Friday, October 14, 2022

💳 Our cashierless future

Plus: The Genesis GV60 EV | Friday, October 14, 2022
 
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Axios What's Next
By Jennifer A. Kingson, Joann Muller and Alex Fitzpatrick · Oct 14, 2022

Retailers are doubling down on high-tech self-checkout systems, Jennifer reports today — even if some shoppers loathe them.

Today's newsletter is 1,161 words ... 4½ minutes.

 
 
1 big thing: Goodbye, cashiers. Hello, AI
Illustration of a cash register dissolving in blocks until nothing remains

Illustration: Natalie Peeples/Axios

 

Walk into a store, take what you want, and leave without pulling out your wallet or standing in line — that's the vision for next-generation checkout, Jennifer A. Kingson reports.

Why it matters: Huge sums are being spent on so-called frictionless checkout, which eliminates both human cashiers and those pesky do-it-yourself scanners.

  • Sophisticated artificial intelligence (AI) systems, now rolling out in supermarkets and convenience stores, rely on cameras and sensors to monitor what you pick up.
  • They'll test our tolerance for a big-brotherish shopping experience — one that sends us more ads and "personalized recommendations" based on the Mallomars and Diet Cokes we bought.

Driving the news: Giant retailers are experimenting with advanced checkout systems meant to reduce our time waiting in line and scanning items.

  • Amazon's "Just Walk Out" (JWO) technology lets you enter a turnstile-protected store and get billed for the items you leave with.
  • Grabango has a competing system, but without entrance gates — customers pay at an exit kiosk.
  • Zippin's system involves tapping a payment card at an entrance turnstile.

A different paradigm employs a "smart" shopping cart that keeps a running tally of your purchases on a touchscreen upfront.

  • Albertsons is testing such a system with a vendor called Veeve.

What they're saying: "Checkout lines are one of the biggest bottlenecks in modern retail," Krishna Motukuri, CEO and co-founder of Zippin, tells Axios.

  • "The newer model is entirely checkout free — the customer doesn't have to do any extra work. That is essentially the game-changer here."
The Veeve shopping cart can weigh produce and keep track of what shoppers put in it. Photo courtesy of Veeve

Where it stands: Systems that rely on consumers to scan-and-pay are notoriously balky and unpopular — yet increasingly ubiquitous, as retailers seek to cut costs.

  • Today's familiar self-checkout machines "are expensive to install, often break down and can lead to customers purchasing fewer items," CNN reports.
  • They also seem to encourage shoplifting — so much so that Wegmans recently scrapped its app-based system due to loss. (Walmart had a similar experience.)

How it works: Next-gen systems use cameras and sensors in ceilings and shelves to follow you as you shop and keep tabs on what you select (and put back).

  • "We track people throughout the store like dots on a map," says Motukuri of Zippin.
  • "The only way the dot is linked to a physical human is through the payment card," he said. "We don't use biometrics, so there's no way to tell who you are."

Another system — Grabango — doesn't rely on entrance turnstiles, but lets shoppers walk in freely and pay as they exit.

Yes, but: A "mystery shop" of four JWO stores found shoppers were confused about how it works and had "a preference towards registers manned by cashiers," per a report by Alvarez & Marsal, a retail consulting firm.

  • A "Saturday Night Live" spoof of Just Walk Out tech highlighted skepticism among Black consumers, who are too often accused of shoplifting.

The bottom line: We already live with Siri, Alexa, the Ring doorbell and other "ambient computing" devices. Retail shopping looks like the next frontier.

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2. What we're driving: The Genesis GV60 EV
The tiny fingerprint reader (top) and the crystal ball that flips upside down to become a gear shifter on the GV60.

The tiny fingerprint reader (top) and the crystal ball that flips upside down to become a gear shifter are some of the ways Genesis is setting its new electric GV60 apart from other plug-in SUVs. Photo courtesy of Genesis

 

If you're prone to losing your car keys, don't fret: You won't need them to drive the new Genesis GV60 electric SUV. All it takes is your face — and your finger, Joann Muller reports.

Why it matters: The same biometric technology that unlocks your iPhone is now available in a car, meaning you can leave the key fob at home.

Details: Instead of a traditional wireless key fob or Bluetooth-enabled phone-as-a-key, the GV60 uses facial recognition and a fingerprint reader to unlock and start the vehicle.

It's simple to set up and takes less than five minutes.

  • From the driver's seat, I used the touchscreen to create a new user profile and was then asked if I wanted to add my biometric data.
  • Choosing "yes," I was prompted to step out of the vehicle and stand in front of a tiny camera on the pillar between the front and rear doors. The illuminated circle showed me it was working.
  • I got back in the car and placed my right pointer finger on another circle on the center console, rolling it around until it captured my entire fingerprint. It was identical to the process of setting up fingerprint ID on my iPhone.

I was a bit nervous the first time I left home without the key fob, but the system worked as designed.

  • I had to remember to pause, touch the door handle and look at the camera circle each time I wanted to unlock the car, and it took a few tries to get the knack of using the fingerprint reader.

Read the rest.

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3. Why your boss can't quit you
Data: FRED, BLS; Chart: Simran Parwani/Axios

Companies might have learned a lesson from the mass firings of early 2020: Think twice before laying people off, Axios' Emily Peck reports.

Why it matters: That's one increasingly popular explanation for today's historically low levels of layoffs and unemployment.

  • The popular term for the theory is "labor hoarding," and economists and finance writers started speculating about it in the summer.
  • "[Companies are] definitely hanging on to workers for dear life just because they're so scarce," Julia Pollak, chief economist at ZipRecruiter, told the New York Times.

The big picture: Workers aren't as abundant and expendable as they once were.

  • Relevant demographic shifts were underway even before the pandemic — boomers were aging out of the workforce and immigration was declining, for instance.
  • The pandemic accelerated those shifts. Some workers retired earlier than planned; others became sick and disabled.
  • Meanwhile, companies didn't help matters by laying off an extraordinary 22 million people over just two months.

Yes, but: Employers had a hard time rehiring and retraining in the super-fast economic recovery; many are still short workers. So it's possible they're not really hoarding yet — just trying to get back to equilibrium.

Read the rest.

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A message from Enbridge

Building bridges and progress together
 
 

Economic equity, jobs, education and environmental stewardship are a few ways Enbridge is working with Indigenous peoples on the energy transition.

Why it's important: We can go further together.

Read more about our Indigenous Reconciliation Action Plan.

 
 
4. 📸 Mount Recyclemore
The head of Mario Draghi is removed from the sculpture at The Eden Project on October 13, 2022 in Par, England.

Photo: Hugh Hastings/Getty Images

 

A statue of Italian Prime Minister Mario Draghi was removed Thursday from a sculpture depicting world leaders made of electronic waste in Par, England.

  • The sculpture, called "Mount Recyclemore," was made by U.K. performance arts group Mutoid Waste Company to raise awareness about e-waste.

By the numbers: The world generated nearly 60 million tons of e-waste in 2019, per the 2020 Global E-waste Monitor, up 21% in five years.

Oct. 14 is International E-Waste Day, which aims to help people learn how to responsibly recycle their tech.

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5. One fun thing: Sure beats Disney
A SpaceX Starship.

A SpaceX Starship. Photo courtesy of SpaceX

 

The first-ever space tourist has scored another trip off-world — and this time he's going around the Moon with SpaceX, Axios' Miriam Kramer reports.

Why it matters: These types of private missions allow SpaceX to test the tech necessary to reach Mars and beyond.

What's happening: Dennis Tito, 82, and his wife Akiko Tito will circle the Moon with 10 other, yet-to-be-named crewmembers on the third crewed flight of SpaceX's Starship spacecraft.

Backstory: Dennis Tito became the world's first self-funded space tourist in 2001, when he visited the International Space Station.

What to watch: Starship has yet to fly to orbit, but orbital tests are expected in the coming months.

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A message from Enbridge

Understanding the past helps us embrace the future
 
 

We believe business can play a critical role in advancing Indigenous reconciliation.

  • Acknowledging the truth and learning from Indigenous history paves the way for reconciliation and a more equitable tomorrow.

Learn more about Enbridge's journey and commitment to building a better future.

 

A hearty thanks to What's Next copy editor Amy Stern.

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