Grabango Closes Up Shop
BERKELEY, Calif. — After eight years, Grabango's efforts to challenge Amazon Inc. and other giants in the cashierless technology silo have come to an end.
"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," a spokesperson said in a statement to CNBC. "The company would like to thank its employees, investors and clients for all their hard work and dedication."
Launched in 2016, Grabango's checkout process used computer vision and machine learning to eliminate two pain points experienced by shoppers: waiting in line and scanning items. The company aimed to use its point-of-sale technology to help stores boost shopper loyalty, reduce shrink and improve store operations while providing a better overall customer experience.
The business initially looked on track to grow, with founder and CEO Will Glaser telling news outlets earlier in the year Grabango had plans to go public within the next few years.
The company also had developed relationships with a number of convenience store brands. MAPCO opened two stores within the last two years utilizing Grabango's checkout-free technology, while bp entered into a partnership with the company which saw two Amoco Coen Markets in Pennsylvania go live with the cashierless experience in 2023.
However, according to CNBC, financing rounds had started to shrink after 2021, when Grabango raised $39 million. And though the company had managed to take in just more than $73 million overall, the initial public offering market has dried up since early 2022, with just three notable venture-backed companies debuting in the United States this year. For a venture-backed business, this lack of liquidity affected Grabango's ability to continue operating, the report said.
Though other companies in the space — such as AiFi and Trigo — remain, and retailers stay interested in the technology, the future of the sector looks a little less certain, with even Amazon pulling its cashierless checkout technology from the company's U.S. Fresh stores and Whole Foods supermarkets, and retooling its Just Walk Out technology for third-party use.