Stockwell (company)

Stockwell (originally Bodega) was a startup company launched by former Google employees Paul McDonald and Ashwath Rajan. The idea behind the company was to build 5-foot-wide "pantry boxes" that contain non-perishable food and other items similar to those found in a convenience store, with Payment via a mobile app that charges the customer by credit card. The machines would use artificial intelligence to determine the 100 most commonly-purchased items and switch items if necessary. As of 2017, the company had installed 50 locations in San Francisco.[1]

Stockwell
TypePrivate
IndustryVending machines
FoundedSeptember 17, 2017 (2017-09-17) in Oakland, California, United States
FoundersPaul McDonald and Ashwath Rajan
Defunct2020-08-13
FateAcquired by 365 Retail Markets
Headquarters
Oakland, California
,
United States
Area served
San Francisco Bay Area
Number of employees
25 (2018)
Websitestockwell.ai

Plans were to place the machines in places like gyms, apartment lobbies, and offices, and to build enough machines that a customer is always within 100 feet of one.[2]

Controversy

There was a major Twitter backlash against the concept when it was announced that machines would be installed in New York. Critics claimed that the startup could put real traditional New York bodegas out of business, and that use of the term "bodega" for the machine was culturally insensitive.[2] There were also accusations of gentrification of New York neighborhoods.[3] It was also claimed that the concept was similar enough to a vending machine or automat as to not be innovative. Mandatory credit card usage and cameras around the machines raised privacy concerns. The machines also do not offer some of the amenities of real bodegas, such as fresh sandwiches, or types of ethnic food local to particular New York neighborhoods. Nor did the machines offer harmful products such as alcohol and tobacco.[4] The CEO Paul Macdonald claimed that 97% of Hispanics surveyed did not find the term used for the machines offensive.[2] Many bodega owners and employees do not see the startup as a particular threat.[5] The CEO later apologized for causing offense and claimed that it was not his intent to put local bodegas out of business.[6]

In July 2018, the company announced it was changing its name to Stockwell,[7] citing the negative feedback around the original name as a motivator.

In June 2020, it was reported that Stockwell would shut down on July 1,[8] but on August 13, 2020, 365 Retail Markets announced it was acquiring the company for an undisclosed amount.[9]

References
  1. Kircher, Madison Malone. "Silicon Valley, Please Stay Away From My Bodega". Select All. New York Media LLC. Retrieved September 14, 2017.
  2. Green, Dennis. "Ex-Googlers raised millions for a startup that replaces mom-and-pop stores with vending machines, and people are losing it". Business Insider. Retrieved September 15, 2017.
  3. O,Brien, Sara Ashley. "Startup Bodega apologizes for upsetting everyone". CNN Tech. Retrieved 15 September 2017.
  4. "Can a Vending Machine Replace a Bodega? A Start-Up's Plans Draw Fire". FlashNews. Flash News Updates. Retrieved 15 September 2017.
  5. "New York City bodega workers on whether they feel threatened by the new Bodega startup". Mic. Retrieved 15 September 2017.
  6. Green, Dennis. "Bodega' startup forced to apologize after furious criticism of its name". Business Insider. Retrieved 15 September 2017.
  7. McDonald, Paul (2018-07-18). "Bodega is now Stockwell". Medium. Retrieved 2018-08-07.
  8. "Stockwell, the AI-vending machine startup formerly known as Bodega, is shutting down July 1". TechCrunch. Retrieved 2020-07-11.
  9. Martin White (2020-08-25). "365 Retail Markets acquires 'smart store' firm Stockwell". FoodBev Media. Retrieved 2020-08-26.
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