
Get in the KNOW
on LA Startups & Tech
XAmazon Unveils Cashier-less Supermarket of the Future — and L.A. Waits in Line

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."
Amazon's Dilip Kumar shows off some of the fresh vegetables in the produce section.
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.
- Amazon Workers To Take Part in Climate Change Protests - dot.LA ›
- Inside Amazon Fresh, Amazon's Ecommerce Grocery Store - dot.LA ›
- Amazon Employs More People in California than Anywhere Else - dot.LA ›
- Amazon Called Out for ‘Tremendous Inequity’ in Tax Revenue ›
- Amazon Is Opening Its First Clothing Store in Glendale - dot.LA ›
- Inside Amazon Style's New Flagship Store In Glendale - dot.LA ›
Rachel Uranga is dot.LA's Managing Editor, News. She is a former Mexico-based market correspondent at Reuters and has worked for several Southern California news outlets, including the Los Angeles Business Journal and the Los Angeles Daily News. She has covered everything from IPOs to immigration. Uranga is a graduate of the Columbia School of Journalism and California State University Northridge. A Los Angeles native, she lives with her husband, son and their felines.
Subscribe to our newsletter to catch every headline.
Activision Buys Game Studio Proletariat To Expand ‘World of Warcraft’ Staff
Samson Amore is a reporter for dot.LA. He previously covered technology and entertainment for TheWrap and reported on the SoCal startup scene for the Los Angeles Business Journal. Send tips or pitches to samsonamore@dot.la and find him on Twitter at @Samsonamore. Pronouns: he/him
Activision Blizzard intends to acquire Proletariat, a Boston-based game studio that developed the wizard-themed battle royale game “Spellbreak.”
VentureBeat first reported that the Santa Monica-based publisher was exploring a purchase, noting its ongoing mission to expand the staff working on Blizzard’s hit massively multiplayer online game “World of Warcraft,” which launched in 2004.
Proletariat’s team of roughly 100 people will be merged into Activision’s “World of Warcraft” team to work on its upcoming expansion game. Though there’s no release date as yet for the title, “World of Warcraft: Dragonflight” is expected to debut before the end of this year.
Activision did not immediately return a request for comment. Financial terms of the deal were not available.
This Proletariat deal is Activision's latest push to consolidate its family tree by folding its subsidiary companies in under the Blizzard banner. More than 15 years after it bought out New York-based game developer Vicarious Visions, Activision merged the business into its own last year, ensuring that the studio wouldn’t work on anything but Blizzard titles.
The deal could also have implications for workers at Activision who have looked to unionize. One subsidiary of Activision, Wisconsin-based Raven Software, cast a majority vote to establish its Game Workers Alliance—backed by the nationwide Communications Workers of America union—in May.
Until recently, Activision has remained largely anti-union in the face of its employees organizing—but it could soon not have much of a say in the matter once it finalizes its $69 billion sale to Microsoft, which said publicly it would maintain a “neutral approach” and wouldn’t stand in the way if more employees at Activision expressed interest in unionizing after the deal closes.
Each individual studio under the Activision umbrella would need to have a majority vote in favor of unionizing to join the GWA. Now, Proletariat’s workforce—which, somewhat ironically given its name, isn’t unionized—is another that could make such a decision leading up to the Microsoft deal’s expected closing in 2023.
Samson Amore is a reporter for dot.LA. He previously covered technology and entertainment for TheWrap and reported on the SoCal startup scene for the Los Angeles Business Journal. Send tips or pitches to samsonamore@dot.la and find him on Twitter at @Samsonamore. Pronouns: he/him
Snap Officially Launching ‘Snapchat Plus’ Subscription Tier
Kristin Snyder is an editorial intern for dot.la. She previously interned with Tiger Oak Media and led the arts section for UCLA's Daily Bruin.
Snap is officially launching Snapchat Plus, a paid subscription plan on Santa Monica-based social media company’s flagship app.
Snap is now the latest media company to tack a “plus” to the end of its name—announcing Wednesday that the new service will provide users with “exclusive, experimental and pre-release features” for the price of $3.99 a month. The first features available to paying subscribers include the ability to customize the style of app’s icon, pin a “BFF” to the top of their chat history and see which users have rewatched a story, according to The Verge.
The new product arrives after Snap confirmed reports earlier this month that it was testing Snapchat Plus—though the version that it has rolled out does not incorporate the rumored feature that would allow subscribers to view a friend’s whereabouts over the previous 24 hours.
Snapchat Plus will initially be available to users in the U.S., Canada, U.K., France, Germany, Australia, New Zealand, Saudi Arabia and the United Arab Emirates. While certain features will remain exclusive to Plus users, others will eventually be released across Snapchat’s entire user base, Snap senior vice president of product Jacob Andreou told The Verge. (Disclosure: Snap is an investor in dot.LA.)
The subscription tier introduces a new potential revenue stream for Snap, which experienced a “challenging” first quarter marked by disruptions to its core digital advertising market. However, Andreou told The Verge that the product is not expected to be a “material new revenue source” for the company. He also disputed that Snap was responding to its recent economic headwinds, noting that Snap had been exploring a paid offering since 2016.
Despite charging users, Snapchat Plus does not include the option to turn off ads. “Ads are going to be at the core of our business model for the long term,” Andreou said.
Snap is not the first popular social media platform to venture into subscriptions: Both Twitter and Tumblr rolled out paid tiers last year, albeit with mixedresults.Kristin Snyder is an editorial intern for dot.la. She previously interned with Tiger Oak Media and led the arts section for UCLA's Daily Bruin.
Bling Capital’s Kyle Lui On How Small Funds Can Better Support Young Founders
On this episode of the LA Venture podcast, Bling Capital’s Kyle Lui talks about why he moved earlier stage in his investing and how investors can best support founders.
Lui joined his friend—and first angel investor—Ben Ling as a general partner at Bling Capital, which focuses on pre-seed and seed-stage funding rounds. The desire to work in earlier funding stages alongside someone he knew well drew him away from his role as a partner at multi-billion-dollar venture firm DCM, where he was part of the team that invested in Musical.ly, now known as TikTok.
Bling primarily focuses on entrepreneurs looking to raise around $1 million to $3 million who are often early in their careers as founders. Lui said Bling evaluates companies on characteristics that go beyond whether they like the founder or feel that the market looks good. Instead, he said they take a hard look at the available company data, and quickly respond.
“And we send it back to them and say, ‘Okay, this is what's working, what's not working’,” Lui said. “And then create the playbook for them on how to find product market fit and get to like, ‘These are the milestones you actually need to hit’.”
When considering companies, Lui said Bling looks at the founder, the market, the company’s current traction and differentiation while asking the founder the questions they would expect to get at Series A and Series B funding rounds.
“One thing that I really admire about what [Ling’s] built with Bling is the consistency and the processes and playbooks— everything from the way that we evaluate deals to the way that we work with our portfolio companies,” Lui said. “Everything is kind of around playbooks and operationalizing things and also iterating to do those processes better.”
As part of its work to support founders, Bling maintains an extensive product council, which connects tech executives with the founders in Bling’s portfolio. Bling also has created numerous self-serve resources for founders so they can easily tap into the fund’s network and shared knowledge.
“We have a bunch of playbooks that we introduce to companies around how to hire efficiently, how to negotiate with counterparties, how to think about the founding team, business development…We just have these different things that we start to train our entrepreneurs on,” Lui said.
dot.LA Editorial Intern Kristin Snyder contributed to this post.
Click the link above to hear the full episode, and subscribe to LA Venture on Apple Podcasts, Stitcher, Spotify or wherever you get your podcasts.