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LG Electronics is making a strategic investment move to expedite the advancement of Bear Robotics capabilities in service robotics, a key new business area of the company. | Credit: Bear Robotics
LG Electronics (LG) is strategically investing to accelerate the development of its capabilities in service robotics, a crucial new business segment for the company. LG has finalized a deal to purchase a portion of Bear Robotics, a well-known Silicon Valley startup that focuses on AI-powered autonomous service robots, by investing $60 million.
According to the company, this is a strategic investment to enhance LG’s portfolio for sustained growth, rather than focusing on immediate gains. After finalizing the stock purchase, the company will become the largest single shareholder of Bear Robotics.
LG’s CEO William Cho said, “In the service robotics market, we’re focusing primarily on areas such as delivery and logistics. However, we are carefully considering future directions, keeping open the possibility of equity investments or mergers and acquisitions.”
Bear Robotics focuses on restaurant service robots
Bear Robotics, which was established in 2017 and is led by CEO John Ha, a former Google Technical Lead and Senior Software Engineer, has become well-known for its AI-powered indoor delivery robots that serve the US, South Korea, and Japanese markets.
The co-founder and CTO of Bear Robotics are among the many accomplished engineers who have worked for well-known software companies. Product features include fleet management software, cloud-based control systems, and the evolution of platform-based software for service robots.
The company extended its product introducing a larger form factor AMR with Servi Plus in March 2023.
Learn from Agility Robotics, Amazon, Disney, Teradyne and many more.
Leading the shift to Software-Defined Robotics
LG is embracing a transition to Software-defined Robotics (SDR), which puts more focus on software instead of hardware, similar to what has been seen in the mobility business. To prepare for future growth, the company is dedicated to creating scalable service robots on an open-design software platform that can work in a range of settings.
They understand how important it is to standardize AI-based autonomous robot platforms. After learning this, LG sees this strategic investment as a key chance to grow its robot business.
LG has extensive experience installing robot solutions in airports, hotels, restaurants, hospitals, retail outlets, museums, smart warehouses, and golf courses. At LG Future Park in Gumi, LG produces service robots and has world-class quality, supply chain, and customer service capabilities.
By combining Bear Robotics’ world-class R&D talents and software platform expertise with its own strengths, LG aims to spearhead efforts in standardizing robot platforms to significantly reduce market-entry costs, thereby enhancing operational efficiency and fostering synergies. “Just as Android revolutionized the smartphone era, standardized open platforms are essential for the activation of the robot market,” remarked Bear Robotics CEO John Ha.
Looking for growth in the service robotics market
Market trends and the strategic importance of its business models have led LG to reallocate resources to high-growth industries in recent years. LG’s investment in Bear Robotics shows its commitment to advancing its service robot industry, a key part of its development strategy.
LG has been nurturing its robot business as one of its future core pillars. From the deployment of guide robots at Incheon International Airport in 2017, it has progressively introduced tailored solutions for diverse commercial settings, encompassing delivery and disinfection functionalities. Since the preceding year, LG has actively pursued expansion into international markets including the United States, Japan and Southeast Asia.
LG announced its Future Vision 2030 last year to become a Smart Life Solution Company that seamlessly connects and expands client experiences across residential, commercial, transportation, and virtual worlds. LG’s ‘Triple Seven’ target is an average growth rate and operating profit of 7% or higher, together with an enterprise value and EBITDA ratio of 7.
“As the service robot market enters a period of growth, this equity investment will significantly contribute to securing a ‘Winning Competitive-edge’ for the company,” emphasized Lee Sam-soo, chief strategy officer at LG Electronics. “From a mid- to long-term perspective, we will seek to develop our robot business into a new growth engine, exploring various opportunities through the integration of cutting-edge technologies such as Embodied AI and robotic manipulation.”
