United Parcel Service Inc. will invest $120 million in 400 robots used to unload trucks, according to people familiar with the matter, revealing new details on the logistics giant’s $9 billion automation plan that aims to boost profits by decreasing labor costs.

Unloading trucks and shipping containers at warehouse docks is mostly done by people and remains a key bottleneck in the shipping industry. The UPS order puts a spotlight on Pickle Robot Co., a Charlestown, Massachusetts-based startup already working with UPS that’s raised about $97 million since it began in 2018, according to Pitchbook.

Pickle makes a robotic arm on a mobile base that can drive into a shipping container, lift boxes weighing up to 50 pounds using suction and place them on conveyor belts. One robot can unload a typical truck in about two hours and the robot typically pays for itself in about 18 months through labor savings, according to Pickle’s website. The robots can be deployed in existing warehouses, which is a key selling point since the automation doesn’t require specially designed facilities or extensive upgrades.

UPS will deploy Pickle Robots in multiple facilities in the latter half of 2026 and into 2027, said the people, who spoke on condition of anonymity since they were not authorized to share the details publicly. It’s common for large companies to experiment with automation through pilot projects and prototypes by startups eager to prove their technology works in the field. The UPS purchase from Pickle follows years of experimenting to demonstrate the robots can help reduce labor costs, one of the people said.

UPS says its relationships with Pickle and other automation and robotics companies “helps reduce repetitive tasks and physical stress while promoting safety for UPS employees.” Additional purchases often depend on successful testing outcomes, the company said in an emailed statement, adding that contract details are private.

Through a spokesperson, Pickle declined to comment on the purchase.

In 2024, UPS announced a four-year plan to invest $9 billion in automation projects at more than 60 U.S. facilities with the goal of achieving $3 billion in cost savings by 2028. The courier is taking on its biggest network reconfiguration in history as it seeks to lessen its dependency on labor, trim fixed costs and boost margins. The company has closed daily operations at 93 facilities and eliminated 34,000 jobs this year as part of the consolidation, driven by a move to reduce the number of low-profit e-commerce packages it handles for online retailer Amazon.com Inc.

Amazon is a leader in warehouse automation. Its 2012 purchase of robot-maker Kiva Systems helped it speed online order fulfillment since the mop-bucket-sized robots can zip around warehouses to fetch products faster than people. Pickle Robot’s technology comes earlier in the flow of products, when trucks stuffed with inventory pull up to warehouse dock doors waiting to be emptied.

Pickle Robot uses artificial intelligence to maneuver in shipping containers and empty boxes, adjusting as the load gets smaller. Its investors include the packaging materials company Ranpak Holdings Corp. and the venture investment arm of Toyota Motor Corp. Its competitors include Boston Dynamics, which makes a warehouse robot called “Stretch.”

Venture capital investments in robotics companies are on track to reach a new high in 2025, surpassing the $12.5 billion invested in 2024, according to Pitchbook.

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