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Austin startup tunneling for underground deliveries raises $13M


robot bridge 2
One of Pipedream's autonomous underground delivery bots glides through a tunnel at the company's demonstration project near Atlanta.
Pipedream

Austin already has dozens of autonomous delivery robots that will slowly wheel meals from restaurants to doorsteps.

But there's a local startup that wants to make deliveries even faster — and without adding congestion to sidewalks and bike paths.

Pipedream Labs Inc. is working on small tunnels and autonomous robots that would essentially create miniature subway systems beneath stores, as well as networks through entire neighborhoods and downtown areas. The small bots, roughly large enough to carry a grocery store basket, drive through tunnels and pop up in specialized kiosks where customers would pick up their meals or other goods.

The company, founded in 2021, said April 23 that it has secured $13 million to expand its underground logistics technologies and select a city where it plans to build a large scale delivery network throughout a downtown area.

Garrett McCurrach Headshot
Pipedream Labs CEO Garrett McCurrach
Pipedream

"In terms of city partnerships, we’re thinking through a host of factors including city density, level of congestion with ongoing local initiatives targeted at reducing it, environmental considerations, innovation / smart city hubs, planned new developments, existing partnerships with a strong city footprint," a company spokesperson said via email.

That's in addition to its existing pilot project with Wendy's, where its tunnel and bot system is used to deliver meals to customers.

The startup also already has a proof of concept for larger developments.

Late last year, Pipedream announced its first underground infrastructure just outside of Atlanta in Peachtree Corners for local deliveries to multi-story and mixed-use buildings. The roughly one-mile system connects to a shopping center inside a city innovation center called Curiosity Lab. It allows members to order food and convenience store items from several businesses in the area.

"One of the central benefits of this underground system is how it can eliminate the need for traditional delivery vehicles that contribute to Atlanta’s infamous traffic congestion," the company said via email. "With fewer drivers on the road, Pipedream is also able to create significant benefits for the municipality’s overall carbon footprint."

Pipedream's new funding was led by San Francisco-based Starship Ventures, with participation from Cortado Ventures, Myelin Ventures and other unnamed firms and angel investors.

The startup, led by CEO Garrett McCurrach, will also be building out its quick service restaurant deliveries. It says it has more than 100 customer lined up for those smaller-scale projects.

The startup has 11 employees in Austin at its office near Braker Lane and I-35. It has four others working remotely.

It is hiring for at least five positions in its Austin office. Those roles include engineering, robotics and business development.

"We’re pleased with our current demo space and our ability to show prospective customers and investors alike the functionality of our system up close and personal," a company representative said via email. "That said, our product is rapidly evolving, so depending on how quickly how partnerships scale as well as our partner’s product needs, we’re open to a bigger space in the Austin area."


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