> On April 4, 2024, it was revealed that Amazon's "Just Walk Out" technology was supported by approximately 1,000 Indian workers who manually reviewed transactions. Despite claims of being fully automated through computer vision, a significant portion of transactions required this manual verification. ( https://en.wikipedia.org/wiki/Amazon_Go )
Wonder how much of this is due to economics since computer vision tech never reached the expected performance + outsourced workers got (relatively) much more expensive after COVID.
I left the following comment some months ago, duplicating it here:
[Disclaimer: Former Amazon employee and not involved with Go since 2016.]
I worked on the first iteration of Amazon Go in 2015/16 and can provide some context on the human oversight aspects.
The system incorporated human review in two primary capacities:
1. Low-confidence event resolution: A subset of customer interactions resulted in low-confidence classifications that were routed to human reviewers for verification. These events typically involved edge cases that were challenging for the automated systems to resolve definitively. The proportion of these events was expected to decrease over time as the models improved. This was my experience during my time with Go.
2. Training data generation: Human annotators played a significant role in labeling interactions for model training-- particularly when introducing new store fixtures or customer behaviors. For instance, when new equipment like coffee machines were added, the system would initially flag all related interactions for human annotation to build training datasets for those specific use cases. Of course, that results in a surge of humans needed for annotation while the data is collected.
Scaling from smaller grab-and-go formats to larger retail environments (Fresh, Whole Foods) would require expanded annotation efforts due to the increased complexity and variety of customer interactions in those settings.
This approach represents a fairly standard machine learning deployment pattern where human oversight serves both quality assurance and continuous improvement.
The news story is entertaining but it implies there was no working tech behind Amazon Go which just isn't true.
The go tech is amazing in 2 places: airport and stadium beverage tunnels. There's a premium price and high volume in those areas. The go tech has basically revolutionized the speed of getting a beer and a dog at the stadium here in Seattle. I can be back in my seat in 4 minutes including the bathroom now which for NFL means I can literally be back in a commercial break sometimes.
no idea how much they make on it, but it's a game changer in that small area.
What’s still not clear to me about this story is if there was ever live human monitoring of shoppers. Did the low confidence resolution occur in real time, at some point between the customer grabbing the item and getting their bill?
Could it be improved by requiring the customers to use a "smart" shopping basket that can read RFC codes from the product packaging? In combination with vision tech it should give a relatively higher accuracy.
If so, is the reason why it is not used related to cost?
I get being proud of the work done but if they scrapped the project after 10 years because of feasibility I don't think the tech rolled out at the start was "working" as intended.
The first iteration of the tech reached the accuracy needed to support just-walk-out for a small-format store. It did achieve that goal. I left the project before it went further.
I imagined, at the time, future goals would be to scale store size and product variety while reducing the cost of the technology, but I have no insight into how that progressed. I am sorry to learn it's been shut down.
This was one of the issues that killed it. They continually missed goals of reducing human involvement.
Training is part of any AI project, but it sounds like Amazon wasn’t making much progress, even after years of working on the project. “As of mid-2022, Just Walk Out required about 700 human reviews per 1,000 sales, far above an internal target of reducing the number of reviews to between 20 and 50 per 1,000 sales,” the report said.
The report said Amazon’s team “repeatedly missed goals” to cut down on human reviews, and “the reliance on backup humans explains in part why it can take hours for customers to receive receipts.”
Obligatory /disclaimer/disclosure/. (Don't worry, most HNrs get this wrong for some reason. I will be downvoted for pointing this out, but whatever. It's a meaningful difference to those that understand.)
As soon as you get to ~99% accuracy, you probably don't need to go further.
If the customer is accidentally billed for an orange instead of a tangerine 1% of the time, the consumer probably won't notice or care, and as long as the errors aren't biased in favour of the shop, regulators and the taxman probably won't care either.
With that in mind, I suspect Amazon Go wasn't profitable due to poor execution not an inherently bad idea.
Actually, discount grocers operate on razor-thin margins of 2-4%. If your inaccuracy is geared to the benefit of your customer (because otherwise you'll be out of business due to the regulatory bodies) and thus removes just one percent of that, you suddenly lose a quarter to half of your earnings! And that goes ON TOP of the additional cost incurred with all that computer vision tech.
In addition to that, you'll have the problem of inventory differences, which is often cited as being an even bigger problem with store theft than the loss of valued product. If the inventory numbers on your books differ too much from the inventory actually on the shelves, all your replenishment processes will suffer, eventually causing out of stock situations and thus loss of revenue. You may be able to eventually counter that by estimating losses to billing inaccuracies, but that's another complexity that's not going to be free to tackle, so the 1% inaccuracy is going to cost you money on the inventory difference front, no matter what.
And to add to that, it's not a neutral environment. If there's 1% of scenarios that are incorrect, people will figure out they haven't been billed for something, figure out why, and then tell their friends. Before you know it every teenager is walking into Amazon Fresh standing on one foot, taking a bag of Doritos, hopping over to the Coca Cola stand, putting the Doritos down, spinning 3 times, picking it up again and walking out of store, safe in the knowledge that the AI system has annotated the entire event as a seagull getting into the shop.
I don't have insight into what ultimately transpired at Amazon Go so take the following as speculation on my part.
It is unlikely the tech would be frozen when an acceptable accuracy threshold is reached:
1. There is a strong incentive to reduce operational costs by simplifying the hardware infrastructure and improving the underlying vision tech to maintain acceptable accuracy. You can save money if you can reduce the number and quality of cameras, eliminate additional signal assistance from other inputs (e.g., shelves with load cells), and generally simplify overall system complexity.
2. There is business pressure to add product types and fixtures which almost always result in new customer behaviors. I mentioned coffee in my prior post. Consider what it would mean to add support for open-top produce bins and the challenge of complex customer rummaging. It would take a lot of high-quality annotated data and probably some entirely new algorithms, as well.
Both of those require maintaining a well-staffed annotation team working continuously for an extended time. And those were just the first two things that come to mind. There are likely more reasons that aren't immediately apparent.
20% is an incredibly high number though, if a store has 400 people/hour that means you're manually reviewing 80 transactions per hour, over one transaction per minute. That's multiple human employees.
One transaction per minute is nothing at all when the transaction can be as simple as "did the person put that back on the shelf" with a 5 seconds clip.
Nothing has been "proven". The original story was The Information (paywalled article) reshared by Business Insider [1] and claimed that 70% of the transactions were reviewed by an indian. The source was an anonymous source.
Business Insider also reached out to Amazon at the time and a spokesperson denied that actually reviewed any transactions.
This "proven false" thing is just another anonymous source claiming that actually it was only 20%.
So you actually have no proof of anything, you just have three persons claiming three different things (0%, 20% and 70%).
Proven "false." I've noticed that if one admits the truth with a dismissive or offended tone, you can just continue to claim the lie and through sheer force of will people will still go with it.
I think people just think that they must be misunderstanding something; that nobody could claim one thing while offering evidence of its opposite. 1/5 of purchases lose their significance.
I went to Lidl UKs first walk out shop a few weeks ago. You get the bill and receipts about 40 minutes after you've left.
It certainly felt like it could have been sent off to a lower paid country for a human to tot up.
Also consider you're in the store for what, 10 mins - that's a lot of video processing presumably using state of the art CV models. It's quite possibly cheaper to pay a human than rent the H100 to do it.
Why would they face consequences? Every store has video surveillance that can be reviewed.
They trusted their tech enough to accept the false-positive rate, then worked to determine / validate their false positive rate with manual review, and iterate their models with the data.
From a consumer perspective the point is that you can "just walk out". They delivered that.
If the stock price goes down, I won’t be surprised if there’s a shareholder lawsuit claiming that they misrepresented their level of AI achievement and that lead to this write-off by keeping operating costs and error rates high. The whole business model really assumed that they could undercut competitors by lower staffing.
Their initial advertising claimed near full automation by their "AI" system when, in reality, they had people manually handling around 70% of the transactions.
I get that this is a message board for YC, so lying about your company's tech is considered almost a virtue but that is an unreasonably big lie to tell without getting your hand-slapped by some regulatory body or investor backlash.
I don’t remember Amazon claiming “near-full automation” by AI. They said that you can checkout automatically and that AI/computer vision is somehow involved.
If they didn't say it they heavily implied it to the point that journalists were fooled. For example you can read about it in this very quaint 2018 article that went with a woke "it's your fault I'm disfunctionally paranoid" angle: https://www.cnet.com/culture/amazon-go-avoid-discrimination-....
No one cared what I was doing. Is this what it feels like to shop when you're not black?
Well that's because, again, it was indeed algorithms doing the work, and the people were only used to verify / train the system, after the fact. People keep, intentionally, conflating the two things, doing everything in their power to say (or strongly imply), that the people involved were managing the orders in real time, which is a lie. You are the one pushing misinformation here.
In my country they have 16 year old kids working in the supermarket. They are pretty cheap to employ and these jobs train the boys and girls into becoming adults.
It would be a shame if this shared experience was taken over by third worlders.
Meanwhile the distinction between the US and the so-called "third world" seems to become less apparent and less relevant every day. Indian teenagers need jobs too, don't they? More power to them.
I think investors like Amazon taking shots like this? It was never a broad roll-out, 43 stores is micro-scale for Amazon.
Still, would love to see a breakdown of why it didn't improve. Regardless of the accuracy at launch, I'd think that advances in AI would have been massively to their advantage. I wonder if security degradation hit them hard.
The entire system depends on a level of social trust that doesn't exist in American cities today. Similarly, the "Dash Cart" seems like a cheaper and easier way to accomplish the same thing.
At the end of the day, there's also a mismatch in the use case. If I'm going to a smaller format store, like they had, I'm not buying a ton of stuff. Self checkout is great, and minimal friction.
I'd think that improving the UX of self-checkout gets 80% of the way there with way less fraud, way less theft, and way less technology.
Still, I think it's wicked cool they took a big shot.
I know someone that worked on the project in the early days. It was always incredibly difficult technology, they were always behind on their accuracy targets, and the solutions were increasingly kludgy as they layered more and more complex systems on top. An honorable failure.
A lot of smart people really tried to make it work.
That's great but they could have been honest up-front and said "The plan is that this is eventually fully-automated but we estimate that it needs supervised training for X amount of time in order to handle Y% of transactions automatically".
But this is tech and you just lie because hardly anyone in the investor class knows enough to call you out on it or they are just going with the lie to make a buck off of other rubes.
Privacy concerns aside, I thought it was a cool project. I agree that “convenience store” was probably not the best target but I think it was an effective enough proof of concept (creating a decent sized chain of them probably wasn’t the best idea) . I’ve seen the system used more effectively in smaller situations like stadium concessions, where the duration of the transactions needs to be very short to facilitate throughout.
It's also pretty par for the course from Amazon automation initiatives. Like Glacier being marketed as robotic tape drive loaders, where in reality it is mostly just regular old S3 running on the outdated server clusters.
AI is not unique in this regard. We just saw the same thing with the crypto/blockchain nonsense.
Regulation lags so far behind that you can get away with bad behavior long enough that, by the time regulation catches up, you can buy your way out of consequences.
Essentially the thinking went. If everyone is remote, why not hire remote workers from countries that are a lot cheaper. Suddenly you had a hard time finding contractors and FTEs from those countries because everyone was hiring them. At the same time it got really hard for entry level developers in the USA to find work.
The supply/demand curve shifted and now those workers are becoming more expensive while domestic workers are becoming cheaper.
India specifically is in the middle of a massive years-long labor movement that is changing the terms of work there and I believe shifting the degree of alignment with western corporate outsourcing though I'm not very informed about the details.
Scale is beyond comprehension though, there were 250 million people on strike one day last summer. This is not ever really covered in western media or mentioned on HN for reasons that are surely not interesting or worth pondering at all.
No one (at a national scale) can afford to strike like that, except people who have an understanding of why they even more can't afford not to strike like that.
You're most likely correct; I originally started writing this comment to refute your statement, but found that my assumptions appear to be wrong.
Americans have the nearly the highest nominal and PPP income of OECD countries as of 2024, only behind Luxembourg, Iceland, and Switzerland [1].
India experiences substantially higher shelter and food insecurity and poverty rates than the United States.
However, tech workers in Bangalore are paid an order of magnitude higher than prevailing local wages in other sectors, at around ₹2M (₹20 lakh) [2]. Median annual rents for 2BHK (2 bedroom) apartments appear to be around 1/10th of that figure at ₹3 lahk in desirable neighborhoods [3].
It appears to be reasonable for a technology worker to be able to perform a sustained strike. I have never personally traveled to Bangalore, though I have lived in places where cost of living is under a tenth of median American income.
I invite correction by people with first hand knowledge about cost of living in Bangalore.
and it was an absolutely made up number. The real numbers would be so low it was insignificant. That number was only reported in global outlets, and that strike had zero practical impact in India. It was so uneventful, almost all of India except select pockets that has communist party influence didn't even know about the whole thing - let alone felt the impact of the strike.
> However, tech workers in Bangalore are paid an order of magnitude higher than prevailing local wages in other sectors
250 million people striking in India isn't mainly “tech workers in Bangalore”, or mainly tech and other elite workers at all. It’s about 40% of Indian workers, and most articles I've seen about it centered on widespread participation of workers in coal, construction, and agricultural sectors.
When India "shut down" for Covid, day labourers suddenly had no income, and no government support - they had to walk all the way to their home province (can't remember if the trains were even running).
But oh well, Uberizing employment means the run-of-the-mill American worker can also live like that in the future... progress!
I'm not an economist either, but I also assume that as the country attracts more local talent for local companies, the competition for outsourcing becomes harder. (i.e, you now have to pay more than the local companies).
All just speculation on my part though, I really have no clue either.
Maybe. I'd really want to know what percent of items (not transactions) needed review. 1,000 people to oversee how much revenue?
Theoretically if it was 99% computer and 1% human, that's enough to mess up the economics but it's not a bait and switch like some companies have done.
Their fate seemed sealed when it was revealed a bit back that the “just walk out” technology was more hype than substance. Just lots of people watching what you’re doing on camera vs an actual AI that worked well at mass deployment scale. A good idea, poorly executed.
Reports said the “AI” was largely 1000+ people in India watching the cameras.
If Amazon actually managed to build AI that worked well at a decent cost point it would have been great since nobody likes those silly self checkout machines.
What’s amusing about all of this is that before it got leaked that it was basically a bunch of people in India watching cameras Amazon folks spoke about the tech like there was some super secret AI they developed. Since that story broke nobody there seems to want to talk about “just walk out” anymore.
Even that didn't work well, when I was at an airport recently I had investigated 4-5 items as I had some time to kill. When I was walking out it wanted to bill me for 70 dollars even though I only had a bottle of water and a candy bar.
I have little trust that a corporate behemoth will do right by me and refund the discrepancy at an unspecified later time as it says it will on checkout.
This keeps me away from these sorts of stores if I can avoid them, which is pretty much always (so far, anyway). I would be absolutely shocked if the error rate was comparable to a normal checkout process and I don't want to waste the cognitive overhead of either wondering how much I'm getting ripped off by a corporation or having to go back and review and try to resolve overcharges.
They pay the most for human involvement. Wages, special conditions, and insurance are exponentially higher than their plans of warehouse to end-user via lockers and drones.
> Reports said the “AI” was largely 1000+ people in India watching the cameras.
This was totally fake news though. Those people were labeling training data and reviewing low confidence labels, after the fact. There wasn't ever live monitoring of shoppers.
Yeah, we had one near us, close to the metro exit, and it was genuinely great when you needed to grab something for dinner on the way home. Once you knew where things were, you could be in and out in 20 seconds. That said, it never seemed busy compared to other grocery shops in the area, so I think a lot of people were put off by it feeling "weird" to shop without checking-out.
You can use the Apple Store app to purchase physical items at Apple retail locations (smaller items like cables or cases). I've used it a couple of times, and I feel very awkward using it, so much so that I'll walk out kinda waving the receipt/acknowledgement screen around so that staff/security can hopefully see I'm not nicking something.
IIRC the Fresh near my old job required you to have a Prime membership, otherwise it was just a normal grocery store. I only went in there a few times, but I don't have a Prime membership, so there wasn't much of a point.
¹ Individuals manning a labyrinthine system of cameras and sensor fusion, like hawks, logging the precise moment you plop a Twix into your basket! Praise Bezos!
There is no difference from the customer perspective so the store failed for reasons that have nothing to do with the "just walk out" technology or lack thereof. Why spend lots of money doing R&D only to find out that the concept doesn't sell? Wait for the product to be successful before spending the money to scale it up. Same as anything else.
I think the idea could work well but the execution in the field was consistently very poor. There were a few of these at airports with just an intimidating gate and generally non-engaging human standing there.
It was as if they expected everyone to know what to do, but when I’d watch 99% of people just sort of looked at the store, saw the odd gate things, and then just shrugged and walked off. The stores were almost always completely empty amidst a busy concourse.
Even if the tech worked (reports say it didn’t work well) they completely missed the boat on creating a clear customer experience that navigated the new tech.
I agree, it needed a better hook to get people in the 'gates' so to speak. I don't think I've ever waited behind like maybe a single transaction at an airport convenience store, so it's not like having to fiddle with my phone to get in beats tapping a card or phone or watch at checkout. Either way most people are buying 1-3 things so it's not like it saved time scanning.
As for the big Amazon Fresh grocery stores, I only have one out of my way so I only visited once or twice, but the big things I noticed were that it had a small selection and very average prices. Not that surprising because even after buying Whole Foods, Amazon itself has terrible prices on dry goods (meaning supermarket items besides fresh food), and relies heavily on random third-party sellers with big markups for a ton of it.
If they really wanted to get people to buy into Amazon Fresh it would have taken a lot more money (and thus pretty unprofitable for a long while): Probably one way to do that would have been making it as attractive as Costco for Prime members.
I’m a bit surprised a publicly traded company is allowed to make materially false claims about their products and capabilities without getting into a major lawsuit for defrauding shareholders. Maybe Amazon is just above such trifling things such as law.
Do people really have problems with self-checkout? I use it all the time in box stores like Kroger, Walmart, Home Depot, etc. It seems to work just fine for me and doesn't add more than a minute or two vs just walking out of the store.
Here in Germany, the newer generation self checkout terminals are fine. I use them all the time. No issues. The first generation ones were terrible.
The issue with the first generation was that they were too strict with bag placement, weight sensors, etc. They were impossible to use without having to call a very grumpy shop attendant to unlock them. Sometimes multiple times. They were grumpy because all this was technically user error but when a largish percentage of users run into the same issues over and over again, it gets really annoying to deal with.
They fixed most of the glaring UX issues with the newer generation. No weight sensors. No prompts to put the item in the bag it is already in, etc. The new ones basically only need people to unlock things like alcohol purchases, but are otherwise fine. The first generation was over engineered and had way too many failure modes. They still have them in some super markets but they are getting replaced with better ones.
Anyway, it's getting harder and harder to hire staff for supermarkets. These are low wage jobs and most of these people can get better paying jobs. Self checkout creates some opportunities for shop lifting of course. But that is offset by the wage savings. They compensate with security, cameras, etc.
The bag weight sensors was something I was very happy to see go away. I hated self checkouts for years because it was a miserable experience of it freezing every third item and requiring someone to come get it working again. I only realized this tech had changed when COVID forced me to try self checkout again and it was suddenly a very pleasant experience, though one I have to imagine causes a lot of shrink for stores.
Self checkout is fine, if the happy path works. If everything scans once and doesn't accidentally scan a second time, if everything scans at the price you thought it was posted for, if you don't have any controlled substances requiring approval, if the weight sensor doesn't freak out incorrectly or from putting your bags on it, if it accepts any coupons you have, if it accepts and processes your payment method correctly.
If everything goes fine, self checkout is fine. But the exception handling process for any of those is thoroughly aggravating, as you wait and try to get the attention of the one overworked attendant dealing with a dozen of these machines constantly throwing exceptions, as the computer screams at you for whatever it thought you were doing wrong.
Yeah I agree that it can potentially go wrong but in my experience here in east TN the machines have gotten better to the point that hasn't happened for me in the past few years. Also it seems like the "just walk out" process would have more potential error modes but I never visited one.
The best machine I've seen so far is one in my local gas station, where there's just a surface and a camera. Toss whatever you want onto the surface, all haphazard like, check that the screen agrees with reality (it always has so far), and bump your watch/phone/credit card and walk out. We're talking substantially less than 30s, oftentimes less than 10s.
Yeah, I've been using self-checkout at my Jewel (grocery store) in Chicago weekly for about a decade (multiple times a week in the past, before I bought my own cart, I walk to it), and had maybe 5-10 issues with the scale in total. None recently.
I've had three failures in the last week. I had the "thought my bag was product" problem, the "I somehow double scanned" problem and the "need a reset but no one can explain why." The first and third were on the same visit.
Interesting! Thanks for the reality check. I personally like the home depot ones with the very prominent handheld scanner for big items. Hopefully it will keep improving. The days of waiting in line to check out were terrible and I don't want to go back.
If you find value in it, that's fine. I not only find value with interaction with the lovely checkout people, I dislike the cost of scanning and managing the items during checkout being my problem so a huge company can save money. If they were to implement a discount as a way to say "we'll pay you for your work to give us your money" I would consider it.
That's not to say the value of the convenience is never worth it. I exclusively use Sam's Club scan-and-go because the time I save is much larger than the publix/walmart/ect.
I live right down the street from an Amazon Go store, and I like it because it's convenient when it's open, but the hours on this store stunk: it closed at 4pm sometimes. I found it very funny that this store advertised itself as a fully automated experience, when in fact there needs to be a worker/manager there all the time for it to be open. If it were actually automated, it could've been open 24/7
Meanwhile in East Asia they have no problem with tons of 24/7/365 stores, even fully vending machine stores. Heck even Europe has vending machine stores that are constantly open without even a door that could be closed, selling grocery basics.
I wonder why that hasn't caught on in the states. My first thought is vandalism/people destroying or stealing the automated equipment, but surely that's not a unique problem to the US
My experience is mostly in the Bay Area, but people are extremely excited here to destroy anything that can be tied to a big corporation. Smashing the dumb E-scooters, beating up Waymos or just bricking a banks windows were just like regular events here. The culture definitely idealized and encouraged it.
America had 24/7 grocery stores, convenience stores, restaurants, and even some Walmarts before COVID. Now, at least in my area, thats a thing of the past. Still not as bad as Switzerland where everything closes early on Saturday and is closed on sundays.
China has had 24/7 McDonald’s since forever, well, and lord of other things as well. But not grocery stores at least.
The stores where I'm at in the US stopped being 24/7 long before COVID due to (AFAIK) changes in crime rates. I wish they would do some sort of members program where you could register to gain access after hours. I think they've got more than enough video surveillance to handle any abuse that might arise.
And wasn't it revealed some time ago that Amazon Go stores were not really that automated to begin with, because they heavily relied on off-shore cheap human labor?
Doesn’t surprise me. I frequently shop at Amazon Fresh in store and it’s a mediocre experience. It’s a poorly run store with no visible manager making sure things are in order. You constantly have to work around employees fulfilling online orders and they aren’t helpful. I always find expired groceries/produce on the shelf so I have to spend a lot of extra time inspecting each item. The only reason I put up with their nonsense is that some of their prices are insane and they have easy returns, for example $0.85 for a box of Barilla pasta. They actually don’t accept returns in store and just refund you automatically in the app (Returnless returns). It’s pretty silly and rife for abuse.
I also found a loophole with the Amazon.com return grocery credit. The systems are separate for the $10 off $40 coupon and you just scan a QR code in the store to get it. It turns out you can just take a photo of their QR code and reuse it over and over again.
I feel like they artificially made their prices super low for the last couple years and intentionally operated at a loss as a business tactic to force out competition and kill off local grocery stores. There were instances of their prices being lower than Walmart or other budget stores. The avocados were $0.25 each and carrots were half price of ones in Safeway, even ground beef was weirdly cheap. One time as a comparison I put the same items in my cart for Amazon fresh and Walmart and it was $21 at Amazon fresh and $36 at Walmart. WAY cheaper than Instacart too.
> operated at a loss as a business tactic to force out competition and kill off local grocery stores
Wouldn't surprise me. I know a guy who invented a device for truckers that became ubiquitous in truck stops across the US. This would've been like 2014.
He refused to sell on Amazon, so Amazon duped his product and sold it at something crazy, like half price, until he agreed to list (at which point they dropped their competing product)
You are on a website called HackerNews, where people are encouraged to comment on articles or "posts". You are seeing this because you are looking at the comment section of one such post.
Selling items for less than they cost to produce is known as "dumping" in international trade (where it is generally disallowed by trade organizations) and can be illegal in the US if the intent is to eliminate competition [0]. That last factor can be hard to prove, and I don't think the FTC is doing much about anticompetitive behavior these days.
Yes, I can imagine it’s hard to prove, which is a pretty good indicator it’s a slippery concept to being with. Everyone wants to “eliminate the competition”, including your competition!
The predatory pricing pattern the FTC would in theory sure over would be: selling items at an artificially low price until the competition goes out of business, then raising prices once you are the only seller left standing. It's the second step that makes it anticompetitive instead of just competitive
Standard grocery margins are usually lower, in the 30%-40% range, and are often much lower for promotional items. Rotating "loss leaders" to get people in the door are standard practice. IMHO that would make it hard to bring an antitrust action against a grocery chain, as pretty much every store engages in a limited amount of predatory pricing as a marketing technique.
50% is the standard retail markup, but it varies by industry.
I don't think Amazon was producing anything they sold in their grocery stores. They were probably buying the same white label items as everyone else for their store brand.
The Biden admin went slightly harder against anti-competitive actions and anti-consumer actions by companies and all the billionaires freaked out and poured money into Republican campaigns in 2024 in order to roll all that back.
What was rolled back? There was no major change in action whatsoever, only rhetoric, which is meaningless. As for funding, Trump raised substantially less in 2024 than 2020 while Harris raised more money than any campaign ever has, by a wide margin. [1] Dark money also overwhelmingly flowed to the DNC. [2] And a large chunk of all of Trump's funding came after the previous administration tried to imprison him, which rather freaked people out - even those not particularly fond of him. That also likely played a significant role in the more DGAF presidency we're seeing today relative to 2016.
To add onto sibling comment: it is specifically when they sell below cost to eliminate competition, with the goal of later being able to raise prices to recover those losses (and more) once they are the only player in town and can jack the prices up all they want. The later price elevations are what result in consumer harm, which is why it is illegal.
A big gorilla comes in and under prices the entire market. They can do that because they already have tons of money. They do this long enough to break the market and drive the competition out of business. Once the competitors are gone they jack up the prices to unprecedented levels because there's no more alternatives available and bleed the market for all the money.
This presupposes some athletic new competitor can’t enter the market and take the margin off the fat incumbent.
It’s why we have capital markets: If capturing a profitable opportunity requires spending some money, someone who wants to profit will send that money your way.
But it should only be because they indeed have lower margins or more efficient operations. It should not be funded by external money (other departments or investors), only to undercut competition too force them out only to raise prices to above the previous point after.
So a simple law could be that prices can only be raised to the point where they were at before the competition was squashed.
> Amazon duped his product and sold it at something crazy, like half price
Pricing below an appropriate measure of cost is generally considered predatory pricing. It is very difficult to enforce this, but that doesn't change the fact that it could be illegal and a violation of antitrust laws.
>“We have already initiated a more aggressive ‘plan to win’ against diapers.com,” longtime Amazon retail executive Doug Herrington apparently wrote in an email released by the committee. “To the extent that this plan undercuts the core diapers business for diapers.com, it will slow the adoption of Soap.com,” another company owned by Quidsi.
>Herrington called Quidsi Amazon’s No. 1 short-term competitor. “We need to match pricing on these guys no matter what the cost,” he said in the email.
I bet Quidsi was also selling the diapers at a loss since they were using UPS and Fedex, so not sure what the difference is if Amazon sells diapers at a loss or Quidsi was selling diapers at a loss.
The innovation would have been in the logistics buildout, which Quidsi obviously wasn’t doing.
The logistics buildout is arguably Amazon's biggest retail lynchpin.
However, it's built on a few fragile external costs.
First that comes to mind, is the comingling, which will theoretically resolve one way or another with their ending of comingling. Comingling almost certainly lowered logistics costs however...
Second being, the externality of how both warehouse and delivery workers are treated in the name of the almighty metrics. NGL I feel like the public's acceptance of their labor practices has ironically only accelerated the erosion of labor rights and worker treatment.
Then don’t believe it and go on with your day. No one owes you a link to anything, especially if you simply don’t pay attention to Amazon’s widely-reported business practices.
It's good to ask for a link (although not good to give one if this is your friend and it may affect their relationship with Amazon that you're talking about this in public), but you can't expect people to waste time thinking about your ringing ears.
While the general premise is true (big company will try to rip off small company), Amazon doesn't have the magical power to get around patent law and the economic penalties are fairly harsh, which is why most companies don't do it. And no war chest of tech patents is going to get Amazon around a patent in the trucking industry because the inventor of the trucking gizmo couldn't care less about whether Amazon patented the right to make Alexa speak in tongues.
It's possible, and likely, that Alibaba vendors decided to rip off the product, but again...patent law is a useful tool for those who use it, and Amazon can be held liable for the sales of infringing products on its storefronts.
That's because criminal prosecution and product tort liability are not meaningful deterrents.
Patent litigation is a different thing entirely. The burden of proof is lower, and the payouts are higher.
To put things in perspective, Apple, Amazon, etc., have lost patent lawsuits worth hundreds of millions over trivial aspects of their devices that are just tiny parts out of thousands compromising the phone/tablet/whatever.
It seems a lot of people on HN fundamentally misunderstand how patent litigation works.
If this trucking device actually existed, and for some reason was being sold on Amazon, and the inventor had sued, he would be living large these days off the settlement.
Yes, Amazon sellers have copied products before, but those aren't Amazon. Amazon prefers to just buy the competition (see, e.g., Diapers.com and Zappos).
> I feel like they artificially made their prices super low for the last couple years and intentionally operated at a loss as a business tactic to force out competition
iirc that's exactly what Amazon did to destroy diapers.com over a decade ago
Diapers.com aka Quidsi was already operating at a loss when it was acquired by Amazon. It's whole business model was using VC-funding to offer products below sustainable costs with the goal of eventually jacking up prices once they drove out smaller/local competitors. Amazon used its own business model against it by dropping prices even lower, knowing that the VC investors couldn't afford it.
Walmart passed on buying Quidsi when Walmart was thinking about launching its own e-commerce platform because the business model was unsustainable. Walmart decided they would rather spend several hundred millions building out their own platform then to buy an existing website with millions of customers.
This is basically the playbook of every "disruptive technology" startup or FAANG initiative of a similar stripe - set prices incredibly low to bleed out competition and gain market share, then raise them once you are in the dominant market position.
Correct, and this is why US big tech, including the big LLM players, need to be tarriffed/DSTed harder than Chinese cars by the rest of the world. They get big off of the exact dumping that China has always been accused of.
Maybe the one where you flagged down a car on the street, but you could always call to book a taxi and those companies worked exactly like Uber — over the phone, because it was the pre–app era.
Not in my country they didn’t. Booking or no booking, taxis did whatever they wanted. More often than not your booked taxi just wouldn’t turn up and you wouldn’t know until well after you needed it.
Uber also gives you a price upfront, and that is the most you will pay (+ tip, if you feel like it). I don't remember pre-mobile phone taxi system that gave you a price upfront. They used to list the price per mile, and then it was up to you to figure out the distance and make sure the driver took a reasonably short route.
So no, the old taxi companies did NOT work "exactly like" Uber.
I've seen more than a few people on this forum assert that the old taxi system was/is comparable to Uber or somehow better. I even got some shit for referring to it as old, legacy, I forget the exact verbiage I used. But it is old, and it is worse. I get the price upfront, I can adjust the "class" of car I order if I'm going to the pharmacy alone or to a nice dinner. Calling ahead to preorder a taxi feels like calling to order a pizza over the phone at this point. If I called, would they even know how to handle it?
Obviously we live in a different era now where things are ordered by apps instead of websites or phone calls, but those used to be socially acceptable ways to order things.
For sure, I was there. But we also used to have to have the people on the phone read our order back to us to confirm it, now I've got a screen that does that automatically. I'm not at all nostalgic for the alternative.
The whole thing end-to-end is the ride service though. The interface is the differentiator that made Uber popular and forced traditional taxi providers to compete for once. There used to be tons of anecdotes about "the card reader being broken" in traditional taxis, because they dodged taxes by only accepting cash. Exposing the whole process through an app and handling your billing outside of the car made tactics like that less useful. Taxis thrived on hidden information games and obligation; Uber doesn't remove that entirely but the playing field is more level.
Quoted for truth. I still take taxis from time to time if there’s no wait at a taxi stand at an airport or building. I noticed in places like Las Vegas things seem better now, there’s flat rates and everyone has touchscreen payment terminals in the passenger area. I remember pre-Uber occasionally getting cab drivers that would take suboptimal routes like getting on the freeway to drive up the meter.
Also, Uber drivers tend to show up. It was always a crapshoot with regular cab drivers. I don't have experience with other car services, maybe they were better pre-Uber.
It depends on where you lived. NYC had a large number of "black car" livery services where you would call, arrange a ride, and typically get a price up front. It wasn't legal to hail them on the street, but in practice it was pretty common to hail a black car (a "gypsy cab") and negotiate a price up front. Source: I lived a few blocks north of Central Park and in Hamilton Heights before Uber was a thing and took gypsy cabs a couple of times a week.
Heck, Elon's ownership of SpaceX even got to me to not really care about space travel anymore, one of my biggest passions since I was 6. But I just can't root for whatever his vision of space faring society would look like.
Yeah I hear you. I too wish he would have stayed out of politics. Sadly he chose not to, and not just go a little, but to go all in. And to choose to make it basically his public identity.
Walmart isn't a budget grocery store, though. Its prices are higher than actual grocery stores (like Safeway.) Also, everyone is WAY cheaper than Instacart.
The answer to this is complex, it has any number of products that are cheaper than products of similar quality from any other store. Places like Safeway/Aldi typically beat on price on very generic items that may or may not have similar quality.
The biggest thing to watch for at Walmart is price discrimination dependent on location. Back in the days I used to shop with them (read made less money) picking a store in a poorer neighborhood could save $10 to $30 dollars on the same car of items.
I found Lowes (hardware) to be one of the worst about this. I lived in an area with 4 Lowes, and never shopped at my local one because of how much more expensive everything was, and never clearance. I'm not talking a couple dollars, in some cases 4x the price of one just 15 minutes away.
In the days before places started requiring ID for returns an acquaintance
of mine would pick up rifle scopes at one Walmart and return them at another Walmart on a route he took. Only once every few weeks to give employees time to rotate out. He could pay for a few days of gas with that arbitrage.
Not in the areas of California I frequent. Walmart is usually the cheapest around here; heck, even Target beats Safeway on some items. On the other hand, Walmart is also usually the worst at stock rotation.
Spot on assessment of an Amazon Fresh store. Their big gimmick is a cart where you can scan your groceries as you put them in it, then you just walk through a designated check out lane and it charges your card automatically for whats inside. I've tried it a few times and I can't say its preferrable for any type of shopping trip. Only picking up a few things? You're faster with a basket and self checkout. A big weekly food order for a family of four? All of your groceries won't fit in their special cart because it needs room for the scale and the scanners.
The prices are indeed pretty insane and the produce is always great, but the stores are ghost towns most of the time. The only people inside are those using it as a spot to drop off Amazon.com returns and those fulfilling pick-up orders
They could never get that cart right. I tried using that cart again last week and it was still glitchy and it seems like you waste more time screwing around with the cart. I found it quicker to just use the normal check out since nobody shops there anyway. At my local store, you could go there on a Saturday afternoon and find only one cashier with no line. The Trader Joe’s nearby would be absolutely jammed.
Wegmans opened a store at the Brooklyn Navy Yard just to show people in NYC what a real supermarket looks like. I mean, you might be impressed with Whole Foods if all you know are those bodegas that have around NYC but if you've been to a real supermarket Whole Foods, Amazon Fresh and such are not impressive at all.
This comment completely misunderstands why NYC (and the core of most major cities) is not impressed by a supermarket.
Wegmans is popular because Wegmansnis good. But if you have a local baker, a local grocer, a local deli, and a small grocery store within the same block, all within walking distance of your apartment, you don’t need to deal with the hassles of finding stuff within a massive supermarket.
You get the highest quality products from people who specialize in those products.
Further, when you don’t have to drive 20-30 mins to go to a grocery store but the stores you need are within a 5 min walk, or more likely, right by the subway exit when you’re returning from work, you buy stuff as you need it, rather than stocking up for days.
Thats why Wegmans opened a store in Brooklyn Navy Yards in an area that’s close to no mass transit, because supermarkets are valuable in car centric areas and not as useful in walkable dense neighborhood.
> the stores you need are within a 5 min walk, or more likely, right by the subway exit when you’re returning from work, you buy stuff as you need it, rather than stocking up for days.
Yeah, so for me that changed after having kids. Once I had to spend 30 minutes a day running around to various stores because we were always running out of everything it wasn't fun anymore.
Furthermore, specialist stores charge higher prices for the same goods because they don't have the pricing power of a large supermarket. It makes a material difference once you have a family.
Urban supermarkets are great because they give you the option of getting everything in one place when you're pressed for time, and they're usually not as large as suburban ones. Mine has a direct entrance from the subway station, so I don't even have to go aboveground.
One of the things I hated most about living in NYC was grocery shopping.
Having to walk meant you could only practically buy in small quantities, and visiting different places for different things was super annoying and inefficient.
Moving out and being able to take my car to the georcery store once a week and get everything I needed was one of the best quality of life upgrades from leaving.
I did the exact opposite and and it was most impactful quality of life upgrade I've ever done. I eat fresher and healthier food, I walk more, and I'm not tempted to snack on my stockpile of accumulated food.
While that is true for the quality-based things like deli/baker, there is one advantage to massive grocery stores that the stores inside the city can't compete with: selection. Every time I leave the city, I make a point to go to a suburban grocery store and walk down their massive spacious aisles to find new/different products that simply aren't stocked inside the city because shelf space is so limited. Entire aisles dedicated to chips!
> all within walking distance of your apartment, you don’t need to deal with the hassles of finding stuff within a massive supermarket.
Is that really a thing though? I feel like arguing for quality is a strong argument, but between walking between small shops at the end of my work day and just doing one supermarket feels more efficient.
Finding stuff within a supermarket is also not hard once you've been once or twice.
You need to be able to afford it as it it is more expensive, but yes it is.
I have the luck to live in a well served area: I have a Carrefour supermarket at about 200m from home yet I have 3 small markets closer than that. If I have to buy one or two things it doesn't matter if the supermarket is cheaper, in my mind spending 10 euros instead of 9 or 8 is worth it if it takes 5 minutes instead of 15. Moreover instead of having to interact with a bored cashier or an automated checkout machine, I will have a chat with a real person (yes, a cashier is a real person too, but most of the time doesn't act like one) . He will ask me how I am doing, put my stuff in the shopping bag and gasp smile at me. I think we lost sight of how those small things makes our life better.
The interesting part is, I always have to buy just 2-3 things because if it takes 5 minutes, whenever I need I just go out and buy it, so half of my shopping is not at the "big" supermarket.
I have to add though: I work from home, so for me shopping means having to go out just for that. Maybe if I was working at an office the dynamics would be different as I could just stop at a supermarket one the way home.
> Further, when you don’t have to drive 20-30 mins to go to a grocery store but the stores you need are within a 5 min walk,
Once you get used to have everything at a walking distance, you wonder how you could put up with having to drive to a supermarket.
Two are the main advantages.
The first is that you don't need to plan much in advance. Want to make hamburger tonight ? Cross the street, get meat from the butcher, get a couple of tomatoes and salad from the grocery store and the bread, and you are ready to go. I used to shop once a week and I had to have an idea of what I wanted to cook every day for the whole week.
The second is that this way you regularly eat really fresh food. My shopping list is always stuff like "two tomatoes", "three apples", "fish for tonight", "a loaf of bread". My fridge is mostly empty.
It's a 4-minute drive for me to get from my present house to the nearest grocery store (a Kroger of decent size).
I don't plan much for this journey. I don't bundle up on clothes or lace on a pair of stout boots first. I just kind of set forth (in my loafers) and drive over there -- even as everything is covered in snow, muck, and it it is 2 degrees (F) outside.
I went there last night for two tomatoes, a head of lettuce, and some cheese because those were the ingredients I was missing to make some tacos last night. While I was there, I remembered that I was running out of green tea at home and picked some of that up. I also grabbed a box of Barilla pasta because I walked by a display of it where it was on sale for 99 cents (oh noes they successfully upsold me on pantry supplies!).
There was no great investment of time or planning needed to accomplish this. I just went to the store for some odds and ends, and that was that. I might go back (or hit some other store) on my way home from work this evening -- since you mentioned apples, I kind of want one. (And I might buy exactly 1 apple. I can do that. It's Kroger, not Costco.)
I need to have the car anyway because it is necessary for me to own one in order to make money to stay alive in my environment. As long as this necessity remains, I might as well also use it for other things.
(I looked at some other addresses I've lived at, and their drive time to the local grocery store, on Google Maps. Despite "distance to grocery store" having not ever been on my radar at all when selecting a place to live, most of the places I've lived were a reported 2 minute drive to the local supermarket. The furthest was just 5 minutes out. I was pretty surprised by this at first, but looking back: That's actually a pretty fair estimate.)
just to let you know you're not alone, i'm in the same situation. I have a Tom Thumb 5-7min away depending on if i get caught in the one stop light. It has everything I need, capers to tampons, and i have the store memorized. There's also a pharmacy inside which is convenient. This is just SW of downtown Dallas TX ( maybe 3 miles ).
And can taxes from the community actually pay for the infrastructure to support this, or do they need subsidies because taxes per sqft are abysmally low and car infrastructure costs astronomically high?
https://www.strongtowns.org/journal/2023-7-6-stop-subsidizin...
No. We don't have roads like that here where I am. At all.
But when I've lived in larger cities that did feature such expansive roadways, the supermarket was also less than a ~5 minute drive away.
In one instance, it was close enough that I'd walk there instead of drive -- even for a couple of tomatoes, just to stretch my legs. That was a fairly opulent store as such places go, but there was a Kroghetto just a block further out if I felt like being cheap today.
(And I refuse to be baited into a discussion about how cars are, or are not, evil. I am powerlesss to change that, or to change anyone's views. That's a complete non-starter of a conversation that is absolutely devoid of merit.
I'm a Costco booster, and I have storage space. One of the greatest feelings for me is returning from a Costco and knowing I have enough in the house to last a month for a family of four.
But your second point is spot-on: this strategy has to be augmented by weekly (or more) runs to get fresh food. I like to make fried rice with vegetables, so having a local market is essential.
That really, really depends what neighborhood you live in. Bakeries and especially butchers don't exist everywhere, and sometimes they (bakeries) suck. It's not Paris or Rome. And the prices are high in the expensive neighborhoods (and that's driven by proximity to offices in Manhattan and downtown Brooklyn).
Some neighborhoods are both densely populated and a desert for quality, leaving only bodegas and overpriced artisanal boutiques.
I'm with the original poster here about Wegmans. In London you have Waitrose, which is 10,000 times better than Trader Joe's/Whole Foods and has fresh bread, alcohol, a butcher, etc etc and way more all in one place.
NYC is gar-bage when it comes to groceries.
If you spend a few minutes in the suburbs, even a rural exoburb outside of NYC, you'll drive to the supermarket and take a deep calming breath. You're not supposed to say driving could ever be better than a walkable city, but if time is precious to you and you value not hauling bags back and forth across multiple stores, you'll be way way happier.
Maybe if you only shop at the mass market chains in the gentrified central part of the city. Go to Flushing and tell me that or just go to a Western Beef.
I predicted someone would say something about that topic, though I didn't think someone would use the term gentrified anymore. That's why I qualified it as "And the prices are high in the expensive neighborhoods (and that's driven by proximity to offices in Manhattan and downtown Brooklyn)".
That said Flushing is not only a long commute, I don't know if it would qualify as "pre-gentrified", would it?
You aren't renting walking distance to a butcher baker and candlestick maker for less than $3K for a studio. That's an aspirational lifestyle for a few neighborhoods.
In all these discussions it would be really nice to have actual addresses and locations because the dream is obviously desirable but I just don’t know how often it occurs in actuality.
I only speak for myself here, but: While it would almost certainly be very easy for a sufficiently-motivated person to track me down and knock on my front door, I don't like broadcasting the details of where I am.
I might occasionally mention something like "some small city in Ohio [of many hundreds]" when that seems pertinent to the context, but that's about the extent of what anyone will ever get out of me on a public forum.
Y'all generally seem to be rather swell here, but this is a very public place that gets crawled approximately-instantly by search engines, and the world doesn't need to know what block I live on or the name of the bodega on the corner that I might feel like writing about.
Yeah I don’t need people to dox themselves, but even just generic “look at this apartment building, it’s built on top of a supermarket” (iirc I found that in downtown San Diego) would help.
And if it’s common and something people look for, it should be findable relatively easily.
A family member lucked into a studio in Brooklyn for 1500.
A rent-stabilized studio from a slumlord who is regularly fined for violations, on the ground floor of an interior shaft, right inside the exterior door where people come and go all hours.
But she’s very happy about it and her friends are jealous.
It’s normal in London to live a few min walk to bakery, grocery, deli, so on but we still have supermarkets - from smaller ones to large hypermarkets. Everyone uses them and they sell good quality products.
The same is true in every European city I’ve been to. There’s a large hypermarket a short walk from the Arc de Triomphe and you can hardly say Parisians don’t have a good choice of local bakeries, cheesemongers and butchers.
It’s true you won’t usually get something like a Target or Costco in the central area, but in the slightly further out suburbs (e.g. Z2 in London) where most people actually live, Europe is full of supermarkets.
Sure, Europe is different than the US in many ways. I think most people know that.
What is more surprising to me is that Europe has become relatively homogenous. There are more differences between some US states than there are between some European countries, if we set aside language. A mid size French city vs an equivalent German/British/Swiss/Italian city… they differ of course but Tampa vs Seattle is a bigger contrast to me.
If you live in a Sienfield rerun in Manhattan the city looks like your comment. There are plenty of conventional supermarkets in NYC they just don't have a huge parking lot.
> Wegmans is popular because Wegmansnis good. But if you have a local baker, a local grocer, a local deli, and a small grocery store within the same block, all within walking distance of your apartment, you don’t need to deal with the hassles of finding stuff within a massive supermarket.
Except that you don't. Typically, you have maybe one small store selling random junk reasonably close to you. At high prices, because there's no local competition.
There's a reason the current NYC mayor campaigned on opening government-run stores.
I don't know the Wegman's in NY at all, but the one I used to use in the Boston area was ... okay?
It was a good grocery store with decent produce, a good frozen section, some nice specialty items, and some decent prepared meals. I would put it at roughly the early-2010s era of Whole Foods with slightly better prices. Now that I'm no longer working near there, I don't miss it much.
So I've never understood the hype. But I've also been told that the Boston stores were pretty mediocre compared to the ones in NY and especially Ithaca.
If you live in MA the standard options are Star Market and Stop and Shop, right? New England supermarket chains are already perfect.
I think the comment you are replying to is playing up a specific characteristic of, like, deep-in-the-city NYC (it looks like Wegmans has a place in downtown Manhattan?). I also read it as slightly tongue-in-cheek. People in NYC know what grocery stores look like, I think. They just don’t fit in dense areas.
Well I dunno to what extent the NYC lifestyle distorts the perception of stock market analysts. Do they think there are Duane Reades coast-to-coast?
I used to joke that you couldn't get a good cup of coffee in NYC in the 1990s because there were 2 or 3 Starbucks on every block to fool stock market analysts that the country was saturated with them -- thus driving out the independent espresso bars that you'd find in flyover states that had better coffee and leaving only the completely-indifferent-to-quality bodegas.
Was there ever good coffee in NYC? I was a kid in the 90’s so I wouldn’t remember any time before. I grew up in NE and am convinced we
1) just haven’t really ever been on the forefront of coffee
2) invented Dunkin Donuts to flip off the coffee world (I know people sometimes say it is good but I think they are just being contrarian (although I will agree it is really not much worse than, or is just as good as, Starbucks))
Anyway, I’m pretty glad for the explosion of hobbyist coffee, it is pretty easy to make a good espresso at home these days.
Before all the third-wave shops came along? D'Amico, Sahadi's, Porto Rico, Zabar's, Gillies, and that's about it. You'd have to have been a coffee buff to seek those places out as a consumer, as they mostly served as suppliers to hospitality.
Zabar’s seems incredible, I saw a mini documentary a while ago and want to visit the next time I am in NYC. How many grocery stores are actually cupping their coffee shipments every week?
FWIW, I’m not confused about the two; I’m quite familiar with the NYC metro region.
I haven’t heard any Wegman’s fans comment on their NYC stores. I’ve heard multiple people wax poetic about Wegmans who frequented the Princeton-area store and the Ithaca store.
From my experience, I don’t get it, but I haven’t spent substantial time in either of those stores.
Strong disagree, and I used to go to that Wegmans regularly. It's fine. Solid market. Whole Foods is equally fine, and excels in some ways. Neither is obviously better.
Wegmans is obviously better than Whole Foods, and its not even close. You can much more easily buy normal food at normal prices at Wegmans than Whole Foods. Whole foods has very large, strange gaps in staples.
In my experience, it's less gaps and more lack of mainstream brands. The example that comes to mind is ketchup. At Whole Foods I can get generic store brand ketchup or a variety of fancy ketchups that cost 3-10x as much, but they don't have any variety of basic Heinz on the shelf. This "mid-market" gap is common for virtually every product category.
I think I remember reading somewhere that 75% of the groceries at Walmart don’t qualify to be sold at Whole Foods. I thought Amazon was going to step back on this though.
Wegmans is good, but I find Whole Foods to have much better quality of products. Whole Foods used to be even better, we will see how Amazon manages it.
My store used to have a big bread oven, desserts made in-house, fresh prepared food made in woks etc. right next to the buffet table, etc. All gone now; the coffee shop got replaced by robots, they tried to close the seafood counter (with enough negative feedback they reversed it), etc.
It's all made centrally now, for 3x the price and half the taste. All the kids went and got MBAs and the third generation family business curse hit hard as a result.
I've heard locals say "Bob Wegman loved people, Danny Wegman loves food, and Colleen Wegman loves money".
In Ithaca the coffee went downhill lately, that's for sure. On the other hand, my favorite drip coffee anywhere is made by machines that brew it by the cup.
Honestly, it's not even about the coffee. The lady working there would see me, greet me by name, ask after my kids, and start making my drink without me having to tell her my order. That was part of the Wegmans magic for a long, long time.
(Same reason closing the seafood counter got a big backlash. There's a similarly awesome guy working there. For now.)
One of my favourite cafes ... thirty years ago now ... the barista would set up my drink when she saw me walk through the door, by the time I'd reached the counter she was handing it to me with a big smile.
Tipped her generously on her last day there, got a big hug for it.
In general, it seems like the pareto products dont exist anymore, the midrange has basically dropped out for daily products and it's been bifurcated. If quality is a scale from 1-100, most places sell a 1, a 10, or you go to an artisanal place for a 90, for exorbitant prices.
But in the past a supermarket or toy store would have sold you an 80 for a reasonable price.
What sucks even more is that for example due to the cacao shortage, lots of products now contain less cacao for the same price. And usually down from 500g/250g to something like 485g/235g. Shrinkflation.
But, when cacao becomes cheaper or inflation stabilizes, companies don't think "let's push the quality back up for the same price", no, they'll pocket the difference. The same is planned to happen if Trump's tariffs get struck down. Businesses will get a huge refund, but the customers that got the costs passed along won't see a penny.
I know it's widespread, I just would've thought Wegmans would be one of the last to do it. The premium vibes have long been their thing, and it was part of their secret sauce to vastly larger per-square-foot sales in their stores.
One thing I'm really envious of as European is Costco. Costco is absolute king of finding pareto stuff (20% of the investment nets 80% of the quality) and offering that. I know their whiskys are good, their tires are good, their medicines are good, their chicken is good. And all for a relatively reasonable price. It really seems like a last bastion haha.
Yeah, it'd be our first stop whenever we came home from a trip; we even got Christmas presents from the store one year for being (embarassingly) one of their higher-spend customers. The magic has gone; places like Kroeger and Whole Food have caught up.
What's so special about Wegmans? I have one a mile away but I almost never go there. It's a little pricey and they don't have anything particularly special. Although I pretty much never go to Whole Foods either. Amazon Fresh isn't (wasn't) near me so I only went to one once, also nothing special.
They were great 15 years ago. Now they're running on a fading rep. Notably, the prepared foods were affordable and outclassed typical supermarket fare.
Interestingly, we only went to our local Amazon Fresh store a handful of times but it was always a perfectly fine experience. It seemed reasonably clean, well-stocked, and well-organized. Other than those new self-checkout shopping carts (which also actually worked well, even weighing produce), it was fairly indistinguishable from other grocery stores in our area.
Amazon Go, on the other hand, always seemed like a dead man walking. It's a fun novelty to check out and grab some junk food, but it must be far more expensive to build and run than a 7-Eleven, and it's not even meaningfully more convenient.
I should also add that we've been pretty happy Amazon Fresh delivery customers for a couple of years now (we resisted regular grocery delivery for a long time...until we had a child).
I'm going to miss those. Two nice things about them compared to a normal self-checkout: 1) you see things ring up as you shop instead of at the end, which is nice in case of errors or unexpected prices, 2) you can shop directly into a reusable bag or backpack instead of repacking everything at the end.
They had Amazon Go by Grand Central Terminal and it was great to grab a snack and drink on the way to the train, with no worry about being delayed by the checkout line. I figured they had people in India verifying things but saw no reason to care as a customer.
> You constantly have to work around employees fulfilling online orders
To be fair I've noticed this in multiple supermarket chains the last few years. Although they aren't usually employees, they are instacart runners or whatever.
I go fairly often to a Sprouts grocery store and there are times I need to avoid multiple people clearly doing an Instacart run with 2+ carts full of items.
Shelves are often emptier than they used to be also at these times.
Walmart is particularly bad for this: The employees do the picking and they have giant carts that monopolize the aisle. You're stuck waiting for them to scan and bag 8-10 popular items before you can get in there and grab the one thing you need.
Having watched these people when I do my own shopping, it made me realise, if i ever needed get someone to shop for me, it wouldn't be on a busy weekend.
The delivery shoppers are especially bad at whole foods. There really must be a critical mass where having a grocery warehouse makes more sense than these people meandering around.
There is actually. I used to work in grocery e-commerce. The model is pickers in a store --> a "dark store" that looks more like a home Depot with only pickers, not open to public --> warehouse like environment with various levels of automation.
This was a bit before the model of having Uber driver type delivery though. I am guessing that having the deliverers be close to the deliverees make it more economical to keep them in stores until a larger scale is reached. The dark store+ model was also predicated on a more factory floor like environment with only FTEs present. Think pallets moving about among the pickers- not too hard to work around IMHO but maybe the lawyers and insurers feel differently.
I still feel the overreaching factor is that in dense urban centers there is no cheap commercial/industrial space that is also in close proximity to customers.
Yep, my local Amazon Fresh store felt like it was already a distribution center with the cold fluorescent lighting, gray shelves and gray concrete floors.
lol are you me? There was also a loophole with the coupons where it only used the total before discounts to validate the limit was met, so you could buy something that was $10 or 2 for $15, but the 2 would count as $20 towards your $40 limit.
I moved away from Seattle a while back so I'm not sure if they ever closed that one. I really miss getting all those cheap groceries!
There are around 12 Amazon Go / Amazon Fresh in the metro Chicago area. Unless all employees are part-time employees (and assuming around 10-ish employees per store), I seriously wonder how they got around Illinois WARN requirements [1] requiring 60 days advance notice of the closures.
I don’t know about Illinois but usually you can pay people the money they would have normally be paid by working. You get off the hook, they get 2 months worth of money without working and everyone is happy.
These bastards drove out some nice stores near me (supposedly the lease ended and did not renew) and rebuilt the buildings in order to open an Amazon Fresh location. That Amazon Fresh store never opened. Now we have a giant empty storefront nobody uses.
Same here. A local grocery store and several other local businesses got bought out and demolished so Amazon could build a new Fresh store.
I guess Amazon pulled out of the project halfway through, since for the last ~2 years there's been a half-finished building just sitting there completely abandoned in our town center.
Reminds me of the time they made towns all around the US do a dog and pony show to attract "HQ2" and then just located it where Bezos wanted to be all along. I remember AOC getting it right all along, she did the most milktoast of pushback in her district and it caused Amazon to huff and puff and just walk away(causing many property speculators to lose out). She got raked over the coals but a few years later and the place HQ2 ended up didn't fare so well. AOC was vindicated.
My hope is that more towns learn from your experience and don't tolerate this nonsense anymore.
HQ2 ended up in Crystal City, Virginia, which is a commercial district of Arlington County, and it’s fine. The pandemic-driven remote work trend led Amazon to scale back the number of buildings.
The state and localities did a good job structuring incentives so everything was tied to milestones, some of which Amazon ended up not hitting. My recollection is that NY was offering to give a lot more away, which helped fuel the backlash, but don’t quote me on that.
It also helped in VA that Crystal City has been a commercial wasteland for many years thanks to DoD decentralization. A lot of offices moved down to Fort Belvoir and surrounding areas, leaving Crystal City with a lot of vacant office space. Nothing was being “lost” by Amazon coming in.
Local real estate agents put “HQ2” in their listings for a few years but it didn’t matter much because homes near Crystal City were already super expensive.
I often make spelling and grammatical errors due to my declining typing ability. At least at this time that can help prove that I am not a bot for the time being (I think?)
John Oliver analyzed state's tax rebates, 8 years ago: https://www.youtube.com/watch?v=8bl19RoR7lc , he concluded that giving 1000 people Ferraris to drive around a pile of $30 million cash on fire would be more fiscally responsible...
I found it pretty funny when Mayor Mamdani of NYC pointed out that the people opposing him spent more money trying to stop him being elected than they would end up paying in increased taxes. It really is a game to those people. They can't bear to give up one cent or one ounce of control.
Another funny story was that some substack writer (whom I forget sorry) noticed that Bill Ackman subscribed to their substack and used a 30% off coupon ha ha.
The child tax credit starts tapering off if your adjusted gross income is more than $200k single ($400k joint). If Bezos is reporting less than that due to other deductions then that’s truly impressive.
It’s really simple. Loans don’t count as income so you use your stock to get guaranteed loans. And you don’t take most of your income on a W2 you take it in stock.
I know. I would still be impressed if Bezos’s w-2 income was below $400k.
Edit: also you need to pay the loan back, and the income to pay it back is taxable. You can die with an outstanding loan, but i’m sure bezos lenders will structure the loan to make sure they get most of their money back.
Or you just get another loan from another party to pay the initial loan back.
Bezos probably has an army of banks, private lenders, and private capital connections to effectively have a lifetime of loans against his Amazon shares.
It's a pyramid scheme, except the guy at the top actually has the money and collateral.
If it's a good tax credit, incentivising something society wants to incentivise, then everyone it applies to should get it; that helps social cohesion. If you make billionaires ineligible for tax credits they'll oppose them (and why shouldn't they?)
I’m all for universal benefits and doing away with means testing but doing so without fixing our regressive tax system it truly is just a gift to the wealthy.
It's not. Fixing the tax system is a good idea that I'm all in favour of, but universalising benefits and eliminating means testing is a good idea even if we don't wait to do that first.
>then everyone it applies to should get it; that helps social cohesion
You know what else helps social cohesion?
One person NOT being able to effectively rig the economic and political landscape because they were outsized beneficiaries of it.
You know what also helps social cohesion?
Someone who realizes that they've got more than enough money, and realizes that they don't have a life-or-death need for more, and is happy to pay their taxes.
>(and why shouldn't they?)
Because they've literally got billions of dollars, and the tax credit system was not designed with extreme outliers in mind. "Oh jeeze, I'm just a billionaire, woe is me, I'm not eligible for a $2k tax refund, the world will end".
Wait, how does a store that never opened drive out an existing store? That’s not how commercial leases work…
Given that a supermarket abandoned that location, and Amazon never opened on their either, perhaps that location or the lease price simply doesn’t work for a grocery store?
And then the new lessee just doesn’t finish the new building so it’s no longer possible to build on the land without tearing down or finishing the project at great cost to any new lessee. Which would be waste but you’d have to take Amazon or whatever shell company they used to court.
They got word of the development and decide to not renew their commercial lease? Then you either move business somewhere where you don't have to directly complete, or shut down.
I always found the "Amazon 4-Star" name funny. Presumably when it was first pitched internally it was called "Amazon 5-Star", then they realised that meant they basically couldn't sell anything, since nothing popular gets a full 5 stars. So they changed it to "4-Star", which just sounds awkward, and lacks the suggestion of top-quality that "5-Star" would. Instead, it's like the "Amazon Not-too-bad" store. I was amazed that they actually went ahead with it.
It was a pretty good burger until 2013 when they changed the machine they used to cook the burgers. Now it's worse than McD's and that's saying something.
I can't tell if it was franchise specific, but we have a Burger King near us in Clear Lake/Houston that is absolutely amazing. Fries are always crispy and well seasoned, the patties actually have grill marks and taste like they've been charred. The location hasn't been updated since before I moved away in 2015, and has been consistently good since 2010 or so when I first moved near it.
That said, every other Burger King around me, and near my house in Louisiana, and near all of the places I lived including NJ, NY, CT, VT have been awful. I never ate there BEFORE this 2013 change though, so I cannot comment on the quality in the before times. But my local, is amazing. Tastes like I remember it from the 90s.
The burgers are fine at the one accross the road from my job but the Burger King here has to most bland frys I dont think they salt them at all they are crispy but lack taste.
Wait that explains so much! Do you know more about the change?
I've been weirded out by the fact that their jr burger buns are now super shiny as if they are spraying something on them. I know this is processed food, but no burger bun should be able to reflect sunlight the way their burgers now do...
I'd be inclined to agree but typically egg wash alters the texture of the bread. You get a more darker and crunchy texture after baking. This bread is still soft and still quite light. The weird thing is the more expensive burger(Whopper) is still matte. You'd think if they were going to fancy up the bun it would be the Whopper bun right? Very strange.
Something interesting I found while looking up Hungry Jacks (the Burger King franchise here in Australia) is that the angry Whopper is a normal menu item here but it seems to be only a seasonal/special item for Burker King.
I lived in Quito Ecuador back in the late 70s/ early 80s. There was a hamburger place called "Burger Queen"--the name was in English, presumably to attract people who knew about Burger King. They had a sign that read "Casa del Whooper" (not Whopper).
Shoulda just bit the bullet and gone with "4.8-star." I'm sure they talked about it and yeah it's goofy and awkward but it would get the meaning across and maybe show a bit of a sense of humor and that's exactly why they never ever could.
Presumably when it was first pitched internally it was called "Amazon 5-Star", then they realised that meant they basically couldn't sell anything, since nothing popular gets a full 5 stars. So they changed it to "4-Star"
This would not be the first off-by-one error at Amazon.
"'Amazon Not-too-bad' store" sounds pretty reasonable. Maybe a too-clever work around for the 5-Star problem would be to call it "100-Star," which would be 4 in binary notation. Or they could call it "5th-Star" since 4 stars is the fifth number of stars b/c the range of starts is zero indexed.
These stores were solving for an Amazon problem (brick and mortar stores without the expense of workers), and not any significant customer problem.
They often put them in places, hoping that people would be attracted by marginally lower prices and brand extension, all while removing one of the primary appeals (for most people) of in person grocery shopping: impromptu community socialization, even if it is simply greeting the checkout worker.
The Amazon Go stores in San Francisco were weird. They always had no people shopping in them, which would make sense given the increased efficiency, but it amplified the "am I stealing?" vibe. And the cost of goods wasn't made any cheaper than comparable stores in SF despite the touted increased efficiency.
The pitch from Bezos -- and it's a dumb pitch -- was basically just to make checking out faster by avoiding interacting with humans (but this can be achieved by increasing the number of cashiers and baggers). The pitch was never lower prices. The combo of all the tech and the army of Indians watching video was not cheap.
And because they were relying on computer vision and Indian vision, they had to get rid of all their fresh meals because they were too hard to calculate prices for. So, it ended up being a half-assed 7-Eleven concept. The whole concept was made by someone who hates humanity.
I personally prefer stores with actual cashiers. What I don't like are lines, but that is very solvable. The organic grocer near me is super fast to check out.
In particular, it's useful to have new, upstart companies that are 'hungry' for market share, and aren't excessively tied down to old ways of doing things.
The Fresh stores are kind of a weird shopping experience with a mix of normal, overpriced and bizarrely cheap at different times.
I've gotten into the habit of stopping in to wander the aisles and check prices because of it (e.g. I stocked up on a bunch of canned soup when most (but not all) Progresso soups were $0.44 a month or two back, and I picked up some microwavable rice+quinoa pouches for my wife at $0.35 each a couple weeks ago, but the inconsistency and overall not great prices mean it can't be my go-to grocery destination.
I'm sure the one by me will be closing since there's a significantly larger Whole Foods just a few miles away.
The Amazon Fresh in North Seattle had Just Walk Out. Initially you had to "scan in" and "scan out" and then they eventually removed the "scan out" (or scan in? can't remember). From a shopper's perspective, it was pretty good, and I was hopeful they'd figure out the tech. One time they overcharged me for a paper bag and there was no way to dispute it. It was only $0.08, but really rubbed me the wrong way. I know I got a fair bit of stuff for free as they seemed to err on the side of not charging vs. charging if they weren't able to figure it out, though.
I actually did find it saved me time. I would go in, grab a couple things, and leave, and it was actually a good experience to do that. I never did full grocery store runs there, though.
The aisles were always packed with workers picking/packing orders, which was frustrating to deal with.
One thing that was bad about it was that produce was all fixed price. At a normal store you pay per pound for an onion, but there every onion was $1 (or whatever the price was). Giant onion, tiny onion, all the same price. The produce got picked over in weird ways because of that.
Then one day they said, "okay, Just Walk Out is gone, it's just a normal grocery store now." Then it just became just a mediocre grocery store. There were definitely periods where aisles could be nearly empty, but lately it's been okay. Prices were great, though -- by far the cheapest in the area.
Their hot bar was extremely mediocre. I like the Whole Foods one, but theirs was just... not good. Half the time they didn't even have it stocked with food.
They had a little stand up front where kids could get a free piece of fruit, which mine liked.
It also had convenient returns for Amazon purchases, which was about half of what I went there for.
It was a convenient place for me, and I like it better than Safeway, but I can't say I'm too heartbroken that it's going away. QFC/Sprouts/Town&Country/Safeway are a few minutes in any direction, but they're more expensive. I doubt they'll turn this one into a Whole Foods either.
The headline in their corporate press release says "Amazon doubles down on online grocery delivery and Whole Foods Market expansion to reach more customers"
The Fresh store near me that I stop in at seems to double as a warehouse for some of those delivery orders, so I wouldn't be surprised if some of them just stop having customer access and shift to entirely staffed pick-and-pack for delivery.
Hmm Amazon fresh was useless anyway. It was this weird niche of grocery delivery but for small urgent orders. I just don't have that need like ever, if I need a bottle of shampoo or a head of lettuce urgently I'll just go to the corner shop.
Edit: oh oops I see this is about physical fresh stores, we never had those in the first place. Here in Europe Amazon fresh is a weird service for quick small grocery orders. For the bigger ones they partner with a local supermarket ("dia" here in Spain). But I never do grocery delivery because I never make any plans, I just make my life up as I go along :)
But Amazon fresh here is expensive and still slow (2hrs) so really not good for anything.
I just moved here, but WOW Safeway's prices are absolutely criminal. We'll shop anywhere else. It'd be hard to be worse than Safeway.
I haven't been to a Fresh here, but we had one in IL and it was just a normal grocery store but more confusing. There's a constant sense of "am I stealing?" And the whole "just walk out" thing doesn't work if you don't have a Prime membership, so it all felt a bit overwrought and pointless. Some of the prices were good, others were bad, others were stupid (produce by item count instead of weight). I'd rather just go to a normal grocery store.
Yeah these are all going to be wrapped up into their same day delivery service. Amazon fresh was very expensive and required a fee on top of prime which unsurprisingly nobody wants to do
What you’re talking about is the delivery product, not the brick and mortar grocery stores, which are not much different from your typical big chain standard grocery outlet.
Has anyone used their go stores? I'm curious how the experience felt from a consumer standpoint. Do you feel welcomed or more like a thief?
I remember WAY back in the day when Arby's implemented touch screen ordering (on CRTs!) and it was a very quirky process. An Arby's employee would sit behind the counter and stare at you while you spent 5 minutes poking a CRT display. Very slow and very impersonal. They discontinued them in a short period of time.
Every time I walk into a McDonalds I see people who will rather stand 5 minutes at the counter waiting for a human cashier than use one of the available kiosks. I'm sure some are paying cash but there are certainly people who are just not comfortable with technology.
The Go stores were a great experience but they would certainly be uncomfortable for anyone other than early-adopter or tech-forward types of people. I would just walk in with my own bag, and put items directly from the shelf into the bag, and walk out the door. It was extremely convenient and fast once you got over how weird it felt.
I think they could have done a lot more in giving social clues on both the way in and way out.
A lot of people have trouble using those and it's not just tech discomfort or whatever. You have to be able to hold your arms up in front of you, touching specific points in space. The UI is not good and does not provide good moment-to-moment feedback about whether you've pressed a button or which one. You have to be moderately-to-strongly literate, you have to wrap your head around the menu organization, know what you're looking for by name and be able to guess where it is in this system.
I've watched so many people struggle to use these machines for so many different reasons. Pretty much anyone with a physical or cognitive disability will be better off with the cashier. Sucks they have to wait much longer for one now.
I think the systems are good in the context of "computer ordering systems", but not great in the context of "food accessibility". They're built with a lot of inherent presumptions that likely apply to most of the peer groups of the people designing it, but certainly do not in the field.
I am quite privileged and I know numerous people who might have trouble telling you the name of the meal they want even if presented with a hard copy of a menu.
I hate McDonald's, but I've used one at a Subway that took five seconds to respond to every button press. Useless! Feels like it was written in Electron and running on an Android tablet from 2012.
They’re fine and work as advertised. One weird thing is you don’t get the receipt for 10-20 minutes, presumably while humans are viewing the footage.
The main thing I use it for is convenient returns, which is why I’m disappointed in this news. I hardly ever buy things there other than things like gum or chips.
The regular Fresh stores have a scanner and screen on the cart that you can use to track your purchases while shopping, then the cashier could pull up the contents in one go, without scanning scanning at the register. There's also some discounted products for Prime members that can be applied by pulling up your account on your phone and displaying a barcode.
I went there the first week they opened, and the whole store was a mess with shoppers standing still or walking slowly, completely unaware of their surrounds, while messing with the phone or their cart trying to figure it out.
I'm sure that with enough time, shoppers could figure out there system, but I was in a hurry so I just grabbed the few items I wanted and paid cash, which was just as fast as it is everywhere else.
I do want to stop by before it closes, and see if customers figured out their systems, in the year and a half the location has been open.
I use the one situated in Seattle, Amazon HQ. It's just like self-checkout at a grocery store with fewer steps. The entrance/payment mechanism is Amazon One (a palm scan associated with a payment wallet). At Whole Foods, it's used as an optional payment option at checkout.
It's convenient; I only ever remember one problem where it thought I had purchased an item that I picked up and decided on something else. I disputed it online and it was resolved in a day.
Oh man this is what consumers would love to do, have to constantly adjudicate false positives online which they'd have to track to make sure didn't happen. What nonsense.
our university has been rolling out just walk out markets across campus due to rampant stealing. shopping there doesn't feel like stealing, but the store design feels oppressive with racks of cameras and thick black shelves because it's designed for sensors first not humans
one minor downside (especially since I don't live on campus anymore) is that in order to walk around and peruse the shelves, I have to give them my payment info just to enter
Here they replaced all the markets that were staffed by people with these big vending machines that are 3 or 4 refrigerated cabinets (even chips are refrigerated). You pay, wait a bit for it to process it, and then it unlocks the doors and you grab whatever. And if it gets it wrong there’s no dispute process to tell it you didn’t pick something up (I think there is an email listed but I didn’t care enough the time it messed up to send an email). And half the time when you click the pay button to finish, it’ll complain about a door not locking.
I went to the first couple of Amazon Go stores in San Francisco several times. I've also been to our local Go store a few times in LA County. The experience has always been perfectly fine, and the invoices always correct. It's basically just a small junk food and liquor store similar to a 7-Eleven.
i didnt use their system, but the experience wasnt that great, it felt like a target grocery store in terms of product quality and selection. its a grocery store, but the regular grocery store is better.
I'm probably not a typical case, but I felt like my privacy was massively invaded. The concept was cool, but I felt like every muscle twitch was being scrutinized and recorded forever. I was also in constant fear that the computer would charge me for things I didn't buy and getting it corrected would be a nightmare. I also felt like if there was a bug or malfunction in the system and it didn't charge me for something (which I wouldn't know about immediately) they would come after me as a shoplifter with the full force of a mega corporation with unlimited resources. It felt like there were a thousand high powered lawyers that I couldn't see, watching my every move waiting for some mess up (even though I have no intention whatsoever other than finding and paying for the product I wanted).
So no I didn't feel like I was a thief. But I felt like they assumed I was a thief. My guess is most stores are heavily surveilled nowadays, so it might be unreasonable for me to feel this way with Amazon but not Walmart or Target or Kroger, but that's how it felt.
Walmart and Kroger near me now have one way metal cattle gates that you have to pass through when you enter. Makes me feel like cattle and that their assuming I am a thief. Trips to those locations have dropped.
The Home Depot cameras and screens that "BING BONG" loudly as you pass by to get you to notice them showing that they are recording you are also highly annoying.
I wish there was a greater variety of hardware stores near me...
Doesn't surprise me either. Anecdotal story coming, but there is physical location on Philadelphia, and I stopped by as I needed an item for dinner that night, and it was on my way home.
Store was kind of bare, and poorly organized. But the kicker is they didn't accept any form of mobile wallet! They had an identical POS system to wholefoods which takes it just fine.
So I quickly put my items back and headed to Giant.. Haven't been back since
They have a good price on take out pizza. Unlimited toppings, and with Prime membership it's $8 something for a large pizza. It was probably their loss leader to get people in the store. I felt like the store was usually pretty empty when I was there. I wonder if Amazon will keep Whole Foods too.
Shame, shopping there felt like magic. I hope the technology is developed in future without having to rely on remote workers validating transactions. Definitely felt like the future of shopping
Isn't the same tech used in stadiums? At least in Seattle we can just walk out without paying, even alcohol. Obviously we have to scan our CC or something similar to get in but I always thought it was using the same Amazon tech.
So even though these stores are closing, the tech is widely used and likely expanding and succeeding
John Mackey, the founder of Whole Foods, mentioned at the end of his autiobiography The Whole Story that that there wasn't much collaboration within the higher-ups at Amazon. From the gist of it, I wouldn't be surprised if the internal retail division was trying to outshine the Whole Foods division by throwing technology at everything, useful or not, because that's what Amazon corporate appreciates.
I used one in San Francisco once because I wanted to try it out. It was honestly a rather flawless experience for me and I liked it because the scan gate and minders (it was when it launched - I don't know if they kept them) kept the shoplifters out. Shoplifters are unpleasant to share a store with. Unsurprisingly, those who skip some social norms also skip other ones.
Anyway, I didn't go back after the first time because it was more like a corner store than a grocery store. Bags of chips and sandwiches in plastic boxes and so on. Overall, the modern Whole Foods is a much better experience. Guards at the entrance to keep unpleasant people out, a fairly quick check-out experience, and the ability to scan your palm instead of having to pull out a credit card or tap your watch.
About the only improvement that I would personally like is a Fast Shopper bonus where you scan something that maps you to your Amazon Prime profile and if you finish checking out fast you get access to a faster lane. The only downside is when people with large bags of things insist on using the self check-out counters and then stand there having mis-scanned items.
Speeding up check-out is a personal life improvement but realistically it would not cause me to shop more, so I understand discontinuing the store.
As one who has spent substantially since Amazon's inception, Amazon in recent years has become an unreliable supplier in my area. Much of the product sold by Amazon is sourced from China and until recently Amazon did little to distinguish name-brand products from knockoffs. That's why companies like J&J weren't making product available on the Amazon site. Amazon Prime is laughable here, frequently taking a week or longer. The local Whole Foods is a mere shadow of its previous incarnation. Of course, most of the bookstore alternatives have been driven out of business. The B&N strategy is more appropriate to competing with Books-a-Million than the old Borders. Overall, Amazon seems more focused on its movie/TV business than it does what created it. And Bezos? Well, it's obvious that righting the ship at Amazon isn't nearly as important as being a jet setting celebrity with a new younger wife and playing with his space ahips. And BTW, I'm in a major city, not some rural town.
I don't live around any Amazon Fresh stores so I never saw them though I did see the technology in use at several airports (though I've never personally used it). IMO I think places like airports are the best place for something like this, people are usually in a rush so not having to wait in line to checkout is nice and you don't have to worry about security as much because everyone there is a ticketed passenger (only saw them post-security) and even if someone did try stealing they wouldn't get very far.
I saw these in several different airports. It usually had multiple people staffed at the gate to get in and out meanwhile most of the other snack vendors often only had a single person employed.
So you spend a few hundred thousand dollars extra on all the cameras, many millions on all the design, pay all the overseas contractors to manually review the transactions, and you still end up with twice the in-person staff than the average store in the airport.
Damn. I just got an email that they'll be discontinuing the palm payment June 3. I've barely used Fresh and Go, but I use this at self checkout at Whole Foods all the time. Beats finding the code to scan and using Apple Pay.
> We're reaching out because you have an active Amazon One account. Amazon One palm authentication services will be discontinued at retail businesses on June 3, 2026. You can continue using Amazon One at participating locations until that date.
> Amazon will automatically delete Amazon One user data, including palm data. No action is needed from you.
These were absolutely incredible when they first opened up right on until covid. The blue-apron style meal kits they had were actually really tasty and the gimmicky integration with Alexa to tell you the next step in the recipe was actually kind of useful when you were busy stirring a pot or cutting something and too busy to pull out the recipe card. It was like a 7-Eleven, but with the prices of a normal grocery store and higher quality prepared food. Not needing to deal with checkout felt freeing. I substituted many grocery store runs with a quick walk over to the original Amazon Go back in the day.
After covid, it was never the same. Open for shorter windows, closed on Sundays, reduced selection, no more meal kits etc.
I had many friends who worked on Amazon Go, so it's a bit sad to see that work come to an end.
I've only been to the Amazon Fresh in my neighborhood, haven't been to other locations, here is what my experience was like:
They resisted implementing self checkout for years before eventually folding. No digital wallets though, you have to either use plastic or link it to your Amazon account.
The whole dash cart system was a solution in search of a problem IMO. I'm already able to check out about as efficiently as possible. Frontloading the scanning time isn't really an amazing improvement. The store was never crowded enough for it to matter.
My biggest problem with the store was that it was lacking random pantry staples and supplies that you would expect from your primary grocer. Several times I showed up in desperate need of something for a recipe or household task and they just wouldn't have it.
The produce was actually decent quality and competitively priced, but my alternative (the local Ralph's) I think just had some kind of curse or something on it because the produce at that specific location was a consistent level of awful observed over 5 years.
I hope they replace it with a whole foods, much better store IMO.
I guess I am in the minority but I really liked the dash cart. Apart from the occasional niggle, it worked as advertised once I understood the system. I get my own bags to the store, so I can directly bag items as I go and just walk out when done.
The general force behind this is the expansion of sub-same-day delivery which they have been pushing hard for the last year. Amazon fresh was a more traditional model which didn't fit in well with amazon's strengths (fulfillment, automation) because they tried to enter a market they were directly competing with (in-person shopping) and charged users for delivery in addition to their existing membership.
It's a welcome change IMO, amazon groceries are super cheap online and now delivery is free. They have been removing the fresh name from products for a few months now and replacing with amazon grocery. Certainly less confusion for consumers, at least
Amazon Fresh provided lots of good jobs in my community. Family members worked there. Good pay and they employed locally (or can walk to work). Same with whole foods. Too bad Amazon couldn't make it work. Interesting timing with their push for more online grocery offerings.
We have Żabka Nano which is self-serve cashierless shop in Poland. You just swipe you card at the entrance, get whatever you want and walk out. I think they use computer vision system to detect the products taken from the shelves. It kinda amazes me because it's what Amazon promised but failed to deliver.
I really liked the local Amazon Fresh, until they discontinued "just walk out" and replaced it with those hellish smart carts. I scanned one item successfully with the cart, got completely stuck trying to get it to scan a second one, handed the cart back to the employee, and never went back.
I just pay cash at the regular cashier. The smart carts aren't the speed-up Amazon wants them to be, but at least the faster traditional shopping method is still an option, unlike Amazon Go.
The "1000 people in India watching cameras" reveal was the moment the magic died. Once you know the wizard is just a guy behind a curtain, you can't unsee it.
The interesting question isn't whether the tech was ready. It wasn't. The question is whether Amazon learned anything useful from the attempt.
Computer vision for retail checkout is a legitimate hard problem. Occlusion, similar-looking products, people changing their minds. I've worked on CV pipelines and the gap between "works in the demo" and "works at scale" is brutal.
My guess: they collected a ton of training data from those human reviewers. Whether they'll use it for a v2 or just write it off, who knows.
Aside from the magic dying, which I agree with, another commenter in this thread says there could be false positives (whether from Indians or AI doesn't matter) you'd have to 1) notice by studying your bill later and 2) resolve by requesting refunds online.
Knowing this, it was over before it ever started. Beyond the masses of people already having aversion to the oddness of how it worked and likely never wanting to try it, these and others would swear off the store forever the first time they ever got charged for something they didn't take. No one wants to monitor and fix erroneous purchase errors.
I’m in an interesting place. Here in Seattle I am two blocks from one of the largest Amazon Fresh stores. It was built on the former location of a local grocer. The construction was almost complete before Covid hit, but Amazon shuttered the store during that time. As a result there was no groceries in my neighborhood from 2018-2023.
Now it seems Amazon is going to leave us a grocery desert yet again.
They were piloting smart carts at the location. The cart scans your items so checking out you just push the cart through a scanner that weighs it. But this invention was like a microcosm of Amazon’s whole fuckup with groceries. The problem with the store wasn’t that I couldn’t check out fast enough, it’s that it was a shit grocery store. They had popular products but they were missing all the unpopular, low margin products you need to actually cook (baking powder, shortening, tomato paste, soy sauce…). They only hire non-union jobs program people at the registers because Amazon believes that cashier is a sub-human role.
The previous store had an owner who would wander the aisles and chat with customers. The new store has Europeans with clipboards who watch you as you shop.
My brother has worked as a stocker for King Kullen in New York for 20 years and is a union worker.
In the Seattle area where the poster is from, pretty much all the grocery stores are unionized. Workers at big stores like Safeway, Fred Meyer, QFC, and Albertsons, and local stores PCC, Uwajimaya are represented by UFCW3000. https://ufcw3000.org/shop-union
The more-expensive stores sometimes do. My friend's wife works for one, and the store is closing because it's too close to a discount grocery to get enough traffic to stay open.
The union is making her transfer to a much further location or lose her seniority, for some nonsense reason involving the closer locations historically being part of a different union, despite them now all being the same one.
Not to be rude but there’s 4 Amazon Fresh locations in the greater Seattle area and each of them is next to multiple other large/small grocery options.
For instance, the one in north Seattle (Shoreline) is within eyesight of a Safeway, a Sprouts, two international markets and a chef wholesaler.
The other three locations are similarly crowded with options.
Jackson St location is the only walkable option in its neighborhood. It wasn't very good (terrible selection, stocking issues, slowly increasing locked section) but it was convenient.
There's no walkable grocery store in that area. My friend lives in the area and uses a wheelchair, and Amazon Fresh was the only actual grocery store she could go to.
As much as I'm hoping they do, I would be very surprised if they open a Whole Foods in that area.
Food deserts do exist, but Seattle's Central District is not one of them. This US government tool used to literally be called the "Food Desert Locator" until the current administration re-named it to "Food Access Research Atlas"
It's really the suburban areas of Seattle that develop food deserts, likely due to restrictive zoning for commercial properties and minimum lot-size requirements that make sure that every grocery store is a long SUV ride away from the cu-de-sac neighborhood.
If the term Food Desert offends you, I can gladly switch to calling it Food Apartheid instead.
A giant, multinational, multi-trillion-dollar corporation that will only bargain with individual people living paycheck-to-paycheck? Huh, what a weird power imbalance!
Surely it doesn't have anything to do with their documented history of treating their blue-collar workforce like utter garbage.
I think Amazon are largely shitheads to their low level workers (and still assholes even to mid-level workers), and I am in no way defending them. I'm in fact sickened by them. I will never work for Amazon.
But the implication above was that the non-union employee is the "sub-human" option. I find that attitude pretty gross too. Humans are human whether they are union members or not.
Amazon Fresh had no reason to exist. They closed down a great Whole Foods near me and replaced it with a store with minimal changes to safeway/albertsons. Heavy carts for automatic scanning that barely saved time at checkout.
I will miss the grab and go tech in the Amazon stores. I was hoping they would successfully manage to sell that to other stores and make the tech wide spread in bodegas, gas stations and 711s
I like Whole Foods because it feels warm and the food looks good. The Amazon stores felt like walking inside a vending machine and that is not how people want to buy dinner.
The technology lives on, as Amazon "Just Walk Out". But rather than general grocery stores, it is used for concessions at stadiums and places like that.
I guess it turned out that the need more human intervention than they hoped, so the cost is too high for regular stores. However at places where a premium can be charged for high throughput or a low friction experience then the cost of the human intervention can be recouped.
Just a heads up that only the Amazon Go stores did the "just walk out" shopping thing. Amazon Fresh stores were pretty much just regular grocery stores. They had shopping carts with the self-checkout built in, but that was the extent of the technology.
There was a concept Amazon Fresh store with “Just Walk Out” technology on Capitol Hill in Seattle. They closed it down a couple of years back but the brand was absolutely Amazon Fresh.
Well, that article made me nervous for a second! I love my Amazon Fresh grocery delivery. I started using it during Covid, but could never go back. It's so nice having groceries feel automated instead of a semi-daily chore. I eat much healthier and the rationale for using DoorDash evaporated.
Absolutely zero interest in a physical version that lets me check-out easier, though. So, I can see why they're making this switch.
> It's so nice having groceries feel automated instead of a semi-daily chore
One of a my previous jobs had a grocery store on the way home. I took to stopping in pretty much daily. It allowed for a bit of decompression after work before coming home. It was very convenient to always have exactly what was needed for that night while being therapeutic at the same time. After switching jobs, losing that was probably the most noticeable thing about the new job
I know at some point they got caught basically paying people to watch cameras to figure out what products people we're grabbing. I'm sure were either at the point or very close to the point where AI can successfully do this basically 100% of the time.
So I doubt it's the tech aspect of this, more just the grossness a person feels walking into a store with Amazon's name on it. Compare this to whole foods.
I think the Go stores mostly bit the dust after that reveal, but they were also mostly small convenience store operations. I actually saw one at the airport recently, that's a situation where I can see it making sense as an option.
The Fresh stores are basically a conventional grocery store, with electronic tags for every item and quirky pricing. They also have "smart carts" with built in weight sensing and multiple cameras so you can basically put open bags in, say "ready to go" then shop by scanning a UPC before placing each item in the cart. Unscanned item? Error. Weight mismatch? Probably an error but I've never tried. The carts are running what looks like a Linux-based UI with some stuff in docker, I grabbed a picture of a shutdown screen on one not too long ago.
Not surprised. Unless the item is on sale (which can be very good deals) their pricing is no better than a standard supermarket and usually far more expensive than a Target or WalMart. And they quickly gave up on the scan and go where the smart shopping card read everything in the basket and automatically charged your Amazon account, so it was back to regular checkout.
Yeah, they've just closed the one near me. I think they underestimated how hard it would be, at least in the UK - the existing supermarket chains are already competitive, mostly pretty good, and people have surprisingly high brand loyalty to them. I don't think I've even talked to anyone who has shopped in Amazon Fresh, or even wanted to.
Wow, they just opened a brand new one in Philly less than two months ago. I've yet to shop there and I guess now I never will. It must have cost millions to clear that site and build a whole new building there. Just to abandon it. I wish I had money to waste like that.
Edit: it actually opened in August, so it was around for about six months instead of two.
I noticed the other day the Amazon store near me has closed but it says a whole foods market is coming soon, which is another company they own. I wonder how many of them they’ll rebrand and keep in some form like that.
When I saw the picture at the start of the article, I briefly thought they would do it like IKEA and let people pick the articles directly from the Amazon warehouse...
If you've ever been in a Fresh store, that's kind of what it was as well. I saw maybe 20% off-the-street customers, the rest were AMZN workers filling delivery orders.
Human nature probably prevents that from ever being a reality, at least at scale. In a tiny tight knit community where literally everybody knows everybody else maybe you could pull that off, but even then you have to get a bit lucky.
In a world where anonymity is a thing there will always be at least one inherent shithead who ruins it for everyone. Even if you do have a community where it's true, that can change anytime someone has a kid or someone moves in.
Most grocery stores I shop at have merchandise outside the front doors and between the doors and the registers. You could easily walk out with unpaid merchandise and no one would notice.
They literally only put them in unaffordable areas. Like the only one I know is in a residential area of Southwalk in London not far from the TATE Modern museum. I don't even live in London.
Been in one once for the novelty as they've never been useful.
I don't know what your life/lives are like, and far be it for me to tell you how to live, but if your schedule allows it try shopping later at night.
I show up at CostCo, on weekdays, like 30 minutes before closing time and it's _wonderful_. Few people, nobody blocking lanes while they consider their choices, etc. Same goes for Safeway, Fred Meyer, Trader Joe's, etc.
It doesn't work so great if you've got young kids, or you want to come home from work and just stay home (reasonable), but it's worth considering :)
For about five years an Amazon Fresh in Seattle was literally my closest grocery store but I never once set foot in there, simply because it felt icky and dystopian to let Amazon any further into my life. I wonder how many others felt similarly.
I went to one once, and it still worked like a regular grocery store, too. The only reason I never went back was because they were expensive and in an awkward location. There were some items only discounted to Prime members, but for everything else, you could forgo the technology and Amazon integration and pay with cash or a card. It's not like the Amazon Go stores where you have to use their system.
I don't know about other areas, but here in the Bay Area (or at least Silicon Valley) our Whole Foods has subsumed all the services provided by Amazon Fresh (and Go really never worked). So we're not really losing any services, just the brand name.
Once their vision for "grab and go" vanished due to technological infeasibility [1] the entire premise for the stores vanished as well.
I suspect that they wanted to take a hail marry to see if somehow it was possible to get much greater efficiency compared to standard grocers, and it looks like that failed.
[1] it may come back. The technology is rapidly improving but they have bigger fish to fry ATM.
What! I loved the Amazon fresh in my neighborhood. It was way better than any other grocery store. I can’t believe this. I hope it at least gets converted to a Whole Foods
Curious thought - will they be shutting down other “just walk out” powered stuff like Hudson Nonstops in airports?
I also know some Amazon warehouses had an entire Just Walk Out powered concessions area in their breakroom for purchasing snacks in partnership with one of their canteen vendors.
That’s kinda what I figured. At this point it seems like they all have the same general configuration of coolers and shelves and the same cameras all angled in the same setup everywhere so I assume it’s all down to one very strict CV model or something…
I stopped into the Amazon Fresh in Broomall, PA, to check it out not too long ago. It just looks bland and dystopian from the outside, and not much about it is impressive from the inside. I've worked with computers and technology my whole life, and the entrance to the store just confused me. If I remember correctly, I had to scan the Amazon app on my phone to enter the building. Once inside, it felt like a warehouse; the aisles were too small, and the food selection wasn't even really that great. (From memory, it was a few years ago that I went)
All in all, it's a cool concept on paper with absolutely terrible execution.
Another one of these ideas that was the future but for various reasons wasn't.
I honestly think in some ways, going to a store is about being around other people, the same as going to a cafe, not necessarily talking, but just being in the presence of others seems to be what many people crave. I largely think it's the appeal of shopping malls.
Amazon keeps shutting Restaurants, their retail stores, etc., but I for one am glad they are at least trying. I agree that the fiasco around the Indians running the show was a PR nightmare for their idea, but large companies running startup like ideas should be encouraged rather than disparaged (and I am no fan of Amazon just to be clear). I think this is one of those ideas where execution failed. If you are a busy worker, it is great to just head there and grab what you need, and walk out. Just faster all around.
Wonder how much of this is due to economics since computer vision tech never reached the expected performance + outsourced workers got (relatively) much more expensive after COVID.
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