Why Amazon's cashier-less tech sees slow growth despite third-party push
What's the story
Amazon's groundbreaking 'Just Walk Out' technology is now operational in over 140 third-party locations across the US, UK, Australia, and Canada.
The figure represents the total number of individual locations using the technology, not the retail chains or companies licensing it.
However, this number is quite small considering the vast population of these countries (around 465 million) and highlights that Amazon's futuristic cashier-less checkout system has received lukewarm response from third-party retailers.
Tech advocacy
Amazon advocates 'Just Walk Out' for smaller stores
Amazon had previously contemplated discontinuing the use of this technology in its Amazon Fresh grocery stores due to high costs and complexity for larger retail spaces.
Now, it promotes the use of 'Just Walk Out' technology in smaller convenience stores with fewer customers and products.
This approach aligns with the model of its own Amazon Go stores.
Recent reports suggest that Amazon has significantly downsized the team of developers working on this technology.
Venue adoption
High-traffic venues have adopted it
Interestingly, some high-traffic venues have adopted the Just Walk Out technology.
These include nine merch stores at Seattle's Lumen Field near Amazon's headquarters and "more than a dozen" stores opened by Delaware North, a significant hospitality and entertainment company.
According to Amazon, stores implementing this technology have reported increased customer satisfaction, transactions, and sales.
Future plans
Amazon's future plans for Just Walk Out
In response to reports about layoffs, Amazon stated it "continues to invent the next generation of this technology to improve the checkout experience for large-format stores."
The company plans to enhance latency for "faster and more reliable receipts," develop new algorithms to identify customer actions, and improve sensors.
Amazon also denied claims that its Just Walk Out technology is run by humans in India, calling these reports "untrue."
The company said that a machine learning model powers this cashier-less system.
Mechanism involved
How does Just Walk Out tech work?
Amazon's Just Walk Out technology is designed to eliminate the need for traditional checkout processes.
With this tech, customers can simply grab the items they want from the store shelves and walk out.
Sensors, cameras, and AI algorithms track the items customers take, and their Amazon account is automatically charged for the items they leave the store with.
This service aims to provide a more seamless and convenient shopping experience.