AmazonGo Partnership Potencial

Byron was on paternity leave when I put my hand up in the office to write about the Amazon and Starbucks store tie-up. So here's another take on the news, with a slightly different angle.

As Byron mentions above, Amazon Go checkout technology will be used at the new venue. Amazon Go uses cameras and AI to keep track of what you are buying without the need for an actual checkout process. You just grab the goods and barge out of the store and the system detects your presence and charges your credit card, which you pre-loaded onto their app.

I don't know about you, but I consciously favour shops with easy parking and short till queues. Starbucks are hoping that the added convenience will attract more foot traffic.

As for Byron's comments that Starbucks will need fewer employees, I'll add that the US is currently going through a 'great resignation', where lots of people have been quitting, particularly in the food industry. Employers are finding it very tough to fill vacant job openings. So this could work for Starbucks, on multiple levels.

I wonder how many other companies will start to use Amazon's technology? If you're a retail chain, this type of shopping is the future. You can develop the technology in-house, but that is expensive, slow and you will probably end up with a worse product. Alternately, you can partner with Amazon. This sounds like a profitable future revenue stream for Amazon.

Read the press release here - Starbucks Pickup and Amazon Go Collaborate to Launch New Store Concept in New York City.