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'Bodega' CEO Apologizes, Insists They'll Create More Jobs (cnn.com)

Remember those two ex-Googlers who started a company to replace mom-and-pop corner stores with automated vending kiosks? An anonymous reader writes: The company's CEO has now "apologized in the face of mounting outrage," according to CNN. CEO Paul McDonald had shared a vision with Fast Company of a world where centralized shopping locations "won't be necessary" because there'll be a tiny automated one every 100 feet. Within hours McDonald was writing a new apologetic essay insisting he's not trying to replace corner stores, which carry more items and include a human staff who "offer an integral human connection to their patrons that our automated storefronts never will." In fact, he added that "Rather than take away jobs, we hope Bodega will help create them. We see a future where anyone can own and operate a Bodega -- delivering relevant items and a great retail experience to places no corner store would ever open." Promising to review criticism, he added his hope was to "bring a useful, new retail experience to places where commerce currently doesn't exist."
Bodega's CEO sees it as a way to beat Amazon by offering immediate access to popular products, and TechCrunch reports the company has already raised $2.5 million, while Fast Company notes "angel" investments from executives at Facebook, Twitter, Google, and Dropbox.

The company has already begun testing 30 Bodega boxes over the last ten months, and unveiled 50 more boxes last week, with hopes to have over 1,000 by the end of next year.

20 of 155 comments (clear)

  1. *Now* the business model is by ColdWetDog · · Score: 3, Funny

    A vending machine with a person inside it?

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    Faster! Faster! Faster would be better!
    1. Re:*Now* the business model is by elrous0 · · Score: 2

      No, now the business model is exactly the same as it was before--except some bullshit about not putting small shops out of business...because small shops will be able to buy their own bodega vending machines...which will somehow employ more people somehow.

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      SJW: Someone who has run out of real oppression, and has to fake it.
    2. Re:*Now* the business model is by OrangeTide · · Score: 2

      Make sure the illegal alien is an independent contractor so you don't have liability and don't need to pay for insurance, disability, workmans comp, etc. That's just smart business.

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      “Common sense is not so common.” — Voltaire
    3. Re:*Now* the business model is by OrangeTide · · Score: 5, Insightful

      By independent contractor I mean what Uber does to shift the businesses costs onto their "employees". Many of which are really bad at estimating the total costs for their car loans, maintenance, etc. (I'm not a socialist, I just don't think it's very honorable to base a business off people making poor choices)

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      “Common sense is not so common.” — Voltaire
  2. Um, every corner store I know by rsilvergun · · Score: 2

    is part of a major chain. The only one that's not completely awful is Qwik Trip, which at least pays it's people moderately well. What I remember was they all ran 24-7 and the folks on the night shift were going to get shot sooner or later. It was never a question of if it was when.

    I guess what I'm saying is, who still has a nice little mom & pop shop left that they can get mad at bodega? I watched all those get swallowed up by Circle K/7-11 in the late 80s. Even the immigrants don't run 'em any more.

    On the other hand it's hilarious having this guy talk about making jobs with a business model who's entire point is eliminating cashiers. And you can damn well bet the guys that stock these things will be on the 'sharing' economy payscale where they somehow manage to earn less than minimum wage and it's still legal. I'd like to think the backlash is more about that than about actual bodegas.

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  3. I don't see the innovation by 93+Escort+Wagon · · Score: 4, Informative

    Bodega's CEO sees it as a way to beat Amazon by offering immediate access to popular products

    We've had that for centuries - it's called a store. These guys' model just potentially moves the pickup point slightly closer to us.

    And, given the inherently higher maintenance costs of their business model (repeatedly stopping and restocking these small "every 100 feet" locations with tiny deliveries), even without on-site staff it's hard to see how this could be competitive with either a traditional store or with Amazon.

    TechCrunch reports the company has already raised $2.5 million

    Given the type of business they're trying to create, that's not actually very much at all.

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    #DeleteChrome
  4. This whole thing is nothing but one ... by Qbertino · · Score: 2

    ... big bullshitty PR drumroll. A completely staged pseudo-controversy. Nothing else.

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    We suffer more in our imagination than in reality. - Seneca
  5. Sorry by Kohath · · Score: 2

    Sorry a bunch of internet drama people freaked out about nothing. Sorry a news report created a false narrative and a mob of angry jerks believed it. Sorry you were trolled. Sorry that simple, entirely voluntary commerce is so upsetting to some people with a loose grip on rationality.

    Let me make it up to you by telling you a completely different nonsense story full of soothing pretense. That's what shallow drama people understand.

  6. Re:*create* jobs? by elrous0 · · Score: 3, Insightful

    The fact that they're "ex-Google employees" says it all to me. So they're 20-something tech-heads who think every problem can be solved by an app. It probably never even occurred to them that an app can actually CREATE problems. It's all about the VC funding and dropping tech buzzwords to angels. Who cares if it actually works or whether it puts real people out of work? It's an appy app, so give us our money that we haven't earned!

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    SJW: Someone who has run out of real oppression, and has to fake it.
  7. Re:Combine it with Uber by lucm · · Score: 2

    They could call it something like "web van".

    Webvan were right. They just came in 15 years and 15 billions too early. If they had launched a year or two ago during the startup gold rush they would have enjoyed unlimited funding. It would have failed eventually but they could have published their story on medium.com and they would have been heroes instead of losers.

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    lucm, indeed.
  8. Re: Non-apology apology by elrous0 · · Score: 2
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    SJW: Someone who has run out of real oppression, and has to fake it.
  9. Re:Trumpian job promises. by lucm · · Score: 3, Insightful

    hiring people enough to replace mom and pop stores

    Yeah, they're "gig-economying" jobs that were already low-paid and uncertain. True pioneers.

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    lucm, indeed.
  10. Re:*create* jobs? by WheezyJoe · · Score: 5, Insightful

    This. Nobody gets into this business to create jobs, they do it to sell stuff.
    THE RULE: Profit = Sales minus Jobs (and other irritating expenses)
    But TALK and LIES are free, so you can say you're creating jobs if it maybe creates/increases sales.
    "create jobs" my fanny. Let the record show he talks shit to the public to make his business plan look good.

    How long before hipsters (or Hispanic people) in the Mission start torching these?

    Please, no fires. Fires lead to riot tanks, rubber bullets, jack-booted free-market police. Be sensible, and clever. A little super-glue and spray-paint works wonders on keypads and other devices, hypothetically of course.

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    Take it easy, Charlie, I've got an Angle...
  11. Re:No, Standing Next To It by elrous0 · · Score: 4, Insightful

    I've actually went back to a full-service grocery store again. It was bad enough when most stores started making us bag our own groceries. Now they want us to check ourselves out too. Pretty soon they'll be asking customers to stock the shelves and clean the bathrooms.

    Fuck that noise. I'll pay a few dollars extra to get real humans helping me, thanks.

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    SJW: Someone who has run out of real oppression, and has to fake it.
  12. Sure... by xlsior · · Score: 3, Insightful

    Bodega's CEO sees it as a way to beat Amazon by offering immediate access to popular products

    Best Buy offers you immediate access to popular products too, but that just makes them Amazon's de-facto showroom instead.

    Given the *extremely limited* storage space constraints of a typical vending machine, that will be guaranteed to mean "Current inventory: two types of luke-warm soda of a flavor you can't stand, a cellphone charger that's not compatible with your phone, and a special deal on sombrero's. Oh, and don't mind the homeless people using the side of our unattended machine as a public bathroom".

    Other thoughts:
    It seems very unlikely that the particular machine that you're close to will carry what you're looking for, even when limiting themselves to 'popular products'. After all, it is an incredibly inefficient way to manage your inventory. Example: you want a cellphone charger. in a typical store, they'd have half a dozen sitting on a shelf. Depending on the size of the store, that serves customers anywhere from within the next few blocks, to half a city. With these vending machines, they'd needs hundreds of them to cover a similar size chunk of town that the current single store does. And even then, the odds that the machine you are standing next to won't have it are huge because at best they carried one or two, and it's not like they'll be restocking these multiple times a day... (And if they ARE continuously driving in circles restocking these all day, everyday, then expect that the price for any item is going to be a multitude of normal, it's WAY more expensive to drive around all day than to just pay a minimum wage worker in a traditional store to unpack a few pallets worth of products)

    Meanwhile, they want to compete with Amazon, who carries 480 million different products on their website, and which on top of that already offers 1 hour delivery service in limited markets -- Good luck with that, not holding my breath...

  13. Wouldn't these things have more inventory? by rsilvergun · · Score: 2

    For the same reason robot warehouses have more stuff in them: They don't need aisles for those troublesome fleshies.. Plus no AC or heat. And they're not trying to compete with Amazon, they're competing with 7-11. I don't buy coffee and stale donuts online.

    You're right about the bums peeing, or more likely punks tagging the thing. Japan's had tons of vending machines selling damn near everything for ages. It works because they have very little vandalism. My guess is there'll be cameras everywhere and they'll track and prosecute people who tag the machines. Maybe get some laws passed for much, much harsher sentences for vandalism (in America that wouldn't be hard). After a few guys do 1-3 years hard time for spray painting a dick on these things word'll get around. Either that or they're gonna coat them in something that makes it really easy to clean spray paint off. But either way they've got to solve the vandalism problem somehow.

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  14. Re: No, Standing Next To It by DontBeAMoran · · Score: 2

    Eggs should go on top of everything? I question your logic. Have you ever tried eggs on top of spaghetti? Yuck.

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    #DeleteFacebook
  15. Re: No, Standing Next To It by chipschap · · Score: 2

    Have you ever tried eggs on top of spaghetti? Yuck.

    Obviously you never tried carbonara.

  16. Re:No, Standing Next To It by pnutjam · · Score: 2

    Why would they do that when they can swap out some bisquick for an identical box stuffed with heroin. Sounds like a great dead drop.
    Swap a box stuffed with heroin for a box stuffed with cash.

  17. Re:No, Standing Next To It by sexconker · · Score: 2

    I bag my groceries better than most supermarket employees.

    There is a reason that they work at a supermarket, and not a job that actually pays decently. Similarly, there is a reason why I have a mentally challenging job

    You're mentally challenged?