Woolworths Group, Australia’s largest retailer, has stepped in to acquire the assets of U.S.-based Takeoff Technologies Inc. for $2.5 million, as reported by The Robot Report. The purchase is part of a broader strategy to enhance Woolworths' e-commerce and micro-fulfillment operations amidst a rapidly evolving retail landscape.
The deal, which also includes up to $700,000 in closing costs, marks the end of the road for Takeoff Technologies, a company that once pioneered automated micro-fulfillment centers (MFCs) aimed at revolutionizing online grocery shopping. Founded in 2016, Takeoff had previously worked with major grocery chains to deploy its technology, promising to streamline the fulfillment of online orders with its blend of manual and automated systems.
Woolworths has been a longtime partner of Takeoff, first collaborating with the company in 2019 to implement MFCs at three initial sites. These centers were designed to meet the growing demand for online grocery orders, which surged during the pandemic but later faced challenges as market conditions shifted.
The acquisition comes after Takeoff filed for Chapter 11 bankruptcy in May, citing the need to find buyers for its assets after struggling to maintain its early momentum post-pandemic. The company's operations were kept afloat by $9.6 million in debtor-in-possession financing from a consortium of its customers, including Woolworths.
Under the terms of the agreement, Woolworths will retain at least 70% of Takeoff's existing workforce, ensuring continuity for the specialized knowledge and expertise required to operate the MFCs. However, it remains unclear how Woolworths plans to integrate these assets into its broader operations or what the future holds for Takeoff's other clients, such as Hy-Vee and Albertsons, who may now find themselves in limbo.
Industry analysts suggest that Woolworths could continue utilizing Takeoff's MFC technology within its facilities, but they also advise exploring alternative systems. "I'm not surprised that Woolworths was the winning bidder, as they plan on continuing to utilize Takeoff's micro-fulfillment centers to fulfill online grocery orders," commented Brittain Ladd, a supply chain and logistics expert. "From a long-term strategy perspective, I recommend that Woolworths and other Takeoff customers assess systems from Attabotics, AutoStore, and Brightpick, to name a few."
Takeoff Technologies had positioned itself as a key player in grocery automation, claiming that its MFCs could generate up to $30 million annually in gross merchandise value (GMV). The company offered a comprehensive suite of services, including hardware, cloud-based orchestration, and AI-driven analytics, to optimize grocery fulfillment. However, despite its initial success, Takeoff struggled to sustain growth as the immediate demand for grocery delivery diminished post-pandemic.
Woolworths Group, founded in 1924, continues to dominate the retail market in Australia and New Zealand. As the largest private employer in Australia, Woolworths serves over 25 million customers weekly through its extensive network of supermarkets, Metro Food Stores, and BIG W discount department stores. This acquisition represents another step in Woolworths' commitment to leveraging advanced technology to meet evolving consumer demands.
.png)
