SmallCapsDaily Sits Down with Arrive Technology Inc. CEO, Dan O’Toole

Dan O'Toole

Chairman & Chief Executive Officer

Dan O'Toole is a serial entrepreneur and business leader who is among the first in the United States to secure patents for a smart mailbox designed to securely accept packages delivered by conventional or autonomous means. He has had extensive experience in upper management at several prior impactful companies, including startups, enterprise sales groups, and commercial real estate entities. He is CEO of Arrive Technology, Inc.

Full Interview:

Thank you for taking the time to answer my questions about Arrive Technology, Inc. For our readers who may be unfamiliar, please briefly describe the Company and its focus.

Headquartered in Indianapolis, Ind., Arrive is a technology company focused on facilitating the last inch of the last mile for autonomous delivery. Founded by serial entrepreneur Dan O'Toole, Arrive’s smart Mailbox-as-a-Service (MaaS) platform makes the exchange of goods between people, robots, and drones frictionless through the use of artificial intelligence (AI).

Arrive holds first-position patents on its smart mailbox platform and beat organizations like the U.S. Postal Service and Amazon with its smart mailbox design, initially designed for delivery via traditional human means, as well as drones, but is now refined to also accept robotic delivery. The mailbox leverages climate-assisted cargo space, smart alerts, and advanced chain of custody controls to secure the last inch of the last mile for all shippers, delivery services, and autonomous delivery networks.

Arrive’s solutions are critically and uniquely positioned in the supply chain. Once at scale, we plan to leverage AI to provide users with insights that can aid businesses and consumers to lower logistical costs and capture new growth opportunities, among other benefits.

It was recently announced that Arrive entered into an agreement and planned merger with Bruush Oral Care. How does this strategic merger address the crucial need for a secure and intelligent exchange point in the dynamic realm of automated last-mile delivery?

The Bruush-Arrive merger will allow us to leverage capital markets to accelerate our business plan execution. Our technology involves producing highly sophisticated devices. As you can imagine, producing the number of units necessary to scale our MaaS platform will be an expensive endeavor. There are nearly 165 million registered mailing addresses in the U.S. alone right now, and that grows by about a million new addresses each year. We plan to scale globally.

In light of Arrive's commitment to revolutionizing the autonomous delivery network, could you elaborate on the specific ways the combined entity, operating under the name Arrive Technology Inc., plans to enhance shareholder value through the deployment of its third-generation smart mailbox and AI-powered Mailbox-as-a-Service (MaaS) platform?

Deployed at scale, our MaaS platform will revolutionize the package delivery industry. In 2021, 21.2 billion packages were shipped in the U.S., and that activity will only grow. We anticipate that with market penetration of just 1 percent of the U.S. package delivery market alone, we will realize $3.5 billion in revenue each year.

Add to that the incalculable amount of data we will collect via these deliveries, and we anticipate another strong revenue stream.

Arrive recently acquired AirBox Technologies, known for its smart mailbox solutions and drone delivery patents. How does this acquisition specifically enhance Arrive's existing technology and strengthen its position in the autonomous delivery market?

You’ll learn later this week one immediate effect as we announce our first agreement with a retailer that AirBox had been working with but had yet to finalize. The combination of our first-position patents and those that AirBox had acquired (more on that to come soon) and has in process, will further position us ahead of competitors trying to get into this space. It was a perfect acquisition for us and the first of many.

Can you elaborate on how Arrive's Mailbox-as-a-Service (MaaS) offerings stand out from competitors, particularly regarding their "tri-modal" (human couriers, robots, drones) approach and integration with autonomous delivery networks?

We’re designing our MaaS platform to be agnostic, robust, and versatile, working with any carrier and any mode of delivery – human, drone, or robotic, so there’s really no one who can’t use our system. Simply put, we’re talking about the same deliveries that people and businesses are already receiving, we’re just adding a layer of connected and automated security to the mix. We’re also pretty nimble. We saw a need for campus and large enterprise delivery and designed units to meet those needs as well. Part of what distinguishes us from others is that our patent position is so far ahead of anyone else. We’ve been at this longer than anyone, really, and it’s all we think about.

How do the different solutions within the Arrive ecosystem (Arrive Point, Bank, Convey, Tower) cater to the varying needs of businesses and residents in the last mile, and how do they impact the delivery network for different customer segments?

• Arrive Points is our flagship product, focused on comprehensive package protection with a wide range of features to make your logistics and package management easier. They combine convenience and security through features such as real-time notifications, climate assistance to maintain optimal cargo bay temperatures, and digital signature capabilities with a complete chain of custody.
• Arrive Banks are multiple Arrive Points working in tandem to offer more capacity to campuses and office complexes with multiple users and large deliveries. Offering all the same features as Arrive Points plus enterprise support, the Arrive Bank offers a scalable and adaptable solution for properties of any size. With Arrive Banks, you can manage multiple packages simultaneously and easily track deliveries and pickups with real-time notifications and archival data.
• Arrive Towers are for apartment complexes or other multi-tenant buildings to enable multiple customers to access the devices. The Arrive Package Tower accommodates the highest volume of automated deliveries and pickups. This multi-tenant solution is designed for business campuses, apartment buildings, and other similar settings. The internal carousel configuration ensures that packages are safely shuffled internally, enabling drone, robotic, and manned deliveries and pickups, all from a single multi-tenant solution.
• Arrive Convey is for large complexes and distribution centers to connect to and extend their conveyor belt network outside of their facility to funnel deliveries through safely and securely. Made for larger enterprises, this solution allows you to automate your package flow between Arrive Points and your facility with a custom conveyor, boosting efficiency for medical and healthcare operations, distribution centers and warehouses, and restaurants.

Given the growing emphasis on eco-friendly solutions, how does Arrive's technology address sustainability concerns in the last-mile delivery sector? Can you share concrete examples of initiatives or features contributing to this aspect?

We commissioned a report a few years ago that anticipates what the environmental and social impacts are, and we’re hoping to validate some of those findings through planned deployments. Keramida, an Indianapolis environmental consultancy, studied what environmental greenhouse gas (GHG,) air pollution emission and vehicular traffic effects would result if only 1 percent of households worldwide utilized our technology paired with autonomous delivery. Key findings of the 2022 report show that this usage annually, compared to traditional delivery, would reduce:

• 1.7 billion kg in GHG, or about the same amount of GHG that 841,717 acres of forest can absorb in a year;
• 682.01 kg GHG emissions for each household that uses an Arrive mailbox (89.12% reduction rate);
• 0.46 kg volatile organic compounds emission for each household (99.70% reduction rate); and
• 1.00 kg nitrogen oxide emission for each household (94.67% reduction rate)
• 0.08 kg particulate matter emission for each household (87.68% reduction rate.)

Further, when autonomous delivery is commonplace, the report says there will be:

• 192 trillion fewer miles driven by delivery organizations;
• 16.8 million fewer traditional vehicles on the road; and
• More than 450,000 fewer vehicle crashes.

Your platform highlights various use cases in medical and healthcare settings. Could you delve deeper into how Arrive's solutions specifically benefit these industries, addressing challenges like secure medication delivery and temperature control?

Picture a scenario in a bustling hospital, part of a mid-sized health network based in Central Indiana with locations spanning the state. Daily deliveries, an important routine task for nurses and other hospital staff, demand their constant availability. Enter Arrive Points strategically positioned around the hospital, serving as central drop-off hubs for deliveries from various sources, including couriers and drones. This guarantees a secure and organized space for packages, eliminating the need for hospital staff to be immediately on hand to receive deliveries. This, in turn, allows them to redirect their focus to what truly matters – their patients.

With Arrive's platform, the emphasis shifts from when something is delivered to when it's needed. Our Smart Mailbox-as-a-Service (MAAS) ensures secure storage until items are required. Moreover, our capability to interface with drones and robotics enables seamless collaboration with the technologies already being introduced in numerous hospitals. This not only simplifies delivery but also enhances the efficiency of autonomous technologies, allowing healthcare professionals to leverage these tools for improved patient care.

This is just one of the scenarios we’re working with our customers on and we’re exploring additional use cases with other hospitals and campus-environments. With our platform, it won’t matter what time or day lab tests or medicine are delivered, they’ll be kept secure until they’re retrieved, and if the operation works 24/7, well we can deliver 24/7.

Beyond subscription models and partnerships, what are some innovative strategies Arrive is exploring to monetize its valuable AI/ML data insights and the Automated Delivery Marketplace in the long term? Can you elaborate on potential revenue streams beyond traditional subscription models?

See the above regarding AI being used to collect and analyze consumer data from delivery performance/activity.

Additionally, our platform encourages IoT connectivity between the mailbox and the home, we’ll recharge elective devices and we can even boost signal strength. We already have designed to alert public safety agencies to problems within the home, and we foresee a day when video services will help you find lost pets, kids, or elderly parents. The applications are limitless as connectivity continues to grow.

As our distribution and density of units installed grows, our platform will be able to supply the data necessary to employ various types of AI/ML for increased value, delivery, and revenue throughout our ecosystem of partners, services, and customers.

Arrive aims to obtain 50% of its future revenue from AI/ML and related data services by leveraging unique data sources for AI/ML advantages to ensure trust is instilled in end customers and that they gain value from opting into our data and privacy policies.

Here are 10 other benefits we’ve preliminarily identified for ML/AI as part of our Mailbox-as-a-Service (MaaS) platform:

1. Decline in porch pirate thefts. Millions of packages are stolen each year, but MaaS will bring that abruptly to an end.
2. Cost savings for consumers and businesses alike. With packages no longer being stolen or compromised due to weather, coupled with the savings of not having trucks on the road, there will be a financial gain for all.
3. The expansion of sensitive materials will take place because people will no longer have to worry about the items falling into the wrong hands. The MaaS platform allows only the rightful owner to access the contents.
4. Safety measures will improve because the MaaS platform will be able to detect any hazardous materials that someone may attempt to deliver.
5. Retailers will be able to better track and analyze consumer data. The technology will improve insights from the fulfillment center to the consumer.
6. The advanced technology will bring with it environmental benefits, including reducing carbon emissions. Many delivery trucks will no longer be going through communities, which will save on fuel and emissions and keep neighborhoods safer.
7. AI will make it where facial recognition is used to access the mailbox, which helps keep it secure. People will also be able to access updated tracking information and be alerted if there is anything suspicious going on around the box. There will also be a hands-free, voice-activated capability.
8. AI will be able to handle automated pickups, which will help consumers and businesses avoid having to fit it into their busy schedules.
9. The smart mailboxes will be able to maintain an ideal temperature so that items are not compromised. This will especially help those getting prescription medication deliveries.
10. Consumers will be able to integrate their smart mailbox with other smart devices in their homes or businesses, including locks and security devices.

These are just a few examples of the benefits of harnessing AI and ML in our MaaS platform. As we increase our installed-units footprint and as ML algorithms become more sophisticated, we can expect to see even more innovative applications of ML in Arrive’s technologies in the future that will accelerate growth and revenue potential.

Arrive has a robust patent portfolio. Can you elaborate on the key patents and how they position Arrive in the competitive landscape of last-mile delivery and logistics?

We currently have 3 U.S. patents and 149 claims filed for or awarded. They include our original docking station and delivery system and two additional iterations of that. We have one international patent and 44 pending. Freedom to Operate studies conducted in 2018 and 2021 by third-party patent firms confirm our leading patent positioning.

Companies who filed similar patents after ours for a drone docking station and delivery system are Amazon, UPS, USPS, FedEx, DHL, and others.

We have a patent pending on a winch system that will work with drones to ensure packages are safely delivered into our mailboxes rather than just dropped onto yards.

As Autonomous Logistics evolves, what are some key trends and potential disruptions on the horizon? How is Arrive proactively innovating and adapting its technology to stay ahead of the curve and seize these opportunities?

It helps to be out in front from the get-go. We’re always watching, always thinking about what comes next. This whole thing started when I wondered what happened next when I saw a drone flying over a cornfield and wondered what it was being used for. That led to thinking about package delivery and how there should be a better way to have packages delivered. From there, we’ve studied the landscape, seen the issues with dropping packages on doorsteps, and taken it from there. In the beginning, we didn’t think about how the mailbox could “talk” to connected devices in the house, but we quickly saw how we could expand on video doorbells’ view to give homeowners even more security options.

Is there any other information you wish to share with our investors so we can highlight the key investment opportunities for Arrive?

We’ve raised more than $10 million to support our effort to revolutionize the package delivery space since we launched in 2014, largely from crowdfunding. More than 5,000 individuals are supporting our effort to date. We believe we are one of, if not the only company to have raised more than $1 million in three separate crowdfunding efforts.

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