Stockwell, the AI-Vending Machine Startup Formerly Known as Bodega, is Shutting Down July 1

Stockwell AI, which raised at least $45 million, entered the world with a bang but it is leaving with a whimper. From a report: Founded in 2017 by ex-Googlers, the AI vending machine startup formerly known as Bodega first raised blood pressures -- people hated how it was referenced and poorly "disrupted" mom-and-pop shops in one fell swoop -- and then raised a lot of money. But ultimately, it was no match for COVID-19 and the hit it has had on how we live. TechCrunch has learned and confirmed that Stockwell will be shutting down, after it was unable to find a viable business for its in-building app-controlled "smart" vending machines stocked with convenience store items. "Regretfully, the current landscape has created a situation in which we can no longer continue our operations and will be winding down the company on July 1st," co-founder and CEO Paul McDonald wrote in an email to TechCrunch. "We are deeply grateful to our talented team, incredible partners and investors, and our amazing shoppers that made this possible. While this wasn't the way we wanted to end this journey, we are confident that our vision of bringing the store to where people live, work and play will live on through other amazing companies, products and services."

Venture Capital

[cusco]

And here we see the difference between building a business overnight with a flood of venture capital, or building a business up gradually over time and acquiring regular customers and some cash reserves.

Re:

[backslashdot]

The least any CEO or frankly any other employees of a failed company could do is write a lessons learned article and post it on linked in or someplace else so that others can learn from it. Also, they should open source any of their technology and design files.

Re:

[OMBad]

Their only failure was not to find a bigger sucker to buy them out.

Re:Venture Capital

[fuzzyfuzzyfungus]

Don't forget the "pretending that a fairly banal concept is somehow new and hot because it's 'Technology'".

There are about a zillion utterly boring vending machine servicing companies that make reliable but unthrilling money(and increasingly are using some amount of 'smart', often retrofitted onto an older chassis because you don't trash capital equipment lightly; but it's now not uncommon to see a cellular antenna poking out for credit card payment processing and inventory reporting); along with a similarly large crowd of facilities management contractors and subcontractors who do all sorts of consumables deliveries to shared locations(keeping bathrooms clean and stocked; testing and replacing fire extinguishers; all that sort of thing).

These guys seem like the "WeWork" of vending machines. The industry of providing more and less flexible business real estate was and is much bigger that WeWork; and most of the other players are considered to be boring landords, despite doing much the same thing and actually making a profit. Here someone decided to launch a wildly overcapitalized vending machine service outfit; and got to burn a bunch of VC cash because their vending machines had a webcam looking at the stock and an app or something stupid.

They can blame "the current landscape"(despite the fact that easy access to common consumables without entering a store or interacting with a clerk would seem to be more popular than usual...); but they should really be taking a hard look at the people filling vending machines without a bunch of VC money they can never repay hanging over them.

Poorly run

[Nidi62]

But ultimately, it was no match for COVID-19 and the hit it has had on how we live. TechCrunch has learned and confirmed that Stockwell will be shutting down, after it was unable to find a viable business for its in-building app-controlled "smart" vending machines stocked with convenience store items.

With all of the store closures and stay a home orders this kind of thing should have seen an explosion of demand during the covid lockdown. The fact that it didn't indicates that this company was either poorly run or simply not viable to begin with.

The hype never made sense

[magzteel]

I never understood the hype for this. It's just a vending machine.
Vending machines are nothing new, including internet connected ones.

Re:

[OMBad]

It had an app!

Re:

[kiviQr]

and A!

Re:

[bugs2squash]

but it lacked blockchain

Re:

[Falos]

unmod

Re:

[RightSaidFred99]

Yeah, aren't there already all sorts of whacky, advanced vending machines in Japan?

Re:

[tlhIngan]

Yeah, aren't there already all sorts of whacky, advanced vending machines in Japan?

Unlike the toilets, Japanese vending machines are still regular vending machines. There's nothing special to them.

What makes them special is the products they sell - the machines themselves are bog standard things you can find anywhere - machines with cold/freezer boxes, machines with hot boxes, machines that can heat a product up prior to delivery, etc. All are extremely common things nowadays and you'll find those machines

Re:

[SirKveldulv]

There are some, but their prevalence (the advanced ones) is vastly overstated. The majority are either selling cigs (which you need a special card for) or just drinks etc like anywhere else.

Re:

[luvirini]

The point was to get money fort the owners.

There is no way a wending machine company would get venture funding. But a AI powered one unfortunately will. because it is TECH!!!

It is the Wework vs something like Regus again...

The founders likely hoped for some blind thing like Softbank to buy a large share and make them rich before it went bankrupt.

It actually made sense...

[Cyberax]

It actually made sense. Stockwell machines are small and unobtrusive, kinda like a small fridge. So you can put one on the first floor of an apartment building without it looking out of place. My building has one and I used it a bunch of time when I forgot to buy something like toothpaste or laundry detergent.

It's a shame they folded. It was not a groundbreaking new invention but it surely was nice.

COVID-19

[OMBad]

Yeah, I'm sure it was because of the virus. LOL.

Hardly anyone is in office buildings

[wiredog]

Nobody wants to touch a multi-use keypad that dozens of others are touching.

The vending industry has taken a major hit and they couldn't've seen it coming.

Re:

[Ed Tice]

Huh? I don't know much about these vending machines but if they had an associated app that allowed contactless vending that would seem to mean that COVID might help their model.

Hey, look!

[LatencyKills]

Another company blaming the collapse of their shitty business plan on the pandemic. Much like the implosion of some podcasting company I never heard of a few weeks back, it seems to me that the pandemic should have helped a vending machine company, right? Stores closed, can't do a face-to-face transaction - lo and behold, a vending machine! If touching the keypad makes you feel squeamish, wear a glove - still better than being coughed on by a minimum wage cashier at a convenience store who doesn't get any sick time. But, nope, you're ex-Googlers and therefore all geniuses, and the business must have failed for some external reason entirely beyond your power, suuuure.

AI Smart Vending Machines

[grep -v '.*' *]

its in-building app-controlled "smart" vending machines stocked with convenience store items

WTF? A "Smart Vending Machine" is one that gives a product given money. And you're somehow adding AI to it? Don't forget to apply "on a computer" in the patent.

"Includes an A.I." So does it somehow entice each customer walking by with their own special scent? It displays pictures of their spouse in sexy clothes that exactly fit them? It calls home when empty, it watches day, time, temperature, and order patterns and reorders what it thinks will sell?

Haven't looked at them, can't imagine what they'r

Covid?

[skaralic]

They're blaming Covid for their failed dumb-ass idea? I'm sure we'll see lots of this going forward...

"air b&b for groceries"

[MattMann]

gives me an idea for a startup, need a cup of sugar? which one of your neighbors has a cup of sugar and is offering the best price? uber for groceries!

if pepole kick machines where there under $2 candy

[Joe_Dragon]

if pepole kick machines where there under $2 candy get's stuck just think when an $20+ item get's stuck

push button, get bacon

[sdinfoserv]

What could be a simpler paradigm than a vending machine.. Yet, some smart people managed to pull rich people into a room to hand them money for..oh wait... question answered.

Sounds like a dumb idea

[DrXym]

I can sort of see what they're trying for but it falls into the chasm of vagary. Who are the target audience? People capable of doing their own shopping in supermarkets will continue to do their own shopping in supermarkets. Lazy people who order by app will order stuff for delivery by app. Even as a "convenience" how is it any better than just going to the multitude of small stores that sell convenience items?

I suppose I could concoct some scenario where it's useful to have a bunch of essentials ready fo

Re: Explanation please

[yassa2020]

It would be like if Amazon called themselves "mom & pops book nook" and then bragged about how they'd be making independent book stores obsolete. Same outcome, but far more offensive.

Artificial Stupidity

[yassa2020]

I'm still trying to figure out how you could possibly cram AI into a vending machine. Then again, I don't understand why grocery stores, which have been taking digital stock for 50 years, which count and scan every barcode going out the door AND count the products on the shelf, can never seem to stock the items that people are buying. (Prepandemic of course) It it just simple arithmetic. If you've learned fractions / multiplication you can even figure out what's going to run out before it runs out and order