Grab sees autonomous vehicles as a solution to worker shortages markets like Singapore, where scarce and costly labor makes it difficult to expand delivery networks across the dense city-state.

The Southeast Asian tech company will launch a pilot of its first delivery robot in Singapore’s Punggol district in late 2026, as part of a deeper push into physical AI and robotics.

“We see AVs as really useful in supply-constrained markets,” chief technology officer Suthen Paradatheth told Fortune in an interview on the sidelines of the Asia Tech (ATx) summit on May 20. “There are certain classes of passengers which are underserved, because they’re in remote locations and drivers are not often in that area.”

Seven other companies, including DHL and local startup Quikbot, will pilot their technology in Punggol, Singapore’s hub for testing embodied AI technology, alongside Grab. While Grab’s robots will focus on food delivery, other companies will automate parcel delivery, cleaning, and security patrols.

Grab’s new robot, named Carri, will automate last-mile delivery, such as taking a package from the roadside to an apartment’s front door; Grab estimates this step takes up 10% of a driver’s working time.