The Sound of Progress—or Disturbance?

“It sounds like a giant hive of bees,” remarked John Case, a College Station resident, summing up the experience shared by many in the community. This comparison to an ominous swarm has become a common refrain among those living near Amazon’s drone launch facility. The drones, which weigh about 80 pounds and travel at speeds up to 60 miles per hour, are part of Amazon’s broader strategy to revolutionize last-mile delivery. However, as the company looks to expand the service, the noise issue has become a significant point of contention.

College Station Mayor John Nichols acknowledges the benefits of hosting such a cutting-edge program but also recognizes the challenges it brings. “There are growing pains, but we’re glad Amazon chose our city to try it out,” Nichols said. However, he also stressed the need for a solution that balances innovation with the community’s quality of life. “The solution is for them to identify a quieter drone and find a location in the community that will better insulate the noise they are going to produce.”

Community Pushback and Amazon’s Response

The concerns of College Station residents are not new to the world of drone delivery. Similar complaints have been lodged in other test areas, such as in parts of Australia where Alphabet’s Wing drones have been in operation. The common issue is the high-pitched buzzing sound, which many liken to the relentless noise of a chainsaw or a swarm of bees. In College Station, these complaints have been significant enough to prompt local officials to request a delay in Amazon’s planned expansion of the drone program.

Amazon’s delivery drones become the scourge of Texas town: ‘It sounds like a giant hive of bees’ https://t.co/55C6zR7uJM pic.twitter.com/oUSVvRF3ZI

— New York Post (@nypost) August 19, 2024

In a letter to the Federal Aviation Administration (FAA), Mayor Nichols highlighted the community’s frustration. “Due to the level of concern from residents, the City would ask to delay the increase in service levels relating to the number of deliveries, as well as the expanded operation days and hours, until additional noise mitigation efforts are implemented by Amazon Prime Air,” Nichols wrote. The city’s tests on the noise levels produced by the drones found them to range between 47 and 61 decibels—comparable to the hum of a dishwasher, but far more intrusive when experienced outdoors.

Amazon, for its part, has been quick to respond to the outcry. “We appreciate the community of College Station and take local feedback into account wherever possible when making operational decisions for Prime Air,” said Sam Stephenson, an Amazon spokesperson. The company has also announced plans to introduce a new drone model, the MK30, which is expected to be about 40% quieter than the current drones. “We’re proud of the thousands of deliveries we’ve made and the hundreds of customers we deliver to,” Stephenson added, emphasizing the program’s success in meeting consumer demands.

The Future of Drone Delivery in College Station

Despite these efforts, the question remains whether quieter drones will be enough to placate the community or if more drastic measures, such as relocating the launch facility, will be necessary. The idea of moving the drone operations farther from residential areas has been floated as one potential solution, but this could complicate logistics and reduce the efficiency that Amazon aims to achieve with its drone program.

Adding another layer of complexity to the situation is the uncertainty surrounding the future of the program in College Station. Reports suggest that Amazon’s lease on its facility may not be renewed after it expires in September 2025, raising the possibility that the company might relocate its operations entirely. For some residents, this could be a welcome relief, but for others, particularly those who have benefited from the convenience of drone deliveries, it might be a disappointment.

The Broader Implications

The noise complaints in College Station are not just a local issue; they are indicative of the broader challenges that drone delivery programs face as they seek to scale. While the technology holds tremendous potential for revolutionizing logistics and reducing carbon emissions from traditional delivery vehicles, it also raises questions about noise pollution, privacy, and airspace regulation.

As drone delivery moves closer to becoming a mainstream service, companies like Amazon will need to address these concerns proactively. The experiences in College Station could serve as a valuable case study for other cities considering similar programs. “Drone delivery is a promising technology, but it’s not without its challenges,” said Bryan Woods, College Station’s city manager. “We need to find a balance between innovation and community impact.”

A Significant Leap Forward?

Amazon’s Prime Air program represents a significant leap forward in delivery technology, but its implementation in College Station underscores the importance of community engagement and the need for technological refinement. The company’s efforts to develop quieter drones and its willingness to consider relocating operations are steps in the right direction, but whether they will be enough to win over skeptical residents remains to be seen.

Will you be using Amazon's new drone delivery service, which Amazon claims "will create new jobs", and "help to reduce the impact of climate change on future generations"? pic.twitter.com/FiRJAIctSY

— Wide Awake Media (@wideawake_media) June 3, 2024

As Amazon continues to test and refine its drone delivery service, the lessons learned in College Station will likely inform how the company approaches similar challenges in other markets. For now, the drones will keep buzzing, and the conversation around their impact will continue to grow louder.

The Online Buzz: Comments and Concerns from X (Formerly Twitter)

As news of the noise complaints in College Station spread, the issue quickly became a topic of discussion on social media, particularly on X (formerly known as Twitter). Users from across the platform weighed in with a range of opinions, from support for Amazon’s innovative approach to sharp criticism over the disruptions caused by the drones.

One user, @JohnDoeTech, echoed the sentiments of many residents, tweeting, “I can’t imagine living with that constant buzzing overhead. Amazon needs to seriously rethink this drone delivery thing if they can’t solve the noise problem.” This comment garnered significant engagement, with many agreeing that the noise levels were a major drawback to what otherwise could be a groundbreaking service.

@GreenFutureNow, a user focused on sustainability, offered a different perspective: “Sure, the drones are loud, but think of the environmental benefits. Fewer delivery trucks on the road means less pollution. We should be supporting this technology, not fighting it.” This post sparked a lively debate, with some users pointing out that while the environmental benefits are clear, they shouldn’t come at the expense of quality of life for local residents.

@QuietLifeTX, who appears to be a resident of College Station, voiced frustration directly: “We didn’t sign up to live in a drone testing ground. Amazon needs to either fix the noise issue or move their facility. We deserve peace and quiet.” This sentiment was widely shared among locals, many of whom expressed their dissatisfaction with Amazon’s current operations in the area.

However, not all feedback was negative. @TechEnthusiast89 commented, “Drone delivery is the future! Sure, there are kinks to work out, but this is the price of progress. I’d love to see this rolled out nationwide.” This optimistic view was shared by other tech-forward users who see drone delivery as an inevitable and exciting advancement, despite the current challenges.

Some users highlighted the broader implications of the noise issue. @LegalEagle pointed out, “Interesting to see how local noise ordinances and federal regulations will clash as drone delivery becomes more common. This could set some important legal precedents.” This comment touched on the potential for legal battles as drone technology continues to advance and encroach on public and private spaces.

The Divided Public Opinion

The debate on X highlights the divide in public opinion over drone delivery. While many appreciate the convenience and potential environmental benefits, others are concerned about the immediate impact on their daily lives, particularly the noise. This divide mirrors the broader conversation happening in communities like College Station, where the push for technological innovation is being weighed against the preservation of quality of life.

Amazon’s response to these online discussions has been cautious but optimistic. The company has reiterated its commitment to addressing community concerns, with spokesperson Sam Stephenson stating, “We’re listening to the feedback from both the residents of College Station and the broader public. Our goal is to make drone delivery as seamless and non-disruptive as possible.”

As the conversation continues to evolve online, it’s clear that the issue of drone delivery noise is not just a local problem but a national, and even global, concern. The dialogue on X suggests that while many are excited about the future of drone technology, there is still much work to be done to ensure that this future is welcomed by all. The challenge for Amazon and other companies in the space will be to navigate these concerns thoughtfully while continuing to innovate.

The Mobile App Conundrum

Starbucks’ mobile app, once a symbol of cutting-edge convenience, has increasingly become a double-edged sword for the company. While it has significantly boosted digital sales, it has also introduced a new set of challenges that the company was ill-prepared to handle. The core of the issue lies in the tension between speed and experience—two elements that have historically defined Starbucks but now seem at odds with each other.

Howard Schultz, who has long been the face of Starbucks’ rise to global prominence, has been candid about the app’s drawbacks. “The mobile app created unbelievable convenience for our customers,” Schultz acknowledged, “but remember, we are an experiential brand.” The problem, as Schultz sees it, is that the rapid growth of mobile orders has eroded the “third place” experience that Starbucks worked so hard to cultivate. “The worst thing that Starbucks could have become is a utility,” Schultz lamented, emphasizing that the company’s unique selling point has always been the personal connection between barista and customer.

Erosion of Experience

This erosion of experience is not just theoretical; it plays out daily in Starbucks locations across the country. As customers flock to pick up their mobile orders, the in-store atmosphere shifts from one of relaxed social interaction to a chaotic rush. Baristas, who are already dealing with the pressures of high demand, find themselves unable to maintain the level of service that Starbucks is known for. “You get stores that are so busy where the barista can’t even look up,” Schultz noted, underscoring the disconnect between the company’s operational capacity and customer expectations.

Adding to the complexity is the fact that mobile orders are often more intricate than in-person orders. With customers customizing their drinks with a plethora of add-ons—everything from cold foam to extra syrups—baristas are spending more time on each order, which in turn slows down the entire operation. “It’s hard work,” Schultz admitted, highlighting the strain on employees who must juggle these complex orders while also managing the flow of in-store customers.

Customers Increasingly Frustrated

This operational strain has not gone unnoticed by customers, many of whom are becoming increasingly frustrated with the longer wait times. Nancy Tengler, CEO and chief investment officer of Laffer Tengler Investments, pointed out that the prioritization of mobile orders over in-store orders is a significant pain point. “The problem you have in New York City, for example, is what is the wait time,” Tengler said, adding that this imbalance could deter customers from spending time—and money—inside Starbucks locations.

In this context, the mobile app, despite its many benefits, is seen by many as a critical area that needs rethinking. Schultz himself has pointed out that while the app has driven sales, it has done so at the expense of the very experience that made Starbucks a household name. “It’s a camouflage because eventually it’s going to bite you in the ass,” Schultz warned, suggesting that without significant changes, the mobile app could continue to undermine the brand’s long-term success.

Catching Up to Mobile Growth

The rapid expansion of Starbucks’ mobile ordering system has not been met with a corresponding upgrade in operational infrastructure, a misstep that new CEO Brian Niccol will need to address swiftly. While Starbucks has seen a surge in digital sales, the company’s physical stores have struggled to keep pace with the demands of this new digital era. The challenge lies not only in managing the volume of orders but also in ensuring that the customer experience remains intact—something that Starbucks has long prided itself on.

One of the most glaring issues is the morning rush, a time when Starbucks locations across the country are inundated with mobile orders. “The company was struggling to meet demand in the morning—and scaring away some customers with long wait times,” said Laxman Narasimhan, the outgoing CEO, in late April. This bottleneck has been particularly problematic, as morning sales are crucial to Starbucks’ overall revenue. The frustration of customers who arrive to pick up their orders only to find themselves waiting amid a crowd of others has become a common occurrence, undermining the convenience that the app was supposed to provide.

We’ve Got a Mosh Pit, and That’s Not Starbucks!

Schultz has been forthright about the company’s failure to anticipate the operational demands that would come with the surge in mobile orders. “The company did not do a good job of anticipating the technological refinements that needed to be put in place,” he admitted. The lack of foresight has resulted in a situation where, despite the app’s success in driving sales, the in-store experience has suffered. Schultz himself recounted a visit to a Chicago Starbucks at 8 a.m., where he witnessed the chaos firsthand: “Everyone shows up, and all of a sudden we’ve got a mosh pit, and that’s not Starbucks.”

This disconnect between digital growth and in-store operations is something that Niccol will have to address as he steps into his new role. Chipotle, where Niccol has served as CEO since 2018, provides a stark contrast. At Chipotle, the company was proactive in adapting to the digital shift. It invested in a second prep line dedicated solely to online orders, allowing the company to handle increased digital sales without compromising the in-store customer experience. Additionally, Chipotle introduced “Chipotlanes,” drive-thru lanes specifically for mobile order pickups, further streamlining the process.

New Answers From a New CEO

Niccol’s challenge will be to bring this level of operational sophistication to Starbucks. One potential strategy could involve rethinking store layouts to better accommodate the volume and complexity of mobile orders. This might include dedicated areas for mobile order pickups or even separate workflows for digital and in-store orders, similar to the dual prep lines at Chipotle. “Niccol has tremendous credibility,” said TD Cowen analyst Andrew Charles. “If he tells investors, ‘This is the answer to the problem we’re having,’ and can explain why he believes that—he’s going to get a pass.”

Ultimately, Starbucks’ ability to catch up to its mobile growth will hinge on its willingness to invest in the necessary infrastructure. Schultz’s acknowledgment that the company was “not investing ahead of the curve” serves as a cautionary tale. The stakes are high: If Starbucks can successfully adapt to the digital demands while preserving its signature customer experience, it could not only solve its current operational challenges but also set the stage for future growth in an increasingly digital world.

The Pressure on Baristas

The surge in mobile orders has not only complicated operations at Starbucks but has also placed immense pressure on the baristas who are at the heart of the company’s customer experience. As the volume and complexity of orders have increased, so too has the workload for these frontline employees, leading to widespread burnout and dissatisfaction. This growing strain on baristas is an issue that Starbucks must address if it hopes to maintain both the quality of its service and the morale of its workforce.

The root of the problem lies in the nature of mobile orders, which are often more complex than those placed in person. Customers frequently customize their drinks with multiple add-ons—ranging from extra shots of espresso to specific types of milk and flavored syrups—each of which requires additional time and effort to prepare. “It’s hard work,” Schultz has acknowledged, referring to the challenge of keeping up with the ever-increasing demands of mobile orders. The added complexity slows down the entire process, creating a bottleneck that not only frustrates customers but also overwhelms baristas.

The App Has Fuled Barista Burnout

The pressure has become so intense that it has contributed to a wave of unionization efforts among Starbucks employees. Since 2021, more than 450 of the chain’s U.S. stores have unionized under the banner of Starbucks Workers United, driven in part by the desire for better working conditions. “The mobile-order issues have added pressure on baristas,” said Nancy Tengler, CEO and chief investment officer of Laffer Tengler Investments. “Burnout, fueled in part by the app, helped inspire some employees to unionize.” The union has even pushed for the company to turn off mobile ordering during promotions, when the influx of orders can become unmanageable.

Baristas themselves have voiced their concerns, describing the environment in some stores as chaotic and stressful. “It feels like we’re constantly playing catch-up,” said one barista from New York City, who asked to remain anonymous. “There are times when I can’t even look up to greet customers because I’m so focused on getting the mobile orders out on time.” This sentiment is echoed across many Starbucks locations, where employees are often forced to choose between speed and quality—a dilemma that undermines the company’s commitment to delivering a premium customer experience.

The Integrity of the Company at Stake

The strain on baristas is not just an operational issue; it’s a cultural one. Starbucks has long positioned itself as a company that values its employees, offering benefits like health insurance and tuition reimbursement. However, the current situation has led some to question whether the company is living up to its own standards. Schultz himself has emphasized the importance of nurturing the relationship between baristas and customers, warning that the company’s rapid growth has, at times, compromised this core value. “We are a coffee company serving people, not a transaction company,” Schultz has said, highlighting the need to protect the integrity of the barista-customer interaction.

As Brian Niccol prepares to take the helm, addressing the pressures faced by baristas will be a crucial part of his mandate. Ensuring that baristas have the support they need to manage the influx of mobile orders—whether through improved technology, better staffing, or enhanced training—will be essential to preserving the culture that has made Starbucks a global icon. Without such measures, the company risks not only losing the trust of its employees but also eroding the very foundation of its brand.

A Path Forward

As Starbucks faces the challenges brought on by the rapid growth of its mobile app, incoming CEO Brian Niccol has the daunting task of charting a path forward that addresses both operational inefficiencies and the strain on the company’s workforce. The key to solving Starbucks’ current issues lies in a multifaceted approach that not only focuses on technology and process improvements but also reaffirms the company’s commitment to its core values of quality, customer experience, and employee well-being.

Optimization of Operational Structure

One of the most pressing areas for Niccol to tackle is the optimization of Starbucks’ operational infrastructure to better handle the high volume of mobile orders. A significant portion of the solution may involve rethinking store layouts to accommodate the surge in digital sales. This could include the creation of dedicated spaces for mobile order pickups, similar to the “Chipotlanes” that Niccol implemented at Chipotle. By separating the flow of mobile orders from in-store orders, Starbucks can reduce the congestion that currently plagues many of its locations during peak hours. As Schultz noted, “Everyone shows up, and all of a sudden we got a mosh pit, and that’s not Starbucks.” Alleviating this congestion will be crucial to restoring the sense of calm and community that the brand has long been known for.

In addition to physical changes in stores, there is also a need for technological enhancements that can streamline the ordering process. While Starbucks has made strides in this area—such as introducing a feature that shows customers the progress of their orders—there is still room for improvement. For instance, the company could explore the use of predictive analytics to better anticipate order volumes and adjust staffing levels accordingly. Niccol might also consider implementing more advanced point-of-sale systems that can handle the complexities of mobile orders with greater efficiency. As Andrew Charles, an analyst at TD Cowen, remarked, “Brian has tremendous credibility, where if he tells investors, ‘This is the answer to the problem we’re having,’ and can explain why he believes that—he’s going to get a pass.”

More Flexible Staffing Models

Another critical component of the path forward will be addressing the human element of Starbucks’ operations—its baristas. The mobile app has undeniably added pressure on these employees, and any solution must include measures to alleviate this burden. One potential strategy could be the introduction of more flexible staffing models that allow stores to dynamically scale up or down based on real-time demand. This would ensure that baristas are not overwhelmed during peak times and can maintain the high standards of service that customers expect. Niccol could also look into additional training programs to help baristas manage the complexities of mobile orders more effectively, as well as mental health support to address the burnout that has become all too common in recent years.

Beyond operational changes, Starbucks will need to reconnect with the core values that have defined the brand for decades. Schultz’s vision of Starbucks as a “third place” between work and home has been overshadowed in recent years by the convenience of mobile ordering. However, there is an opportunity for the company to reclaim this identity by finding ways to blend digital convenience with the warm, personal experience that has always been at the heart of the brand. This might involve rethinking how the mobile app interacts with the in-store experience, perhaps by encouraging customers to linger and enjoy their drinks rather than simply picking them up and leaving. “We are not in the transaction business,” Schultz has said. “We have to execute transactions, but that has to go through the lens of being an experience business, an experience place.”

Introducing Personalized In-Store Experiences

One way to enhance the customer experience while leveraging the power of the mobile app could be the introduction of personalized in-store experiences. For example, the app could be used to offer tailored recommendations based on a customer’s past orders, or to provide information about the origins of the coffee beans used in their drink. This would not only add value to the customer’s visit but also reinforce Starbucks’ commitment to quality and sustainability. Niccol might also explore the possibility of integrating loyalty rewards more deeply into the in-store experience, creating a stronger connection between digital and physical interactions.

Furthermore, as Starbucks looks to the future, it will be important for the company to remain adaptable and responsive to changing consumer behaviors. The COVID-19 pandemic has accelerated shifts in how people work, live, and interact with brands, and Starbucks must continue to evolve in response to these changes. This could mean expanding its presence in new formats, such as drive-thrus or smaller, digitally-focused stores, while also ensuring that its core cafes remain welcoming spaces for customers to relax and connect. Niccol’s experience at Chipotle, where he successfully navigated the company through similar challenges, will be invaluable as he guides Starbucks through this next phase of its evolution.

Actions Must Align With Its Values

Finally, Starbucks must also be mindful of its broader role in society. As one of the world’s most recognizable brands, the company has a responsibility to set an example not only in terms of business practices but also in its commitment to social and environmental issues. Schultz has often spoken about the importance of Starbucks as a force for good in the world, and Niccol will need to carry this mantle forward. Whether it’s through sustainability initiatives, community engagement, or supporting its workforce, Starbucks must ensure that its actions align with its values.

Tthe path forward for Starbucks is both challenging and full of potential. By addressing the operational issues caused by the mobile app, supporting its baristas, and staying true to its core values, Starbucks can not only overcome its current difficulties but also emerge stronger and more resilient. As Niccol steps into his new role, the eyes of the world will be on him, waiting to see how he navigates one of the most iconic brands through a period of significant change. With the right strategy and a commitment to excellence, there is no reason why Starbucks cannot continue to thrive in the years to come.

Kroger, like many grocery store chains, have increasingly been using Electronic Shelving Labels (ESLs) to dynamically price products, changing the price based on a variety of factors.

ESLs are digital price tags that allow companies to engage in dynamic pricing, changing the prices of goods based on temporary factors such as the time of day or the weather. By updating price tags with the simple click of a button, corporations can price gouge, suddenly raising the consumer costs at times when certain products are in highest demand.

According to the lawmakers, Kroger has partnered with Microsoft to gather customer data in an effort to understand just how much they will tolerate price increases, and then give target them with personalized prices.

“The increased use of dynamic pricing will drive company profits higher – leaving consumers with the bill,” wrote the lawmakers.

“I am concerned about whether Kroger and Microsoft are adequately protecting consumers’ data, and that as Kroger expands the personalized customer experience, customers will ultimately be offered a worse deal,” continued the lawmakers.

“It is outrageous that, as families continue to struggle to pay to put food on the table, grocery giants like Kroger continue to roll out surge pricing and other corporate profiteering schemes,” concluded the lawmakers.

Hopefully, lawmakers will be able to curtail such activities, ensuring fair pricing for all customers.

Amazon has been working to improve its environmental impact. Given the number of packages Amazon ships, eliminating plastic filler materials can make a big difference in the company’s efforts. The company says it has already eliminated 95% of plastic air pillows, and is on target for full removal by the end of 2024.

We’re constantly inventing and thinking big to make our packaging small. We want to ensure that customers receive their items undamaged, while using as little packaging as possible to avoid waste, and prioritizing recyclable materials.

The removal of 95% of our plastic air pillows is another step in our path to avoid and reduce packaging—and part of our multi-year effort to remove plastic delivery packaging from North America fulfillment centers. To date, this will be Amazon’s largest plastic packaging reduction effort in North America and will avoid nearly 15 billion plastic air pillows annually. For Prime Day this year, nearly all of our customer deliveries will not contain plastic air pillows.

“I’m proud of the cross-Amazon collaboration to make a positive impact on the customer delivery experience with easier to recycle materials. It’s a great example of how we thoughtfully test and scale new solutions to protect our customer experience,” said Pat Lindner, VP of Mechatronics and Sustainable Packaging. “We are working towards full removal in North America by end of year and will continue to innovate, test, and scale in order to prioritize curbside recyclable materials.”

The company says it is also working to invent new materials and recycling solutions.

We’re also working to invent new materials and recycling solutions that keep both our customers and the environment in mind. For example, Amazon has teamed up with the U.S. Department of Energy to bring new materials and recycling programs to life. We’re also piloting new technology with Glacier, a San Francisco-based artificial intelligence (AI) and robotics company, to use AI-powered robots to automate the sorting of recyclables and collect real-time data on recycling streams for companies—which can help reduce landfill waste and increase the use of recycled materials in packaging.

The announcement is good news for climate activists and consumers alike, especially given the sheer volume of plastic Amazon previously used.

Buy Now, Pay Later has been growing in popularity, especially with economic uncertainty impacting buying patterns. Unfortunately, the model is ripe for unscrupulous companies to take advantage of consumers, prompting the CFPB to take action.

The agency outlined its guidelines in a post on its site.

Accordingly, Buy Now, Pay Later lenders must provide consumers some key legal protections and rights that apply to conventional credit cards. These include a right to dispute charges and demand a refund from the lender after returning a product purchased with a Buy Now, Pay Later loan. The CFPB launched its inquiry into the rapidly expanding Buy Now, Pay Later market more than two years ago and continues to see consumer complaints related to refunds and disputed transactions. Today’s action will help bring consistency to this market.

The CFPB highlights how much Buy Now, Pay Later has expanded, being used for both products and services that traditionally were never considered for the model.

The Buy Now, Pay Later market has expanded rapidly over the past few years. Lenders advertise buying products over four simple payments. Products are marketed as a way to help consumers pay for expensive products and services over time without having to pay interest. Today, both products, like televisions and gaming systems, and services, like airline tickets and cruises, can be purchased through Buy Now, Pay Later products. Buy Now, Pay Later products are popular across ages, races, and income levels.

“When consumers check out and choose Buy Now, Pay Later, they don’t know if they will get a refund if they return their product or whether the lender will help them if they didn’t get what was promised,” said CFPB Director Rohit Chopra. “Regardless of whether a shopper swipes a credit card or uses Buy Now, Pay Later, they are entitled to important consumer protections under longstanding laws and regulations already on the books.”

Buy Now, Pay Later lenders must meet requirements outlined in the Truth in Lending Act, including:

• Investigate disputes: Buy Now, Pay Later lenders must investigate disputes that consumers initiate. Lenders must also pause payment requirements during the investigation and sometimes must issue credits.
• Refund returned products or canceled services: When consumers return products or cancel services for a refund, Buy Now, Pay Later lenders must credit the refunds to consumers’ accounts.
• Provide billing statements: Consumers must receive periodic billing statements like the ones received for classic credit card accounts.

The guidelines should go a long way toward protecting consumers from unethical lenders.

Walmart has enjoyed being the top retailer and #1 on Fortune’s list for years, but Amazon is closing that gap and may soon take the top spot. According to The Wall Street Journal, Walmart’s sales last year came in at $648 billion, growing at a rate of 6%. Meanwhile, Amazon’s revenue came in at $575 billion, with a growth rate of 12%.

The numbers alone don’t tell the whole story, however, but still pose a major problem for Walmart. The vast majority of the company’s revenue comes directly from retail sales. In contrast, a large portion of Amazon’s revenue comes from its other businesses, such as cloud computing.

WSJ’s sources say this difference is a concern among Walmart executives, since the company’s opportunities to compete with Amazon outside of retail sales are limited. Instead, Walmart execs seem to be focusing on providing the best service and being the best corporate citizen, as opposed to being the biggest, in what may be an acknowledgment of the inevitable.

That narrative appears to already be making its way into the company’s official stance, with a company spokeswoman telling WSJ that Walmart is “constantly striving to be the best version of ourselves, staying true to our values and offering quality, affordable goods and services. Everything else will take care of itself.”

Walmart is trying to diversify its revenue sources. One such attempt involves the company teaming up with Salesforce to sell its fulfillment and delivery software and solutions to other companies. Despite such efforts, Walmart still can’t compare to Amazon’s extra-retail revenue.

As WSJ points out, the one stronghold Walmart still has is groceries, but Amazon is making headway even there, with the company projected to take 20% of the US grocery market by the end of the decade.

Walmart is working to streamline operations, shutting down its Walmart Health initiative and eliminating hundreds of corporate jobs. The company is also taking a page out of Amazon’s book, launching its Walmart+ subscription service to take on Amazon Prime.

Only time will tell if such measures—along with its diversification efforts—help the retail giant fend off Amazon

Amazon has been investing in its drone service, working to speed up the last stage of the delivery process. The company previously launched the service in College Station, Texas in mid-2022. The company says it is now adding West Valley Phoenix Metro Area to its service area.

We’re now adding a new location and entering into the next stage of the program’s evolution. Later this year, drone deliveries are coming to the West Valley of the Phoenix Metro Area in Arizona.

With this new location, we’ll be fully integrated into Amazon’s delivery network, meaning, for the first time, drones will deploy from facilities next to our Same-Day Delivery site in Tolleson. These smaller sites are hybrid—part fulfillment center, part delivery station. They allow us to fulfill, sort, and deliver products all from one site so we can get packages out to our customers even quicker. Our Same-Day Delivery sites are situated close to the large metro areas they serve, which means customers get their orders faster. And with connections to the larger Amazon fulfillment centers nearby, we are able to offer Same-Day Delivery on millions of items.

“As Amazon embarks on the national expansion of its Amazon Drone Delivery Program, we’re proud to have their innovative presence in our community. By bringing this service to new communities, they’re not just delivering goods; they’re delivering opportunities and economic growth for all,” said Juan F. Rodriguez, mayor of Tolleson. “Amazon’s commitment to innovation exemplifies the entrepreneurial spirit that drives our city forward.”

“This kind of delivery is the future, and it’s exciting that it will be starting in the Phoenix Metro Area,” said Kate Gallego, mayor of Phoenix. “The shift toward zero-emission package delivery will help us reduce local pollution and further cement our city as a hotbed for the innovative technology of tomorrow.”

At the same time, the company says it is closing a location in California.

As we look to the future and prioritize our resources to continue growing the program, we’ve also made the decision to close our delivery site in Lockeford. We’ll offer all current employees opportunities at other sites, and will continue to serve customers in Lockeford with other delivery methods. We want to thank the community for all their support and feedback over the past few years.

Amazon gave no reason for its decision to close the Lockeford site.

Mickey Drexler, Chairman of Alex Mill and former Chairman and CEO of J.Crew, is renowned for his keen understanding of merchandising and consumer behavior. He offers a sobering assessment of department stores’ challenges in today’s rapidly evolving market landscape. “It’s a little scary, a little stunning,” he remarks, reflecting on the subdued atmosphere in a recently visited Macy’s store. “This business is never one that’s a sure bet,” he adds, emphasizing the retail industry’s inherent unpredictability.

With decades of experience in the retail trenches, Drexler pulls no punches in describing the Herculean task of steering Macy’s and Nordstrom through turbulent waters. “I don’t know who could actually turn, all due respect to Tony Spring, a good friend and now CEO of Macy’s Corp. That job, I said to Tony, ‘Tony, you know, this is the hardest job in the world,'” he confides, underscoring the daunting nature of the challenges ahead.

Central to Drexler’s analysis is the imperative for retailers to establish a clear and compelling brand identity in an era of heightened consumer expectations. “The world is becoming so much more focused, attempting to be more focused on what they stand for,” he observes. “If you look at the companies that are very successful, they stand for something,” he adds, highlighting the importance of authenticity and differentiation in a crowded marketplace.

The conversation delves into the pervasive practice of relentless discounting in the retail industry, with Drexler lamenting its corrosive effects on businesses and consumers. “I went into a shop the other day, and I said, ‘What’s on sale today?'” he recounts, expressing frustration at the prevalence of inconsistent pricing strategies across different channels. “It’s not fair,” he asserts, decrying the lack of transparency and coherence in retail pricing.

Drexler underscores the importance of maintaining optimal stock levels to meet consumer demand by discussing the intricacies of inventory management. “The best 15 styles in our company go well over 50% of the business,” he reveals, shedding light on the strategic significance of inventory optimization in driving sales and profitability.

Despite traditional retailers’ myriad challenges, Drexler remains cautiously optimistic about the industry’s future. “I’m optimistic about the future, but it’s not easy,” he acknowledges. “It’s never easy,” he reiterates, recognizing the resilience and adaptability required to navigate the ever-changing currents of retail.

As Macy’s and Nordstrom navigate potential transitions and confront the shifting sands of consumer behavior, the broader retail industry watches with bated breath, awaiting the next chapter in this unfolding saga of commerce. In an unprecedented disruption and transformation age, one thing remains certain: the retail landscape will continue to evolve, driven by innovation, consumer preferences, and the indomitable spirit of entrepreneurship.

According to Bradley, the current state of the US retail sector reflects a broader trend of consumer belt-tightening and economic challenges, including high interest rates and credit constraints. With prices hitting their ceiling and traditional methods of driving revenue proving ineffective, Bradley believes that the key to growth lies in innovation and technology.

Rather than pouring capital into speculative marketing campaigns, Bradley advocates for a strategic shift towards enhancing the customer experience through technology integration. He emphasizes the importance of investing in technologies such as augmented reality (AR), artificial intelligence (AI), and smart devices to revolutionize the retail landscape.

AR technologies offer consumers the opportunity to virtually sample products before making purchases, reducing the likelihood of costly returns and driving engagement with virtual stores. AI-powered customer behavior analysis enables retailers to provide personalized recommendations, enhancing the shopping experience and maximizing spend-per-visit. Smart devices, such as internet-enabled fridges, facilitate seamless re-ordering and increase convenience for consumers while driving repeat orders for retailers.

Bradley underscores the untapped potential of tech-enabled shopping in the US market, highlighting the lucrative demographic of consumers who embrace emerging retail technologies. He asserts that early adopters of these technologies stand to gain a competitive advantage, driving growth without resorting to price increases or costly marketing battles.

As US retailers stand at a crossroads, Bradley urges executives to navigate these challenges with a steady hand. He emphasizes the long-term benefits of investing in technology amid high interest rates. With the right strategic approach, Bradley believes that US retailers can unlock new opportunities for growth and prosperity in an increasingly tech-driven marketplace.

Harley Finkelstein, COO of Shopify, discusses how COVID has dramatically sped up the timeline for commerce moving online and has also moved Shopify closer to its goal of becoming the world’s first retail operating system:

Shopify Evolving Into World’s First Retail Operating System

Most people assume that Shopify is an ecommerce provider. We have more than a million stores on Shopify. If you were to aggregate our stores in the US we’d be the second-largest online retailer in America. Of course, we’re not a retailer but we’re a platform. But we now have these great economies of scale that we’re using to level the playing field for entrepreneurs and small businesses. That being said, what really Shopify is evolving into is the world’s first retail operating system. 

What we’re trying to figure out is what do brands and entrepreneurs and retailers need, not just now but in the future? We think the future of retail is retail everywhere. A brand that’s going to be successful in 5, 10 or 15 years from now needs to sell across any platform and across any channel where they have customers. This idea of enabling Shopify merchants to very easily push their products to the Amazon Marketplace or the eBay marketplace or now the Walmart marketplace, that gives them access to a new set of consumers. The idea is that it all feeds back in one centralized back-office, the retail operating system, which is Shopify. 

Then we’ve gone ahead and asked what else can we do for these merchants? Can we do capital? We’ve now given out about a billion dollars worth of cash advances and loans to small businesses. We’re doing fulfillment and we’re doing shipping. We’re increasing the scope and the relationship that we have with the million stores on Shopify. This is allowing them to become category leaders.

COVID Speeds Up The Ecommerce Revolution

From our view, it seems like the commerce world that would have existed in the year 2030 has really been pulled into the year 2020 (as a result of the COVID crisis). We’ve seen ecommerce as a percent of total retail go from 15 percent to 25 percent in the last three months. That’s the same growth rate that we’ve seen over the last 10 years. What really has emerged here is sort of this tale of two retail worlds. On one side you have these resilient retailers that are doing great, they’re pivoting, and they’re expanding their businesses. On the other side, you have these resistant retailers who have not made it. In many ways, it’s probably the most exciting time for retail in a very long time. 

We talk a lot about these direct to consumer brands that are becoming category leaders. The Allbirds and the Gymsharks who started on Shopify when they were very small and have grown to become the incumbents in their industry. Every 25 seconds a brand new entrepreneur makes his or her (products) for sale on Shopify. We talk a lot about those new startups, those new DTC brands. But actually, what we’re also seeing on Shopify are companies like Lindt Chocolate or Heinz ketchup or Chipotle. They are signing up for Shopify and basically from like five days from contract to launch they are completely changing their businesses. 

This resiliency isn’t simply in the hands of just the smallest of brands. Big companies are also beginning to think a lot more about how to stay resilient in this time. They’re moving well beyond ecommerce or thinking about offline commerce now. They’re thinking about how do they sell across social media? How do they sell across different marketplaces? So no, I don’t think it’s too late (to enter ecommerce) but I do think they have to rethink their strategies.

Farfetch plans to use their IPO windfall to dramatically improve their technology which they see as the best way to improve the consumer experience.

Farfetch Founder and CEO José Manuel Ferreira Neves recently discussed Farfetch and the online luxury brand industry on Bloomberg:

Online Luxury is Growing 25 Percent a Year

It’s a very unique opportunity. You have this amazing global industry. It’s $300 billion, the personal luxury goods industry and only 9 percent is online. There are two opportunities here really. One is the growth of online luxury which is going to grow to 25 percent a year for the next seven years. This is a $100 billion opportunity shift in online luxury.

The big question is how is technology going to help brands and retailers really improve the consumer experience in the physical store. This is something at Farfetch that we are very passionate about.

China is an Incredible Opportunity for Online Luxury

China is a very exciting opportunity. Chinese citizens are at the onset of the luxury industry, whether they shop at home or when they’re shopping abroad. Online penetration is very low in China so this means that there is an incredible growth runway for Farfetch in the territory.

That led to our partnership with JD.com where we have our own team. We have the Farfetch China app and website, we have local customer service, local payment systems, and local marketing. It’s a truly localized service. That is what’s driving incredible growth to the Farfetch brand in that region.

José Neves, founder and CEO of @farfetch, told us about the company’s grand ambitions for China at the WWD’s Men’s Wear Summit this week. https://t.co/MrMj7y5VCG

— Jing Daily | 精日传媒 (@JingDaily) March 29, 2018

WeChat is an amazing app with over 900 million users. It is the Instagram, plus WeChat, plus PayPal, etc. of China in one app. That is very powerful and very interesting. Now with our acquisition CuriosityChina we are powering the retail presence of 80 luxury brands. We think that is very interesting for the industry and we think that is probably something that we will see for the western world.

How Farfetch plans to capture the growth in online luxury e-commerce https://t.co/t9HI0igMFV pic.twitter.com/RjvAel79li

— Bloomberg TV (@BloombergTV) September 21, 2018

Brands Now Using Social and Digital Marketing Extensively

I think brands move cautiously and they choose their marketing channels very carefully. As these newer channels have developed the brands have adapted to them and their now using social media and digital media extensively to create desire, to drive discovery of new products obviously transactions as well.

It’s a gradual pace but it’s really exciting that were at that inflection point where the brands see this as a tremendous opportunity.

GeekWire reports, that Amazon “confirmed that it recently began testing a partnership with pet giant Petco, which will accept returns from customers who purchased items on Amazon.com.”

Amazon already has partnerships with Kohl’s and Staples. The partnerships are a win-win, giving Amazon’s customers a convenient option for returns while driving traffic to the partner chains.

There is no word on how long the test phase will last.

Google Pixel 8 Pro Overview

The Google Pixel 8 Pro is the latest flagship smartphone from Google, taking the tech world by storm with its impressive features and high-end specifications. One standout feature is the upgraded camera system, which delivers stunning photo and video quality. The phone also introduces game-changing editing tools for an elevated photography experience.

In addition, the vibrant OLED actual display, measuring 6.7 inches, supports a 120Hz refresh rate, offering users an immersive and fluid visual experience. Whether scrolling through social media, watching videos, or playing games, the Pixel 8 Pro ensures a smooth and responsive interaction.

Under the hood, the Google Pixel 8 Pro is powered by the Tensor G3 chipset, backed by a substantial 12GB RAM. This powerful processor ensures swift performance, quick app launches, and seamless multitasking. Depending on your storage needs, you can choose between 128GB, 256GB, 512GB, and even 1TB options.

Why Your Google Pixel 8 Pro Needs a Quality Case

Just picture this – your brand new Google Pixel 8 Pro is with you daily. It’s in your pocket, desk, or even in your hand as you navigate a bustling city. Life happens. A little slip here, a slight bump there, and before you know it, your top-of-the-line device could be marred by an ugly scratch or a shattered screen.

That’s where a quality phone case comes to the rescue. It acts like a personal bodyguard for your Pixel 8 Pro, shielding it from the rough and tumble of daily life. But remember, it’s not just about protection. A good phone case can also be a canvas for expressing your unique style. From vibrant colors and sleek designs to cases featuring your favorite superheroes, there’s a world of options to make your Pixel 8 Pro truly yours.

So, don’t leave your Pixel 8 Pro vulnerable. Arm it with a quality case. It will keep your device looking its best for longer and let you add a dash of personal flair to it.

The Top 3 Cases for Google Pixel 8 Pro Available on Amazon

1. Caseborne Google Pixel 8 Pro Military-Grade Protection Case

Here comes a phone case that combines exceptional durability with a commitment to environmental sustainability.

This case is crafted from 100% recycled Polycarbonate and Thermoplastic Polyurethane. By using recycled materials, we’re helping to reduce environmental impact and promote sustainability2. But don’t let its eco-friendly nature fool you; this case doesn’t compromise on protection.

With a full-body wrap and five layers of defense, it offers unbeatable durability that surpasses the standard 4X MIL-STD 810G-516.6 drop tests. It boasts an impressive 21 feet of drop protection3.

In addition to its robust build, this case is fully compatible with MagSafe. This feature allows you to attach and use magnetic accessories effortlessly. It also works seamlessly with most wireless chargers, providing an uninterrupted charging experience.

For added protection, this case comes with a tempered glass screen protector. This ensures your device’s screen is free from scratches.

Priced at just $34.98, the Caseborne Google Pixel 8 Pro Military-Grade Protection Case is a worthy investment for your device. Plus, with the lifetime warranty it offers, you can rest easy knowing your purchase is protected.

2. OtterBox Google Pixel 8 Pro Defender Series Case

Constructed from 50% recycled plastic, this case is durable and environmentally friendly. The screenless design ensures flawless touch response, allowing you to interact with your device without hindrance.

The raised edges around the camera and screen provide additional security, guarding these delicate parts of your device against potential damage. It is a multi-layer defense system that combines a solid inner shell with a resilient outer slipcover, providing comprehensive protection from all angles. The case also features port covers that effectively block dirt, dust, and lint from getting into jacks and ports, preserving their functionality.

It includes a holster that doubles as a belt clip and a hands-free kickstand for convenience. This feature lets you securely attach your device to your belt and set up your phone for comfortable viewing.

Priced at $64.95, the OtterBox Commuter Series Case offers excellent value for money, considering its top-notch features and robust design

3. Spigen Rugged Armor Designed for Pixel 8 Pro Case 

This case is made from Thermoplastic Polyurethane (TPU), a material highly prized for its durability and resilience. TPU cases are known for their ability to withstand impacts, resist scratches, and maintain their shape over time.

The Spigen Rugged Armor case also stands out with its military-grade drop protection. Thanks to the innovative Air Cushion Technology, your device is well-protected from accidental bumps and drops. This technology employs strategically placed air pockets that absorb shock, significantly reducing potential damage to your device.

The case features precise cutouts that align perfectly with your device’s ports and features. Thus ensuring they remain fully accessible at all times. Moreover, it has tactile buttons that enhance the user experience by providing a responsive feel and easy accessibility.

For $15.99, the Spigen Rugged Armor case presents a remarkable blend of quality and affordability. 

These 3 best-rugged phone cases are now available on Amazon, the world’s largest online marketplace. This means you can enjoy the convenience and speed of Amazon’s trusted shopping platform to get your hands on this top-tier phone case.

Amazon’s popularity among consumers is unparalleled. Its user-friendly interface, vast product range, and reliable delivery services have become a go-to platform for online shopping. Furthermore, Amazon offers a secure payment gateway, ensuring your transactions remain safe and private.

To find these rugged phone cases for Google Pixel 8 Pro, simply head over to Amazon’s website or app, type in the product name in the search bar and hit enter. 

Final Thoughts

Getting a top-notch phone case for your Google Pixel 8 Pro is more than just about keeping it safe. It’s also about making sure it lasts longer, stays looking sharp, and reflects your personal style. After some serious web surfing, we’ve found three standout cases that are stealing the show on Amazon for the Pixel 8 Pro.

The best part? These premium cases are all available on Amazon, making protecting your Google Pixel 8 Pro as easy as pie. With Amazon’s easy-to-navigate platform, speedy delivery, and stellar customer service, hunting for your perfect phone case turns into a breeze.

Don’t wait until those first heart-stopping scratches or cracks sneak up on your Pixel 8 Pro! Dive into these top 3 phone cases on Amazon right now. Make a smart choice and pick a case that not only shields your device but also matches your vibe. We appreciate you dropping by and reading our article.

Companies have been turning to drones to help speed up deliveries to consumers, but companies need FAA approval to reach their full potential. UPS has cleared a major hurdle, receiving authorization to fly drones beyond the visual range of the drone operators.

The agency announced its decision in a news release:

The FAA authorized two more companies to operate drones beyond visual line of sight (BVLOS). UPS Flight Forward with its Matternet M2 can conduct small package delivery and uAvionix with its Rapace can use the Vantis Network to test its detect and avoid technology.

On August 24 the agency authorized Phoenix Air Unmanned to operate SwissDrones SVO 50 V2 drones beyond visual line of sight (BVLOS) for aerial work, aerial photography, survey and powerline and pipeline patrol and inspection.

The FAA issued the approvals after asking for public input on four BVLOS requests. The agency is reviewing one additional request. Data collected from these operations will inform the FAA’s ongoing policy and rulemaking activities. Learn more here and here.

The decision should help drone deliveries see wider deployment.

Walmart has been rolling out its drone delivery service, already offering it in seven states and 36 stores. Dallas-Fort Worth is the company’s latest expansion, adding coverage for some 60,000 homes.

According to Walmart, the service will initially launch from a single store before expanding to include more in the area:

The Walmart Supercenter at 8555 Preston Road in Frisco, Texas, will be the first to launch, joining our existing network of 11 drone hubs already operating in the Dallas area. Once operations begin, customers can download the Wing app from the App Store or Google Play and enter their address to determine if their home is within the Wing drone delivery range. Customers will be able to order items like frozen treats (when those ice cream cravings hit), household essentials, last-minute meal solutions like macaroni and cheese, and even fragile items like eggs.

Wing says customers within six miles of one of the supported stores will be eligible for drone delivery:

It will be available to homes within approximately 6 miles of the stores. But if you’re looking for a pilot with a joystick, you’re not going to find that. Our drones are highly automated! Wing’s technology allows operators to oversee the system from a remote location, which means pilots won’t need to be stationed at stores or customer homes. The aircraft essentially fly themselves, so each operator is approved to safely oversee many drones at the same time.

The companies plan to launch the service at the first store in the coming weeks, with the second store coming online before the end of the year.

One of the biggest issues online shoppers face is finding the products they’re interested in. This can especially be apparent when comparing retail platform search capabilities with the Google Search features customers have become accustomed to.

Google Cloud is now bringing the power of its search to retail clients, with Retail Search, which the company unveiled in a blog.

This fully managed service is easily customizable, enabling organizations to craft shopper-focused search experiences. Our site search solution builds upon decades of Google’s experience and innovation in search indexing, retrieval, and ranking. Retailers can make product discovery even easier for shoppers, while optimizing for their business goals with advanced capabilities

Retail Search gives clients the ability to offer advanced query understanding, meaning customers will have better success finding what they’re looking for even with the broadest of search terms. The service also includes semantic search, which matches product attributes with relevant products.

Customers are already seeing the benefit of Retail Search.

“With limited customer signals and no historical data, descriptive long-tail searches are some of the most challenging queries to understand,” said Neelima Sharma, senior vice president, technology, e-commerce, marketing and merchandising at Lowe’s. “We have been partnering with Google Cloud to give our customers relevant results for long-tail searches and have seen an increase in click-through and search conversion and a drop in our ‘No Results Found’ rate since we launched.”

Google Cloud customers interested in learning more can visit Discovery Solutions for Retail or contact their Google Cloud field sales representative.

Amazon Fresh began as a grocery delivery service exclusively for Amazon Prime subscribers. According to GeekWire, however, the company is expanding its grocery delivery service to non-Prime customers in select metro areas.

The outlet reports that non-Prime customers will pay roughly $4 more for delivery than Prime members. The fees break down to $13.95 for orders under $50, $10.95 for orders between $50 and $100, and $7.95 for orders in excess of $100.

Unlike Prime members, who receive free delivery for orders over $150, it appears that $7.95 is the cheapest delivery option for non-Prime customers.

Amazon Prime is one of the company’s most popular services, providing members with discounted prices and same or next-day delivery. According to a tweet by Jassy, the company has hit a new record in terms of Prime deliveries:

We’re now delivering for U.S. Prime members faster than we have in the 18-year history of Prime (over 1.8B same-day or next-day deliveries so far this year). Customers really appreciate being able to get their items this quickly, and I’m proud of the invention and hard work from our teams to get to this point. We’re not done inventing here.

— Andy Jassy (@ajassy) — July 31, 2023

Doug Herrington, CEO of Worldwide Amazon Stores, credits “regionalizing” US operations with the improved service:

In short, we divided the country into smaller, easier-to-reach regions. Previously, we fulfilled orders from any of our operational sites across the country. Now we have eight interconnected regions serving smaller geographic areas. We keep a broad selection of inventory in each region, making it faster and less expensive to get those products to customers. Today, more than 76% of the orders we fulfill come from within the customer’s region. Items shipped from nearby fulfillment centers or delivery stations helps packages get to customers not only faster, but also with fewer emissions.

Herrington also says the company has started using smaller, same-day delivery facilities to facilitate faster processing and delivery:

As a result, the average time from picking a customer’s items to positioning the customer’s package on the outbound dock is 11 minutes in Same-Day facilities, more than an hour faster than our traditional fulfillment centers. And these hybrid facilities allow us to fulfill, sort, and deliver all from one site—making the entire process of delivering customer packages even faster.

Amazon is clearly firing on all cylinders, giving Prime customers the price and service they want and demonstrating why Amazon is a growing threat to traditional retailers.

Simon served as President and CEO of Walmart U.S. from 2010 to 2014, giving him a unique perspective on the retail industry. Rather than predicting doom-and-gloom for traditional retail, Simon believe technology has the ability to transform the industry and open all new possibilities.

Even something as simple as trying on clothes may be revolutionized by technology, such as virtual reality.

“Could we have virtual changing rooms so that you can just scan an item in a store with your phone and try it on yourself without actually having to go try it on?” Simon said on CNBC’s “Squawk on the Street.”

Simon believes successful retailers will combine online sales with a brick-and-mortar presence, and cites Target and Amazon as two examples of companies that are making it work.

Shopify purchased Deliverr in May 2022 with the goal of challenging Amazon and Walmart in the e-commerce logistics business. Things have not gone according to plan, with the company now selling Deliverr to Flexport.

CEO Tobi Lutke said the deal found the perfect home for Shopify Logistics, including Deliverr:

Flexport, led by CEO Dave Clark and Founder Ryan Petersen, is the best builder and operator in the world of logistics. Contributing our work to Flexport, under the leadership of Harish Abbott, allows everything about Shopify Logistics to be more ambitious and global in nature. Making the global supply chains efficient and software addressable is Flexport’s main quest and so this is the perfect home for this part of Shopify.

The Wall Street Journal reports that Shopify is also selling its 6 River Systems warehouse robotics division to Ocado Group, an automated grocery-fulfillment company in the UK. The outlet also reported Shopify plans to lay off 20% of its staff following the sales.

In his blog post, Lutke says the company periodically must look at its main quest vs side quests and refocus on what’s important. That’s not to say that side quests can’t be important, but they must help further the company’s main quest to continue to make sense. It was this reevaluation that helped lead it to divest itself of its logistics business:

Shopify’s main quest is to make commerce simpler, easier, more democratized, more participatory, and more common. I think that we have built the best commerce platform in the world for that. Technological progress always arcs towards simplicity, and entrepreneurs succeed more when we simplify. But now we are at the dawn of the AI era and the new capabilities that are unlocked by that are unprecedented. Shopify has the privilege of being amongst the companies with the best chances of using AI to help our customers. A copilot for entrepreneurship is now possible. Our main quest demands from us to build the best thing that is now possible, and that has just changed entirely.