Amazon to License Cashierless Technology to Other Retailers

Amazon confirms it will license the cashierless technology it uses at its Amazon Go chain to other retailers.
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Amazon.com  (AMZN) - Get Report confirmed Monday that it would license the cashierless technology it uses at its Amazon Go chain to other companies.

The system, known as “Just Walk Out” in marketing materials, is powered by a system of cameras infused with software algorithms that track shoppers as they browse and charges them automatically once they leave the store.

The technology is currently used in about 25 Amazon Go convenience stores and a new Go Grocery store that opened in Seattle in February.

Dilip Kumar, a vice president at Amazon, declined to comment on pricing or potential customers in an interview with Reuters on Monday confirming the licensing on the technology.

CNBC reported that some interested potential clients include OTG’s CIBO Express airport concessions operator and Cineworld Group PLC’s Regal theater chain.

"Do customers like standing in lines?" Kumar asked, according to Reuters. "This has pretty broad applicability across store sizes, across industries, because it fundamentally tackles a problem of how do you get convenience in physical locations, especially when people are hard-pressed for time.”

Amazon already has its customers' financial information, so unlike at Amazon Go stores clients using this service will require shoppers to insert a credit card into a gated turnstile to enter, rather than scan an app.

Those turnstiles will then display the logo “Just Walk Out technology by Amazon,” but all other branding will be up to individual retailers using the service.

By some estimates, the market for cashierless retail technology could grow to $50 billion, according to U.S. venture firm Loup Ventures.

On Monday, TheStreet's Jim Cramer said Amazon was a good stock to weather the coronavirus storm that has the Dow Jones Industrial Average trading down 2,000 points on Monday.

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