Report: Cashierless Checkout Technology Provider Grabango Discontinues Operations

Cashierless checkout technology provider Grabango reportedly discontinued its operations after failing to secure funding.

The company had signed deals with grocers and convenience stores, including Aldi, Circle K, Giant Eagle and 7-Eleven, and was seen as one of Amazon’s top competitors in the cashierless checkout technology space, CNBC reported Wednesday (Oct. 9).

Grabango did not immediately reply to PYMNTS’ request for comment.

In a statement provided to CNBC on Wednesday, a Grabango spokesperson said: “Although the company established itself as a leader in checkout-free technology, it was not able to secure the funding it needed to continue providing service to its clients.”

Grabango was launched in 2016 and was founded by Will Glaser, who co-founded the music streaming service Pandora, according to the report.

The company raised $73 million, including $39 million in its largest funding round, which was held in June 2021, per the report.

Amazon scaled back its system designed to eliminate the need for traditional checkouts — its Just Walk Out technology — in April.

The company said that as it redesigns its Amazon Fresh stores, it is replacing Just Walk Out with its smart shopping cart, the Amazon Dash Cart.

“We’ve also heard from customers that while they enjoyed the benefit of skipping the checkout line with Just Walk Out, they also wanted the ability to easily find nearby products and meals, view their receipt as they shop, and know how much money they saved while shopping through the store,” Jessica Martin, Amazon spokesperson, said in a statement emailed to PYMNTS April 2.

“To deliver even more convenience to our customers, we’re rolling out Amazon Dash Cart, our smart shopping carts, which allows customers all these benefits including skipping the checkout line,” Martin added.

Grabango Chief Revenue Officer Andy Radlow told PYMNTS in an interview posted in March 2023 that autonomous technology would eventually replace all other forms of checkout, self-service or otherwise, because it prevents shrinkage while reducing the amount of work consumers have to do to check out.

“That human effort is removed, and the convenience of simply going to pay and exiting is a net benefit to both parties,” Radlow said.