Close Ad

The Spoon

Daily news and analysis about the food tech revolution

Caper Counter

Instacart Acquires Smart Cart and Grocery Checkout Technology Startup Caper AI

Today Instacart announced they had acquired Caper AI, a smart cart and grocery checkout technology company. Instacart confirmed to Techcrunch they paid $350 million for the company.

In Caper AI, Instacart acquires a portfolio of automated checkout and smart cart technology solutions, many of which are deployed in major national grocery retailers across North America. One such retailer is Kroger, which began deploying “KroGo Powered by Caper” smart shopping carts at a store in Kroger’s hometown of Cincinnati, Ohio, earlier this year.

Caper’s latest generation smart carts feature machine vision that allows shoppers to place the items in the cart and bypass counter checkout altogether.

Caper also has an automated checkout solution targeted towards smaller format stores. The company’s AI Counter utilizes a scale and machine vision to recognize up to 10 items and automate the checkout process.

According to the announcement, Instacart plans on integrating Caper’s technology into the Instacart app as well as both its in-store and online experiences for its grocery partners. One interesting potential application hinted at is a shoppable recipe integration with Caper’s smart carts: “Over time, Instacart expects to integrate Caper’s technology into the Instacart app and the ecommerce websites and apps of its retail partners, allowing customers to build online shopping lists and browse recipes ahead of time and check off their lists as they go. And, for Instacart shoppers who shop on behalf of customers, they can also utilize the carts to find items more efficiently and bypass long checkout lines.”

With the move, Instacart adds another tool to a growing arsenal of e-commerce and in-store technology solutions targeted towards grocery providers at a time many are beginning to question their relationship with the company. Over the past decade, Instacart has provided many grocery chains an easier glide path for moving into e-commerce and in-store shopping automation, areas with steep learning curves that grocers with tight margins have historically been more than happy to outsource. However, some grocers see Instacart’s in-store shopping service as taking too big a cut and possibly disintermediating them in the process.

However, as Instacart grows its enterprise technology solutions, I expect we’ll increasingly see its flagship shopper service decoupled from its technology as it looks to serve larger retailers who want greater control over the customer relationship. Since the start of the pandemic, many grocery retailers have started to roll out and standardize around their delivery services, which means a fast-growing market for technology solutions. My guess is Instacart is anticipating this as it rolls up some of the best-in-class independent solution providers as it prepares for an IPO soon.

In short, this move and others are part of Instacart evolving into a more diversified omnichannel grocery technology arms dealer.

Caper’s New Counter Device Gives Cashierless Checkout to Convenience Stores

Caper, the startup best known for making smart shopping carts for cashierless checkout at supermarkets, today announced its latest product, the Caper Counter.

Meant for convenience and other small store formats, the square-shaped device sits on a counter and shoppers place items in it. Using five built-in cameras along with computer recognition and artificial intelligence, the Counter recognizes all of the items and tallies up the cost. Customers then use a mobile payment system or credit cart to purchase the items and go.

The COVID-19 pandemic has driven demand for more contactless payment options to reduce human-to-human contact in retail. Caper’s pitch to retailers is that its cashierless solution is easier to set up and running than other players on the market. While competitors like Grabango and Zippin require cameras and sensors to be installed around a store, Caper moves all of its cashierless smarts into smaller devices like shopping carts and now the Counter, so there’s no need for an expensive full store retrofit.

Caper’s move comes at a time when the smart shopping cart space is getting crowded. Companies like Veeve, Tracxpoint, and SAI all offer similar functionality to Caper’s cart. And, not for nothing, Amazon recently announced that it has developed its own Dash smart shopping cart and is looking to license out its cashierless checkout tech to other retailers.

When I spoke with Caper Founder and CEO Lindon Gao last week about the Counter and competition in the smart cart space, he was not that concerned. “A couple of main advantages is that we have a hardware and supply chain in China,” Gao said. “We’re already integrated with a lot of these retailers, and being not Amazon certainly helps.”

The Caper Counter is also indicative of the ways technology is making convenience stores more convenient. C-stores are actually a nice proving ground for technologies like cashierless checkout because they are smaller and stock fewer items. They are also stores that people don’t want to spend a lot of time in, so technology that gets people in and out quickly will find a receptive audience.

Gao said that right now the Caper Counter is already in use at several locations with an undisclosed national-level convenience brand partner. Caper wouldn’t reveal specific pricing for its Counter, saying that there is one model where the store pays for the hardware as well as a software fee, with costs dependent on the size of deployment.