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Kroger acknowledges that its bet on robotics went too far

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Re: Kroger acknowledges that its bet on robotics went too far

#191

Post by mikaoj85 »

karamanolev wrote: post #123

I work in this exact space (online grocery retailer in Europe). We're profitable and one of the few companies to be so in the sector - many online divisions are losing money and being bankrolled by the parent company with physical stores. Alternatively, burning VC money. The thing that's wrong with Ocado's technology is that it's ridiculously expensive and tailored for huge FC's (fulfillment centers). The problem wit…

> Ocado solves for scaling up, what needs to be solved is actually scaling down.

This has been solved by Pio (by AutoStore)

Re: Kroger acknowledges that its bet on robotics went too far

#192

Post by ryukoposting »

ssl-3 wrote: post #122
ZeWaka wrote: post #107

Earlier quoted context omitted.

Only other places I can think of is weed dispensaries and pharmacies. You could also count shoe stores and high-end jewelry and watch stores in that the clerk has to go in the back to fetch the non-display model.

Professional supply houses are usually that way, too. Graybar[1], for instance: There's a counter with bar stools, and behind that counter are people who know their inventory very well. I just walk in and tell them what I want. They write it all down on paper faster than I can say the words and then disappear into the back to fetch it while I help myself to a free ice cream sandwich from the freezer over on the right…

The instant I read the first sentence of your comment, I thought "McMaster-Carr but for food" might be the most appealing pitch for online grocery delivery I've ever heard.

...with the caveat that McMaster's facilities are staffed by people, not robots.

Re: Kroger acknowledges that its bet on robotics went too far

#193

Post by ErroneousBosh »

karamanolev wrote: post #123

I work in this exact space (online grocery retailer in Europe). We're profitable and one of the few companies to be so in the sector - many online divisions are losing money and being bankrolled by the parent company with physical stores. Alternatively, burning VC money. The thing that's wrong with Ocado's technology is that it's ridiculously expensive and tailored for huge FC's (fulfillment centers). The problem wit…

I see Ocado vans driving up to deliver on the Isle of Skye, which I guess must come from either Fort William or Inverness.

I can't imagine it's especially profitable to deliver a bag of food in a refrigerated van to somewhere that's nearly four hours driving each way.

Re: Kroger acknowledges that its bet on robotics went too far

#194

Post by NicoJuicy »

bitdivision wrote: post #135
NicoJuicy wrote: post #134

Earlier quoted context omitted.

They literally copied their supplier ( autostore ). Unfortunately, auto.ol shared secrets with them, Ocado abused that in court. Literally, Fuck Ocado. I wouldn't trust them.

Some context: https://archive.ph/Apfdv Autostore ended up paying Ocado? How did Ocado abuse them?

Because autostore shared trade secrets with Ocado. The lawsuit was found to be not valid.

Note: Ocado was a customer of Autostore in 2012 and just copied them. Sharing IP basically invalidated the lawsuit.

Re: Kroger acknowledges that its bet on robotics went too far

#195

Post by jon-wood »

karamanolev wrote: post #123

I work in this exact space (online grocery retailer in Europe). We're profitable and one of the few companies to be so in the sector - many online divisions are losing money and being bankrolled by the parent company with physical stores. Alternatively, burning VC money. The thing that's wrong with Ocado's technology is that it's ridiculously expensive and tailored for huge FC's (fulfillment centers). The problem wit…

I think there's a space for something in between Ocado and Uber Eats, in the 2010s I worked for a startup where you could book an Ocado style delivery slot for the next day from a bunch of different butchers, bakers, etc and then we'd send a van round to collect from all of them and deliver it to you. Annoyingly they ran out of money just a little bit too soon, I'm pretty sure if they'd managed to hold out until 2020 they'd have seen a huge increase in sales as everyone fully got on board with online delivery and been laughing.

I think the big win with that model vs Ocado is that scaling down is fine, you work with whatever shops are in the area and don't need to deal with building fulfilment centres. Maybe you need a car park somewhere to put the vans overnight. Scaling up is a case of moving into different areas, or onboarding new shops. Absolutely agreed that last mile is a nightmare but we mostly had it down I think, the biggest pain there was that we were relying on a bunch of third parties to pack an order, and if any of them got something wrong we ended up with an unhappy customer on the phone and needing to deal with it.

Re: Kroger acknowledges that its bet on robotics went too far

#196

Post by crazygringo »

simgt wrote: post #136
karamanolev wrote: post #123

I work in this exact space (online grocery retailer in Europe). We're profitable and one of the few companies to be so in the sector - many online divisions are losing money and being bankrolled by the parent company with physical stores. Alternatively, burning VC money. The thing that's wrong with Ocado's technology is that it's ridiculously expensive and tailored for huge FC's (fulfillment centers). The problem wit…

Where are you operating? I live in a dense European city and I don't know a single person who orders groceries online. Smallish shops with bike racks in front of the door are simply too convenient, seems hard to beat. Next few days shopping can easily be done in 15mn on the way back home.

I find online grocery shopping shines for heavy and bulky things that are a huge pain to schlep home otherwise, especially stuff that lasts a while.

All juices/waters/beers/wines, paper towels, lots of oranges/grapefruits, cleaning products like bleach/detergent, etc. When they carry them up to your fourth-floor door it's just so much easier.

The smallish shops are good for stuff you can then easily carry in a bag by hand -- meat, veg, cheese, fresh bread.

Re: Kroger acknowledges that its bet on robotics went too far

#197

Post by rolandog »

Dylan16807 wrote: post #62
Frye wrote: post #54

Earlier quoted context omitted.

Implying that Kroger announced that it would shut down its Florida operations shortly after losing the lawsuit with the cyclist. Nothing more. Here is the story https://www.facebook.com/100064532630592/posts/pfbid0DYoPXet...

I wasn't saying you implied anything. I was saying rolandog seemed to go beyond general cynicism about corporations to an unreasonable complaint. Looking at the details, I could say Kroger shouldn't have hired her but I'd rather say that if she was dangerous enough to not hire as a driver then her license shouldn't have been reinstated in the first place. (Though that's if "couldn’t recall if her driver’s license was…

Thanks for correcting me, I would've sworn this was about a truck with autopilot. So, if I'm understanding it correctly: although the driver was at fault, there were systematic failures in training personnel that would've prevented an unqualified driver from driving the truck?

Re: Kroger acknowledges that its bet on robotics went too far

#198

Post by bena »

taeric wrote: post #63
bena wrote: post #23

Earlier quoted context omitted.

The vast majority of the inventory is already on the sales floor. Also, the backstock is minimal. Stores are designed for turnaround.

Glad someone made this point. I'm curious how long people think most items in a grocery store last? Just consider the trucks you see stocking them on a daily basis. Typically it is bread and other high flow consumables, no?

Everything.

Retail stores are logistics. And part of that is product flow. There are trucks coming in every single day. When you buy an item at a store, that item is deducted from the store's inventory, when that item's stock reaches a certain threshold, an order is immediately placed to the distribution center, and that item is loaded onto a truck and could arrive as soon as that night.

There's no reason to keep anything "in the back" except for high demand items that aren't brought in by a vendor and overflow from items that didn't quite fill a shelf.

Re: Kroger acknowledges that its bet on robotics went too far

#199

Post by rimbo789 »

markus_zhang wrote: post #25

I had a wonderful retro futuristic dream about an automated Costco warehouse a few weeks ago. It was one of the less weird dreams so I still remember it clearly. Basically, each section is like a closed areas with some windows. Customers order at the computers by the windows and flash their membership cards. Robots glide left and right to move 10 samples to the customer, in an arm with rotating clips. Customers can p…

That sounds truly terrible.

Re: Kroger acknowledges that its bet on robotics went too far

#200

Post by rimbo789 »

skeptrune wrote: post #140

It's interesting that the problem had more to do with poor decision-making related to warehouse location than robotics limitations. The title is a red herring.

Isn’t that the same thing? Robots without good decision making and working business model are nothing
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