Israel-based robotics startup Get Fabric Ltd., which has placed so-called microfulfillment centers in New York City and Dallas, is focusing on selling its warehouse automation platform rather than building more specialized small distribution sites.
Some companies leased vacant retail spaces for use as “dark stores” for fulfillment and delivery, while others opened smaller warehouses near population centers.
The shift makes the niche logistics business the latest to see a business strategy that gained traction during the Covid-19 pandemic lose its momentum as consumers have resumed prepandemic buying habits.
That has some retailers rethinking their heavy investments in online fulfillment.
Takeoff Technologies Inc., a microfulfillment system provider, expanded its business in the past year, said co-founder and Chief Executive Max Pedró.