Fetch Robotics CEO Melonee Wise discusses startup journey after Zebra Technologies' acquisition of the company.Zebra Technologies, an enterprise computing company, announced yesterday that it would acquire Fetch Robotics. This San Jose-based startup offers a modular system that automates companies. It has been a major player in fulfillment and warehouse robotics for many years.The total deal is worth $305 million. Zebra will acquire the remaining 95% for $290 million. This deal comes at a time when interest in this category is at an all time high.We spoke with Melonee Wise, CEO and co-founder of Fetch, about the news and the future for warehouse robotics.What was Fetch's right decision in this acquisition?It's quite remarkable to see that we have been developing a cloud robotics platform for seven years. Fetch was founded by Zebra two years ago. We began working together through our partnership. We integrated their mobile computing devices for an out-of the-box experience on our cloud robots platform. This was one of the first things that we did. Our customers could use the same hand scanner that they had today to scan a barcode, and then call a robot.This opportunity came about as a result of our fundraising for the Series D. It's clear that we have had a great relationship with them over the past couple of years. The pandemic has created a great demand for automation technology. There were already labor shortages in warehouse and logistics before the pandemic. The pandemic only made it worse. Another great thing about joining Zebra is their strong go-to market engine and ability to increase our sales capabilities. They are already working with all the customers that we desire. This allows us to reach a wider, deeper and more diverse audience.Fetch had been a potential acquisition candidate. However, I always imagined that it would be a Walmart trying to compete with Amazon robots. It is possible that you have been approached by other companies in the past. This type of acquisition makes more sense in the end.Because it aligns more with our long-term vision, I believe the acquisition was a good decision. Our platform was built to unify. Our robots were not the only ones who used it. We have been slowly adding partners to the platform over the years. SICK is our partner, and we also have partnerships with VARGO and other MWS providers. This isn't going to change. We will still be open to partners and we will continue to add other devices to the ecosystem. This was a great opportunity that aligned well with our team.I'm aware that Zebra has invested in robotics companies and developed their own robot. Is your company the foundation of an ecosystem? This Zebra is building a robotic fulfillment and retail ecosystem around Fetch.That has been the topic. It is still being developed. Unfortunately, I don't have all the details. We still have 30 or 35 days to close, so we are still independent businesses. Zebra is excited to make Fetch the center of their new offering. This is a strategic priority.Is the Fetch name going to be around? Is the company going to San Jose? Is the company going to San Jose?Fetch isn't moving. They wanted to be the center of the team, so they are trying to keep them together in San Jose. My plan is to remain. We are still working on the details. Fetch is a strong brand. How can we combine the best of both?Does Fetch work towards acquisition? Is it something you think is inevitable?It's complicated, I think. I didn't plan on any of it when I started the company. I wanted to build something. That is all I mean. I wanted to build something, and not fail. The question is: What does it mean to not fail? The facts are that almost no robotics company has been IPOed in the past 20-something years. We are starting to see SPACS but no robotics company has ever been IPOed via the traditional route.If you asked me what my opinion was on acquisition or IPO, I would probably say acquisition. There isn't a history of robotics companies IPOing. There are many reasons why this is true. It is a highly hardware-intensive business. It requires a lot technology and investment. They are usually kept private. Large corporate entities often have difficulty having the finances to invest in deep technology. That is changing, I believe. You'll see a lot of change now that you have SPACs. However, I believe you'll see more acquisitions than IPOs in the next 10 years.Have you ever been approached by an acquisition company?Yes. We were there in the past, but it was too soon.What does it mean for you to be too young?For many reasons, it just wasn't the right time. Some of it is related to what I want. Some of it is related to what the team wants. Some of it is related to what our investors desire. There are many people in the room. This is a difficult question. These things were not possible before. The market was still so unknown and new that we wanted to see what it would do. We are now beginning to see structure in the environment and we are starting to see an inflection.Does the plan include international expansion?Yes. We are in many European companies. We are expanding in APAC. We are not placing large bets on any of these countries at the moment. We are still waiting to see what the market does, but we are looking to expand.
