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Amazon Go

February 5, 2020

7-Eleven Is Piloting a Cashierless Store Concept in Texas

7-Eleven announced today it is piloting a cashierless scan-and-go store concept in its hometown of Irving, TX. 

The test store is currently available to 7-Eleven employees and functions much like an Amazon Go store. Users sign into the 7-Eleven app, check into the store, shop, and leave. The store’s system, which 7-Eleven says was built in-house and runs on algorithms and predictive analytics, monitors which items customers take and emails them a detailed receipt after they exit the store.

Items for sale at the concept store currently include a mix of groceries, OTC drugs, snacks, and some non-food items. So basically what you’d find in any other 7-Eleven, minus the hot food items.

Finding ways to create a faster, more frictionless convenience store experience has been a priority of 7-Eleven’s for some time. The chain has its own loyalty program, and in 2019 it launched its 7NOW app to enable delivery of items from the convenience store to non-traditional locations like parks and beaches.

It also launched a Scan & Pay pilot program in 2018 that lets customers scan items with their own mobile phones for faster checkout. At the time, my colleague Chris Albrecht pointed out the highly manual aspect of this pilot program, and noted that Amazon was “light years ahead of its competition” in terms of cashierless checkout that requires nothing more from a user than making sure they’re signed into the app.

This new store pilot, which eliminates the need for users and cashiers to scan items manually, is clearly an effort on 7-Eleven’s part to close some of that technological gap between its own stores and those of Amazon.

7-Eleven hasn’t yet given details on when or where a wider rollout of this store concept will happen. According to the press release, the company is currently taking feedback from employees using the pilot store in Texas, and will iterate and adjust based on that feedback before outfitting other stores, of which there are more than 8,500 in the U.S. alone.

 

September 11, 2019

Report: Meal Kits Not Performing Well at Amazon Go Stores

In an effort to get each of its cashierless checkout Amazon Go stores to hit a goal of $2 million in annual sales, Amazon has been examining various ways to optimize each location, according to a recent story in The Information (subscription required). Among the things the company is at least considering is dropping meal kits from Go stores.

Amazon Go stores are the convenience stores that offer a range of fresh and packaged food, snacks and grab-and-go items. The stores are built from the ground up to provide a cashierless shopping experience. Users scan the Amazon Go app on their phone as they walk in, then high-tech cameras and sensors keep track of what they purchase, so shoppers are billed automatically as they walk out.

The Information reviewed an Amazon internal analysis document, which revealed that the ideal size for an Amazon Go store was 1,440 sq. feet (not including the entryway). The decision teams at Amazon faced was to figure out how to best design the store and offer the best selection of inventory to meet fill the space and hit the sales goal.

You should read the full story as it delves into some real nitty gritty (like the debate around fountain sodas). But one item in particular in The Information’s reporting caught our eye:

A category in which Amazon Go hasn’t performed as well is meal kits, the boxes filled with ingredients a customer can take home to prepare a designated meal, such as chicken parmesan, according to the analysis. It referred to meal kits as a “strategic focus” for the company, but said they could be cut from Go stores. The company plans to add flowers, greeting cards, loose produce and bakery cases to stores this year and next year to test new product categories.

It’s not hard to understand why meal kits could be a strategic focus for Amazon at its Go stores. A Nielsen survey in March of this year found that in-store meal kit sales are where most of the growth in the sector has been taking place, generating $93 million in sales in 2018. A March 2019 study from NPD found that 93 million Americans haven’t tried meal kits but want to.

Given that growth, it was no surprise that meal kits were featured in Amazon Go’s debut store, and that Amazon meal kits started appearing on Whole Foods shelves this year. Both Amazon Gos and meal kits are all about convenience, and the combination of the two seemed like chocolate and peanut butter. Go is all about speed. For busy professionals, being able to bring home a full-fledged meal-in-a-box on your way home seemed like a winner.

But hindsight being 20/20, it’s easy to see the flaw in this logic. First, according to an InMarket study last year, “Peak visits to Amazon Go happen during business hours. Noon, 2 p.m., and 1 p.m. bring in the most visits, followed by 8 and 9 a.m. InMarket concludes that customers are stopping by for breakfast and lunch.” So at least from that data, customers weren’t even coming into the store around dinner time.

Another big issue is that while meal kits may be easy to grab, they are still hard to make. If you are a busy professional wanting to eat something quickly when you get home, you’re better off grabbing something from the hot food section of a store. Meal kits may be pre-portioned and include all the ingredients, but you still have to put them all together and cook the food. That’s not super convenient.

Granted, all of this is based on one news site, going from one strategy document. There is obviously a lot of discussion and experimentation going on internally at Amazon about Go, err, going forward. We know that Go stores might be shrunk down to fit in office buildings, Amazon is eyeballing airports as Go locations, and even changing existing locations to accept cash where required.

At the end of the day, whether or not Amazon sticks with meal kits at Go stores or not isn’t even that important. What remains impressive about Amazon is that they are always experimenting to see what works. It’s why we named the company to our Food Tech 25 list this year. The company lives for optimization, and iterating Go stores, and what’s in them, is just a part of that.

June 26, 2019

With Reported Tesco Partnership, is Trigo Vision Pulling Ahead of the Cashierless Checkout Pack?

Tesco, the U.K.’s largest grocery store chain, is reportedly testing out cashierless checkout using technology from Israeli startup, Trigo Vision. Bloomberg was first to report the as-yet-not-confirmed news, and framed its story as Tesco going up against Amazon and its Go stores. Which is accurate, but I think the bigger story, again if true, is about Trigo Vision gaining traction in the market.

Similar to the setup at Amazon Go stores, Tel-Aviv-based Trigo Vision installs high-tech cameras and artificial intelligence in existing grocery stores to automatically track what people purchase. Shoppers scan an app on their phone upon walking in, grab what they want and leave, getting charged automatically upon exit. Last August, Trigo Vision told The Spoon it had a pilot program with an unnamed European store, and was aiming to to open a full store in Europe by August of this year. Knowing that, word about a quiet partnership with Tesco getting leaked to the press now would make sense.

If the Bloomberg story is true, this would be the second major grocery chain partnership for Trigo Vision. In November of last year, Shufersal, Israel’s largest grocery chain, announced it would be rolling out Trigo Vision’s tech to its 272 store locations over this year. You can actually see Trigo Vision in action at a Shufersal in this video from an Israeli news broadcast:

As we’ve covered before, there are a raft of startups all vying to help supermarkets move to cashierless checkout. But Trigo Vision is the only one to have named at least one partner publicly. Others, such as Grabango, Caper, AWM Smart Shelf, Zippin and Standard Cognition are all in tests with retailers, but those retailers are still unnamed.

Again, the Bloomberg story still needs to be confirmed (we’ve reached out to Trigo Vision for comment), but perception can play a big part in vendor selection. As Trung Nguyen, VP of eCommerce for Albertsons explained at our recent Articulate food automation summit, grocery retailers aren’t just looking for cool new tech; they need a solution that can work at scale. If Trigo Vision’s name keeps coming up in headlines as a proven technology partner, then Trigo Vision will become the perceived leader of the cashierless checkout pack. This perception can then lead to more deals and that dominance can perpetuate itself.

Now, it’s still very early days in the cashierless checkout space, and Trigo Vision’s long-term success over other vendors is far from guaranteed. As noted, there are a lot of players with different takes on the tech and there are a lot of grocery stores in the world. And while Amazon and Walmart are developing their own cashierless checkout solutions, the sheer scale of their overall businesses could be a threat to the very existence of other retailers.

Tesco, it seems though, is ready to put up a fight.

May 8, 2019

San Francisco Vote Bans Cashless Retail (Good Thing Amazon Go Now Accepts Cash)

San Francisco is the latest local government to put the kibosh on cashless retail operations. As the San Francisco Examiner wrote, yesterday the city’s Board of Supervisors unanimously approved legislation to ban cashless businesses, which will go into effect 90 days after its final approval.

The move follows similar legislation passed recently by both New Jersey and Philadelphia (and currently being contemplated by New York), all of which aim to help reduce income inequality and protect the rights of the non-banked and underbanked who don’t have access to a credit card. While businesses have argued that going cashless is more accurate, secure and efficient for consumers, ultimately, regulators see it as discriminatory.

There are some exceptions to San Francisco’s new law. As the AP reports: “Temporary pop-up stores and internet-only businesses such as ride-hailing companies would be exempt, as would food trucks, which say they lack the resources to handle cash.”

San Francisco had initially exempted Amazon Go from the ban, but then changed its mind in March. The city’s new rule also comes just days after Amazon launched its first cash-accepting Amazon Go store, which is also the first Go store in New York. The new location features a dedicated entrance for cash payers and a counter in the middle of the store where a person with a handheld scanner rings up shoppers and accepts payment. Amazon hasn’t indicated when it will add cash payments to its other stores, but the company basically has three months to get its three SF locations compliant with the new law.

There are actually a number of startups looking to retrofit existing supermarkets with Amazon Go-like cashierless checkout. But as these new cash-requiring rules pop up around the country, it will be table stakes for any such startup to tie in with a retailer’s POS system to enable both grab-and-go checkout as well as traditional payment checkout.

May 7, 2019

Amazon Go Opens in New York, Begins Accepting Cash Payments

Amazon Go opened up its first store in New York today, but more remarkable than the location is the fact that it will be the first Go store to accept cash payments.

This is a big deal as Amazon Go was created to be a frictionless shopping experience with no checkout lines. The whole point was to scan your phone as you walk in, have banks of sensors and cameras keep track of what you pick up, and automatically bill you as you walk out of the store.

While that type of shopping is pretty amazing, Amazon Go became a poster child for a growing cashless backlash. Going cashless means large swaths of people, particularly poor and underbanked, don’t have access to credit cards and were thus shut out of these experiences. In reaction to this digital discrimination, state and local governments like New Jersey and Philadelphia enacted laws prohibiting cashless retail, with more cities like New York and San Francisco considering similar regulations.

Amazon tried fighting these new laws and lost, so last month, the company acquiesced and said it would begin accepting cash payments. At the time, this raised the question, how would a store built around having no cashiers accept cash?

The answer, according to CNET, which got a tour of the new New York location, is that the store has a separate entrance staffed by a person for those paying with cash. Once your shopping is done, there is a counter in the middle of the store where a person with a handheld scanner checks you out, accepts payment and will even give you a paper receipt. Amazon did not say whether this new cash acceptance system will be rolled out to its eleven other existing stores.

The New York store is the twelfth Amazon Go location and is situated in Brookfield Place in downtown NY.

April 26, 2019

Are You Ready for the Surveillance Supermarket?

Next time you visit the grocery store you may want to smile. That’s because cameras may not just be watching you to deter theft, they may be checking to see how happy you are (and how old you are, and what your gender and ethnicity are, etc). Welcome to the new surveillance supermarket, where you provide private companies with reams of actionable data while you shop.

An Associated Press report yesterday outlines a new wave of companies looking to install cameras in coolers and shelves in supermarkets. These cameras work to guess attributes like your age, gender and emotional state to show you hyper-targeted ads in real-time. The AP story mentions startups like Mood Media and Cooler Screens as companies creating this all-seeing technology, and says retailers like Kroger and Walgreens are experimenting with them in different locations across the country.

We just covered a startup called AWM Smart Shelf this week, which recently raised $10 million and uses a combination of cameras, AI and digital displays to serve up real-time ads and product recommendations, and even guide you through the store to find what the product you want. On its website, AWM touts its ability to identify ethnicity, age and emotional state.

The idea behind these companies is that these deep visuals can give retailers deep insight into their customers. Knowing what, when and where people purchase items tied to demographic information can arm stores with data used to serve up specials that entice them to buy more.

But it’s not just about building a better advertising mousetrap. There are a host of startups looking to retrofit supermarkets with hundreds of ceiling-mounted cameras to facilitate cashierless checkout (à la Amazon Go). These cameras keep track in real time of where you go in the store, what you pick up (and put back) and create a frictionless shopping experience.

Just yesterday, Walmart unveiled its Intelligent Retail Lab store, which uses banks of cameras and AI to monitor shelf inventory. Walmart said the cameras don’t currently track shopper movements or employ facial recognition, but it’s hard to believe a giant retailer like Walmart would stop at just making sure shelves were properly stocked. It, like Amazon is on a constant quest for efficiency, and understanding the behavior of its customers goes a long way towards streamlining operations.

All of these installations bring up serious questions about what kind of data is stored, how it’s being used, who has access to it, how long it’s stored and how it’s protected. It’s nice if some algorithm suggests milk to me on an in-store screen when I buy my Weetabix, but will that same algorithm unknowingly try to put booze in front of a depressed alcoholic in recovery? Or will it discriminate and serve up different prices based on skin color? What if your store’s data is connected to your insurance and the two prevent you from buying ice cream? These are questions retailers are going to have to answer (and we’ll be asking them!)

While privacy alarm bells should be ringing, part of me wonders how much people will care given the constant state of surveillance we’re already under. Will this just be one more tradeoff we make for convenience?

I myself am partly to blame. I love shopping at Amazon Go because it’s so easy. I’m a little less enthused about real-time ads, but that’s mostly because I think a store filled with constantly flashing digital signage would give me a headache. But in the meantime, I’m happy to tell Safeway what I’m buying when I punch in my loyalty card number to save a couple bucks.

Cameras in your grocery store are coming, are you smiling about it?

April 10, 2019

Facing Mounting Regulatory Pressures, Amazon Go Will Accept Cash Payments

The whole point of the Amazon Go store was to create a frictionless retail experience where you could walk in, grab what you want, and walk out, paying automatically with no checkout lines. But now Amazon is getting the point that it just can’t beat city hall, and as CNBC reports, the company is adding cash payment options to its Go stores.

Details are scarce, but CNBC writes:

In an internal all-hands meeting last month, Steve Kessel, Amazon’s senior vice president of physical stores, told employees that the company plans “additional payment mechanisms” at its Go stores. Kessel was responding to a question about how Amazon plans to address “discrimination and elitism” at the cashierless stores, which charge purchases using an app connected to a bank or credit card.

Amazon didn’t elaborate on exactly how it would integrate cash-payment systems in Go stores, or how such implementations would impact the overall store experience. Right now, all a shopper has to do is scan the Amazon Prime app on their phone going into the store, gather the items they want and walk out. Will Amazon need to add a human to accept the cash, or will it be another automated system that keeps track of shoppers in store?

The debate over cashless retail has been a hot-button topic we’ve followed over the past year. While there are many merits to a cashless approach (employee safety, accounting accuracy), going cashless excludes larges swaths of the population that are poor and/or underbanked.

City and state regulators looking out for these constituents (and perhaps wanting to stick it to a tech giant like Amazon a little in the process) have recently started enacting laws forbidding cashless retail stores like Amazon Go. Philadelphia, PA and the state of New Jersey recently passed such bans, and other major metropolises like New York City and San Francisco are considering them. The state of Massachusetts has banned cashless retail since the 1970s.

Amazon reportedly fought the Philadelphia ban to no avail, and perhaps sensing that it would lose further battles and more public sentiment, the company changed course.

While Amazon only has to retrofit the 10 stores it has open now, adding a cash option will no doubt alter the in-store experience and throw up a few roadblocks in the planning of future openings, slowing down Amazon’s march towards 3,000 locations within three years.

Any slowdown could provide an opening for the many cashierless checkout companies to get their technology in the hands of rival bodegas, convenience markets, and grocery stores. Grabango is one, in particular, that already features a checkout system that integrates with existing checkout systems, allowing people to pay any way they like (cash, credit card, etc.).

The point is, we may think of Amazon as an unstoppable tech juggernaut steamrolling over whatever it wants, but a few people in modest positions of power can make the company pay the piper.

April 5, 2019

Here is a List of Cashierless Tech Companies Gunning for Amazon Go

Bloomberg has a story up today about the Portugal-based startup, Sensei, titled “Amazon Go Faces Unlikely Challenge From Checkout-Free Startup.” The headline caught my eye because it isn’t unlikely at all, in fact, it’s quite likely. While Amazon has a substantial headstart in getting cashierless stores to market (10 and counting), Bezos’ behemoth faces all kinds of technological challenges from companies big and small in the checkout-free space.

As a quick refresher, cashierless checkout stores are retail environments that allow the shopper to walk in, grab what they want and leave without standing in a checkout line. Some combination of high-tech sensors and cameras keep track of what you buy and charge you automatically. Different companies have different approaches, some of them more advanced than others, but here’s who’s out there right now:

Caper: Rather than installing cameras and sensors in the store, Caper shifts that technology to its smart shopping carts, so retailers don’t have to spend a lot of money to retrofit their locations. Current versions of the cart require the user to scan items, but they’ve said computer vision is coming to make recording what you put in your cart automatic. Caper has raised $3 million raised and says it is in use by two major unnamed grocery store chains.

DeepMagic: Rather than scaling up, DeepMind scales down to create unattended kiosk shopping experiences that are meant to live inside existing locations (think: Hotel or office lobbies). Even these mini, mini shopping stores will face off against Amazon, as the company is reportedly looking to shrink Go stores to fit inside offices to feed hungry workers. DeepMagic is self-funded and has been used by Cisco to sell swag at one of its conferences.

Grabango: A relative newcomer to the cashierless space, Granbango came out of stealth earlier this year. It uses lots of tiny smartphone camera-sized cameras mounted on the ceiling to saturate its computer vision field and keep track of purchases. Grabango’s hook is that it integrates with the store checkout system, so when shoppers are done, they can still pay with a credit card or cash without a cashier scanning each item. Grabango has raised $17.3 million and says it is in pilots with three major grocers and one convenience store chain.

Microsoft: Microsoft isn’t one to let a cross-town rival like Amazon dominate a market without putting up a fight. But right now we’ve only heard reports of the Redmond giant working on cashierless tech with Walmart (another Amazon rival). Another clue that Microsoft cashierless tech could be forthcoming is its recent partnership with Kroger to pilot a new type of tech-forward, smart stores.

Sam’s Club: The Walmart-owned Sam’s Club opened up an experimental store last year, which requires the use of Walmart’s Scan & Go app to pay for items.

Skip: Similar to Sam’s Club approach, Skip is another small entrant in the cashierless space that is targeting convenience stores. Shoppers download and use the Skip app to scan and purchase items in the store. Skip is currently iN use in several western convenience store chains and has raised $5 million in seed funding.

Standard Cognition: While Standard Cognition has its own working store in San Francisco, it’s mainly there to showcase its cashierless chops. Standard Cognition’s website makes a big deal about it not using facial recognition and being built around privacy. The company has raised $51 million in funding and says it has agreements with four retailers across Asia, North America and Europe.

Trigo Vision: Israel-based Trigo Vision retrofits existing stores with off-the-shelf cameras and computer vision to create its cashierless experience. The company has raised $7 million, is in a pilot with an unnamed European retailer and last November signed a deal with Israel’s Shufersal to implement checkout free shopping across all of that chain’s 272 locations.

V7 (formerly AI Poly): We haven’t covered this company fully here at The Spoon yet. AI Poly recently rebranded its retail efforts as V7, and now uses AI Poly for vision AI for the visually impaired and blind. The V7 website says its AI system can plug into and work with existing security cameras, depending on the number a store operates.

7-11: The convenience store chain’s tech works more like a self-checkout than true grab-and-go retail. In the pilot store the company launched towards the end of last year, shoppers use the 7-11 app to scan items and then manually pay for them at separate checkout stations.

And now we can add Sensei to this list. Are there any others we’re leaving out? Any stealthy ones you want to spill the beans on? If so, drop us a line and let us know!

March 22, 2019

San Francisco Targets Amazon Go with Cashless Retail Ban, Third Region to Do So

Amazon may have to put the brakes on the aggressive rollout of its automated Amazon Go stores, as more local governments are proposing bans on cashless brick-and-mortar retail operations. San Francisco is considering such a ban, following recent similar moves by other cities and states.

San Francisco’s cashless ban was first proposed back in February, but at that time did not include Amazon Go, because the stores don’t have employees handling cash. This week, however, San Francisco District Five Supervisor Vallie Brown expanded the proposed ban to include Amazon, which operates three Go locations in the city. The proposal comes on the heels of New Jersey’s cashless retail ban earlier this week, and Philadelphia’s earlier this month. New York City is considering such a ban as well.

Amazon Go locations are small, bodega-sized stores that have no cashiers. You scan the Amazon Prime app on your phone as you enter the store and high-tech sensors and cameras keep track of everything you take, automatically charging your credit card as you leave.

As my colleague, Jenn Marston has written, “Those who are against cashless businesses argue that restaurants and stores only accepting those payment forms exclude poorer communities and those for whom credit cards might not be an option.” Stores that have implemented cashless operations say they are safer (nothing to rob) and more accurate bookkeeping.

Amazon, however, is probably less concerned with safety and accuracy in its Go stores than it is with shopping efficiency (FWIW, we recognize the societal implications of cashless retail, and we loved shopping at Go). Amazon is all about removing friction from the retail experience, so you buy more stuff from them.

Amazon’s cashless troubles are compounded by the fact that the company is facing a broader backlash after its much-maligned second HQ search, and has become one of the targets of a larger anti-tech sentiment, with presidential candidates calling for its breakup.

This anti-Amazon sentiment gives the company less leverage in any fights it wants to pick with cities to keep the Go train rolling. Amazon had reportedly threatened to pull out of its Philadelphia location over accepting cash, which didn’t stop the city from enacting the ban anyway.

So what will Amazon do if more cities decide to ban cashless retail? The company can’t pull out of every city, and dense urban environments are where Go stores work best. But it’s hard to imagine the company going back and curtailing its AI and computer vision work it’s put into Go as it really is a great retail experience, and there’s too much data to be had watching us shop.

Amazon is laying some groundwork for Go experiences outside of cities. The company is looking at shrinking the already small Go stores to fit inside office buildings. Going more private like that could help it sidestep anti-cashless regulation.

But if the anti-cashless trend catches on, how long before Amazon Go is gone?

March 8, 2019

Why Philadelphia’s Ban on Cashless Business Is a Good Thing

Philadelphia, PA yesterday became the first major U.S. city to ban cashless stores, The Wall Street Journal reports. A new law will “require most retail stores to accept cash” and goes into effect in July 2019.

The law would not include parking garages, stores like Costco (which require membership) or hotels, according to the WSJ. But it will affect restaurants, grocery stores, and other food retailers, including Amazon Go stores.

Amazon had asked for an exemption for the new law but was told by Philly lawmakers that in order to get one, Amazon Go stores would have to require membership a la Costco. Currently, Amazon’s cashless grab ’n’ go stores are not restricted to Amazon Prime members, as they would have to be if Amazon were to go for an exemption from the new law in Philadelphia.

It’s the latest move in a series of pushbacks over the last several months around businesses going cashless. In NYC, councilman Ritchie J. Torres introduced legislation last November that would require restaurants and retailers to accept cash. New Jersey has passed a bill banning cashless stores earlier this year. Massachusetts has been legally requiring stores to accept cash since the 1970s.

Massachusetts wasn’t concerned about Amazon swallowing up the world when it passed its law over 40 years ago, but the more recent efforts are most certainly in response to the growing number of establishments trying to go cashless. In the food world that includes Sweetgreen, Tender Greens, the Milk Bar, and Dig Inn. And, of course, Amazon, who currently has Go stores in Seattle, Chicago, and San Francisco. Some industry heavyweights have defended the movement towards cashless business, with Union Square Hospitality’s Danny Meyer citing safety as one of the biggest reasons. Meyer also said that “with the growing ubiquity of plastic and mobile payment, many businesses are choosing to eliminate cash from their operation entirely.”

The thing is, mobile payments aren’t ubiquitous yet, and nor are credit and debit cards. Those who are against cashless businesses argue that restaurants and stores only accepting those payment forms exclude poorer communities and those for whom credit cards might not be an option. Councilman Torres went as far as to say that “insidious racism” underlies the cashless model.

According to a survey by Gallup, most Americans “see the death of cash in their lifetimes.” Countries like Sweden are already well on their way to dumping cash, with IKEA even testing a cashless location in Gavle (north of Stockholm). But even a forward-thinking nation like Sweden is dealing with pushback, with some claiming cashless businesses discriminate against the poor, those with disabilities, and newly arrived refugees.

There may be middle ground, and some folks are working to find it. For instance, a company called All_ebt uses a combination of Facebook Messenger and virtual Visa cards to let those on SNAP assistance shop online and even at Amazon Go stores. It’s not a magical fix that will solve all the issues surrounding the cashless model. But if we are in fact headed towards a cashless future, we need more companies and organizations like All_ebt who are willing to use tech to find a way to include everyone in this new movement. Until we get more of those efforts to find middle ground, a citywide ban on cashless business is probably a good call.

February 1, 2019

Check it Out, Skip’s Cashierless Tech Targets Convenience Stores

Amazon kicked off the cashierless checkout craze a year ago with its Amazon Go stores. Now a number of cashierless players are coming to market, each with their own solution. Amazon uses a combination of cameras and sensors to automatically keep track of what you buy, while Grabango uses lots of small cameras, and Caper employs a smart shopping cart.

Skip is another entrant in the increasingly crowded field of startups looking to retrofit existing retail outlets with cashierless checkout systems. But Skip’s approach is decidedly less tech intensive. However, this lack of high-end installation could be what gives it an edge in the market. (Hat tip to The Shelby Report for bringing Skip to our attention.)

The Skip checkout system has three parts: a mobile app for the consumer, an app for the store clerk and a cloud cam. Once the shopper downloads the Skip app, they use it to scan and pay for items they are taking. As a shopper scans items, the store clerk’s app gets a notification and a running tally of the items the shopper is taking. This helps the clerk know what is being paid for and helps prevent people from saying they are just picking up milk, but walking out with an armful of goodies.

The Cloud Cam is a wall-mounted camera and screen installed above the store’s entrance that displays the username of the shopper and the number of items they paid for. This display shows the clerk and other shoppers that the person leaving isn’t stealing, and acts as another theft deterrent by letting shoppers know that they are on camera.

If Skip’s approach to cashierless checkout sounds familiar, that’s because 7-11 launched a similar scan-and-go system last year. Convenience stores like 7-11 are actually Skip’s main target, with the company saying the convenience segment has the largest footprint for growth. Skip says its solution will be in roughly 150 convenience stores and 83 grocery stores by the end of this month.

Skip generates revenue through a Saas model, charging stores on a sliding scale anywhere between $15 and $50 a month. The company says it’s seeing ten percent month over month growth.

Like with any new technology, Skip’s solution has pros and cons. On the plus side, there’s really no infrastructure for stores to implement other than some software and the cloud cam, so any store could be easily retrofitted. Additionally, Skip’s system allows existing checkout systems to remain in place, so stores can continue to take cash or credit cards.

Downsides seem to be that the technology still relies on the clerks to help monitor what people are buying. That’s easy when there are one or two people in the store, but it seems like a dozen or more shoppers could overwhelm a lone clerk. Additionally, there are some privacy considerations that don’t seem to be fully thought out. The Cloud Cam displays the username of the person as they exit the store, but people could be using their real name which would then get flashed on a screen for everyone to see.

Right now Skip is available in different regional chains, mostly in Western states, though that will change quickly over the coming months as stores across the country come out of testing and go live. Skip itself is based in Salt Lake City, UT and has roughly 15 employees. The company raised roughly $5 million in seed funding two years ago.

The cashierless tech space may be crowded, but Skip’s low-fi approach and convenience store targeting might be enough to get retailers to check it out.

December 24, 2018

All_EBT Allows Those Underbanked to Participate in (Some) Cashless Retail

The number of Amazon Go stores are set to explode over the coming years, and while the grab-and-go convenience stores are a marvel of modern technology, they also raise thorny ethical issues surrounding cashless retail. You can only use Amazon Go if you have an Amazon account, and to get an Amazon account you need a credit or debit card — something lower-income populations may not have access to.

New York City councilmember Ritchie J. Torres is so concerned about the rise of these automated retail environments that he introduced legislation last month requiring restaurants and stores to accept cash or pay a fine. In an interview with Grub Street, Torres said: “On the surface, cashlessness seems benign, but when you reflect on it, the insidious racism that underlies a cashless business model becomes clear.” He continued “If you’re intent on a cashless business model, it will have the effect of excluding lower-income communities of color from what should be an open and free market.”

But there is a startup working on a way for lower-income and underbanked people to participate in the cashless revolution. All_ebt uses a combination of Facebook Messenger and virtual Visa cards to allow those on SNAP assistance (food stamps) to shop for USDA-approved groceries online. I confirmed with All_ebt Co-Founder, Eli Calderón Morin, that by extension, All_ebt users can also shop at cashless stores like Amazon Go. In an email to me, Morin wrote:

Yes the All_ebt card in our controlled environment and under the existing USDA restrictions does allow people to shop in store at place like Amazon Go in addition to other retailers like Costco, and Walmart.

The two options available for users are:

  1. adding your All_ebt virtual card to your Apple Pay and or Google Pay
  2. users can request a physical card and use anywhere Visa transactions are accepted

All_ebt has it’s own physical retail locations (which are primarily to help people sign up for the service) and even has ambitions to build it’s own Amazon Go-like experience — but that is still a ways off.

All_ebt can’t solve all of the issues associated with the cashless movement. There are still issues surrounding access to restaurants and coffee shops that abandon greenbacks, as those may not be applicable for SNAP purchases. But for now All_ebt is providing a way for more people to participate in the cashless grocery retail revolution as Amazon Go and more competitors expand into more markets next year.

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