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Branded is a weekly column devoted to the intersection of marketing, business, design, and culture. Just a few years ago, iRobot, best known as the maker of the Roomba, was riding high, with annual revenue topping $1 billion; Amazon bid $1.7 billion to add it to the e-commerce giants home technology business. But that deal fell through, and now the Bedford, Massachusetts-based company has reported plunging revenue and steep losses, and recently warned investors of substantial doubt about its ability to continue as a going concern. With its share price down drastically, its now worth about $100 billion. How did the creator of the iconic round robot vacuumwhich has sold more than 50 million unitsget into this mess? Although theres of course more than one answer to that question, a major factor seems to have been an ill-fated focus on dreaming up ways to move beyond the vacuum into new product categoriesall the while failing to keep up with new competitors in its core business. Sometimes, those rivals competed on price, but Chinese brands like Roborock developed cutting-edge models praised for advanced technology such as a LIDAR sensor (generally recognized as more accurate than camera sensors) and other obstacle-avoidance and spatial-mapping tech. In short: as iRobot matured, it seems to have emphasized the wrong sort of innovation. (The company declined to comment beyond public statements about its earnings and recent new product announcements.) Founded in 1990, iRobot released its first Roomba model in 2002, essentially inventing a new robotic floorcare category: a relatively affordable robotic vacuum that whirred around on its own, sucking up dust. It was nobodys vision of the future, but it caught on; some fans gave their Roombas names, treating them almost like techno-pets (and making endless cat-riding-a-Roomba memes). While it quickly attracted competition, the Roomba was long the clear leader, its name becoming a borderline-generic term for all robo-vacs. This popularity reached a peak in the COVID-19 lockdown era, when many consumers had way too much time to obsess about their domestic environments. By then iRobot had begun exploring (and pouring R&D into) new products, most notably a robo-mop, but also a lawn mower, air-purifying devices, and educational products. The company still looked like an innovator and its share price soared beyond $130 in early 2021, briefly giving the company a valuation of more than $4 billion. But the new experiments mostly didnt catch onwhile the robo-vac competition did. Several of the fastest-growing robotic-vacuum businesses are based in China, such as Anker, Ecovacs, and Roborock, all of which have eaten into iRobots share of the market. Lower prices were part of the equation, but competitors also brought design and technology innovations to the category, improving core functionality. While the whole category declined post-COVID, its growing again (in excess of 20 million units were distributed last year, up 11.2%)but iRobots global share has shrunk to 13.7%, compared to 22.3% for Roborock. Amazons 2022 acquisition offer looked like a lifelinebut the deal fell apart in January 2024 under regulatory pressure over competitive and privacy concerns. Cofounder Colin Angle stepped down as CEO, replaced by Gary Cohen, appointed to oversee a recovery-and-turnaround mission. Since then, the company has scrubbed most of those new-category initiatives and cut staff by 50%. Fourth-quarter revenue dropped from $308 million to $172 million, with a loss of more than $44 million; sales fell 47% in the U.S. and almost as drastically in its various international markets. Full-year revenue for 2024 was down 23%. (Amazon CEO Andy Jassy has criticized regulators treatment of the deal, essentially blaming them for iRobots subsequent woes.) In its effort to save itself, the company has shifted focus (and more of its slimmed-down R&D resources) back to its core Roomba products. Earlier this year, iRobot said it expected to grow revenue through new (vacuum-focused) product launches, and has stated it is negotiating with lenders and actively exploring other options. This past week, it released eight new Roomba models, including mop-combo unitsand its first versions equipped with LIDAR and AI technology. Prices, ranging from $300 to $1,000, seem more competitive with Chinese rivals. But as the company acknowledged in its earnings release, the fresh generation of Roombas isnt guaranteed to save the day, depending on consumer demand, competition, macroeconomic conditions, and tariff policies. If the robovac pioneer cant figure out how to navigate those obstacles, it may just get swept away.
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E-Commerce
In a correctional facility just outside of Silicon Valley, a Goodwill store operates inside the prison walls. And the women who are incarcerated there are both the employees and the customers. This Goodwill store, which opened in October 2024, is the first of its kind, and the team behind it hopes that the program will help incarcerated women get back on their feetwhether it’s with a new job or new clothesas quickly and easily as possible. [Photo: Santa Clara County Sheriffs Department] The shoppers are women who are about to get released; typically about three people come in each day. Traditionally, when a woman is released from Elmwood Facility, she is given only the clothes she was arrested in. We’re really here to try and help people get back into the community, says Chris Baker, CEO of Goodwill of Silicon Valley. Nearly 75% of formerly incarcerated people remain unemployed a year after release despite looking for work, according to the American Civil Liberties Union. A new California law passed last year allows formerly incarcerated people to ask for their records to be cleared after completing a sentence. There are over 600 incarcerated women at Elmwood Facility, and eight operate the store at one time. The store is open three days a week for a few hours each day. Some participants had never had a job before, some had jobs that werent in the retail industry, and some had previously worked at Goodwill in e-commerce roles. Each woman works in the store for 60 hours total before completing the program with Goodwill. At the store, they take turns working behind the register and performing other tasks, like running inventory or logistics. This can be valuable career training for incarcerated women, who may face significant barriers to employment after leaving prison, according to Steve Preston, the CEO of Goodwill Industries International. It builds skills, it builds competence, it builds dignity, it prepares people, and it gives them a smoother path when they leave, says Preston. He says many business leaders and HR professionals across the country are unwilling to hire formerly incarcerated individuals and dont recognize their potential. [Photo: Santa Clara County Sheriffs Department] Prison employment The women who work in the Elmwood Facility Goodwill aren’t paid for their labor (most prison jobs in California pay only pennies per hour). Many prison rights activists have criticized prison work at large as exploitative, but the Goodwill program is entirely optional and the team behind it believes it prepares the participants for success outside prison. [Goodwill] doesnt get anything monetarily out of it. What we get is knowing that we are providing training to individuals so that they can enter our community and better our community as a whole, says Castello. She adds that if the women want to work at a Goodwill after release, they would already be mostly trained, which results in less training responsibilities for a store manager. Working at the Elmwood Facility Goodwill doesnt automatically guarantee employment after release, but participants can find employment through a separate Silicon Valley Goodwill reentry program called NOW, which has been operating for 12 years. Participants in the NOW Program work at a Goodwill retail shop for 90 days and have access to job readiness workshops. Goodwill declined to make any participants available to Fast Company, citing privacy concerns, but it shared one emailed comment from a woman who had both worked and shopped at the Elmwood Goodwill, who said: This program was designed to serve someone like me. Released with no clothes The Elmwood Goodwill operates similarly to Goodwills retail stores across the country, but swaps out cash and credit for pre-loaded gift cards, which Goodwill provides. The shoppers use gift cards to buy themselves two complete new outfits and a backpack for their release. Everything in the store is priced the same and comes in via regular donations to Goodwill dropoff facilities. Providing incarcerated women with new clothes can be just as powerful as providing them with jobs, says Trish Dorsey, VP of mission services at Goodwill of Silicon Valley. She told Fast Company how shes seen the impact firsthand. In one instance, a woman was arrested inside a hospital, and so she was checked into prison with only a hospital gown, according to Dorsey. The only options she had for release were wearing that same hospital gown or exiting prison in a paper jumpsuit. But after visiting the Elmwood Goodwill, she was able to leave with two complete outfitsas well as shoes, socks, and a backpack, says Dorsey. The training part is really impactful because it gets [the women] ready to work, says Dorsey. But I think just as impactful, if not more so, is the way they now are able to leave the county jail system with dignity.
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E-Commerce
Fast Company is the official media partner of Summit Detroit.For the past 17 years, Summit, an organization hosting conferences and immersive experiences around the world, has brought together entrepreneurs and creatives in lush settings that double as vacation destinationsthink Tulum, Mexico; Palm Desert, Calif.; Powder Mountain, Utah; and even out on the open sea. This year marks the end of Summit’s larger-scale events as the company pivots toward more intimate gatherings. So it’s little surprise that more than a few eyebrows were raised when Summit announced Detroit as its last big hurrah this June 5-8. [Illustration: Summit] We came together and decided to convene our community in a place that embodies the Summit spirit, that is filled with surprise and delight, and has abundant, beautiful spaces for us to activate and bring to life, says Jody Levy, CEO and global director of Summit. We have had an outpouring of excitement from people across the world that we are gathering in Detroit. Those who know know! Founded in 2008, Summit is the brainchild of Elliott Bisnow, Brett Leve, Jeff Rosenthal, and Jeremy Schwartz, who coalesced around the idea of finding the connections between their personal interests and entrepreneurial endeavors. They set out to develop a community of like-minded people by hosting a series of events leaning into the intersection of work and play. At a Summit event, it’s not uncommon to hear a talk on the future of human longevity before heading to a poolside DJ set or a wearable balloon art dance party. That feeling of the unexpected also translates to Summits chosen location this year. “I’ve been watching [Detroit] really hit the stride of what everybody always wanted and saw for the city,” Levy says. “There’s so much happening here that’s being exported to the rest of the world that my partners and I [at Summit] decided to come to a place that’s a little unexpected, that’s got a little bit of that like grungy grit that we all as entrepreneurs have.” Summit Detroit will have much of what Summit has become known for: high-level speakers including Ev Williams, cofounder of Mozi and Twitter and the founder of Medium; futurist Pablos Holman; author and psychotherapist Lori Gottlieb; tracks focused on the future of transportation, next-gen entrepreneurship, and mental health; and live music sets. The event will also take advantage of being in downtown Detroit with design tours and a lineup of Detroits culinary arts. But what Levy is most excited for is the track on creative expression and storytelling. Featuring speakers including famed choreographer Bill T. Jones, artist and activist Shepard Fairey, and head of design at Google Ivy Ross, the track will explore how to apply design thinking to your pursuits, the importance of transient moments to the human experience, and more. [Photo: Amanda Demme] As creative doers who are always pushing what comes next, there are many people globally feeling lonely and isolated, Levy says. It tells me that the Summit community and the creative community at large need to come up with new ways to support each other. With the rapid pace of technology, AI, and information, it is increasingly important for us all to be reminded of the space where our passion and purpose coalesce. That is the place that the Summit community has in common, and it is imperative to how we grow and evolve our companies and products. Summit is an invite-only community composed mainly of referrals from existing members, some of whom have been part of the group since its inception. Its not meant to be some secret societyits more about preserving the integrity of the companys mission: bringing the best thinkers, creators, inventors, investors together to learn and support each other. Or, as Levy describes it: a mutual aid society for our time. When there’s somebody that we know through Summit, there is a nod of credibility, she says. They’re probably a high-octane doer that has a certain way of operating that you trust because they’ve been invited into the Summit community. Levy believes that Summit can have an especially meaningful impact at moments such as now, when the world is unstable and in transition. “When we, the Summit community, come together, we are able to explore all kinds of topics in a neutral space that allows our community to bump up against the outer edges of our belief systems, Levy says. People end up growing and learning from each other. Summit has always been highly effective in giving people new vantage points and opportunities for collaboration to make our endeavors more successful.
Category:
E-Commerce
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