Amazon discontinues 'Just Walk Out' technology in US: Here's why
What's the story
Amazon is discontinuing its innovative "Just Walk Out" technology in its Fresh grocery stores across the US, according to a report by The Information. This system, previously available in about half of Amazon's Fresh stores, allowed customers to shop and leave without queuing for checkout. However, contrary to full automation expectations, the technology relied on over 1,000 remote workers based in India functioning as cashiers.
Tech hurdles
Challenges and criticisms of 'Just Walk Out' technology
Despite its innovative nature, the "Just Walk Out" technology faced criticism for being slow and expensive to implement. Reports suggest that outsourced cashiers often took hours to transmit data back, causing delays in customers receiving their receipts. Mismanaged orders and delayed receipts were frequently reported issues with this payment system.
Privacy issues
Privacy concerns and limited adoption of Amazon's technology
Amazon's "Just Walk Out" technology has raised privacy concerns due to its continuous collection of biometric data. The system used cameras and sensors to assess each customer's body shape and size for identification, leading to a class action lawsuit in New York. The suit accused Amazon of storing biometric identifier information, sans adequately disclosing these practices to consumers. Despite attempts to market the technology, Amazon found limited interest from other retail chains.
Tech shift
Amazon introduces Dash Carts
As an alternative to the "Just Walk Out" technology, Amazon is introducing Dash Carts at its retail locations. These advanced carts are equipped with built-in scales and sensors that track spending in real-time, allowing customers to skip the checkout line. The carts display savings and spending totals on an integrated screen in real-time, providing a seamless shopping experience for consumers.
Market strategy
'Just Walk Out' continues in the UK
While the "Just Walk Out" technology is being phased out in the US, it will still be used in select stores in the UK. This decision is part of Amazon's broader strategy to give its retail grocery division a makeover. Despite a bold entry into the retail market, Amazon's grocery store presence in the US remains smaller than competitors like Walmart, Costco, and Kroger.