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Two Ex-Googlers Want To Make Bodegas And Mom-And-Pop Corner Stores Obsolete (fastcompany.com)

Elizabeth Segran, writing for FastCompany: While it sometimes feels like we do all of our shopping on the internet, government data shows that actually less than 10% of all retail transactions happen online. In a world where we get our groceries delivered in just two hours through Instacart or Amazon Fresh, the humble corner store -- or bodega, as they are known in New York and Los Angeles -- still performs a valuable function. No matter how organized you are, you're bound to run out of milk or diapers in the middle of the night and need to make a quick visit to your neighborhood retailer. Paul McDonald, who spent 13 years as a product manager at Google, wants to make this corner store a thing of the past. Today, he is launching a new concept called Bodega with his cofounder Ashwath Rajan, another Google veteran. Bodega sets up five-foot-wide pantry boxes filled with non-perishable items you might pick up at a convenience store. An app will allow you to unlock the box and cameras powered with computer vision will register what you've picked up, automatically charging your credit card. The entire process happens without a person actually manning the "store." Bodega's logo is a cat, a nod to the popular bodega cat meme on social media -- although if the duo gets their way, real felines won't have brick-and-mortar shops to saunter around and take naps in much longer. "The vision here is much bigger than the box itself," McDonald says. "Eventually, centralized shopping locations won't be necessary, because there will be 100,000 Bodegas spread out, with one always 100 feet away from you."

48 of 342 comments (clear)

  1. OMFG! by jcr · · Score: 5, Insightful

    They've invented the Vending Machine! Stop the presses! This will change the world!

    -jcr

    --
    The only title of honor that a tyrant can grant is "Enemy of the State."
    1. Re:OMFG! by jcr · · Score: 2

      Oh, for fuck's sake. They got VCs to back this, too. Looks like it's bubble time again.

      Hey, Josh Kopelman at First Round Capital, Kirsten Green at Forerunner Ventures, and Hunter Walk at Homebrew: you suck at your jobs.

      -jcr

      --
      The only title of honor that a tyrant can grant is "Enemy of the State."
    2. Re:OMFG! by Anonymous Coward · · Score: 2, Interesting

      Yeah, so if the closest "bodega" doesn't have what you're looking for, I'm sure the app will tell you the closest one is 15 blocks away. This will flop. People want to go into a store and talk to someone. I love my dirty, shitty little hole in the wall convenience stores (we don't call them bodegas on the West coast). They also keep a lot of people employed across the nation. This will eliminate a ton of jobs, make a couple people very rich and only create a few new jobs for those who are stocking the machines, that is until the automate that too.

      Nice idea, but it won't get very far. Look at Japan, they have vending machines for all kinds of shit, but they still have the cramped shitty little bodega type shops too. The stores manned by a person are not going away anytime soon.

    3. Re:OMFG! by JohnFen · · Score: 2

      It's been bubble time for a while now, but let's count how many people are going to be surprised when the bubble inevitably pops.

      The venture won't see that, though -- my prediction it's an obviously dumb idea that will go exactly nowhere. In the meantime, I'll extract maximum laughter out of it.

    4. Re:OMFG! by phantomfive · · Score: 5, Insightful

      If it doesn't sell alcohol and cigarettes, it's not going to replace the corner store.

      Also, I've known too many "ex-Googlers" to see that as an endorsement.

      --
      "First they came for the slanderers and i said nothing."
    5. Re:OMFG! by XxtraLarGe · · Score: 2

      They've invented the Vending Machine!

      Actually, they've managed to make something less useful than a vending machine.If they'd figured out a way to make vending machines more useful, that would have been news. This is mostly a story of how venture capitalists are blowing their money on dumb ideas.

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    6. Re: OMFG! by MichaelJ · · Score: 4, Insightful

      And lottery tickets!

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      Michael J.
      Root, God, what is difference?
    7. Re:OMFG! by snookiex · · Score: 4, Funny

      You clearly know nothing about "disruptive innovation". And even less about hipsters.

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    8. Re:OMFG! by slashrio · · Score: 4, Funny

      No, it's a RoBodega.

      --
      "Trump!!", the new Godwin.
    9. Re:OMFG! by Albanach · · Score: 2

      And not even a very good one:

      From the summary: "No matter how organized you are, you're bound to run out of milk... Bodega sets up five-foot-wide pantry boxes filled with non-perishable items"

      These tech geniuses haven't even mastered refrigeration so they can stock the very stuff folk need. If it's non perishable, I'm less likely to run out of it (because I can keep more of it in the pantry) and there's a good chance I can wait two days for Amazon to deliver.

      This reminds me of the US supermarkets that have tried to allow online shopping but don't allow you to buy anything that needs to be refrigerated or frozen and still want you to drive to their location to pick up your order. It's more expensive and less convenient that just buying the stuff yourself.

  2. Killing mom-and-pop stores? This infuriates me! by Mr.+Neutron · · Score: 3, Funny

    That's what Millennials are for.

    --
    dinner: it's what's for beer
  3. And you wonder why Google loves a "living wage" by CajunArson · · Score: 2, Insightful

    See, Google execs get to prance around all high and mighty about how much they 'care' about workers by pushing for a $15/hour (or make that $30/hour after they get their way with $15) minimum wage.

    It's a great way to point guns at the heads of their competitors to make it easier to drive them out of business with their new "startup" ideas.

    --
    AntiFA: An abbreviation for Anti First Amendment.
  4. what about stuff by law can't be self checkout by Joe_Dragon · · Score: 4, Interesting

    what about stuff by law can't be self checkout like beer and smokes? also WIC and food stamps?

    1. Re:what about stuff by law can't be self checkout by Kierthos · · Score: 5, Interesting

      Exactly. This is one of those ideas that "looks good on paper" and is certainly designed to attract venture capitalists, but will really fall flat for a number of reasons.

      As you mentioned, they won't be able to sell any forms of alcohol or tobacco through these cabinets. They also probably won't be able to sell any types of lottery tickets.

      They almost certainly won't have any sort of products that require freezing or refrigeration, as that significantly ups the power requirements and size of the unit.

      Forget any fresh produce, or anything with a very limited shelf life. Or freshly made sandwiches.

      So, already they're not replacing a lot of things that people go to bodegas for.

      Now, and it's possible they've already thought about this, but what's their "return" policy? You see, at an actual bodega (or any store, for that matter), I could be shopping, and put something in my cart, and then decide "Nah, I really don't need this." and put it back on the shelf.

      What happens when you do that here? Do you confirm your purchases? What do they have in place for loss prevention (i.e. the five-finger discount)?

      What do they have in place for if someone accidentally knocks something off the shelf when reaching in for something else? Are you charged for that?

      What do they have in place for requesting products that aren't in the cabinet at all? How easily can that be manipulated to, say, have every cabinet stock up on products that won't sell, because someone decided to troll their request service? (Even assuming that they have something like that set up.)

      --
      Mr. Hu is not a ninja.
    2. Re:what about stuff by law can't be self checkout by Hognoxious · · Score: 4, Interesting

      What if someone takes a dump in the box?

      --
      Confucius say, "Find worm in apple - bad. Find half a worm - worse."
    3. Re:what about stuff by law can't be self checkout by Kierthos · · Score: 2

      Yeah, but that's the question.

      Okay, I go up to this cabinet, use the app to unlock it so I can buy something. (Side note: presumably the cabinet door contains an automatic relocking system after so many second have passed.)

      I get a box of Cheese Nips. As I take it out of the cabinet, it passes by the cameras in the cabinet and I am charged accordingly. But then, I notice that they have uh... Wheat Thins. I want those instead.

      I put the Cheese Nips back in the cabinet. Do the cameras register that as putting it back in the cabinet and refund the sale? Or is the software dumb enough to think that I just took another box of Cheese Nips out? Or neither of those?

      What if I'm reaching for the box of Cheese Nips and some jerk behind me reaches out and grabs something and runs? I'm going to get charged for that. What's the resolution process for that?

      How are the cameras arranged? Can you use a "blind spot" to get free stuff? Can you use one product to block the view of another product so you get that second product for free?

      --
      Mr. Hu is not a ninja.
  5. Aaaaand .. they're already pissing people off by OzPeter · · Score: 4, Informative

    From http://money.cnn.com/2017/09/1...

    A new startup called Bodega launched Wednesday and has already apologized in the face of mounting outrage.
    Folks weren't happy that Bodega appeared to be taking aim at mom-and-pop shops run by hardworking immigrants, while simultaneously misappropriating immigrant culture and celebrating gentrification.
    "Despite our best intentions and our admiration for traditional bodegas, we clearly hit a nerve this morning," Bodega wrote in a Medium post. "And we apologize to anyone we've offended. Rather than disrespect to traditional corner stores -- or worse yet, a threat -- we intended only admiration."

    And https://blog.bodega.ai/so-abou...

    Yes, clearly. The name Bodega sparked a wave of criticism on social media far beyond what we ever imagined. When we first came up with the idea to call the company Bodega we recognized that there was a risk of it being interpreted as misappropriation. We did some homework—speaking to New Yorkers, branding people, and even running some survey work asking about the name and any potential offense it might cause. But it’s clear that we may not have been asking the right questions of the right people.

    Way to go there!

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    1. Re:Aaaaand .. they're already pissing people off by jcr · · Score: 5, Insightful

      Meh. I couldn't care less if they piss off a pack of SJWs with the name, I'm just disgusted that they could get funding for such trivial shit.

      -jcr

      --
      The only title of honor that a tyrant can grant is "Enemy of the State."
    2. Re:Aaaaand .. they're already pissing people off by will_die · · Score: 2

      So gas stations and convenient stores are considered immigrant culture?

    3. Re:Aaaaand .. they're already pissing people off by HornWumpus · · Score: 2, Funny

      It's implied right in the name: 'Slurpee Indians' (vs. Casino Indians).

      --
      John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
    4. Re:Aaaaand .. they're already pissing people off by JohnFen · · Score: 2

      Holy shit, that blog post is hilarious in its cluelessness!

      When we first came up with the idea to call the company Bodega we recognized that there was a risk of it being interpreted as misappropriation.

      And yet, they went with the name despite instinctively knowing it was a terrible idea.

      We did some homework—speaking to New Yorkers, branding people, and even running some survey work asking about the name and any potential offense it might cause.

      Unless your target market is limited to New York, speaking to New Yorkers tells you nearly nothing. Speaking to branding people can be a helpful, but only if you've hired them to actually conduct a real study.

      In other words, they didn't do their homework.

    5. Re:Aaaaand .. they're already pissing people off by Chris+Mattern · · Score: 2

      McDonald's disrepects Scottish people!

    6. Re:Aaaaand .. they're already pissing people off by hey! · · Score: 2

      You know, this is one of the reasons you have market research and focus groups: so you don't do things and use messaging that reveals the world what an ignorant asshole you are.

      It's not a job for amateurs. You need a professional asshole.

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    7. Re:Aaaaand .. they're already pissing people off by Nidi62 · · Score: 3, Funny

      How about McDowell's? Free sample size of Soul-Glo with every combo purchase!

      --
      The only thing necessary for evil to triumph is for it to be pitted against a slightly greater evil
    8. Re:Aaaaand .. they're already pissing people off by Oswald+McWeany · · Score: 5, Insightful

      I'm a big opponent of racism. I am all for equal opportunities and reforming society.

      This whole concept of "cultural appropriation" is just ridiculous though. Culture and ideas have always been passed from one culture to another throughout history and that's a good thing.

      When one culture does something good that others want to copy, that's a good thing. Sure, something like wearing cornrows in your hair may not necessarily advance society, but there have been times when certain cultural aspects have. Whether it's more practical clothing passed from one culture to another, or Native Americans passing harvesting and agricultural ideas on to colonists, stirrups making their way down from the steppe, the list is endless.

      If we strictly enforce the "cultural appropriation is bad" angle, immigrants shouldn't try to fit into their new country because that is appropriating the culture of their hosts. They should keep to their own kind, their own traditions, language, etc, and isolate themselves.

      This is all ludicrous! If I like Indian food, I don't see why I shouldn't have a curry. If I like big hair, I would grow an afro. Heck, I may wear a mandarin collar, or walk around wearing tennis shoes with jeans like an American. I like and appreciate many things from many cultures, it shouldn't be frowned upon me showing appreciation for them.

      This whole "cultural appropriation is bad" movement is really counter-productive and stupid.

      --
      "That's the way to do it" - Punch
    9. Re:Aaaaand .. they're already pissing people off by sexconker · · Score: 5, Insightful

      Misappropriation? What, are they cheating on their taxes?

      The SJW term they want is "cultural appropriation", as in, "STOP APPROPRIATING MY CULTURE!". Which is an entirely bullshit concept. Should the Germans raise hell about cultural appropriation every time a non German has a Christmas tree? Should Mexicans not serve/sell Mexican food to non Mexicans? Cultural appropriation is what this country of immigrants is all about. Do you want to ban all "X-Y-fusion" cuisine? Cut off the weebs from their anime? (Or cut off the Japanese from their anime because they "appropriated" US comics % Donald Duck to create it?)

      Why do the SJWs love to remind us that we're ALL immigrants, but now seem to hate when anyone shares, adopts, or is influenced by other cultures? Do they want us all living in different enclaves, hating each other? (Yes, they do. Decades ago the official metaphor was a melting pot. Now it's a stew. Because in a melting pot, you lose the "identity" of individual ingredients as they blend.)

      The earliest modern claim of "cultural appropriation" I can remember is people saying whites stole music (like jazz) from blacks to make their own (like rock and roll). WTF kind of sense does that make? At least save such criticisms for when it actually makes sense, like the 80s and 90s miasma of white suburbanites pretending to be urban blacks. But hey, I guess a bunch of MTV execs made tons of money off of it, so it gets a pass?

      People are right to hate on this "Bodega" startup. Not because it poses a threat to small businesses. Not because it's appropriating culture. But because it'll be a shitty, manufactured, mockery of a small market.

    10. Re:Aaaaand .. they're already pissing people off by jcr · · Score: 4, Insightful

      This whole concept of "cultural appropriation" is just ridiculous though.

      Of course it is. Culture isn't property; it can't be "appropriated".

      The term is just the latest pretext for the Perpetually Offended to bitch at people.

      -jcr

      --
      The only title of honor that a tyrant can grant is "Enemy of the State."
    11. Re:Aaaaand .. they're already pissing people off by DNS-and-BIND · · Score: 2

      When the west borrows from other cultures, it is cultural appropriation.

      When other cultures borrow from the west, it is cultural imperialism.

      --
      Shutting down free speech with violence isn't fighting fascism. It IS fascism!
  6. In Soviet Russia by that+this+is+not+und · · Score: 2

    Mom and Pop Corner Stores want to make Google obsolete.

    It won't be that hard. A little recession could do the job easily.

  7. Hotels and offices already have this by enjar · · Score: 2

    Aside from the apt "vending machine" comparison being made, I've also seen similar things at hotels I've stayed at, usually adjacent to the lobby where it can be monitored by hotel staff -- but the charging mechanism is via room key. Snacks, toiletries, drinks, etc. Prices are less than minibar and more similar to "convenient store". We also have a similar system for buying snacks at work -- you pick up the snack you want, take it to a kiosk and scan it. This gives a wider selection of stuff, which could be changed up as needed/desired, and the buying area is monitored with cameras. Probably wouldn't work in an "open to the public" setting without a lot better security, but for an office setting we get much better snack selection vs. vending machine. We also have vending machines around that work with Android/Apple Pay -- no app required. Of course, there are the fabled Japanese vending machines, which legend says sell just about anything you can imagine. Then there are the similar machines at airports ... so yeah, a more crowded space for something that's already been invented many times, and one whose implementation details have already been worked out elsewhere by other firms who are doing essentially the same thing one way or another.

    1. Re:Hotels and offices already have this by enjar · · Score: 2, Insightful

      What I was getting at was that whatever company is offering this to the hotel and office market already has a lot of the issues figured out. Expanding their business to other "supervised" locations like health clubs or certain apartment buildings is a "one step away" kind of thing. The article specifically mentions this type of environment. Traditional vending machines and even these automated kiosks already have figured out billing, suppliers, stocking, inventory control, supply, contracts, legal, hiring, payroll and the umpteen other tiny details that actually make a thing like this work. Same for a company that runs vending machines -- maybe they haven't thought of this kind of thing but they can just as easily approach a property manager and ask to put up a vending machine with non-perishables instead of candy or chips, and given that modern vending machines can handle phone payments, they could put in higher priced items. I've seen airport vending machines selling pricey Bose headsets and iPods, so figuring out how to securely vend something more than $2 is already well figured out

      Sure, existing solutions lacking that "OMG DISRUPTIVE INNOVATION" thing, but honestly, this space is largely figured out one way or another. Also, the FC article mentions that people use convenient stores for milk ... but this doesn't address that, while there are plenty of vending machines that allow not only cold drinks but also frozen things like ice cream. We have had ice cream in a vending machine onsite for a very long time

      I do concur that this will not take the place of the "corner bodega", either. We don't have those where I live, but their moral equivalent is likely the corner drug store or gas station, both of which have far more selection and/or some other reason people stop by -- to get gas or pick up prescriptions. Those reasons to stop aren't going away anytime soon. EVs aren't that prevalent yet, and usually people want to get a prescription really quickly or combine it with other things, like grocery shopping

  8. As long as they're willing to add a bathroom too by Dripdry · · Score: 3, Funny

    Since bodegas are for peemergencies AND convenience items, I assume they'll add toilets too (or else their little "ventures" will become a convenient receptacle for that anyway).

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    -
  9. What's that again? by 93+Escort+Wagon · · Score: 3, Insightful

    "In a world where we get our groceries delivered in just two hours through Instacart or Amazon Fresh, ..."

    What world is he speaking about? It doesn't sound like this one...

    --
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    1. Re:What's that again? by Comboman · · Score: 4, Insightful

      Silicon Valley. The rest of the world does not exist to these people.

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      Support Right To Repair Legislation.
  10. Big Data by Comboman · · Score: 4, Insightful

    so why do I need a phone + data plan to use a vending system??

    So they can track your spending habits and sell it to Big Data. Mostly-cash businesses like bodegas are one of the last untracked businesses.

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  11. Re:so why do I need a phone + data plan to vending by JohnFen · · Score: 2

    Yes, there's exactly zero chance that I'll use a vending machine that requires me to use an app or that won't take cash.

    But I'm sure there are plenty of people who would.

  12. What a dumb idea by Rick+Schumann · · Score: 4, Insightful

    Have these people ever been in a convenience store, or do they have such horribly crippling social anxiety disorder that they never go outside where there might be (shocking!!!) PEOPLE they would have to interact with?

    I'll fill in the gaps for them: There is an order of magnitude, at least more items available in the typical convenience store than their vending machine (and that's what it is, a vending machine!) can hold -- and all that includes refrigerated and frozen items. All they're doing is re-inventing the vending machine. This is not revolutionary, this is not ground-breaking, this is not innovative in any way, and this is one of the most clueless things I've heard of. There will always be a need for 'mom and pop' convenience stores, and 7-11, and what-have-you. Do they really think that they're going to put all of these out of business? Do they really think they're going to convince every gas station in the country (on the planet?) to dump their convenience store side of the business for an overblown vending machine? Clueless, clueless, clueless. And what's even worse: anything you bought from it would be tracked because you're essentially using plastic to buy it. More marketing data for them to sell on the back end! The hell with that, and the hell with these clueless idiots.

    1. Re:What a dumb idea by denbesten · · Score: 3, Interesting

      ... I find it disturbing when I walk into a bank and the teller greets me by name, and I'm disappointed when the Jamba Juice employee remembers me and I don't have to tell them my name ...

      That is EXACTLY what I like about living in small-town America.

    2. Re:What a dumb idea by Nethead · · Score: 2

      I'm 56 too and don live in not that small of a city north of Seattle. I love the coffee stand that I go to each morning where they will have my order ready when I get to the window if there was a line, where unless there is a new person I don't even have to mention what I want. I love my local bank where my checking account number is lower than my slashdot UID and I don't have to show ID to cash a check. I love my teriyaki joint that only asks if it's for here or to go. I love my Albertsons where I can ask Rachel the butcher to select a nice cut for me. I love being part of a community. It's nice to greet each other by name even if it's just for a mundane transaction. It lets them know I value their work and them as a person no matter how humble the job may be.

      On the other hand, I doubt that my cat knows my name.

      --
      -- I have a private email server in my basement.
  13. not as good by Comboman · · Score: 4, Interesting

    A vending machine is considerably more complex with a higher level of automation. This is just a hotel minibar.

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    1. Re:not as good by mukinrestak · · Score: 4, Funny

      I apologize for being that guy, but it has apps! It's revolutionary! Revolutionary apps for your revolutionary paradigms that allow you to synergise your technology enabled lifestyle! Now with integrated fitbit support so you can burn off that candy bar as you eat it! Eat it on the go to keep up with the fast paced modern world! With apps!

  14. Re:Already a thing of the past for me by Paul+Pierce · · Score: 2

    I haven't gone out to go shopping for months, and before that time, it was also probably 4-6 months. When I did go out the shopping was sort of incidental; a stop for something after a movie or dinner out typically.

    Clearly you do not have kids

  15. We already have this every 100 feet away. by fahrbot-bot · · Score: 2

    ...there will be 100,000 Bodegas spread out, with one always 100 feet away from you.

    They're called Starbucks.

    --
    It must have been something you assimilated. . . .
  16. The sooner they go bankrupt... by whitroth · · Score: 2

    ...the better. And may they wind up working in a convenience corner store for a living....

  17. Well ... by DaMattster · · Score: 2

    These two ex-Googlers ought to get out of their ivory tower and see what life is like in a poor, inner-city environment where it is either the bodega or a food desert. I am from Philadelphia and neighborhoods thrive on bodegas where food is cheap and available. We don't have Whole Foods, Giant, Super Fresh, and shit that caters to millennials. We're poor folk living on scraps. I live in this neighborhood because it is all I can afford. I don't have a credit or debit card because no bank will touch me because life happened, I got sick, and became disabled. I don't have the luxury of even living in a safe neighborhood. Leave the bodega alone, assholes!

  18. Noooooooope by sexconker · · Score: 2

    or bodega, as they are known in New York and Los Angeles

    New York is the only place that calls it a bodega. You may have a few New York wannabes in LA calling them that, but no one with a brain does.

  19. Re:Over-engineered? by ark1 · · Score: 2

    Yes, in Japan overall crime rate is low. I was shocked seeing almost no bicycles being locked outdoor.

  20. Most has already been said... by bradley13 · · Score: 3, Insightful

    Others have already pointed out: "they've invented the vending machine", and "how could they get funding for such trivial shit".

    On a slightly more serious, but no less critical note, three criticisms:

    - This is a business model with a huge logistics tail. Plus a lot of personnel: someone has to re-stock their little shops, someone has to clean them, etc.. This requires a lot of low-paid personnel, who will require supervision, and on up the chain. A Mom'n'pop business actually has the advantage here, because they mostly employee relatives and people they know.

    - These microshops won't carry most of what people actually need and/or want at odd hours: perishables like bread and milk, or else high-margin items like alcohol and tobacco that actually keep lots of little shops in business.

    - Nice neighborhoods aren't going to shop in little boxes. Put unattended boxes in not-nice neighborhoods, and they will get trashed, robbed, and vandalized

    So it's hard to see who the customers are going to be, and harder to see how they're going to make any money. OTOH, this is all a social good: some VCs clearly have too much money. By throwing it at doomed-to-fail enterprises like Juicero and Bodega, they're putting their money back into circulation. That's really nice of them, don't you think?

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