In a surprising move, Amazon is phasing out its “Just Walk Out” technology from its Amazon Fresh grocery stores. Initially hailed as a groundbreaking checkout-less shopping experience, the technology is being replaced by Dash Carts, which allow customers to scan items while they shop.
Transition to Dash Carts
Tony Hoggett, Amazon’s senior vice president of grocery stores, revealed that the next generation of Fresh Stores will focus on Dash Carts. This shift marks a significant change in strategy, as the company moves away from the “Just Walk Out” concept that was introduced with much fanfare in 2016.
Challenges with “Just Walk Out”
Despite its initial promise, the “Just Walk Out” technology has faced several challenges. One major issue was the need for human reviewers to ensure the accuracy of transactions. According to reports, 700 out of 1,000 “Just Walk Out” sales required human intervention, far exceeding Amazon’s internal goal of less than 50 reviews per 1,000 sales.
Controversies Surrounding “Just Walk Out”
The technology also faced scrutiny for its use of remote cashiers in India to track customers. These remote workers reportedly took hours to compile data and generate receipts, leading to delays in customer transactions. Critics raised concerns about the use of low-cost labor and the impact on local workers.
Legal Troubles
In 2023, Amazon found itself embroiled in legal troubles when the US Federal Trade Commission and 17 state attorneys general sued the company. The lawsuit alleged that Amazon used anticompetitive and unfair practices to maintain its dominant position in the e-commerce market.
Looking Ahead
As Amazon prepares to open new Amazon Fresh stores, it is clear that the company is reevaluating its approach to checkout technology. While “Just Walk Out” may be on its way out, the move to Dash Carts signals a new direction for Amazon’s grocery stores. Only time will tell if this shift will lead to a more seamless shopping experience for customers.