Amazon Unveils Cashier-less Supermarket of the Future — and L.A. Waits in Line

Kurt Schlosser, GeekWire
Kurt Schlosser covers the Geek Life beat for GeekWire. A longtime journalist, photographer and designer, he has worked previously for NBC News, msnbc.com and the Seattle P-I.
Amazon Unveils Cashier-less Supermarket of the Future — and L.A. Waits in Line
GeekWire Photo/ Kurt Schlosser

Amazon unveiled its supermarket of the future, a grocery store without cashiers or checkout lines considered a technological breakthrough in the $800 billion industry. Shoppers get to grab-and-go with a full cart of items that are scanned automatically and billed to their bank accounts.

But don't expect to see it anytime soon in Los Angeles.


The surveillance-style experience is a harbinger of things to come as futurists describe the 2.0 of an everyday task: Buying food at a market. There's only one problem. The prototype of a new way to pick up customer's meat, cheese, and dairy is only happening in just one location in Seattle, where Amazon is the city's biggest tech employer.

Amazon has no plans to install the cashless technology at its Whole Foods stores or put it in their conventional grocery set to open in a former 33,000 square foot Toys R' Us in Woodland Hills, according to Jeffries analyst Christopher Mandeville. Amazon would not confirm.

Meanwhile, union officials are gearing up for a fight.

"Amazon has two concepts for its grocery business: bad jobs and no jobs. There's nothing innovative about either one of them," said John Grant, president of the United Food and Commercial Workers International Union Local 770 in an emailed statement. The union represents 47,000 grocery store workers in Southern California. "This is about the richest person on earth seeking new ways to further enrich himself on the backs of workers, communities, and now technology. We will not stand for it."

He may not have to. West Hollywood outlawed cashless stores last year joining a growing list of cities including New York, San Francisco and New Jersey who also prohibit it, saying that it discriminates against low income residents with no bank account. Meanwhile, it's unclear whether consumers will embrace the format.

The Seattle location can be entered by scanning a smartphone app and strolling the aisles of the completely stocked store. The banks of cameras and sensors overhead track everything put into a shopping cart, with the help of artificial intelligence — rendering unnecessary the old-fashioned ritual of scanning and paying at a checkout stand. Items are charged to a shopper's Amazon account shortly after they walk through the exit.

Amazon Go Grocery is big enough that it's offering shopping carts. GeekWire Photo / Kurt Schlosser

Apart from the larger size, the concept is very similar to the Amazon Go convenience stores that first opened to the public in Seattle in January 2018. Amazon Go has expanded to 25 locations across cities including San Francisco, Chicago and New York. That smaller concept, sized between 450 and 2,700 square feet, ushered in an era of grab-and-go shopping.

"What Amazon Go did for central business districts — like locating it very close to where people work so you can get breakfast, lunch, snacks — Amazon Go Grocery does the same thing, but closer to home," said Dilip Kumar, vice president of Physical Retail & Technology for Amazon. "It's a new format, it's not just a bigger Amazon Go. It's a much more expanded selection that caters to what people are looking for shopping for groceries."

What Amazon is looking for is yet another answer to traditional retail, where it's leveraging convenience and technology in the grocery industry. The tech giant scooped up Whole Foods in 2017 in a bid to take on the sizeable brick-and-mortar footprints of Walmart, Target, Kroger and others. Those companies have consistently responded to Amazon's digital pushes around online grocery ordering and delivery.

Mandeville said in a research note that it's unclear whether it will pencil out, but the new format provides Amazon an opportunity to expand their white label products. "Questions still remain over unit economics and shopper adoption. That said, this is another example that Amazon is forcing the issue - grocers must continue to invest, innovate."

Amazon posted $4.4 billion in revenue last quarter in its physical stores category, which includes Whole Foods and Amazon Go stores.

The Wall Street Journal reported last fall that Amazon had signed leases for more than a dozen locations in Los Angeles with plans to expand the chain. Kumar declined to say how many Amazon Go Grocery stores are coming, where the next one might be, or whether they will all be the same size. Plans for the larger grocery concept in Los Angeles and elsewhere are "something else" entirely, he said, but he likes what they built first in Seattle.

The continued push toward tech and automation has fueled the ongoing debate around human workers being replaced by machines. Amazon Go Grocery will staff just a handful of associates.

Last year under pressure from advocates, Amazon's Go store in New York began accepting cash.

"Consumers aren't demanding this," Grant said. "Its 'cashierless' convenience stores have underperformed comparable stores manned by people."

Hundreds of cameras in the ceiling overhead make up the key technological component of the just-walk-out concept, and they're put to the biggest test in the produce section, where a variety of individually priced fruits and vegetables are available.

"Most of the things at Amazon Go are packaged, or they're single items like a can of Coke," Kumar said. "But here, people are shopping for potatoes or they're shopping for onions — there's a lot more browsing and rummaging that tends to happen. That's what makes this problem a lot more complicated."

The 365 label from Whole Foods identifies the store's organic produce.


Matt Casey, a retail market analyst who works with supermarket grocery chains said he's not sure the grand experiment will work. "I gotta believe there's gonna be a ton of glitches in the beginning," he said. "But, they are the ones who call the shots, not the public. They create and people react to them, not the other way around. They have deep pockets that will allow them to try this."

Meanwhile, Walmart and Target are stepping up their grocery delivery service and other chains are investing in automation.

Amazon's goal is to generate accurate receipts, no matter how long you stand over the avocados or apples, shifting them around and picking them up before settling on three and then changing your mind to two.

The cameras are keeping track of those "interactions" with the product and know exactly what is being taken off shelves and put back. Allowing people to do this type of "considered shopping" plays into the Go Grocery concept of making sure that customers don't have to do anything unnatural when it comes to how they shop.

"They're used to seeing produce laid out in [a traditional] way," Kumar said, joking about how it's almost necessary, as a shopper, to get spritzed by the misters in the lettuce section.

Kumar called a robust produce section the hallmark of any good grocery store, and Amazon Go Grocery sources its organic produce from the same farms that supply Whole Foods. Its 365 organic label is on prominent display.

Up and down aisles throughout the store — there are 5,000 unique items — national brands are mixed with local favorites that Amazon believes its neighborhood customers would expect the store to stock.

There is no meat or seafood counter and no food preparation on the premises. Fish, chicken and beef products are brought in several times a week, individually wrapped. Signage near cases advises customers on the differences between cuts of meat or wild caught seafood vs. farmed fish. There is also an artisan cheese area where people can get the same sort of quick education via signage rather than from a human cheesemonger.

And it's another indication that Amazon Go Grocery goes beyond Amazon Go.

Back near the front of the store, the quicker grab-and-go nature of what Amazon likes about its Go concept is more readily on display. It's here where the fresh baked goods — donuts, bagels, fritters and more — and self-serve coffee and espresso stations are located. There's a sizable alcohol section — where you'll run into a human who has to check your ID. And around the corner is a large section called "Meals Made Easy" that caters to the what's-for-dinner shopper with entrées including pasta, salad, pizza, sushi and more.

What to grab at the end of the day was a big driver in Amazon's decision to extend Go into grocery, closer to where people live.

The entire footprint for the location, including space for back stock and more, is 10,400 square feet. But the store will not serve as a hub for grocery delivery, the company said.

And it won't replace Whole Foods or other methods that shoppers appreciate because Amazon said it has come to realize that customers want to shop in a variety of different ways for a variety of different needs.

"Some people want their food delivered, some people want to go shopping at Whole Foods, some people want to shop at a different kind of store," Kumar said. "The single biggest thing that people say is that they don't have enough time to do all the things that they need to do. One of the key things that we always index on is how we can provide the convenience that customers expect in places where they are."

A version of this story first appeared on GeekWire.

From Pitch Meetings to Power Lunches: LA’s Exclusive Membership Clubs 🗝️

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Summer's here, so it's time to zhuzh up your work environment. Discovering the best membership and social clubs in Los Angeles for meetings can boost networking and collaboration, offering exclusive venues and premium amenities tailored for professionals and creatives to thrive amidst the city's vibrant backdrop. These clubs provide a sophisticated setting for productive gatherings and meaningful connections in LA. Here are some top private member clubs perfect for meetings and productive work sessions.

The Jonathan Club

Club Details: The Jonathan Club, one of Los Angeles' original membership clubs, has been a cornerstone of the city's elite social scene since its founding in the mid-1890s. Its legacy is intertwined with the growth and development of LA itself, most notably through a pivotal meeting held at the club that sparked the idea for a southern campus of the University of California—what would eventually become UCLA. Today, the Jonathan Club continues to offer its members an unparalleled experience of exclusivity and refinement. With locations in both DLTA and Santa Monica, members enjoy access to premium amenities and spaces and a calendar with hundreds of social events and workshops throughout the year, providing ample opportunities for networking, personal growth, and leisure activities.

Membership Details: Initiation fee is around $50,000, and admission typically requires that you be invited or know someone who is already a member.

Spring Place

Image Source: Spring Place

Neighborhood: Beverly Hills

Club Details: A mix between co-working space and social club, this Beverly Hills hotspot is a more exclusive version of similar clubs. Spring Place Beverly Hills spans three floors and offers a stunning art collection. The interior is filled with tons of natural light and has an intentional design that fuels members to harness some of their best work. Members also have access to luxurious dining and nightlife pop-ups that happen at Spring Place.

Membership Details: There is a non-refundable initiation fee of $500 and then local membership for people under 30 starts at $300 per month, while monthly membership for locals over 30 is $600.

Griffin Club

Image Source: Griffin Club

Neighborhood: Cheviot Hills

Club Details: Located in Cheviot Hills, Griffin Club LA is a sporty club with ample shared workspace. Following a $20M renovation in 2020, the club now boasts seven LED-lit tennis courts, four LED-lit pickleball courts, two recreational lap pools, a 25-meter family pool for kids, an adults-only resort pool, and childcare services. It's the ideal destination for a clientele looking to mix work with competitive sport.

Membership Details: Membership is by invitation only and is subject to approval. Membership prices at the club vary. A family membership entails a $12,000 initial fee plus a $450 monthly fee, while a junior membership only entails a $2,000 initiation fee and a $205 monthly fee.

Soho House West Hollywood

Image Source: Soho House West Hollywood

Neighborhood: West Hollywood

Club Details: Soho House West Hollywood provides a stylish and exclusive work and meeting destination, featuring chic meeting rooms and workspaces with panoramic views of Los Angeles. Combining luxury amenities with a creative atmosphere, it offers an ideal setting for networking, collaboration, productive sessions, and an amazing Sunday brunch!

Membership Details: Two current member referrals are needed, plus an online application, and a recent photo to confirm your identity. Quarterly memberships start at $675.25, but if you’re under 27, you can pay $337.75 quarterly. However, if you want access to every house, membership costs $5,250.00 annually, or $2,650.00 if you’re under 27.

Little Beach House Malibu

Image Source: Little Beach House Malibu

Neighborhood: Malibu

Club Details: The Little Beach House Malibu is a small, local club for the creative community of Malibu and the surrounding coastal areas. The club is known for its magnificent dining room, bar, sitting room and terrace. It is the perfect place for a truly memorable work meal.

Membership Details: Malibu Beach House is not included in the Soho House membership. If you are an existing member, you can apply for “Malibu Plus” for an additional $2,190 a year, or $1,095 if you’re under 27.

San Vicente Bungalows

Image Source: San Vicente Bungalows

Neighborhood: West Hollywood

Club Details: San Vicente Bungalows is an exclusive, members-only social club located in West Hollywood, California, offering a luxurious and private environment for its high-profile clientele. The club is renowned for its strict privacy policies, elegant decor, and high-end amenities, catering to celebrities (and royals) and industry elites seeking a discreet space to unwind and socialize.

Membership Details: You must be nominated by a current club member to apply. Applications are evaluated monthly and annual dues start at $4,200 plus a $1,800 initiation fee.

The Aster

Image Source: The Aster

Neighborhood: Hollywood

Club Details: The Aster, located at the iconic intersection of Hollywood Boulevard and Vine Street, redefines the modern members' club with its emphasis on warmth and hospitality, blending public hotel amenities with private club exclusivity. Featuring bright, airy spaces and top-notch facilities such as an outdoor pool, recording studio, and rooftop bar, it offers a fluid environment for work, relaxation, and socializing.

Membership Details: Memberships start at $3,600 per year and be acquired by filling out an application. In addition to uploading a photo, hopeful members also have to write a small bio while highlighting their interests, skills, profession, and hobbies.

NeueHouse

Image Source: NeueHouse

Neighborhood: Venice/Hollywood/DTLA

Club Details: NeueHouse in LA is a chic private workspace and cultural hub designed for creative professionals, offering sophisticated workspaces, a dynamic calendar of cultural programming, and luxurious amenities. Situated in three bustling neighborhoods across LA, it provides a collaborative environment where members can work, network, and unwind in style.

Membership Details: You have to apply for the Salon membership, which includes questions like “dream dinner guests (dead or alive?)." Annual dues for Salon memberships are $3,000 plus a $200 joining fee. You can also inquire about the Gallery membership for flexible workspaces and offices for individuals or teams, starting at $595 per month, with various options depending on your needs.

🧬🔬AI-Driven Drug Discovery

🔦 Spotlight

Terray Therapeutics is at the forefront of AI-assisted drug discovery and development, operating a cutting-edge laboratory in Monrovia, California. The facility, roughly two-thirds the size of a football field, functions as a data powerhouse, generating over 50 terabytes of raw data daily, which is an amount of information equivalent to 12,000 high definition movies, through its miniaturized automation processes.

Terray Therapeutics exemplifies a new wave of innovative companies harnessing artificial intelligence to revolutionize drug discovery and development. The key to their approach lies in generating vast amounts of high-quality experimental data to train their AI systems. This data-driven strategy enables rapid experimentation and pattern recognition, allowing the AI to make informed predictions about potential treatments. Terray's generative AI can digitally design drug molecules, which are then synthesized and tested in their high-speed automated laboratory. The platform measures the interaction between these molecules and target proteins, with both successful and unsuccessful results feeding back into the AI system.

This iterative process creates a powerful feedback loop, continuously refining the AI's predictive capabilities and accelerating the drug discovery process. Terray's tNova platform integrates chemical experimentation and computation at an unprecedented scale, producing massive amounts of precise, purpose-built data that becomes increasingly valuable with each cycle of design and experimentation. This unique blend of experimentation and computation allows Terray to efficiently explore a vast molecular space, potentially solving complex problems in drug discovery faster and more effectively than traditional methods.

🤝 Venture Deals

LA Companies

  • Fuze Technology, a provider of rentable portable phone chargers, has raised a $11.5M Series A led by Beverly Pacific and joined by Palm Tree Crew, Bain Capital Ventures Scout Fund, Dream Ventures, Live Nation, ASM Global, SCIENCE Ventures, Haslem Sports Group, and Simon Ventures. - learn more
  • Stanly, a platform that offers fan-to-fan and artist-to-fan communication and commerce, raised an $8M Funding Round led by C Capital and joined by AppWorks, Goodwater, and Palm Drive Capital. - learn more
  • GrayMatter, an industrial robotics company, raised a $45M Series B led by Wellington Management and joined by NGP Capital, Euclidean Capital, Advance Venture Partners, SQN Venture Partners, 3M Ventures, B Capital, Bow Capital, Calibrate Ventures, OCA Ventures, and Swift Ventures. - learn more

LA Venture Funds

LA Exits

  • Webtoon Entertainment, an online cartoon company based in LA carved out of South Korea's Naver, set IPO terms to 15m shares at $18-$21. It would have a $2.6b fully diluted market value, were it to price in the middle, and plans to list on the Nasdaq (WBTN). - learn more
  • EV maker Fisker has finally filed for bankruptcy. - learn more
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Sony Pictures Experiences Division Formed After Alamo Drafthouse Acquisition

Christian Hetrick

Christian Hetrick is dot.LA's Entertainment Tech Reporter. He was formerly a business reporter for the Philadelphia Inquirer and reported on New Jersey politics for the Observer and the Press of Atlantic City.

Sony Pictures Experiences Division Formed After Alamo Drafthouse Acquisition

🔦 Spotlight

Sony Pictures Entertainment has acquired Alamo Drafthouse Cinema in a groundbreaking deal that marks the first time in over 75 years a major Hollywood studio will own a movie theater chain. This acquisition signals a potential shift towards vertical integration in the film industry, with Sony gaining more control over the distribution and exhibition of its films.

The deal allows Sony to expand its presence in experiential entertainment, aligning with its vision of engaging audiences outside the home through unique offerings. Alamo Drafthouse's innovative dine-in movie experience, devoted fanbase, and curated programming like Fantastic Fest make it an appealing acquisition target. Sony stressed that Alamo will continue operating its 35 locations under CEO Michael Kustermann, who will head the new Sony Pictures Experiences division.

While the move provides financial backing for Alamo after its bankruptcy struggles, questions remain about whether the chain can maintain its independent spirit and personality under Sony's ownership. Alamo is renowned for creative programming like themed events, interactive screenings, and a strict no-talking policy that has cultivated a passionate community of moviegoers. Balancing this distinct identity with Sony's corporate interests will be a key challenge moving forward.

From a technological standpoint, this move opens up possibilities for Sony to enhance the moviegoing experience at Alamo Drafthouse locations through integration of advanced audiovisual systems, immersive technologies, and projection/sound solutions. In addition, Sony could create a more seamless and connected experience for moviegoers, such as through integrated ticketing platforms, mobile apps, and personalization driven by data analytics. While specific technological plans are not detailed, the combination of Sony's resources and Alamo Drafthouse's innovative approach could foster synergies and drive the development of new technologies to differentiate the theatrical experience further.

🤝 Venture Deals

LA Companies

  • Apex, a satellite bus maker, raised a $95M funding round co-led by XYZ VC and CRV joined by Upfront Ventures, 8VC, Toyota Ventures, Point72 Ventures and others. - learn more
  • Regard, a developer of AI tools to help medical providers synthesize patient data, raised a $30M Series B led by Oak HC/FT at a $350M valuation. - learn more
  • Daisy, a small business tech installation startup, raised an $11M Series A co-led by Goldcrest and Bungalow. - learn more
  • Pyte, a startup that allows companies in highly regulated industries like finance and healthcare to perform computations on encrypted data without ever decrypting it, raised a $5M Funding Round led by Myriad Venture Partners. - learn more

LA Venture Funds

LA Exits

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