United Robotics takes over “Pepper” – the robots of the RAG Foundation

Formally, the acquisition of Softbank’s European robotics business is a merger. The Japanese bring their division into the United Robotics Group and receive a stake of 24.9 percent. According to industry circles, the group is valued at a three-digit million amount. “We can benefit from the ecosystem and accelerate growth,” says Xavier Lachérade, General Manager of Softbank Robotics Europe, the Handelsblatt.

In 2014, the Japanese took over and renamed the French start-up Aldebaran, which had developed “Pepper” and colleagues “Nao”. The white information robot “Pepper”, a good one meter tall, with arms, beady eyes and a screen, is also used in shops, care facilities and companies in Germany and helps with information, for example.

About 40,000 Pepper robots have been sold worldwide. But the human robot is not a real success story. “There was no further vision,” says Hähn. In the beginning, “Pepper” quickly broke his fingers. In many places, the robots stood around in foyers and shops, little used after the initial euphoria.

“There weren’t enough possible applications for larger sales either,” admits Xavier Lachérade. “But we learned a lot.” With the other robotics companies in the group, the next generation of service robots should become more intelligent and versatile.

In addition, the capabilities are to be combined with those of other robots in the URG network. For example, a modified “Pepper” could be used as a mobile robot in production halls.

Softbank abandons robot ambitions

For Softbank, the separation from Pepper is a historic turning point from a technology company with robotic ambitions to an AI investor. In 2011, Softbank founder Masayoshi Son had the dream of upgrading his company to become the world’s leading robot manufacturer. In the first step, he bought Aldebaran, with whose technology and expertise Son brought Pepper to the stage in 2014.

“Maybe 100 or 200 years from now, people will look back and say today was a historic moment,” Son said at the Pepper presentation at the time. In 2017, the Japanese even bought Google’s legendary robot division Boston Dynamics, which is still known today for its sturdy robots and robot dogs.

But with the change to a pure investment group, Son has given up his childhood dream and is gradually selling off the loss-making business with communication and high-tech robots. 80 percent of Boston Dynamics was sold to the South Korean carmaker Hyundai Motor, and production of Pepper has since been stopped.

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According to industry estimates, Softbank Robotics Europe most recently generated sales of around EUR 30 million. With the new acquisition, RSBG’s automation and robotics business will generate revenues of around 350 million euros. The portfolio also includes cobots and laboratory robots.

The United Robotics Group, which includes Rethink Robotics and the robot-as-a-service provider Robshare, accounts for an estimated 65 million euros, which according to Hähn should increase by 20 to 25 percent in the next few years. Total revenues from robotics and automation are expected to double in the next five to six years. “In the long term, we are planning billions in sales,” said Hähn.

The RAG-Stiftung is supposed to generate the funds for the follow-up costs of hard coal mining. Among other things, it is the main shareholder of Evonik. With the takeover of Hahn Robotics, which had been founded by Hähn, the foundation builds up another mainstay.

Billion dollar business with service robots

There is a lot of movement in the industry at the moment. In the field of heavy industrial robots, there are two globally strong suppliers in Europe: ABB and Kuka. But the industry’s biggest hopes for growth are autonomous transport robots, service robots and the cobots that can work right next to people. This market is still very fragmented but very attractive. According to the IFR industry association, the market for professional service robots alone was last worth $6.7 billion. Sales will grow by 31 percent annually through 2023 to 537,000 professional service robots sold per year.

According to the experts from BCG, the market for professional service robots could be as large as 90 to 170 billion dollars by 2030 – and thus larger than the segment of classic industrial robots. The applications range from delivery and transport robots to cleaning and disinfection machines to robots with social tasks, for example care.

“Due to the shortage of skilled workers, the demand is huge, and robots will soon be part of everyday life,” said Xavier Lachérade. The machines would not replace people, they would only do tiresome work so that they could concentrate on personal contact, for example.

Next, the United Robotics Group wants to launch the voice-controlled delivery robot Plato, which can be used in restaurants, for example. The Munich start-up Robotise, for example, is active in this field and has developed a rolling minibar for hotels. “Corona gave another boost to acceptance,” says co-founder and CEO Oliver Stahl.

Because especially in Europe, many people were skeptical about robots in the social environment. But during the pandemic, they helped in many places to comply with distance rules and to keep operations running.

With the “Pepper” takeover, URG is now as broadly positioned as only a few competitors. The portfolio includes cobots as well as autonomous laboratory robots that the United Robotic Group manufactures together with Siemens Healthineers. Hähn can imagine further reinforcements in the field of artificial intelligence, among other things.

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