How Kiva Robots Help Zappos and Walgreens

In a warehouse at the headquarters of Kiva Systems in Woburn, Mass., an ottoman-shaped robot slides beneath a four-shelf storage unit holding an assortment of consumer goods, lifts it, and navigates back to Mick Mountz, the startup's founder and chief executive. Mountz grabs a box of Kellogg's Frosted Mini-Wheats off of the shelf and turns to put it in a shipping box. By the time he has turned back again, the robot is carrying the 8-ft.-tall shelving unit away, and he is facing another stack of goods carried by a different robot.

This is Kiva's demo space, where Mountz shows potential customers what his wireless robotic fulfillment system can do. It's also where Kiva handles manufacturing, turning out 200 squat, orange robots—one model can hoist 1,000 lb., while the other is strong enough for 3,000-lb. pallets­—every month. But you don't have to go to this Boston suburb to see Kiva's bots and pods, as the company calls the shelving units: They're already fast at work in warehouses run by Staples (SPLS), Walgreens (WAG), Gap.com (GPS), and online retailer Zappos.