What’s Next for Aldi’s Vision of Checkout-Free Shopping?

Nearly a year after Aldi initiated a pilot program testing checkout-free technology akin to Amazon’s Just Walk Out system, the future of this innovation remains uncertain. However, one significant development has emerged: Aldi will no longer be working with Grabango, the Berkeley, California-based tech company that provided the technology for its pilot program in Aurora, Illinois. Grabango has officially confirmed its decision to cease operations.

A spokesperson for Grabango stated, “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.” The company expressed gratitude to its employees, investors, and clients, highlighting the difficulty of the decision to shut down.

In its lifetime, Grabango raised over $73 million, with a significant financing round occurring in June 2021, when it secured $39 million led by Commerce Ventures and included participation from notable investors such as Peter Thiel’s Founders Fund and Unilever Ventures.

An Aldi representative was unavailable for immediate comment. As of September 17, Aldi operates 2,414 stores across the U.S., according to ScrapeHero .

During its pilot, the Aldi store using Grabango’s technology allowed shoppers to download the Grabango app, link it to their debit or credit card, and easily check out by scanning a single QR code at the checkout area. The store was equipped with a network of small cameras that utilized artificial intelligence to track items placed in shoppers’ carts, automatically adding them to their total.

In early February, Supermarket News tested the checkout-free technology at the store, which successfully charged a small basket of items to the account. Aldi promoted the pilot program with signs encouraging shoppers to download the app and emphasizing that “Checkout just got faster.”

Aldi and Grabango tested the technology for several months before announcing their partnership publicly in mid-April. Eric Traxler, Aldi’s Vice President of IT, expressed excitement about the live implementation, stating, “Aldi is continuously looking for new ways to be innovative and provide a best-in-class experience for our shoppers, and Aldigo is a great example of that in action.”

Despite Grabango’s initial optimism about its checkout-free technology, the company’s recent closure casts doubt on Aldi’s plans for further advancements in this area. In April, Grabango’s founder and CEO, Will Glaser, had expressed confidence that the deployment of checkout-free technology would soon be widespread, comparing it to the rapid adoption of innovations like email and smartphones.

Grabango had positioned itself as a flexible and cost-effective alternative to Amazon’s system, which relies on shelf sensors and complex computer vision technology that complicates retrofitting existing stores. However, with Grabango’s closure, Aldi’s vision for checkout-free shopping faces an uncertain future as it navigates the challenges of this evolving retail landscape.