Skip to main content

Former robotics startup Zume is now selling face masks and appears to have stopped producing the food packaging that it refocused its business on in January

* Zume, the former robotics startup that specialized in automated pizza-making, is now selling disposable face masks, Business Insider has learned. * The startup is using its manufacturing facility in Camarillo, California, to produce the masks. And according to the Zume website, the company appears to no longer be producing the food packaging products that it refocused the business on in January. * The change comes amid a pandemic that has squeezed big businesses and startups alike, putting tens of millions of Americans out of work.  * But Zume's troubles began well before the coronavirus.  The startup, which was backed by Japan's SoftBank and valued at  $1 billion in 2018, has shuttered multiple other parts of its business and laid off more than 500 employees since January. * The company's masks are not medical grade and are designed for 'everyday use' the company's website says. * Click here to get BI Prime's weekly 'Trending' tech newsletter in your email inbox. Zume, the troubled SoftBank-backed startup famous for its pizza-making robots, has shifted its business to exclusively producing and selling face masks. On Monday, Zume began officially offering the masks for sale on its website, with 10- and 100-packs of masks produced out of its facility in Camarillo, California, available for roughly $1.44 per mask.  "Zume is now manufacturing face masks to help in these challenging times," the company's website says. A note on the site's FAQ regarding the status of the company's sustainable food packaging products reads "we are currently focused on manufacturing face masks in order to do our part during this crisis," and directs questions to a customer support email. The disposable masks, which the company said are made from "non-woven, natural fibers," are not the N95 respirators or surgical masks worn by healthcare workers at the frontlines of the coronavirus pandemic, and they are not intended to serve as personal protective equipment, Zume's website says. The masks are intended for "everyday use" such as protecting against "non-toxic household dusts, powders, allergens, and other irritants," Zume's site says. The company's mask production represents the latest strategy pivot by Zume cofounder and CEO Alex Garden. As recently as April, Garden said the company was refocusing on sustainable food packaging produced in the Southern California facility after shuttering all other divisions of the business, including its flagship robotics division. In all, Zume laid off more than 500 employees since January as Garden's vision for the business has shifted from the initial plan of creating robots capable of making pizza. In the months since the January reorg, the coronavirus pandemic has squeezed big businesses and startups alike, putting tens of millions of Americans out of work.  Zume was most recently valued above $1 billion following a $375 million funding round led by SoftBank Vision Fund, but has struggled to land additional funding as it assesses the future of the business. Sources previously told Business Insider that Zume's Camarillo production facility had recently been converted from manufacturing food packaging to mask production. It is not clear what production costs Zume has incurred to pull off the strategy shift, which could account for a portion of the ultimate cost of the masks. However, the machinery at the Camarillo facility is at the center of a lawsuit against Zume brought by John Scott Lilley, the president and CEO of Pivot Packaging, which Zume acquired in February 2019. The suit alleges that Zume misrepresented its financial condition prior to the acquisition, and accuses the startup of fraud. Lilley has requested that Zume return ownership of the machinery's patent to him as part of the suit. SEE ALSO: The cofounder of a food packaging startup acquired by SoftBank-backed Zume is suing, alleging he was misled about Zume's financial health and never got millions in promised payouts Join the conversation about this story » NOW WATCH: Pathologists debunk 13 coronavirus myths
https://bit.ly/3g5kZOj

Popular posts from this blog

SpaceX has a 'go' from NASA to return 2 astronauts to Earth on Sunday as Hurricane Isaias threatens several Florida splashdown locations

* NASA on Saturday gave SpaceX a "go" to undock the company's first crewed space mission, called Demo-2, and land it on Sunday evening. * Hurricane Isaias complicated original plans to return two astronauts to Earth aboard SpaceX's Crew Dragon spaceship in the Atlantic Ocean. * Elon Musk's aerospace company may now try to splash down NASA astronauts Bob Behnken and Doug Hurley in the Gulf of Mexico. * Two out of seven total landing sites near Florida must have good weather conditions, and NASA has until about 5 p.m. ET on Saturday to call off the undocking. * Should the weather worsen, NASA and SpaceX can try again a day later or some other date over the next two months. * Visit Business Insider's homepage for more stories. Astronauts Bob Behnken and Doug Hurley have a "go" to return to Earth this weekend and wrap up an historic space mission for both NASA and SpaceX.  Behnken and Hurley launched to orbit aboard SpaceX's Crew Dragon vehic...
Read more

Here's an exclusive look at the pitch deck London fintech Lanistar used to raise $19 million at a $190 million valuation

* London-based fintech startup Lanistar has raised a £15 million ($19 million) funding round from Milaya Capital.  * Founded in 2019, Lanistar is building a personal financial management platform that will launch later in 2020.  * "We're expecting a huge amount of growth upon our launch and have already seen strong interest among our sign ups," Gurhan Kiziloz, founder and CEO of Lanistar, told Business Insider. * Visit Business Insider's homepage for more stories.  The coronavirus lockdown in the UK has brought the importance of managing money into sharp relief. A recent study from Money.com shows that 71% of UK households have saved cash during lockdown, and, with uncertainty about jobs and the economy looming, money management is now front of mind for many. Lanistar, a banking platform with a focus on personal finance, is one company offering tools for consumers to better manage their money. It has just raised a £15 million ($19 million) funding round from Mil...
Read more

How to send your location on Snapchat to your friends through the app's Snap Map feature

* You can send your location on Snapchat to a single friend or to several users in a group.   * To send a location on Snapchat, you'll need to visit your friendship history with a user and locate the "Send My Location" feature.  * Once you send a location on Snapchat to a friend, they can tap it and zoom in to see where you are.  * Visit Business Insider's Tech Reference library for more stories. Whether you want to share the location of your favorite restaurant or the address of your new apartment, you can easily send your location on Snapchat to your friends.  You can do this using the Snap Map and will even be prompted to select who you want to share you location with the first time you use the app feature. You can choose to share your location with your mutual friends, a list of friends with exceptions, or a small group of selected friends.  To send your location directly to a mutual Snapchat friend, you must visit your chat history through your friends li...
Read more