Key Takeaways
- Amazon is discontinuing its Just Walk Out technology in Amazon Fresh stores due to lack of customer interest.
- Micromart offers a micro-market solution featuring AI-driven refrigerated cabinets for quick food access.
- The micromarket industry in the US is valued at nearly $4 billion and expected to grow by 13% through 2030.
Change in Amazon’s Strategy
Earlier this month, Amazon announced it is phasing out its Just Walk Out technology from its Amazon Fresh grocery stores. The decision stems from the realization that shoppers do not prioritize skipping the checkout process in conventional grocery settings as much as Amazon had expected.
Despite this, consumers still desire efficient shopping experiences, particularly in settings like sports venues or during lunch breaks. As a result, Amazon will retain Just Walk Out technology in sports stadiums and Amazon Go convenience stores, targeting areas with high foot traffic.
Introducing Micromart
In response to the need for quicker food access, Micromart has emerged as a novel micro-market platform developed by a Toronto-based team, the creators of Kitchenmate. This platform employs AI-powered image recognition technology in autonomous refrigerated cabinets that can be placed in any location with minimal space and access to power.
Consumers can unlock these cabinets using their smartphones, select their items, and generate a receipt upon closing. An attached “smart cooker” allows customers to heat their meals, a unique feature highlighted by CEO Yang Yu.
Micromart’s inception was driven by challenges encountered while sourcing technology for unattended food sales. Initially focused on heating solutions, the team expanded to create a refrigerator system, leading to the development of a comprehensive commerce solution when existing technologies proved expensive and unreliable.
Addressing Market Gaps
The team identified a growing need for fresh and hot food alternatives as many office cafeterias close and are replaced with limited vending machines. Micromart aims to fill this gap as employees often reject typical vending machine selections, which lack variety and warmth.
Micromart’s offering includes not only refrigerated cabinets and heating solutions but also a SaaS model for inventory tracking, customizable digital signage, and a branded Shop consumer app. Pricing for a trio of cabinets starts at $19,000, plus additional transaction and monthly software fees.
Industry Landscape
While micromarkets are not new, with the US micromarket sector valued at almost $4 billion in 2022, many current solutions use basic technologies like RFID scanning. Furthermore, traditional setups, such as those found at airports, may require customers to self-checkout under supervision.
Micromart seeks to integrate the simplicity of older systems with cutting-edge Amazon Go-like technology, envisioning a versatile solution that can be deployed throughout North America. According to Yu, the Micromart cabinets can be installed anywhere with a standard electrical outlet.
The Micromart system is set to debut at the NAMA show in May, marking a significant step in advancing food accessibility solutions in various locations.
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