Redefining High-Density 3D Storage: David(s) vs. Goliath

In the fast-paced world of warehouse automation, a new breed of challenger companies is emerging to challenge the dominance of AutoStore in the High-Density 3D Storage sector. Most people in this industry will have heard of some of them by name, but how much is really known and what could their potential impact be?

I recently had the pleasure of interviewing Yegor Anchyshkin (CEO & Co-Founder of Instock), Rudi Lueg (Chief Commercial Officer of Urbx), and Wouter Loomans (Commercial Director of Intellistore), in order to delve into the stories of three such challenger companies, as they navigate the competitive landscape of the high-density 3D storage market. In a technology sector of intralogistics still coming-of-age and recently thrust into the limelight following a high-profile legal dispute between the two most well-known names, Autostore and Ocado, these emerging players offer innovative solutions and fresh perspectives that promise to revolutionize the future of warehouse automation.

Company Profiles

Instock.com, Co-founded in 2020 by Yegor Anchyshkin, represents the culmination of his experience as previous founder of an ecommerce company and then as CTO for TakeOff Technologies, a company often seen as a pioneer of the Microfulfilment industry, backed by the Austrian ASRS powerhouse, KNAPP. Whilst at TakeOff, Yegor saw first-hand the complexity and sophistication of the system, often requiring technical specialists in proximity to each customer site, leading to increased deployment and upkeep costs. From here, Yegor's vision for Instock became clear – to redefine goods-to-person robotics by prioritizing low maintenance needs and self-service capabilities.

“Others have trains on the track, we have cars on the road”

The competitive advantage of Instock lies in its simplified hardware design, comprising of a sheet metal structure and it’s lightweight, mobile robots, allowing the robot to move freely within the fixed structure, visualised by Yegor’s analogy, “Others have trains on the track, we have cars on the road”. These features not only enhance operational efficiency but also make the system more accessible to businesses with dynamic throughput and storage density needs, whilst reducing the complexity and cost of design, deployment and maintenance.

While Instock competes with industry heavyweights such as AutoStore and Exotec, Instock also blurs the lines inside the Goods-to-Person world, where Yegor quotes companies like BrightPick, Geek+ and Hai Robotics all as peers and future competition stating, “no one system fits all purposes”.

Dreamt up by serial entrepreneur Oscar van Buijene, Intellistore started life as a series of sketches in 2018 for a novel stacked bin ASRS, which Wouter notes was “as a response to witnessing the success of AutoStore and a way to tackle capacity challenges prevalent in the high-density storage market”. Later, Oscar took these to an acquaintance and leader of a Dutch family-owned business who had seen an Active Ants warehouse with an AutoStore installation, who wanted to have the same technology benefits, but on a smaller and more affordable scale than offered by AutoStore (who at that time had not launched the Pio product). Combine this concept, a real-life need, and a willing pilot site, and you have the birth of the Intellistore system.

“faster picking, with a higher capacity, in a smaller footprint”

The vision for Intellistore revolves around a stack-based system, allowing bins to be taken from the top and bottom of the stack combined systems that gives “faster picking, with a higher capacity, in a smaller footprint” says Wouter; with an ability to be highly flexible when it comes to bolting-on additional systems verses their competition.

With an emphasis on innovation and adaptability, Intellistore is poised to carve out its place in the competitive landscape, having already seen success in the local Dutch market competing against AutoStore and viewing other early-entry companies like BlueRobot, Volume Lagersysteme and NoYesStack as greater competition in the European market.

In a comparable story to both Instock and Intellistore, Urbx was founded Lincoln Cavalieri, who Rudi tells me had “previously evaluated an AutoStore system in Boston” at the fulfilment location of Cavalieri’s previous business. During this process it became “quickly apparent that the low land availability and high real estate costs” were a key-challenges when trying to install in an inner-city location. Following a discussion with some connections at MassRobotics, the Boston based innovation hub, the concept for a ‘tall’ Microfulfilment system was created.

"overcoming such restraints by harnessing the potential of vertical space”

Cavalieri's vision for Urbx is ambitious - to redefine high-density storage "overcoming such restraints by harnessing the potential of vertical space” by going upwards without limitations, catering to businesses in densely populated areas. Whilst Urbx is the ‘newest kid on the block’ in terms of funding stages, it has the support not only of Rudi, who held leadership roles with KNAPP, Fortna and most recently Exotec, but also by 3 more ex-Fortna executives in the form of Andrew Breckenridge, Barry Malamud and Nikko Pienetto.

Urbx's unique selling proposition lies in its obvious ability to maximize space utilization, while maintaining efficiency and accuracy, making it a highly competent and viable competitor to AutoStore and Exotec, with Rudi noting Urbx as being “able to fulfil a grocery order with multiple lines of SKU in the shortest path and time” vs. similar systems. It’s placement in the US epicentre of robotic innovation, also gives a strategic advantage when imagining further novel technologies (think drone delivery direct from the tower).

Comparative Analysis

In comparing these three companies, several key themes emerge. While all three ultimately prioritize novel robotic systems for high-density storage solutions, their approaches vary significantly in terms of system design, target markets, and competitive positioning, giving strength to the claims of both Wouter and Rudi that there is still “plenty of space” in the “underserved” market.

Take Instock, who distinguishes itself by prioritizing operator-centric automation, a concept that aligns with their team’s vision of redefining goods-to-person robotics. The company's focus on low maintenance and self-service capabilities reflects a departure from traditional hardware-centric solutions. Then compare this with Intellistore and the stack-based system, moving away from the traditional bin-to-person approach adopted by many competitors; or with Urbx’s ‘limitless height’ capabilities setting it apart from traditional shuttle-based systems.

While each company brings its unique approach to the table, they share a common commitment to innovation and disruption in the high-density storage market. New technologies, however, are only effective when there is an existing problem that needs to be solved, or a significant benefit to be gained over the competition. Fortunately all three companies tackle a specific challenge, provide a particular advantage, or both.

By focusing on operator-centric simplicity, Instock represents a paradigm shift in how goods-to-person robotics are conceptualized and deployed. It offers not just a system that is more reliable, accessible, user-friendly and cost-effective; enabling them to deliver a solution that is not only innovative but also easier to deploy and maintain. Costs are often a defining factor for fulfilment companies when choosing systems providers, with many providers operating on razor thin margins, giving a need for rapid ROI and little room for downtime. This approach from Intstock empowers businesses to take control of such factors, reducing reliance on technicians and lowering operational costs.

The innovative design of Intellistore’s stack-based system revolutionizes the way businesses approach high-density storage. By leveraging stacks instead of bins, Intellistore offers a solution that allows for fast picking and high capacity within a small footprint. Combine this with the scalability and flexibility offered, and you can clearly see why this resonates with their existing client base of businesses seeking solutions as adaptable as their logistics operations.

Urbx vertical space utilisation offers a forward-thinking solution that is ideal for businesses in densely populated areas where real estate costs are high, and land is sparce. This innovative approach not only addresses a critical pain point for businesses, but also offers utility in the supply chain network, redefining how warehouses are designed and operated – imagine taking the typical sprawling footprint of an outer-town FC and condensing it vertically in central New York or Tokyo, opening up the possibility to truly conquer the ‘last-mile’ of order delivery.

Future Outlook

As the market continues to evolve, the role of challenger companies like Instock, Intellistore, and Urbx will become increasingly significant. Their innovative solutions and fresh perspectives have the potential to reshape the future of warehouse automation, driving efficiency, and profitability for businesses around the world.

Many could look at the future of High-Density 3D storage as an uncertain bet, especially when considering microfulfilment as an obvious use case is still taking off, and remembering the instability of funding rounds following the collapse of VC banks last year, or tales of many others who have tried and failed to commercialise properly.

Then couple this with the legal disputes shadowing the technology like AutoStore vs. Ocado, which all three companies have been watching closely. Whilst being relatively insulated, the implications of such disputes on its strategic direction and business model should always be considered.

However, optimism is still incredibly high and despite facing stiff competition from established players like AutoStore, many who are in this space or entering it see the legal dispute as an opportunity for market growth and expansion, by highlighting the technology in the public eye – after all there’s no such thing as bad press right? Acknowledging the legal verdict in favour of Ocado Technologies, Urbx also sees ample opportunities for market expansion and technological innovation, believing that whilst AutoStore leads the market currently, their growth will slow down, and others will catch up.

“Traditional retail is dying a slow death”

“Traditional retail is dying a slow death” was a statement made during my interview with Rudi, and is a sentiment echoed through highstreets around the world, with the growth of online retail showing no signs of slowing. Some of the traditional companies in warehouse automation may even likely try to develop their own products in this space to cash in on this inevitability. But it is important to remember that such companies like KNAPP, Dematic, Swisslog, etc. offering traditional shuttle technologies still have specific use cases and will continue to get the high throughput, large projects, where 3D Storage is still to offer any significant enough advantage – instead for now forming strategic partnerships like with KNAPP & TakeOff or with Swisslog & AutoStore.

We will also be likely to witness companies emerging from Asia, who currently dominate the market when it comes to AMR technologies. Having witnessed much of the change in the intralogistics industry, Rudi predicts that “It will be like the automotive industry where Europe is the leaders first, then USA will come out on top, and then China will get their interest and create something new” in order to compete in this sector.

?

Conclusion

The rise of challenger companies like Instock, Intellistore, and Urbx heralds a new era of innovation and competition in the high-density 3D storage market. By staying true to their vision and embracing innovation with unique approaches and fresh perspectives, these companies are poised to challenge the dominance of established players and reshape the future of warehouse automation. By staying true to their vision and embracing innovation, they have the potential to revolutionize the industry and drive meaningful change for businesses around the world.

In a landscape marked by change and disruption, these emerging players represent a beacon of hope for businesses seeking to stay ahead of the curve and not be tied to a singular provider with a monopoly on the market. By pushing the boundaries of what is possible in warehouse automation, companies like Instock, Intellistore and Urbx are paving the way for a more efficient, sustainable, and profitable future for the logistics industry they serve.