Amazon, the e-commerce behemoth, has decided to discontinue the use of cashierless Just Walk Out technology at its Fresh grocery stores.
Bloomberg’s report indicates that the decision is in line with the company’s strategy to revamp its current Fresh stores and expand with new locations throughout 2024.
The Just Walk Out system was initially launched by Amazon in 2018 at the 10,400 square feet Amazon Go Grocery store located near its Seattle headquarters.
The idea offered a frictionless shopping experience. Amazon Prime members could simply enter the store using a QR code, select their items, and exit without the need for conventional checkout procedures.
Cameras and sensors recorded their purchases, and customers were subsequently billed through their Amazon account.
Continue Exploring: Amazon Fresh expands customer base: Non-Prime members can now order groceries
However, despite its futuristic allure, the technology has encountered notable challenges.
The high installation and maintenance expenses are believed to be among the reasons why the technology was only partially adopted. According to a report by the New York Post, out of the 40 large-scale Amazon Fresh stores in the country, only 27 utilize it.
Privacy concerns, mishandled orders, and delays in sending receipts after purchase have also contributed to the issues faced.
The cameras and sensors have the capability to gather biometric data, leading to a class action lawsuit filed in New York, alleging Amazon’s improper collection of such information from consumers.
Allegedly, around 1,000 human operatives based in India have been reported to be scanning the camera feeds to ensure precise checkouts.
Amazon plans to discontinue the Just Walk Out system in larger Fresh stores; however, it will remain a feature in Amazon Go outlets and smaller-format Fresh shops in the UK.
Furthermore, the company plans to continue licensing the technology to other retailers.
The Information was the first to break the news about the discontinuation of the Just Walk Out technology in Amazon Fresh US stores.
Amazon recently introduced a new application for its Amazon One service—a contactless palm recognition system that enables customers to hover their palm over the device to make payments.
Continue Exploring: Amazon Fresh expands presence in India, now serving 60 cities with fresh food delivery
