Amazon Unveils Plan for Fully Automated Delivery Stations

Amazon is reportedly developing an automation initiative called Project Tetromino to fully automate its final-mile delivery stations using artificial intelligence and robotics. This move aligns with broader trends in the logistics industry, where competitors such as FedEx are incorporating AI-powered robots for autonomous loading.

The internal planning document indicates that Amazon intends to funnel $103 million into an initial Tetromino pilot program in 2028, followed by the launch of five additional sites in 2029 at an estimated cost of around $85 million each. By 2030, Amazon plans to have 10 more locations, pushing the total investment past the $530 million mark.

According to the document, the highly automated setup is projected to process packages at roughly 2.5 times the rate of current delivery station designs. The technology involves AI and robotics, with a potential partnership with Boxbot, an AI and supply chain robotics startup that can expedite the vehicle-loading phase by up to 10 times.

An Amazon spokesperson confirmed the company's ongoing commitment to testing new technologies but disputed the document's financial projections and timelines, calling them inaccurate. Despite this, the company's stock has gained 13% year-to-date, with shares rising 1.4% on Monday and extending gains after-hours.