: Waymo Adds Spotify Integration to Robotaxis for a More Personalized Ride

Robomart has raised just under $5 million from investors including Hustle Fund, SOSV, and Wasabi Ventures. Ahmed said the funding has allowed the company to develop five generations of robots leading up to the RM5.

Despite competition from giants like UberEats and GrubHub, Ahmed believes Robomart’s flat $3 delivery model could win over both retailers and customers weary of hidden fees and markups.

TAGGED:deliveryroboticsStartups
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