Bear Robotics

Executive Summary

Bear Robotics is a company started in Silicon Valley that makes self-driving indoor robots for hotels, restaurants, and hospitals. They use a business model where customers pay a recurring fee to use the robots, rather than buying them once. Their main product, the Servi robot, is currently used in 7,000 locations worldwide, including at large chains like Denny’s and Marriott. Even though the business brings in $80 million in sales every year, it is still losing $35 million a year because it costs a lot of money to grow and build these machines. A recent $60 million fundraising deal led by LG Electronics gives the company the money it needs to start making delivery robots for warehouses through a specialized partnership. The company has a competitive advantage because its robots use special laser-based sensors to move around without needing any changes to the building layout, which makes it different from competitors like Pudu Robotics. This potential public stock offering will show if investors care more about solving long-term worker shortages or if they worry too much about short-term losses in the robot industry.