Robotic technology companies are accelerating their efforts in public transportation and industry, as evidenced by the latest updates from Waymo, Zoox, and Kroger. Each organization is adapting to shifting market conditions, balancing innovation with operational practicalities. After launching driverless rides in select cities, businesses are gathering feedback and adjusting their strategies to improve user experience and cost efficiency. Customers are offered early access and avenues to help shape the development of these transportation alternatives. Meanwhile, the automation sector demonstrates both growth and the need for careful resource allocation, reflecting broader industry dynamics.
Annual reviews and reporting in 2024 suggested a slowdown in robot orders and only modest growth within the automation sector. Waymo and Zoox’s previous expansions leaned heavily on pilot programs rather than broad public access, with progress often stymied by regulatory, technical, or safety considerations. Kroger’s use of Ocado warehouses faced hurdles over profitability and scalability for several quarters, with analysts questioning the sustainability of such capital-intensive models for digital grocery fulfillment. The new quarter’s reports reflect a more direct move towards profitability and public engagement, building on lessons learned previously.
How Are Waymo and Zoox Broadening Public Access?
Waymo has announced the rollout of driverless robotaxi services to Miami, Dallas, Houston, San Antonio, and Orlando, expanding beyond their established operations in cities like San Francisco and Atlanta. The new initiative begins with services for employees, with plans to include the broader public by 2026. Simultaneously, Zoox is running its Explorers program in San Francisco after earlier efforts in Las Vegas. This lets invited users experience autonomous rides without charge and contribute their feedback. Zoox has extended testing to various cities, including Seattle, Austin, and Los Angeles, as it prepares for wider adoption. A spokesperson for Zoox stated,
“We want feedback from everyday riders to refine what truly matters in an autonomous experience.”
What Factors Influenced Kroger’s Decision to Shut Down Ocado Warehouses?
Kroger cited a lack of profitability, high costs, and performance issues in three of its eight Ocado-powered micro-fulfillment centers, leading to closures and a one-time $2.6 billion charge. The decision followed an in-depth review, prompting the retailer to shift focus towards in-store fulfillment and third-party delivery partnerships, aiming to bolster digital profitability by $400 million in 2026. Kroger explained the changes, saying,
“Our review showed these specific fulfillment centers did not meet the benchmarks necessary for continued operation.”
The company plans to utilize its network of stores and established delivery services, like Instacart and DoorDash, to streamline and scale its e-commerce business more efficiently.
Are There Signs of Broader Robotics Growth in 2025?
According to the Association for Advancing Automation (A3), North American robot orders saw an 11.6% unit increase and a 17.2% rise in revenue in the third quarter of 2025 compared to the prior year. Notably, food, consumer goods, and automotive original equipment manufacturers drove much of this growth. However, certain sectors—including automotive components, plastics, and rubber—registered slowdowns, pointing to sector-specific challenges despite overall expansion. The industry is therefore experiencing targeted success, tied to both external market factors and individual investment strategies.
While robotics and automation continue to experience measurable growth, companies are making critical adjustments to both fulfillment models and public-facing services. Providers like Waymo and Zoox are making calculated expansions into new cities, opting for phased implementations and user feedback to address regulatory and practical barriers. In contrast, Kroger’s move away from Ocado-powered automation highlights the importance of aligning infrastructure investments with market demand and profitability. Readers considering these trends should monitor how customer engagement and operational flexibility play into the long-term stability of automation-focused business strategies. Understanding each brand’s tactical responses—be it Waymo’s incremental rollouts or Kroger’s cost-cutting measures—can offer valuable insights when evaluating investments or partnerships in this sector.
