Goodbye checkout lines: Kraft Heinz leads US$12m funding round for cashier-free platform start-up
19 Dec 2019 --- Zippin, a start-up enabling cashierless checkout for in-store retail, has closed a US$12 million Series A funding round led by Evolv Ventures, a venture fund backed by Kraft Heinz. The US-based start-up uses computer vision, artificial intelligence (AI) and sensor fusion technology to offer shoppers a completely checkout-free shopping experience. For global consumer packaged goods companies like Kraft Heinz, the emergence of this new retail paradigm presents an opportunity to get closer to the end consumer, provide a superior shopping experience and build a better, data-driven understanding of shoppers’ behaviors and preferences.
“E-commerce sales are growing over five times faster than in-store sales of the same product for many categories, signaling consumers growing comfort with the convenience and customer experience that online shopping offers. This funding comes at an interesting inflection point for the food industry. It is a time where consumer preferences are truly shifting towards both convenience and quality, as well as a time when emerging technology may just be far enough ahead to tailor to those preferences in a dramatic way,” Smriti Jayaraman, Principal at Evolv Ventures, tells FoodIngredientsFirst.
“Zippin's technology already powers several stores globally,” Jayaraman affirms.With US shoppers spending an average of 118 hours annually waiting in line, consumers are actively pursuing not only high quality, but more importantly, convenience-oriented shopping experiences. When shoppers enter a store using Zippin technology, they scan their Zippin apps on their phones through a security gate, take what they want to buy and leave, with the checkout receipt appearing on the app later.
Zippin’s innovative technology provides a frictionless shopping experience, the company states. Its proprietary approach combines vision cognition technology with machine learning to accurately account for shopper behavior and product whereabouts in-store. Zippin combines inputs from overhead cameras with product tracking – using smart shelf sensors – for the highest level of accuracy, even in a crowded store.
As brands and retailers explore ways to adapt to consumer-driven change, they are increasingly prepared to invest in more incremental technologies, Jayaraman continues. “In the US alone, food and beverage retailers across formats is a trillion-dollar industry and there are a lot of opportunities to be captured by various parts of the ecosystem.” The Series A funding is set to support Zippin in launching new stores in the coming months, ranging from grocery and convenience chains to sports facilities and airports.
Consumer-facing functionalities
Zippin’s checkout-free platform model provides more than just a convenient shopping experience. In its pilot facilities, the company noted increased sales due to improved customer experiences, as staff can focus more on individual customer service. Retailers can also save on store operating costs, given they do not need to dedicate human resources and expensive real estate to checkout.
Computer sensors monitor where customers are in the store.In terms of data collection, Zippin’s AI technology can provide retailers with detailed analytics of how much time customers spent looking at a product, whether a shopper looked at marketing signage, and which products were picked up or put back, the company explains.
The technology powering this shopping model may sound complex. However, Jayaraman affirms that the key to Zippin’s ability to launch stores has been a ruthless focus on the kind of accuracy and consumer experience that users demand. The company ensures that installation is typically straightforward and without onerous requirements on store owners. Moreover, Zippin works with existing store formats, shelving and coolers, as well as standard power supply and internet connections, to ensure a smooth transition to the new shopping format.
“It’s possible that these early-onset venues provide the AI with enough data to catapult its performance and make it absolutely viable if not perfectly suited for any mainstream retail channel. Either way, the opportunity in this space can be massive,” Jayaraman envisions.
By Anni Schleicher
