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Amazon closing its Fresh and Go stores

135 points9 hoursfinance.yahoo.com
arjie39 minutes ago

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.

Bluecobra8 hours ago

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.

randycupertino8 hours ago

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.

lelandfe7 hours ago

> 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)

cmiles87 hours ago

Such tactics sound… illegal

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simulator5g7 hours ago
+1
knowitnone34 hours ago
Chris20485 hours ago

Did he have a patent?

+1
lelandfe2 hours ago
lambdasquirrel4 hours ago

Do you want to go up against whatever patent portfolio AMZN has?

felixgallo7 hours ago

I'm not aware of any Amazon product lines or organizations that specializes in devices for truckers. Can you provide a listing?

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lelandfe7 hours ago
+1
gamblor9564 hours ago
noboostforyou7 hours ago

> 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

gamblor9564 hours ago

Amazon did not destroy diapers.com.

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.

pasttense012 hours ago

Walmart bought out jet.com

https://en.wikipedia.org/wiki/Jet.com

kkukshtel6 hours ago

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.

HPsquared5 hours ago

At a certain point it's not about technology anymore, but access to cheap finance. See also: Uber.

+1
groundzeros20154 hours ago
groundzeros20154 hours ago

Nobody on this forum believes in startups or technology anymore.

+1
_DeadFred_2 hours ago
knowitnone34 hours ago

That's literally their MO. They've been doing that forever.

pessimizer6 hours ago

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.

pixl975 hours ago

>Walmart isn't a budget grocery store,

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.

silisili2 hours ago

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.

classichasclass1 hour ago

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.

PaulHoule8 hours ago

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.

hshdhdhj44447 hours ago

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.

ghc7 hours ago

> 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.

mrighele6 hours ago

> 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.

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ssl-35 hours ago
rpdillon2 hours ago

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.

maxerickson2 hours ago

Small car towns are more or less the same. I drive 10 minutes to work, the stores are all on the way. It's easy to stop anytime.

The more local one is medium sized and I've been shopping there for years, so I don't really have to find anything.

I should go to the butcher that's a few blocks away more often though.

CSMastermind6 hours ago

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.

kube-system5 hours ago

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.

mike506 hours ago

Again go to Queens or Brooklyn plenty of suburban size and shape supermarkets.

craftkiller7 hours ago

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!

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PaulDavisThe1st7 hours ago
belval7 hours ago

> 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.

justonceokay7 hours ago

It’s what I’ve done in Seattle for decades and this isn’t even a very big city

mrighele6 hours ago

> Is that really a thing though?

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.

mancerayder6 hours ago

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.

+1
mike506 hours ago
awkward7 hours ago

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.

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bombcar6 hours ago
cameronh902 hours ago

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.

the__alchemist7 hours ago

That's the dream, but isn't currently an option for most people in the USA. And it's usually only availabil in very expensive to live areas.

mike506 hours ago

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.

cyberax7 hours ago

> 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.

coredog645 hours ago

There's probably 5 CVS locations (and 3 Chase private banking lobbies) between your subway stop and your apartment :)

moregrist7 hours ago

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.

bee_rider7 hours ago

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.

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PaulHoule7 hours ago
toyg6 hours ago

NY State vs NYC mismatch here. I expect nobody in NYC goes to Ithaca for groceries... :)

moregrist6 hours ago

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.

mgce7 hours ago

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.

ecshafer7 hours ago

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.

bombcar6 hours ago

Whole Foods has always felt like Trader Joe’s - a great place to shop but few will shop only there - even for groceries.

+2
mangodrunk7 hours ago
mike506 hours ago

I can list like five mass market supermarkets in NYC. Western Beef, Food Bazaar H Mart, City Fresh the regional chains like Stop and Shop Target.

aqme288 hours ago

I think this is why Lidl is taking off in parts of the US.

mangodrunk7 hours ago

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.

ceejayoz8 hours ago

I'm in Wegmans' home town, and the enshittification process has hit them hard in recent years.

tmoertel8 hours ago

What changes have you noticed?

+2
ceejayoz8 hours ago
jinushaun7 hours ago

No! Wegmans was amazing when in lived in NY. We would actually go out of our way to shop at Wegmans and plan our weekend around it.

ceejayoz7 hours ago

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.

wat100004 hours ago

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.

subpixel7 hours ago

Give me a Kroger with a Murray's Cheese counter thank you!

tshaddox6 hours ago

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).

malfist4 hours ago

You should also know that the AI that enabled the Amazon Go experience was the Actually Indians type of AI. https://www.businessinsider.com/amazons-just-walk-out-actual...

none_to_remain2 hours ago

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.

spike0218 hours ago

> 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.

phatfish3 hours ago

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.

coredog645 hours ago

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.

liveoneggs8 hours ago

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.

cjrp7 hours ago

See Ocado, although things aren't going so well for them at the moment.

Bluecobra8 hours ago

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.

hung2 hours ago

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!

RIMR8 hours ago

For a while, they had two stackable 10-off-40 coupons, and a 2-off-10 coupon, and it activated $36, so you could buy $36 worth of groceries for $14.

nayroclade9 hours ago

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.

eithed8 hours ago

When did naming things have to reflect reality? ie it's "Burger King" and not "Bearable Burger"

PaulHoule8 hours ago

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.

nebula88048 hours ago

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...

AdamN6 hours ago

Yeah it used to really taste flame grilled. It's pretty low rent nowadays - to the point where I wouldn't go there even if desperate.

calvinmorrison8 hours ago

who is this appointed this beef monarch anyway?

jandrese7 hours ago

The Lady of the Fry Oil?

kid646 hours ago

Dairy Queen

+2
mcswell6 hours ago
Andrex6 hours ago

I'm gonna be 90 and Burger King/Dairy Queen puns are still going to make me laugh.

giraffe_lady8 hours ago

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.

ainiriand8 hours ago

Good sense of humor at Amazon... Yeah right.

bootlooped6 hours ago

They could have followed the lead of TV manufacturers and called it "5 Star Class" (4.5 star)

paulddraper8 hours ago

Yeah it’s kinda like a dollar store but instead of focusing on the upside (cost) it reminded you of the downside (quality).

boredtofears8 hours ago

Also funny because there are many product categories on amazon where if its not above 4.5 its probably shit

adolph7 hours ago

"'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.

  Ordinal : Cardinal
  1 : 0
  2 : 1
  3 : 2
  4 : 3
  5 : 4
  6 : 5
polshaw7 hours ago

The range of stars is very deliberately NOT zero indexed, you cannot rate a product below 1.

mjr009 hours ago

> 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.

Cornbilly8 hours ago

It's great that they faced essentially no consequences for this. A sure sign that we have a functional and sane market.

colinplamondon8 hours ago

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.

acdha8 hours ago

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.

Cornbilly7 hours ago

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.

thegrim0001 hour ago

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.

+1
colinplamondon6 hours ago
neilc7 hours ago

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.

jandrese7 hours ago

What's the crime? If lying about AI capabilities is a crime we have some billionaires in big trouble.

kube-system5 hours ago

If it's a publicly traded company, everything is securities fraud.

+1
jandrese4 hours ago
Cornbilly6 hours ago

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.

ed_mercer7 hours ago

This was proven to be false on the WAN show. Only 20% of transactions were low confidence and handled by mechanical turk.

https://m.youtube.com/watch?v=433kipkEERY&t=8479s

larrik6 hours ago

20% seems like a "significant portion" to me

mjr006 hours ago

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.

iLoveOncall4 hours ago

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.

pessimizer6 hours ago

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.

theanonymousone8 hours ago

Why did "outsourced workers get (relatively) much more expensive after"?

foxyv8 hours ago

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.

mjr008 hours ago

Great question. I'm not an economist so I have no idea why. The outsourcing rates I've all seen have gotten way higher in the past ~10 years though.

Insanity8 hours ago

Beyond just the usual inflation?

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.

PaulHoule8 hours ago

People from Bangalore were telling me it was getting crazy expensive to live there (by Indian standards) circa 2013.

giraffe_lady8 hours ago

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.

givemeethekeys8 hours ago

Americans can’t afford to strike like that.

+2
linkregister7 hours ago
dragonwriter7 hours ago

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.

esseph7 hours ago

Can't afford not to.

+1
netsharc7 hours ago
adamsb66 hours ago

People don’t know what the H is in RLHF.

thinkingtoilet8 hours ago

Another case where AI = "actually Indians". It's funny how often this has happened.

kkkqkqkqkqlqlql2 hours ago

I remember this case the one who put "Actually Indians" in my mind. What other instances do you know?

(Not to refute your point, of course, I am just curious)

Sateeshm1 hour ago

Builder ai

Dylan168077 hours ago

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.

cmiles89 hours ago

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.

lumost9 hours ago

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.

rurp3 hours ago

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.

itsamario9 hours ago

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.

chilmers8 hours ago

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.

goatforce57 hours ago

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.

usefulposter9 hours ago

AI: Actually Individuals¹

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!

Fernicia7 hours ago

> 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.

AppleAtCha7 hours ago

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.

vikingerik7 hours ago

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.

AppleAtCha7 hours ago

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.

OkayPhysicist5 hours ago

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.

+1
aworks3 hours ago
SHAKEDECADE7 hours ago

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.

AppleAtCha2 hours ago

Yeah true. I do enjoy visiting with the cashiers but I don't love waiting in line.

GorbachevyChase5 hours ago

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.

hackingonempty9 hours ago

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.

"Do things that don't scale."

cmiles88 hours ago

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.

xp848 hours ago

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.

bsimpson9 hours ago

That 90s IBM commercial was pretty rad though.

in_a_hole8 hours ago

A.I. = Actually Indians

MengerSponge7 hours ago

AI: Actually Indians

bayarearefugee8 hours ago

> Since that story broke nobody there seems to want to talk about “just walk out” anymore.

Optimus and Robotaxi are just as fake and Elon Musk never shuts up about them.

I guess Amazon never learned the important lesson that the OP meta for modern technology companies is just to consistently and blatantly lie.

bilalq1 hour ago

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.

g947o8 hours ago

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.

bumblehean8 hours ago

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.

nebula88047 hours ago

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.

khuey2 hours ago

> milktoast

fyi since you may not have ever seen it spelled before it's milquetoast

darknavi7 hours ago

It's the same story over and over again with large businesses. See Boeing and WA state as well.

What's the Matter with Kansas? (2004) by Thomas Frank goes into this in part of it. While a bit repetitive (because history) the book is quite good.

nebula88046 hours ago

Thank you for the recommendation.

netsharc7 hours ago

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...

nebula88046 hours ago

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.

NickC255 hours ago

Jeff Bezos in FY 2024 filed for, and received, a $2k child tax credit.

While the company he was the founder of passed over a trillion dollars in market cap.

happyopossum8 hours ago

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?

g947o7 hours ago

The tenants needed to vacate before the owner tore down the building.

esseph7 hours ago

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.

knowitnone34 hours ago

sounds like you have an opportunity to open a grocery store?

barbazoo8 hours ago

But for a brief moment there was a chance it would make the shareholders more wealthy. Surely that’s worth it. /s

Wondering what the municipality’s responsibility there wrt zoning.

danans8 hours ago

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.

I'm not surprised they failed.

minimaxir8 hours ago

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.

pwthornton6 hours ago

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.

1980phipsi8 hours ago

The lack of people in them was the thing about going to one that always felt weird to me.

frogperson8 hours ago

LOL, any found efficiency doesnt go to the consumer. The evidence is the widening wealth gap over the last 40 years. Its trickle up economics.

jgbuddy7 hours ago

does competition not naturally drive competitors to reduce margins?

mcintyre19941 hour ago

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.

bahmboo2 hours ago

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.

fencepost8 hours ago

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.

justincormack8 hours ago

Every time I check I am still amazed that the Amazon Hair Salon in London is still open. https://www.amazon.co.uk/b?node=26247109031

wolvoleo8 hours ago

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.

Amazon go I'm not even sure what that is.

MikeTheGreat8 hours ago

> Amazon go I'm not even sure what that is.

And now you don't have to!

Ba-dump-ching! I'll be here all week, folks! :)

jgbuddy7 hours ago

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

dangus8 hours ago

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.

wolvoleo8 hours ago

Yeah we don't get those here, sorry. Didn't know they even existed

direwolf208 hours ago

Amazon go I'm not even sure what that is, must be something like Pokémon go to the polls.

blinding-streak8 hours ago

The headline in their corporate press release says "Amazon doubles down on online grocery delivery and Whole Foods Market expansion to reach more customers"

That's one way to spin things I guess.

fencepost6 hours ago

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.

proee8 hours ago

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.

kube-system8 hours ago

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.

bluedino8 hours ago

McDonalds solved that problem by basically not having employees go up to the counter anymore.

xp847 hours ago

Yup, they literally HIDE as far away from the counter as possible. Must make it easier to recruit Gen Z now!

giraffe_lady8 hours ago

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.

kube-system7 hours ago

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.

direwolf202 hours ago

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.

semiquaver8 hours ago

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.

thoughtpalette2 hours ago

Loved the Go store in Chicago (Ogilvy), had some great lunch options and even a take home "dinner for two" bag of premade ingredients.

tshaddox6 hours ago

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.

mitaphane8 hours ago

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.

PKop7 hours ago

> I disputed it online

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.

sheept8 hours ago

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

catgirlinspace1 hour ago

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.

freedomben8 hours ago

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.

themaninthedark7 hours ago

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...

s081486928 hours ago

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

slipnslider8 hours ago

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

amelius8 hours ago

In what ways?

dgunay6 hours ago

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.

spprashant3 hours ago

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.

jgbuddy7 hours ago

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

Related: https://www.aboutamazon.com/news/retail/amazon-same-day-fres... https://www.aboutamazon.com/news/retail/amazon-same-day-fres...

_fat_santa8 hours ago

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.

vel0city8 hours ago

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.

onetokeoverthe8 hours ago

not get far? at an airport?

nothercastle9 hours ago

They never made sense to have but I’m sure someone made a huge career and got lots of bonuses for this initiative

DrinkingRedStar8 hours ago

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

thijson8 hours ago

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.

jordemort8 hours ago

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.

julianozen5 hours ago

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

augusteo8 hours ago

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.

GorbachevyChase4 hours ago

I wonder if this is what FSD really is sometimes.

qwerpy4 hours ago

You might think so because of how human-like it drives, but I’ve driven for quite a few miles out of signal range and it still works.

PKop7 hours ago

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.

nunez6 hours ago

This was the more surprising bit for me: https://www.geekwire.com/2026/amazon-supersizes-its-walmart-...

Amazon straight up wants to just become Walmart. Or maybe Sears is a more apt comparison given their mail-order beginnings.

maxfurman6 hours ago

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.

CamouflagedKiwi6 hours ago

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.

vondur7 hours 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.

maininformer8 hours ago

This will forever be a masterpiece

https://youtu.be/CNoa-9TBH30?si=Zl7hdZ1fBqeXHM_8

justonceokay9 hours ago

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.

SirFatty8 hours ago

"non-union jobs program people at the registers because Amazon believes that cashier is a sub-human role."

What grocery stores still have union workers?

The-Bus8 hours ago

The UFCW claims they represent at least 800,000 grocery workers across the US.

I had a job as a union worker in a supermarket, and am glad that's still available to others.

https://www.ufcw.org/actions/campaign/albertsons-and-safeway...

buildsjets8 hours ago

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

Additionally, Teamsters 174 organizes a lot of the grocery freight workers. https://teamsters174.net/warehouse-and-grocery/

crysin8 hours ago
seanmcdirmid7 hours ago

Most grocery stores in the US are still heavily union. I don't think the unions ever left the grocery stores.

quietsegfault8 hours ago

Literally all the grocery stores in my Northeast US city are unionized.

MattDamonSpace8 hours ago

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.

What food desert are you referring to?

guyrt8 hours ago

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.

nightpool5 hours ago

It's literally highlighted on the map you sent: https://postimg.cc/Cn8BGP4S

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.

marshmellman8 hours ago

I wouldn’t describe central district as crowded with options…

chronny9038 hours ago

> What food desert are you referring to?

His food desert that doesn’t exist.

buildsjets8 hours ago

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"

https://www.ers.usda.gov/data-products/food-access-research-...

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.

https://www.theguardian.com/society/2018/may/15/food-aparthe...

direwolf202 hours ago

> Food Access Research Atlas

You just know at least five people within the administration, one of whom being Elon Musk, wanted to change "Atlas" to "Tool"

jacquesm8 hours ago

So now you are off worse than before?

crises-luff-6b8 hours ago

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freedomben8 hours ago

> They only hire non-union jobs program people at the registers because Amazon believes that cashier is a sub-human role.

The implication being that humans who aren't in a union are "sub-human" in your opinion? If so, that's pretty messed up man.

12_throw_away8 hours ago

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.

freedomben7 hours ago

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.

12_throw_away2 hours ago

> But the implication above was that the non-union employee is the "sub-human" option. I find that attitude pretty gross too.

Ok, fine, but the OP never said this, you are the only person talking about this.

pram7 hours ago

The “implication” is that Amazon finds them ALL sub-human and thus would hire to reduce any kind of representation or organizational power.

Work on your reading comprehension dude.

dfajgljsldkjag8 hours ago

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.

advisedwang8 hours ago

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.

RIMR7 hours ago

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.

rawrenstein6 hours ago

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.

SeanAnderson8 hours ago

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.

dylan6048 hours ago

> 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

deepflow7 hours ago

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.

willio589 hours ago

I thought they already did close them.

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.

fencepost6 hours ago

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.

xnx9 hours ago

Coincidentally(?) they are open their first big box retail store: https://www.cnbc.com/amp/2026/01/09/amazon-plans-first-big-b...

rob749 hours ago

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...

joezydeco9 hours ago

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.

brightball9 hours ago

That will be interesting to watch.

benbristow8 hours ago

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.

golbez97 hours ago

In my town they redeveloped an empty corner lot at a busy intersection just for the Amazon Fresh store. I guess it'll go back to being empty again...

vlaksh3658 hours ago

I guess that is curtains for the Amazon Go kiosks in Seattle's Climate Pledge Arena? That whole arena was setup as a poorly veiled Amazon store...

IvyMike7 hours ago

The "just walk out" surveillance system sucked, but the Dash Cart shopping was actually pretty nice/

timmg8 hours ago

My wife will be heartbroken. We moved recently and she loves shopping at Amazon Fresh. (Though part of the reason was that it was never busy :)

MikeTheGreat8 hours ago

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 :)

wagwang7 hours ago

If we lived in a high trust society, you could just trust people to scan their own items and walk out.

jandrese7 hours ago

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.

IvyMike7 hours ago

The Dash Cart was pretty close.

throwaway20377 hours ago

Can you name some high trust societies?

aendruk5 hours ago

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.

wnevets8 hours ago

Fortunately my Amazon branded subcutaneous chip still works at Wholefoods.

awill5 hours ago

this is pretty surprising. Didn't they spent a fortune on the camera tech for Amazon Go?

add-sub-mul-div9 hours ago

Did the humans pretending to be the AI unionize?

jedberg8 hours ago

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.

testfoobar8 hours ago

I miss the old Whole Foods.

NickC256 hours ago

I do too. Completely different vibe from when it was independent to when Bezos bought it.

otikik8 hours ago

Oh no! Anyway

saos7 hours ago

Not surprised at all

a-dub8 hours ago

amazon fresh never really made much sense to me alongside wfm.

tempire7 hours ago

It's a trap!

HardCodedBias9 hours ago

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.

ge969 hours ago

What's interesting I know of a company in the industrial space that is trying to do this still (stuff on a shelf, grab and go, no human interaction).

dopamean8 hours ago

I honestly thought they closed them alreay.

surlyadopter7 hours ago

Disappointing. The shopping experience is mediocre and prices/quality are no better than other local supermarkets.

However, I love my local Amazon Fresh store because it's a super convenient Amazon return location...

kotaKat8 hours ago

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.

count7 hours ago

Nah, they're still actively selling/implementing the backing service/tech for other orgs.

kotaKat7 hours ago

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…

dangus8 hours ago

I’m not surprised about Amazon Go but I’m surprised about Amazon Fresh.

They almost seemed like an extension of Whole Foods to a more mainstream suburban market, and I thought they had solid foot traffic.

sodafountan6 hours ago

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.

Only went once, bought some snacks, and left.

EngineerUSA6 hours ago

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.

wetpaws9 hours ago

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