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Stockwell (company)

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American technology company

Stockwell
Company typePrivate
IndustryVending machines
FoundedSeptember 17, 2017; 7 years ago (2017-09-17) in Oakland, California, United States
FoundersPaul McDonald and Ashwath Rajan
DefunctAugust 13, 2020; 4 years ago (2020-08-13)
FateAcquired by 365 Retail Markets
HeadquartersOakland, California, United States
Area servedSan Francisco Bay Area
Number of employees25 (2018)
Websitestockwell.ai

Stockwell (formerly Bodega) was an American company. 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.

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.

The company earned the title of "America's most hated startup".

History

In 2017, Bodega was founded by former Google employees Paul McDonald and Ashwath Rajan. In 2017, the company installed over 30 locations in San Francisco.

In July 2018, the company changed its name to Stockwell, citing the negative feedback around the original name as a motivator.

In 2019, the company had 1,000 kiosks all over the country.

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

Controversy

There was a major 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. There were also accusations of gentrification of New York neighborhoods. 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. The CEO Paul Macdonald claimed that 97% of Latin Americans surveyed did not find the term used for the machines offensive. Many bodega owners and employees do not see the startup as a particular threat. The CEO later apologized for causing offense and claimed that it was not his intent to put local bodegas out of business.

References

  1. Kircher, Madison Malone. "Silicon Valley, Please Stay Away From My Bodega". Select All. New York Media LLC. Archived from the original on September 14, 2017. 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. Archived from the original on September 15, 2017. Retrieved September 15, 2017.
  3. "Remember That Startup That Wanted to Replace Bodegas? Its Cofounder Is Back to Put Pharma on the Blockchain". Futurism. Archived from the original on September 29, 2023. Retrieved February 12, 2024.
  4. "Glorified vending machine startup Bodega finally kills off its offensive name". Fast Company. Archived from the original on July 3, 2022. Retrieved February 12, 2024.
  5. Burton, Monica (September 22, 2017). "Most-Hated Start-Up in America 'Bodega' Only Has 14 Locations". Eater. Archived from the original on January 30, 2023. Retrieved February 12, 2024.
  6. McDonald, Paul (July 18, 2018). "Bodega is now Stockwell". Medium. Archived from the original on August 8, 2018. Retrieved August 7, 2018.
  7. "Controversial Startup Bodega Grows After Quietly Rebranding As "Stockwell"". Observer. September 30, 2019. Archived from the original on December 24, 2022. Retrieved February 12, 2024.
  8. "Stockwell, the AI-vending machine startup formerly known as Bodega, is shutting down July 1". TechCrunch. Archived from the original on July 11, 2020. Retrieved July 11, 2020.
  9. Martin White (August 25, 2020). "365 Retail Markets acquires 'smart store' firm Stockwell". FoodBev Media. Archived from the original on October 30, 2020. Retrieved August 26, 2020.
  10. Levin, Sam (September 13, 2017). "Fury at 'Bodega' tech startup that aims to put corner shops out of business". The Guardian. Retrieved April 29, 2024.
  11. O'Brien, Sara Ashley. "Startup Bodega apologizes for upsetting everyone". CNN Tech. Archived from the original on September 14, 2017. Retrieved September 15, 2017.
  12. "Can a Vending Machine Replace a Bodega? A Start-Up's Plans Draw Fire". FlashNews. Flash News Updates. Archived from the original on September 15, 2017. Retrieved September 15, 2017.
  13. "New York City bodega workers on whether they feel threatened by the new Bodega startup". Mic. Archived from the original on August 10, 2020. Retrieved September 15, 2017.
  14. Green, Dennis. "Bodega' startup forced to apologize after furious criticism of its name". Business Insider. Archived from the original on September 15, 2017. Retrieved September 15, 2017.

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