Amazon's automated grocery store will launch Monday after a year of false starts


Amazon employees are pictured outside the Amazon Go brick-and-mortar grocery store without lines or checkout counters, in Seattle Washington, U.S. December 5, 2016.

Jason Redmond | Reuters

Amazon employees are pictured outside the Amazon Go brick-and-mortar grocery store without lines or checkout counters, in Seattle Washington, U.S. December 5, 2016.

For customers, it’s simple: Scan your Amazon Go app as you walk into the store, pick up whatever you want, and simply walk out.

On the back-end, Amazon’s technology detects everything you’re taking or returning to shelves, and keeping track in a virtual shopping cart. When you walk out, Amazon charges your account and sends a receipt.

For now, Amazon is testing the concept on a limited basis and has no plans to implement the technology in Whole Foods. But an expansion of Amazon’s grocery technology could have enormous implications.

According to the Department of Labor, more than 3.5 million Americans held cashier jobs as of May 2016. Nearly 900,000 of those were in grocery stores. The Amazon Go store eliminates the need for cashiers, and could thus make thousands of jobs redundant. Amazon Go does hire people to work in the store — a team of “associates” who prep ingredients, make prepared items, greet customers and stock shelves.

Still, it could prove a tricky subject, given the current administration’s focus on creating jobs in America and President Donald Trump’s contentious relationship with Jeff Bezos.

In e-commerce, Amazon has already been investing heavily in automation, running the gamut from delivery drones to warehouse robots. At the same time, it’s been hiring thousands of new employees each year, growing headcount by 40 percent year over year.

With its purchase of Whole Foods last year for nearly $14 billion, it became the second biggest private employer in the country behind Walmart. However, an analysis published by Quartz last year looked at employment data for the retail industry as a whole and found that Amazon’s growth and hiring numbers don’t offset the overall retail job losses that it has helped cause.



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