Robotics as a Service (RaaS) is a business model where robotics companies allow customers to lease or rent their robot devices using a subscription-based contract.
Robots are redefining industries like manufacturing, logistics and hospitality by delivering advanced automation solutions. However, they come at high cost. Some robotics companies are taking an alternative approach to selling their robots outright by using RaaS business models. RaaS lets customers use robots on the basis of a subscription, which helps them save money upfront, remain competitive and address labor shortages.
What Is Robotics as a Service (RaaS)?
Robotics as a service (RaaS) is a business model where robotics companies rent their robots to clients and customers for short-term or long-term use. RaaS provides consistent revenue for robotics companies, while lowering the cost to entry — and potential repairs and maintenance costs — for businesses who want to adopt expensive automation tools.
What Is Robotics as a Service (RaaS)?
Robotics as a service, or robots as a service, is a subscription-style business model where robotics companies offer clients and customers the opportunity to rent robots for use across industries from logistics and manufacturing to service and hospitality. As a result, companies that want to incorporate automation tools into their workplace — like robotic vacuums in hotels or autonomous forklifts in warehouses — no longer have to contend with the high costs typically associated with purchasing advanced automation tools outright.
The upfront cost of setting up an automated warehouse operation with 50 to 100 robots could cost a company between $2 million to $4 million, according to a 2021 report from Research and Markets. A robotics as a service model would break up that high cost over time, making adoption more manageable, and realistic. And while RaaS models increase the time it takes a robotics company to cover their own costs, they’ll end up making more money over the lifetime of the robot.
Brad Porter, founder and CEO of Collaborative Robotics, an early stage robotics venture that’s developing a cobot for use across industries, equates RaaS to a financing model that plays to a company’s return on investment.
“When people talk about robotics as a service, there are kind of two sub models — one where people are leasing rather than owning the equipment and another where they’re maybe paying per transaction that the robot performs,” Porter told Built In. “I think leasing versus owning is mostly a financing question like, ‘Who’s holding the bank note on the equipment purchase?’”
Many robotics companies offer both types of leases, though task-based leases, where companies pay per task, like picking goods in a warehouse, can prove riskier for robotics companies, especially startups.
According to Porter, the companies who own the equipment hold much of the risk when it comes to task-based, or pay-per-task, leases. If the customer isn’t using the equipment, or it’s not being used as much as projected, there’s little incentive for a company to offer a task-based RaaS model, though robotics companies will often set minimums to counteract any underutilization.
And then for companies with cash in the bank, they’ll likely still choose to purchase robots outright.
“I think if you know that the equipment is going to work well for you, and you’re someone deep pocketed — like you’re a big company with the financial reserves, you would rather buy it and depreciate it over five years than effectively paying some amount of overhead on that,” Porter said.
How Does Robotics as a Service Work?
Robotics as a service is a subscription-based model where a customer receives robotic automation services by renting or leasing a robot from an external company. Once in possession of the hardware, the company deploys it with a combination of pre-programmed elements, machine learning algorithms and, at times, human-assisted training to help with complex or labor-intensive tasks.
Depending on the type of subscription model, an RaaS system can be used indefinitely so long as the leasing company does not exceed any applicable task limits. However, many clients use RaaS systems as a stopgap solution during peak seasons and return them at the end of their lease.
Types of Robotics as a Service Business Models
There are two common types of robotics as a service subscriptions:
- Time-based leases: With time-based RaaS models, customers lease a robot from a robotics company for a specific period of time or term, say on a weekly or monthly basis.
- Task-based leases: With task-based RaaS models, customers lease a robot and pay the robotics company based on how many tasks the robot performs.
How Is Robotics as a Service Used?
Robotics as a service business models aren’t always so cut and dry. Companies often mix and match, renting and buying robots based on needs or market trends. Sometimes companies will rent first and then buy, or bring in robots during peak demand seasons to support order fulfillment.
Ilan Cohen, chairman and CEO of Caja Robotics, a robotics company that focuses on “goods-to-person” robots and software in the e-commerce and third-party logistics industries, told Built In his company takes a hybrid approach to sales, offering clients the option to lease robots from the company or buy them outright. Many companies opt to buy outright as a capital expenditure, according to Cohen, though those who do buy will often rent more robots during peak demand times, typically around the holidays.
“I think this is the real need of the customer,” Cohen said. “Because between the peak season and non-peak season … the performance that you need, or the activity that you need, for the same warehouse, can be three times, four times, the average.”
Seth Winterroth, a partner at Eclipse, has worked with and invested in companies like 6 River Systems and Third Wave Automation, both of which specialize in autonomous mobile robots and other automation solutions for logistics and material handling industries. Most companies he works with offer a RaaS model, pricing on a monthly basis with a term contract, he said. Their customers are growing more receptive to these as-a-service style business models, partly because it gives companies an opportunity to see these robots or other automation tools in action.
Examples of Robotics as a Service
As an increasing number of robotics companies are now offering RaaS options to their clients. From companies that focus on warehouse robots to delivery robots, here are a few companies offering RaaS options to customers.
Persona AI
Persona AI is a robotics startup that operates primarily with a RaaS model. It develops AI-powered humanoid robots for high-skilled scenarios like ship building and equipment inspections. Persona AI was founded in 2024 by former NASA engineers and has attracted heavy investor interest since its launch.
- Industries: Manufacturing and energy
- Uses: Shipbuilding, welding and equipment inspection
Aethon
Aethon, which specializes in autonomous mobile robots that work in healthcare and hospitality settings, offers a RaaS option to its clients and customers. “The flavor more associated with RaaS today is charging per unit of work rather than per robot,” Aethon CEO Peter Sieff told the Association for Advancing Automation earlier this year. “Instead of charging for the hardware and software as a product itself you pay for the service it is delivering. Aethon offers both.”
- Industries: Healthcare and hospitality
- Uses: Pharmaceutical transportation, meal delivery and linen disposal
Cobalt Robotics
Robots from Cobalt Robotics provide automated safety and security solutions to businesses and facilities. They’re able to patrol areas, respond to incidents like spills and provide customer service. Cobalt’s hourly RaaS model not only provides robots, but also software, customer support and maintenance.
- Industries: Security, manufacturing and logistics
- Uses: Autonomous security and maintenance
InVia Robotics
InVia Robotics’ RaaS model is marketed as a subscription-based service. InVia, which specializes in robots working in logistics, also has a robotics operation center that provides system monitoring and support.
- Industries: Logistics and e-commerce
- Uses: Warehouse management and automated order fulfillment
Locus Robotics
Autonomous mobile robots from Locus Robotics work everywhere from fulfillment centers to hospitals. The company’s RaaS model works as a subscription service and comes with 24-hour support as well as software and hardware updates.
- Industries: Manufacturing, logistics and e-commerce
- Uses: Warehouse organization, product transports and order fulfillment
Relay Robotics
Relay Robotics’ delivery robot, Relay+, works in healthcare, hotels and even residential buildings. The company’s RaaS model includes service and support with leases and can operate for as low as $4 an hour, according to the company’s website.
- Industries: Healthcare and hospitality
- Uses: Medical supply and room service delivery
Advantages of Robotics as a Service
These are some of the reasons companies are opting for RaaS systems over traditional robotics.
Low Upfront Costs
For many companies, RaaS models provide them an opportunity to test robotic automation for a much lower cost than purchasing or developing a custom system. In the long run, the service can prevent companies from using obsolete hardware.
Scalability
Businesses can strategically use RaaS subscriptions during peak demand periods or when facing labor shortages, as many providers require no long term commitment.
Fast Deployment
Compared to developing custom robotic solutions, RaaS systems can be trained and deployed faster than traditional methods.
Disadvantages of Robotics as a Service
Despite their benefits, RaaS might not be for everyone. Here are some considerations and disadvantages to consider.
Ongoing Costs
While the initial costs for RaaS are lower than purchasing a custom system, over time, the cumulative fees may surpass the cost of ownership.
Limited Customization
RaaS developers often build systems for broad use, rather than tailoring them to specific industries or the exact task a company needs to automate.
Security Concerns
To operate, RaaS systems may require data access or connect to a company's network, which can go against their terms of service or security protocols.
The Future of Robotics as a Service
Racheli Vizman is the co-founder and CEO of SavorEat, an Israeli tech company that developed a robotic system that cooks customizable plant-based burgers. SavorEat offers a RaaS model, which provides food service operators the opportunity to rent the company’s robot chef on a monthly basis along with service, support and training, she told Built In.
While some SavorEat customers just buy the robot chef, “others prefer the convenience and flexibility of not taking the upfront fixed cost charge, but instead spreading payment across a RaaS model,” Vizman said.
According to Vizman, citing SavorEat’s market research, RaaS is becoming more popular, with an estimated compound annual growth rate in the “double digits” over the next five years.
“Others prefer the convenience and flexibility of not taking the upfront fixed cost charge, but instead spreading payment across a RaaS model.”
Research firm The Business Research Company, expects the RaaS market to grow to $56.88 billion by 2029, with a compound annual growth rate of around 10.6 percent.
While customers benefit from the flexibility and lower barrier to entry RaaS offers, companies like SavorEat are benefiting from the growing RaaS trend.
“For us as the provider, it gives us greater visibility into predicting revenue and planning supply for the demand,” Vizman said.
These benefits ultimately balance risk for both robotics companies and their clients, which makes RaaS a sustainable alternative, or complement, to traditional sales models in the robotics industry.
Frequently Asked Questions
What is robotics as a service model?
Robotics as a service (RaaS) is a subscription-like model where a company can rent or lease a robotic system from a developer to provide automation services.
What types of robots are used for RaaS?
RaaS platforms support various types of robotics, but the most typical include ones with capacities for package handling, sanitation, and autonomous delivery.
What's the difference between RaaS and traditional robotics?
RaaS lets businesses rent robots instead of making a substantial capital investment to purchase or develop their own systems. Traditional robotics, in addition to having higher upfront costs, are often programmed for in-house tasks or automations.
