SoftBank and Symbotic have established a new joint Warehouse-as-a-Service venture called GreenBox Systems. GreenBox will automate supply chain networks globally by operating and making Symbotics’ advanced AI and automation technology accessible for the warehouse.
With this new venture, the two companies hope to reduce customers’ inventory and costs while boosting SKU count and agility, all without associated capital expenditures and operational complexity.
Symbotic’s robotic and software technology will be the cornerstone of GreenBox, which will install these systems in both single and multi-tenet facilities. Sybotic’s system has the efficiency, SKU agility, scalability, and density to allow GreenBox to manage single and multi-tenet facilities across the supply chain effectively.
“GreenBox taps into the powerful potential of A.I. and other enabling technologies in supply chains, while also making the benefits of automation accessible to more businesses through an ‘as-a-service’ offering. In partnership with Symbotic, GreenBox will equip customers with more intelligent, streamlined, and scalable warehousing solutions while eliminating the burden of major capital expenditures,” Vikas J. Parekh, Managing Partner at SoftBank Investment Advisers, said.
Along with the joint venture announcement, Symbotic announced a $7.5 billion new customer contract with GreenBox, which will be the exclusive provider of Symbotic systems in the Warehouse-as-a-Service market and make supply chain services available to customers.
Starting in fiscal year 2024, GreenBox will order Symbotic’s systems over a six-year period. These systems will be implemented across its warehouse network in larger-scale deployments than Symbotic’s current base systems. Symbotic expects an excess of $500 million in annual recurring software, parts, and services revenue from GreenBox once all systems are operational, which typically happens within 24 months of project design approval.
“We are pleased to partner with SoftBank in this venture that accelerates our shared vision to transform the supply chain,” Rick Cohen, Symbotic’s Chairman and CEO, said. “GreenBox enables Symbotic to bring the benefits of our technology to a broader customer universe, expanding our market opportunity.”
GreenBox’s board of managers will be made up of three managers, one nominee from Symbotic and SoftBank each, and one independent manager. This management team will operate independently from Symbotic and SoftBank.
SoftBank owns 65% of GreenBox, while Symbotic owns the remaining 35%. GreenBox is starting off with $100 million of capital contributed pro rata by Symbotic and SoftBank to fund operating expenses and initial system purchases. After Symbotic’s initial $35 million pro rata capital contribution, the contract is expected to be accretive to Symbotic’s annual free cash flow (net of capital contributions).
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