Amazon has made the decision to discontinue the use of the Just Walk Out technology in all of its Fresh grocery stores in the United States, as reported by The Information.
Just Walk Out is a retail concept that enables customers to make purchases without having to go through traditional cash processes. It relies on cameras, sensors, and artificial intelligence to track which items customers take or return, automatically deducting funds from their accounts as they exit the store.
Despite Amazon’s claims of utilizing cutting-edge artificial intelligence, the actual operation of the system heavily relied on human intervention. Over 1000 employees in India were reportedly tasked with monitoring video feeds from cameras to ensure the accuracy of transactions, raising doubts about the efficacy of this “innovation” compared to conventional methods.
Moreover, the installation and upkeep of the required equipment incurred significant costs. Consequently, the Just Walk Out technology was only implemented in half of the Fresh stores in the country, leading to frequent customer complaints about delays in receipts and order mistakes.
Privacy concerns also surfaced regarding the potential collection of biometric data about customers. A class action lawsuit was filed in New York, accusing Amazon of gathering biometric information without adequate consumer notification, thereby violating state laws on biometric identifiers.
Although Amazon attempted to expand the use of Just Walk Out by offering the technology to other retailers, there was limited interest. This lack of enthusiasm can partly be attributed to the perception of Amazon as a competitor, as well as the necessary store features such as high ceilings for camera and sensor installation.
Despite discontinuing the technology in the USA, Amazon plans to continue its use in the UK while simultaneously introducing new approaches to grocery retail in the American market. Specifically, the company intends to introduce Dash smart carts equipped with sensors and scales to monitor purchases in real time, enabling customers to bypass the conventional checkout process.