Grabango Shuts Down: Is This the End of Camera-Based Checkout?
Grabango has officially shut down, marking a significant moment for the future of fixed-position camera-based automated checkout systems. The podcast discusses the implications of this closure, particularly in light of the fact that Grabango's technology, which was aimed at offering a checkout-free shopping experience, struggled to gain traction despite its innovative approach. Speakers analyze how the perceived value of simply walking out of a store without checking out may not be enough for consumers to choose such technologies over more established solutions. They also emphasize a shift in retail technology investments towards more cost-effective options like in-store robotics, which could lead to a decline in interest for just walk-out systems. As the conversation unfolds, they reflect on recent trends in the industry, including Amazon's own setbacks with similar technologies, suggesting a broader reevaluation of the automated checkout landscape.
Takeaways:
- Grabango has permanently ceased operations, highlighting challenges in automated checkout technology.
- The shutdown of Grabango raises questions about the viability of camera-based checkout systems.
- Retailers may prioritize lower-cost solutions like robotics instead of complex camera systems.
- The trend towards in-store robotics is expected to intensify following Grabango's exit from the market.
- Amazon's criticisms of its own just walk out tech suggest a broader industry reevaluation.
- Retailers are focusing on technologies that directly impact their core business and profitability.
Companies mentioned in this episode:
- Grabango
- Aldi
- Amazon
- Instacart
- Sam's Club
Thanks to the A&M Consumer and Retail Group, Avalara, Mirakl, Ownit AI, and Ocampo Capital for making this episode possible
For the full episode head here: https://youtu.be/T_30gGTzlZ4
This podcast uses the following third-party services for analysis:
Podcorn - https://podcorn.com/privacy
Transcript
Grabango has called it quits.
Speaker A:According to payments dive, Grabango, the automated checkout technology company whose software was used by Aldi and piloted in several us convenience store chains, has permanently ceased operations.
Speaker A:Grabango's technology was similar to Amazon just walk out tech, and that it kept track of what shoppers picked up inside the store as soon as they entered.
Speaker A:And then when ready to leave, customers would scan a code in the Grabango mobile app and their payment would automatically process.
Speaker A:However, unlike Amazon, Grabango's technology also did not rely on weight sensors within in stores shelves and used cameras only.
Speaker A:Chris Grabango shut down this week.
Speaker A:Amazon called it quits on some just walk out tech or called it's just walk out technology tech cumbersome last week.
Speaker A:And so I have to ask you, is this the final nail in the coffin of fixed position camera based just walk out systems?
Speaker B:Oh, wow.
Speaker B:And you're starting me off hot, I think, sadly, I think very, very sadly, I think I'm going to actually say that it is, I'm going to make.
Speaker A:This is it, huh?
Speaker B:I think it is.
Speaker B:I think this is the nail in the coffin quite simply for the fact that just walking out of a store, as we talked about last week, isn't that valuable of an idea to consumers as a point of differentiation.
Speaker B:And also, perhaps more importantly, all the other benefits of the cameras, specifically pricing and inventory accuracy, can all be accomplished more simply and easily and cost effectively with other systems, especially in store robotics.
Speaker B:Right, right.
Speaker B:Talks about that a lot on our show.
Speaker B:So, so the implications of all this, of all of this from this announcement from Gabango, are biggest, big in my mind, because Grabango was actually trying to do it in the least capital intensive way.
Speaker B:Like you mentioned, they're doing it without shelf sensors, but yet they still had trouble getting traction.
Speaker B:So my prediction, I'm going to be bold here.
Speaker B: s I've said before, will make: Speaker B:Because just walk out systems are getting pulled back.
Speaker B:Robotic implementations are already on the rise.
Speaker B:You're seeing them go from grocers to warehouse clubs.
Speaker B:The trend is already heading in that direction.
Speaker B:And this news just further intensifies that trend, in my opinion.
Speaker A:Yeah, I agree.
Speaker A:I mean, I think that, you know, retailers like we've talked about multiple times, they really have had to focus you know, shifting their technology investments to things that are really impacting their core business.
Speaker A:And to your point, like this, this is still kind of something on the roadmap that was more of a, like, very R and D heavy.
Speaker A:Nice to have even some of these Grabango stores that they were piloting.
Speaker A:It wasn't the only way to shop those stores either.
Speaker A:So I think that's the key thing.
Speaker A:Like, it was still in test mode.
Speaker A:It didn't seem like they were, you know, these retailers were willing to, like, go all in on it, too.
Speaker A:And I think that, for me, it's not a no, this technology is never going to happen again or that it's, we're not going to see it pop up again.
Speaker A:I just think that because of the things you said, you know, there's other ways that you can achieve some of the benefits that this provides, like robotics, like, you know, controlled entry and exit and other things that don't require as much capital investment right now from retailers that they just don't have.
Speaker A:They just have to focus on other things, like, you know, labor shortages shrink all these other things, and there are ways to do that more affordably than I think this technology, unfortunately, it's, we're so big on it.
Speaker A:I'm so sad to, like, make this the final.
Speaker A:Final.
Speaker A:But.
Speaker B:But you're kind of feeling that way, too, then.
Speaker A:Yeah, yeah, I think, yeah.
Speaker B:I mean, to your point, like, even though we talked about last week, Sam's club's exit setup, you know, which uses some computer vision but uses it in a different way with scan and go or even Instacart smart card, you can still get at that in the long run in a very simpler, less capitally intensive way to do it.
Speaker B:And, you know, you just get down to it, like, keeping all those items tracked in a store with a degree of accuracy that you need.
Speaker B:And, and then the impact it puts on merchandising, like Amazon talked about, just seems like it's really hard.
Speaker A:Yeah.
Speaker A:Yeah, I agree.
Speaker A:Well, we'll see.
Speaker A:We'll see what happens and follow suit, but, yeah, Amazon closed some go stores this past week, too.
Speaker A:It's not looking great.
Speaker B:Yeah.
Speaker B:And, well, and you know what, though?
Speaker B:We'll always have Germany.
Speaker B: 'll always have our summer of: Speaker B:We will try out all these different stores.
