Exclusive: Amazon is working on a smart refrigerator that can monitor your buying patterns and suggest new products or recipes
The Amazon fridge is expected to come with a hefty price tag, given the complicated technology involved. The target audience is likely to be upper-income households that are already active Prime subscribers. It's in line with Amazon's latest strategy to release pricey gadgets, a major shift for a company known for using
. Amazon expects the smart fridge's cost to decline as the technology matures and unit sales grow, the people familiar said.The team for the smart fridge is spread across Seattle, India, and Southern California, including Irvine and San Diego, according to people familiar with the project. Fewer than 100 people are working on it, though the company has been investing at least $50 million a year into the initiative, these people said.
Gopi Prashanth, a director of computer vision and artificial intelligence, is leading the project. Hissays he previously worked on the launch of Amazon Go and the Dash Cart and is working on an"undisclosed initiative spanning hardware, software and research in the space of computer vision and AI." Prashanth's team has had high turnover in recent years as the project has stalled and faced growing challenges, the people said. Some of the early managers, including Robert Simmering, one of the first to pitch the idea, have left. Prashanth reports up to Dilip Kumar, the vice president of physical retail and technology.
Internally, there's growing concern about Amazon's slowing growth in the grocery business, particularly with Instacart's rapid rise, one of the people said. In fact, Amazon's grocery employees raised this issue during an August all-hands, saying Amazon's"subpar" product and user experience compared to"some startups in the grocery space that have far limited resources,"Amazon's US grocery e-commerce sales are expected to grow 12.9% this year to $29.
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