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2 ex-Google guys secure venture capital, re-invent vending machines

Slayven

Member
I mean the REAL pitch here, surely, is that people will impulse buy more if they come in to contact with these more frequently. So you need to have them in areas where impulse purchasing is a difficult task. Like, if there is nowhere open 24 hours in my small town; but I can easily and conveniently pick up bread, milk, eggs, toilet paper and biscuits while drunk at 2AM I'd use it a lot. Unfortunately tech stuff like this always rolls out in big cities first; so you're left with a problem of, like, why bother? Who in London or Paris needs this.

I guess it's a good idea for small ruralish campus towns? Does America have those?

Yeah just put them right outside the super walmart
 

Zoe

Member
I don't understand the need for this elaborate app + camera system. A vending machine that allows you to pay via smart phone, using apps like Apple pay, would be cheaper to make and install. Hell, existing vending machines can be retro fitted yo except money from smart phone.

Products don't have to be put in slots, and you never have to worry about something not coming out properly.

I could see a variation of this working well in company break rooms.
 

KingV

Member
The one part of this that makes sense is that a vending machine makes it difficult to stock big items like detergent or toiler paper. In that sense there's the germ of a good idea here, one that might make a good small business. The fact that they want this to be a "shopping replacement" is kind of disgusting

Japan has some pretty advanced vending machines that sell some pretty big items.

I'm not sure if vending machines exist that sell 12 packs of toilet paper, but I know I have personally bought like giant 2 liter beer cans with handles.
 

The Technomancer

card-carrying scientician
I mean the REAL pitch here, surely, is that people will impulse buy more if they come in to contact with these more frequently. So you need to have them in areas where impulse purchasing is a difficult task. Like, if there is nowhere open 24 hours in my small town; but I can easily and conveniently pick up bread, milk, eggs, toilet paper and biscuits while drunk at 2AM I'd use it a lot. Unfortunately tech stuff like this always rolls out in big cities first; so you're left with a problem of, like, why bother? Who in London or Paris needs this.

I guess it's a good idea for small ruralish campus towns? Does America have those?

This is also basically their anecdote pitch yeah, literally "put people in contact with products more so they are more likely to buy"
DJm_R5uX0AAHZyx.jpg
 

Viewt

Member
Yeah, I hate this for a lot of reasons. For one, this is just a vending machine. A vending machine accomplishes everything this does. It's just a sleeker, more high-concept version of something that already exists. Which is fine, enough, I suppose, but...

This doesn't compete with a real bodega. For one, a bodega's selection would cream this thing. There are five corner stores within four blocks of me, and even the smallest of them has 5X the products this thing has. Any hot food? Hot coffee?

Boo.

EDIT: After reading some other replies, I will admit, yes, this does have value for more rural/suburban areas that don't have access to corner stores.
 
Bigger items might need more involvement from the consumer which I don't think this would fulfill well. Can I read the instructions or nutritional info on any of this, or if I pick it up do I have to buy it? If I can put it back couldn't I just take the bag of cereal out of the box and put the box back?

It's a concept that hasn't had its optimism beaten out of it by the real world yet.
 

Zoe

Member
Japan has some pretty advanced vending machines that sell some pretty big items.

I'm not sure if vending machines exist that sell 12 packs of toilet paper, but I know I have personally bought like giant 2 liter beer cans with handles.

But are those giant beer cans sitting next to a box of tampons?
 
This can work in specific areas. College campus, music festivals, the beach, etc. where there is limited competition and consumers are in a bind. but in high density public areas I think they need to be concerned of vandalism and way too much competition nearby... I mean a 7-11 would offer all of these things at likely a lower price.

The Amazon Go store seems more like the actual model of the future, but that is an extremely high up front cost that requires a large existing customer base.
 

Hektor

Member
Silicon Valley was a mistake

I don't understand the need for this elaborate app + camera system. A vending machine that allows you to pay via smart phone, using apps like Apple pay, would be cheaper to make and install. Hell, existing vending machines can be retro fitted yo except money from smart phone.

This is a much smarter idea i would actually use cos often i don't have the nessecary coins in my pocket
 

Cagey

Banned
Most cities don't have the ubiquity of corner bodegas plus 24/7 Duane Reades found in the boroughs. It's certainly not everywhere you go in the rest of the country.

Dumping one of these things in the lobby of apartment buildings in other primary, secondary, or tertiary cities outside of NYC would theoretically offer an easy method of filling the emergency "out of _____" need without having to hop in your car and head to a grocer with late-night hours.

I doubt it's a profitable model given the limited selection, presumably high mark-ups, etc, but I get the idea.
 

Copenap

Member
Products don't have to be put in slots, and you never have to worry about something not coming out properly.

I could see a variation of this working well in company break rooms.
Having them put in slots is probably more efficient and better for restocking.

Porducts not coming out properly is a Hollywood trope and does not happen irl.
 

VegiHam

Member
Thats most of America
Oh, well there you go then!
Yeah just put them right outside the super walmart
Hmmm, good point. Is the super Walmart open 24/7? Cus there was an ASDA that was 24/7 in my Uni town; but it was a little out of the way.

I'd stick them in the uni kids dorms or something.
This is also basically their anecdote pitch yeah, literally "put people in contact with products more so they are more likely to buy"
See I'd be outraged about this but I know for a fact it'd work on me.
 

hotcyder

Member
Isn't there a quote somewhere that says every year Silicon Valley think it's invented something we've already had for years.
 

Slayven

Member
This is also basically their anecdote pitch yeah, literally "put people in contact with products more so they are more likely to buy"

I can see buying microwave popcorn by the packet when you have the odd craving at work. But on a day by day basis? Cheaper to get a box
 

Alucrid

Banned
Yeah, I hate this for a lot of reasons. For one, this is just a vending machine. A vending machine accomplishes everything this does. It's just a sleeker, more high-concept version of something that already exists. Which is fine, enough, I suppose, but...

This doesn't compete with a real bodega. For one, a bodega's selection would cream this thing. There are five corner stores within four blocks of me, and even the smallest of them has 5X the products this thing has. Any hot food? Hot coffee?

Boo.

EDIT: After reading some other replies, I will admit, yes, this does have value for more rural/suburban areas that don't have access to corner stores.

not to mention it's always nice to talk to and get to know the clerk / owner
 

Timeaisis

Member
This already exists, just not as a centralized organization.

Also to be clear this concept exists. My workspace has a wall of snacks, you take one, scan it, swipe your card and you're good to go, 15 seconds. All this is giving you is the security of keeping everything in a box (like a vending machine) and the business model looking at replacing a diffuse network of small stores with a system of boxes

Exactly.

The most hilarious part to me, is that they are asking to be able to install these not as a shared investment with the property owner (like vending machines) but as an amenity. Essentially, they are trying to make 100% of the profits even though they are utilizing someone else's property. Which to me seems...all kinds of arrogant.
 

Akuun

Looking for meaning in GAF
Fuck. That.
Startup types always throw this shit around. I used to work for a place that was developing a machine that sold stuff too, and it was actually coming along pretty well. But the higher-ups always threw stupid ass company goals at everyone like "sell 50,000 machines by the end of the year" or "sign 100 companies as new customers by the end of the year" when development was nowhere near ready to sell and maintain machines in large scale deployments in the first place, and wouldn't be ready for years. It's just that executives like to impose fucking stupid goals on everyone, ignore reality, and call it leadership.

It's a bunch of happy dreamland bullshit that executives like to spout to the public because it sounds nice, all while the workers look at it and shake their heads because they know there's no way any of that is happening.

And of course, when it doesn't actually happen, it's the workers who get fired first.
 

The Technomancer

card-carrying scientician
The suburban idea is an interesting one because there's a tension at the heart of their model. If they want to customize them heavily they'll have a diverse array of products, but if you have a truck driving around a spread out suburban community every day you want it to carry a large quantity of a limited number of things so its not running out of stock

You would basically need an Amazon like central warehouse with everything that dispatches custom trucks every da-oh god
 
I've got a silicon valley startup I'm trying to get off the ground. It's called LMND STND. For generations children have been setting up half-assed lemonade stands all over the country, but no more.

My idea is to lobby the government and use eminent domain to secure just a 2 foot by 2 foot patch of land from every property with a house on it. Then we will install a locker right out by everyone's mailbox that has shitty little cups of lemonade in it. A camera that is being powered by computer vision will keep track of how many shitty cups of lemonade you drink and conveniently charge your credit card. The logo is a brother and his little sister sitting behind a card table.
 

pronk420

Member
I don't think this would ever work here unless they were only inside existing shops with security, and then what is the point?

There are no vending machines in public places because drunk people either attack, piss or throw up on them, or all three.

Plus it would be super easy to steal stuff by waiting for someone to unlock it and then just running up and grabbing everything.
 

The Technomancer

card-carrying scientician
I've got a silicon valley startup I'm trying to get off the ground. It's called LMND STND. For generations children have been setting up half-assed lemonade stands all over the country, but no more.

I think you should rebrand to Lemonadely

I'll take my consulting check now please
 

Kazuhira

Member
If it didn't become a big thing outside of japan in the last decade,it's not gonna happen now.
At least that's my initial impression about this,but what do i know?
 

Copenap

Member
I've got a silicon valley startup I'm trying to get off the ground. It's called LMND STND. For generations children have been setting up half-assed lemonade stands all over the country, but no more.

My idea is to lobby the government and use eminent domain to secure just a 2 foot by 2 foot patch of land from every property with a house on it. Then we will install a locker right out by everyone's mailbox that has shitty little cups of lemonade in it. A camera that is being powered by computer vision will keep track of how many shitty cups of lemonade you drink and conveniently charge your credit card. The logo is a brother and his little sister sitting behind a card table.
Shutupandtakemymoney.jpg
 

Akuun

Looking for meaning in GAF
I've got a silicon valley startup I'm trying to get off the ground. It's called LMND STND. For generations children have been setting up half-assed lemonade stands all over the country, but no more.

My idea is to lobby the government and use eminent domain to secure just a 2 foot by 2 foot patch of land from every property with a house on it. Then we will install a locker right out by everyone's mailbox that has shitty little cups of lemonade in it. A camera that is being powered by computer vision will keep track of how many shitty cups of lemonade you drink and conveniently charge your credit card. The logo is a brother and his little sister sitting behind a card table.
Throw in some shit about cloud connectivity and a mobile app.

You'll have investors throwing themselves all over you.
 
Heh, this is quite funny. I've actually looked into the vending machine market, and there's way too many variations that already exists to consider this a start-up. From vending machines that can accept all hot, cold and room temperature food/beverages, to vending machines that take large product and acts like a simple locker with weight scales calculating how much product is taken and left, and billing you once you close the door, etc etc.

Just too many variations to try to reinvent a saturated market.
 

compo

Banned
It sucks that the mom and pop shops are going to be rekt by technology like this, but at the same time, it's inevitable.
 

Chindogg

Member
What's with Silicon Valley's obsession with destroying traditional small businesses?

Can't they fuck up their own shit?
 

GodofWine

Member
WOW, giving it the name of the thing you are trying to eliminate, probably rename the actual old bodega's "American Bodegas" to imply they were not the true Bodegas.

Just call it 'over priced city supplies for the people who spent $1000 for a freaking phone - machine'.
 

MartyStu

Member
That seems to be the goal of all of these start ups.

Disrupt (aka destroy) a market and in the process ruins a ton of businesses and get rid of a ton of jobs in exchange for making a few people very rich and giving the customer some added convenience.

I agree that this is a bad idea, but you do know you just effectively described an ideal capitalist scenario right?
 

slider

Member
An alternative that I've seen and experienced in Bogota is the ability get nearly anything delivered. Phone up X shop and some dude will turn up soon enough on a moped with your requested item. I was at a dentist for a check up and he ordered a bottle of coke which arrived about five minutes later.
 

smisk

Member
My money is on Uber, because their financials look completely unsustainable at their current pricing, and I'm not so sure that they can maintain market share against taxis in many cities at price parity.

Maybe, but if they can make it until driverless cars become widespread their costs are gonna go way down.
 

Hektor

Member
I don't think this would ever work here unless they were only inside existing shops with security, and then what is the point?

There are no vending machines in public places because drunk people either attack, piss or throw up on them, or all three.

Plus it would be super easy to steal stuff by waiting for someone to unlock it and then just running up and grabbing everything.

They could implement one of these

300px-Spring-gun_Selbstschussanlage.JPG


Basically, it hooks up to the cameras and the app, if the camera notices you walking away outside the green bordered "Purchase area" (2x2 feet) without having logged into the app to pay it will automatically taser you and call the police
 

Moose Biscuits

It would be extreamly painful...
It's more efficient because all the profit goes to Silicon Valley execs instead of small business owners in your community.

So the money goes to a smaller group of people, so when we all get made redundant by machines then there are fewer heads to lop off and fewer houses to ransack?

That does sound more efficient!
 

Catdaddy

Member
My work has an unmanned “vending area” taking up a corner and includes refrigerated stuff. There are 6 cameras pointed at everything and in the middle is the “checkout” sounds like the same concept. No idea what the shrinkage is for what they have but its been there for 4 years. So essentially, they have is a vending machine for stuff that can’t fit in a vending machine…
 

cDNA

Member
Are not this type of vending machines for everything popular in Japan and other countries? I don't see much innovation in this.
 

VegiHam

Member
not to mention it's always nice to talk to and get to know the clerk / owner

Nah man, sometimes you're just wrecked or anxious or whatever and just want to get your food and go.

When I'm depressed af and buying a pizza, a six pack of beer and a ton of chocolate I don't wanna interact with humans.
 
I don't understand the need for this elaborate app + camera system. A vending machine that allows you to pay via smart phone, using apps like Apple pay, would be cheaper to make and install. Hell, existing vending machines can be retro fitted yo except money from smart phone.

I've used a few vending machines in Switzerland that accepted Apple Pay and it was such a great experience.
 

wenis

Registered for GAF on September 11, 2001.
This shit still has me heated. Damn, I was having a good morning too. Seriously fuck these two dudes.
 

Slayven

Member
Heh, this is quite funny. I've actually looked into the vending machine market, and there's way too many variations that already exists to consider this a start-up. From vending machines that can accept all hot, cold and room temperature food/beverages, to vending machines that take large product and acts like a simple locker with weight scales calculating how much product is taken and left, and billing you once you close the door, etc etc.

Just too many variations to try to reinvent a saturated market.

My doctor's office has a refrigerator that was retrofitted into being a vending machine. The sodas are almost frozen, the prefect temp
 

Akuun

Looking for meaning in GAF
What's with Silicon Valley's obsession with destroying traditional small businesses?

Can't they fuck up their own shit?
A lot of tech types think they can take things in everyday life and make it ~better~. They have some tech they think is cool, so they want to shoehorn it into everything.

Think a business entrepreneur version of a kid adding lens flares to everything because he just found the lens flare tool in Photoshop.
 
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