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Daily news and analysis about the food tech revolution

cashierless

Zippin Cashierless Convenience Store Now Open in Mile High Stadium

Back when they were open and operating at full capacity, stadiums were an excellent way to get a glimpse at the future of food tech. The high-volume, high-speed nature of eating at sporting events and monster truck rallies lent itself to things like robots, AI for line management and mobile ordering.

While the pandemic shut stadiums, arenas and civic centers down for most of the year, some, like Mile High Stadium in Denver, Colorado have re-opened, albeit cautiously. Only 5,000 fans can spread out across Mile High’s 76,125 seats for Broncos games. And though the crowd size may be diminished, that isn’t stopping Mile High from going high-tech with its approach to concessions.

Earlier this, foodservice operator Aramark tapped Zippin to transform the Mile High’s Drink MKT store into a cashierless checkout experience. Zippin’s technology, which includes cameras and shelf sensors as well as computer vision and AI, allow shoppers to tap their credit card as they walk into the store, grab what they want and leave. Upon exit, customers get charged automatically and receive an itemized receipt. The new Drink MKT opened at the end of September this year.

Not only is the Zippin-powered store contactless, Zippin CEO, Krishna Motukuri told me by phone this week that the entire transaction process is faster. Between grabbing what you want, standing in line and checking out with a cashier, the traditional retail transaction can takes minutes. With Zippin cashierless checkout, Motokuri said “We were able to show that most of the customers checked in, picked their stuff walked out in 45 seconds.”

Mile High Stadium is the second sports venue to house a Zippin convenience store. In September of last year the startup opened one in the Golden 1 Center arena in Sacramento.

For its part, Mile High Stadium is no stranger to high-tech concessions. Last year the stadium used a robot to pour out Bud Lights to thirsty fans.

Motukuri told me that his company has seen an influx of interest from stadiums and office buildings as they look to create more contactless retail experiences when they re-open. For example, office buildings want to replace cafeterias with contactless grab-and-go food options. It will face competition there from Amazon, which has also openly explored the idea of putting small Go stores in offices.

How many more stadiums Zippin builds in is dependent upon how soon those buildings open up. The pandemic is still going strong, but there is a potential light at the end of the tunnel with the forthcoming arrival of vaccines. That said, even when the virus recedes, fans will probably still be a little gun shy about congregating in stores for a long time just to grab a Gatorade, so cashierless checkout could be the big winner at the big games.

How Tech is Putting the Convenience Back in Convenience Stores

It’s hard to believe now, but back when I was a kid, going to 7-Eleven was a treat. It was like destination shopping. Where else could you get a Slurpee in a commemorative Star Trek cup, a pack of baseball cards and a box of nerds?

What I can buy at a convenience store like 7-Eleven may not hold sway over me any more, but as a technology reporter, the ways I can get convenience store items now is something I’m paying attention to.

Like every other retail sector, convenience has had a rocky year thanks to COVID-19. According to the National Association of Convenience Stores, for the two-week period ending Sept. 27, dollar sales at convenience stores were up 4.8 percent year-over-year, but overall trips to convenience stores were down 12.6 percent. Beer and packaged beverages drove most of that growth, while foodservice remained depressed.

That traffic to convenience stores is down is not a big surprise. I mean, people aren’t exactly road tripping a lot during this pandemic. The pandemic also explains the boost in beer sales, as we could all use a drink.

But the convenience sector is responding to these troubled times with what appears to be an accelerated wave of innovation. Consider:

Convenience stores are ramping up delivery.
Third party delivery services like Instacart and DoorDash both now offer delivery from convenience stores. Heck, DoorDash is building its own ghost convenience stores. 7-Eleven is making a concerted push into pickup and delivery, even making deliveries to parks and beaches.

Convenience stores are going cashless.
Mastercard recently announced a partnership with Accel Robotics to deploy cashierless tech at retail, and Circle K is among the first customers. Giant Eagle’s GetGo Market+Cafe is using Grabango for a cashierless location. A startup called Skip is focused on convenience stores for its cashierless checkout. And, of course, Amazon Gos continue to roll out across the country.

Smaller, cashierless convenience stores create new opportunities.
Because they can operate without humans, you are seeing diminutive convenience stores pop up with smaller footprints. AWM Smart Shelf is powering a convenience store built into an apartment complex. And the Zippin Cube let’s retail brands create pop-up convenience stores inside places like stadiums.

At the end of the day, all of these technologies are putting more convenience in convenience stores. I can have quick items brought to my home (or park). The ability to walk in, grab what you want and leave without standing in a line will speed transactions up. And smaller stores will be pushed into smaller places in more locations. It all adds up to a pretty fast evolution of that entire category.

Now I just wish they would bring back more of those commemorative cups.

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.

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!

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.

Amazon Go is On a Massive Hiring Spree, and Not Just in the U.S.

Amazon Go, the retail store that uses cashierless technology so you can walk in, choose your items, and walk out without stopping to pay, has 338 open listings on its job site (big h/t to Sean Butler).

There are a few takeaways from this, but most notable is the sheer amount of investment in engineers on both the software and hardware side. There are a whopping 130 positions in software development, and 44 in hardware development.

But that’s just the start. While the majority of the listings are for Software Engineers, listings also include everything from Data Collection Technician to Creative Director to Security Engineer to Senior Vision Research Scientist. There are even 7 listings for real estate and construction positions, Whew!

They’re also searching for a Specification Technologist to join the Amazon Meal Kits team and help out with product development. Meal kits are already some of the most popular items at Go stores, so it’s not surprising that Amazon is looking to amp up its offerings, especially as they expand into new cities.

Many of the jobs are quite recent, and were either posted or updated within the past month. Which means that Amazon is poised to make some serious Amazon Go expansion moves in the new year, and willing to invest some serious man (and woman) power to do it. Good thing too, since the company is considering a plan to open 3,000 Go stores by 2021.

It’s also worth noting where the Go jobs are located. While the locations don’t necessary indicate where Amazon will set up future Go stores, it’s a good data point to learn where they will base R&D and development of their cashierless technology.

In the U.S. there are openings in Seattle (duh), Westborough, MA, San Francisco, and New York City. Abroad, there are listings in two cities in Israel: Tel Aviv and Haifa.

Perhaps most eye-catching on the list is Westborough, MA. That’s the home of Amazon Robotics, a subsidiary which works on Amazon’s mobile robotic fulfillment systems. According to job descriptions, that’s also where Amazon is building an Advanced Projects Group, which will develop “new technologies that go well beyond the current state of the art.”

The location is certainly strategic from a hiring standpoint: Westborough is less than an hour outside of Boston, making it an easy way to recruit tech-savvy post-grads from MIT and Harvard. I’m speculating here, but the Westborough job listings, with its proximity to Amazon Robotics, could also indicate plans on Amazon’s part to add more robots to its Go store experience.

Outside of the U.S., Amazon Go is hiring in Israel. This could simply be a way for Amazon to take advantage of Israel’s flourishing AI landscape and hire some top-notch computer scientists. But it could also indicate that Amazon is ready to expand its Go stores internationally.

It wouldn’t be the first company to bring cashierless tech Israel. Trigo Vision recently partnered with Israel’s largest supermarket chain Shufersal to implement its checkout-free tech in all locations across Israel. However, Trigo Vision and Amazon aren’t direct competitors: Trigo licenses out its tech to existing retailers, while Amazon builds its Go stores from the ground up.

Of course, even outside of Israel Amazon still has plenty of competition in the cashierless tech space. Microsoft has been working on its own version and has reportedly been in partnership talks with Walmart. In San Francisco, Aipoly is developing its own walk-in-walk-out store solution and Standard Cognition recently opened up a store in San Francisco to show off its technology.

Which is all the more reason that Amazon needs to grow fast if it wants to keep up its unique value proposition in the food retail space. The high number of job listings, and their wide geographic reach, show that when it comes to Go stores (and most things grocery, in fact), Amazon isn’t slowing down anytime soon. Now we just have to wait and see when they launch a cashierless Whole Foods.

Thanks to Sean Butler, who posted on his Linkedin about Amazon Go’s massive open jobs list. Do you have a tip for us at the Spoon? We’d love to hear it. 

Amazon Opens Second Go Store Amid Rising Cashierless Competition

Amazon is opening is second Go store in downtown Seattle this morning. The new Go will be slightly bigger smaller (UPDATE: initial reporting on the second location was incorrect. Turns out the store is smaller.)than the first location, and will feature the same cashierless. technology that allows customers with the Amazon Go mobile app to walk into the store, grab what they want and leave without having to wait in line or stop to pay.

We loved shopping at Amazon Go and even named the store as one of our FoodTech 25 companies that are changing the way we eat. The seamless experience points to an inevitable future where high-tech cameras, sensors and computer vision all work together to make every grocery trip faster and checkout line free.

While Amazon would still be considered the leader in cashierless shopping, the landscape for the technology is more crowded since the first Go store launched in January. Cross-town rival Microsoft is reportedly working on such technology and chatting with Walmart about putting it to use in the retail giant’s stores.

Then there are smaller startups coming to market hoping to disrupt Amazon’s disruption. Zippin just unveiled its cashierless software platform and is set to open up in San Francisco next month. Israel-based Trigo Vision is piloting its software, which the company said can already scale to a full-size grocery store. Others such as Caper and AI Poly are also launching their own solutions.

Cashierless checkout certainly isn’t a zero sum game. There are plenty of retailers in the world looking to create a more efficient (and profitable) buying experience for customers. But for the time being, Amazon is definitely the pioneer. Its first-mover status gives it plenty of data and real-world experience to iterate faster than its competition.

In addition to the two Seattle locations open now, Amazon is opening up new Go stores in San Francisco and Chicago. And, lest we forget, Amazon owns Whole Foods, giving the company access to a network of full-sized retail locations in which to experiment and scale.

For those in Seattle who want to shop at the new Go store, you can find new the Seattle Central Library at 920 Fifth Ave.