Starbucks Links Up With Amazon To Test Cashierless Stores

Starbucks Links Up With Amazon To Test Cashierless Stores

The new concept for stores uses Amazon’s “Walk Out technology to allow customers to buy snacks, drinks, and other items without waiting in lines.

Starbucks is looking into a new format for its stores in conjunction with Amazon that will enable customers to purchase snacks, drinks, and other products without waiting in line, using automated checkout technology developed by Amazon, an e-commerce company.

A first store concept is set to open on Thursday, New York City, located on 59th Street, between Lexington and Park Avenues. The company is presently planning to open more than three stores which will be the second to open in the New York Times building in New York City next year, and the third location is yet to be decided.

Starbucks is the biggest company to have accepted to test the technology. Amazon has integrated into its expanding inventory of physical stores but was unable to market to other companies. The locations will be run together. Being a part of Starbucks and part of Amazon Go, the range of convenience stores Amazon has opened since the beginning of 2018 to test and demonstrate its automated checkout system.

Starbucks customers looking to grab a quick cup of coffee will experience a similar experience to ordering mobile food in any other establishment. You can put an order for what you need ahead of time through Starbucks’ app. They can place orders ahead of time on the Starbucks app and have it waiting for them when they arrive.

However, the new stores will also have a separate area run by Amazon, packed with sandwiches, salads, and many other food items. Customers can get in through the Amazon app, swipe an account or credit card, or enroll in a program known as Amazon One, which identifies the user’s palm and charges the credit card on the file. Amazon monitors the items they discover in real-time by using an array of sensors on shelves and ceiling cameras, and computer vision. It then charges the account for what they store. Customers will receive their receipts within a couple of hours.

“It’s similar to a massive pantry that is attached to your home,” says Dilip Kumar, Vice President of technology and physical retail at Amazon, during an interview. “You can come in at any time you like, take as many items as you’d like, and then leave.”

The store will accommodate those working in a hurry and those who want to stay for long. The store has individual workstations as well as tables that have outlets for power and USB ports. People who spend the afternoon in the space, for example, could get up to get a bottle of water or chips before settling down.

“It’s the classic Starbucks third-place, but slightly more simple,” says Kathryn Young, the senior vice-president for global development and growth at Starbucks, during an interview. Starbucks often refers to its place as”a “third space” to be a place that isn’t working or home.

Stores will also offer local food items for New York City, including bagels from Ess-aBagel Pastries from Dominique Ansel Bakery and sushi at Genji Sushi.

The concept of the store is an exciting fusion of two Seattle-based businesses. At the counter, Starbucks baristas wearing green suits prepare lattes and then serve the drinks to customers. The complete Starbucks menu is on offer, and customers can earn loyalty points on these items. But, Amazon is putting its logo at the entrance and entrance to the store where it operates. It creates many food items in its kitchen. The things they sell are not qualified for points on this app. Starbucks app.

It’s a fresh twist on Amazon’s efforts to persuade other businesses to utilize its technology. The company began licensing its technology to third-party companies last year; however, adoption is slow. Many retailers aren’t willing to collaborate with a company they see as their main competitor. Seven third-party clients currently employ the technology of Amazon at airports, stadiums as well as at convention facilities. “We’re at places where people are likely to experience an anxiety about time,” says Kumar.

Cost is another obstacle to acceptance. According to documents from the internal department obtained through Business Insider, the company is trying to reduce expenses and hopes to cut annual operating costs by 75% in the period between 2020 until 2023.

Amazon continues to roll out the technology in the stores it owns, including the 29 Amazon Fresh supermarkets and over 20 Amazon Go convenience stores. Automated checkouts will also be offered in two new Whole Foods stores in Sherman Oaks, California, and Washington, D.C., in the next year. So far, it’s only putting in its technology in its new stores. However, Kumar states that it’s in a position to retrofit existing stores.

Amazon and Starbucks did not reveal the number of joint locations they could eventually open or if the technology could finally be offered at one of Starbucks more than 30,000 stores all over the world. Starbucks is looking to provide many stores, according to Young. Starbucks is also doubling down on pick-up-only stores since the outbreak began catering to customers who prefer to place their order in advance to pick it up and then leave.

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Adam Collins
Adam writes about technology, business and economics. With master's degree in Economics, he's presented six papers in international conferences. As a solivagant in the constant state of fernweh, curiosity is the main weapon in his arsenal.

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