CES 2018 Smart Home Panel: Shopping and the smart home
CES 2018 Smart Home Panel: Shopping and the smart home
43:25

CES 2018 Smart Home Panel: Shopping and the smart home

Smart Home
[MUSIC] All right, welcome back to the CNET Live stage at CES 2018. I'm Rich Brown, executive editor at CNET, and for the next 45 minutes we'll be talking about shopping and the smart home My guests. I'm really excited about this panel. We've got from my right here Mark Spates from Google, Jason Williams who is the President of Residential Business at Assa Abloy. They own both the Yale lock company As well as recently acquired August Smart Locks, and the we have Lori Fleece from Wal-Mart, and down at the end we have Daniel Rausch from Amazon who runs the Dash business over there. Welcome all of you guys, thank you for coming to the panel, I am really excited to get this going, briefly, I wonder if you all could tell us a little bit more about what you do over at your respective companies. Yeah sure. So at Google I am the product lead for Smart Home across the Google Assistant and also Google Hardware. And our team really focuses on a few things. One is a set of APIs to make sure that our partners can connect their devices to the Google system. And also we think about the home context and how do we use the understanding of these devices in a relationship to the home to create really cool user experiences. [BLANK_AUDIO] So, I'm the president of the residential group for ASSA ABLOY for includes Yale and Emtek. At our core we do lots of mechanical hardware that goes on homes from the mass market up to the high end custom homes that are built today. But over the last Five, six years. We've really been investing heavily into connected locks, electronic locks. And we've been working very closely an in that space with integration partners. Our focus is really to build the best locks in the class and seamlessly integrate them into Service providers and our partner's platforms. So I'm really excited to be up here with the three folks to talk about some of the things that those relationships and integrations are driving. Hi, I lead store number eight for Walmart. And I also lead our next generation retail initiatives as well as partnerships. So number eight is our incubator and what we are doing is incubating companies and technologies which will be important to the next generation of retail. Alright, Daniel? Hey there. I am Daniel Kush I look after Smart Home at amazon, vice president of smart home, that subsumes all kinds of magical experiences we offer for customers. That might be... Alexa, turning on your lights or turning on and disarming and arming your security system. It might mean magical delivery experience through something like Amazon Key right into your home. And it might also mean something like auto-tracking and reordering consumables in your kitchen. All right, thank you all again. This topic seemed like a natural one for a couple of reasons in the [UNKNOWN] space. One is the dawn of voice shopping, right? Amazon has had that going on for a little while now, I want to say about a year and a half, two years. And then Wal Mart and Google recently this past fall launched voice shopping through the Google system through Wal Mart. So that is a big change that we're seeing in retail, seeing for consumers in the home as for home technology. But then also Amazon Key, and this whole idea of in-home delivery services. So of course Amazon got all the headlines with Amazon Key earlier last year when they announced this new program that would let A delivery person actually unlocked your door and put a package inside your home. Google and Walmart have also trialed the service with our, pardon me, Walmart and August have trialed the service. Do the Walmart partnership with jet.com and That is a pretty interesting idea, I think. In this whole smart home and changing consumer space. So, first question, who here would let someone deliver a product into their own home? [LAUGH] I definitely would. Yeah, I mean, of course, you. Well, I'm not going to be left out, of course I am. [LAUGH] You've gotta ask my wife though because she gets the ultimate say. Right? It's, I mean That seems like a tough sale. That seems like a tough sale to a lot of people. And I know that there are mechanisms in place to help alleviate some of that anxiety, but how do you convince someone that that's ok. I'll just jump in and I'm sure others will add. Having deivery in the home and even in the fridge... Is a huge time saver for many time staff customers. It will not be for everyone and it will not be for everyone today or maybe some not ever but it is actually just an evolution of things that Americans and people around the world have been doing for a while. So leaving a lock box on your door not to allow real in To give your key, or have a hiding place for your key to let other people in your home. Whether it's a contractor, or a cleaning service. These are things that people have been allowing folks to do for a long time. And so what's actually changed is technology. is allowing people to have more control over when they will, who they will let in, and when they will let them in and to able to watch them in the house when they're there. So it's just an evolution using technology that's available but something that many people have been doing for a long time. Yeah, I'd double down on a couple things that Laurie said. We're live with Amazon Key now in 37 cities Many things on Amazon are rated out of a five star basis. The delivery experience through Amazon Key is rated at a 4.7 stars out of 5, so it's one of our most satisfying experiences that we offer for customers. And it is all about customer choice. So, I think working backwards from the customer experience you want, what customer really want is a very high degree of Convenience with a very high degree of control. So, things we've built in [UNKNOWN] are for example, I can decide even at the last minute that I don't want that package delivered inside my home. I will get a text and I can actually observe every delivery live if I want to. I can go back and re-observe on video any delivery that comes into my home and. There's all kinds of extensive training for our delivery professionals on how to insert a package just inside the door before closing. There's safety and security that you have to build into the experience obviously so that it can't be abused. So I think you really have to look at it holistically. It starts with convenience and control and you can produce the kind of satisfaction we're seeing with Key. Now, I'd like to ask you a question Jason cause I think Apple is in a unique position. Yale, is a certified lock for Amazon key and of course August is a lock that's working with Walmart. So you guys are working with everyone on this. What is the role of hardware manufacturer ideally? Do you imagine You're gonna sit in the background and just let the service providers take the lead? Where do you see this going? I think we've got several opportunities within this space. On the one hand, we have Yale. And our goal has really been to integrate our locks. Into these platforms. And so that's what we've done with Amazon Key, and we've let them work the magic in the background. But with August Access we do take a different approach, and we do have the ability, and we've built the infrastructure to create the experience, so that we can work with service providers, like Walmart, other retailers, and provide that experience to the consumer. So I think we are uniquely situated to play both sides of those, and I think ultimately is people get more comfortable we are going to see delivery grow, as in home delivery continue to grow. And I think if you look at. Other services that we've all experienced over the last three, four, five years from Uber to AirBnB to Rover.com, is we've pointed out already, we're already letting people do this. So I don't think this is a hugely revolutionary idea, it's the technology that's enabled it so that we can now have Visibility, accountability, transparency into what's going on. Both through the door lock, we know when that thing is locking and locking. And also with the camera we can see exactly what's going on, if the package was delivered and then the door was shut and locked behind them. Mark, you made an interesting point in agreement number 4 about this idea of Of purchasing intent, particularly when you're ordering with your voice. How does a service provider know when you say you want to buy something, exactly what it is you want to buy, and then what you're hoping will happen from that transaction. Yeah, I think that's a good point. We're talking a lot about the In the stage of the use case, which is the product actually arrives at your house, and it's dropped off. Where it gets really interesting to me is this thought of what's the intent? And what did you really wanna order? And can we start to actually make that experience better as well? So We can make the first experience better, where it's like we think these are the things you want. We cam make sure we start to fill the cart with the thing that we believe are more of the routine orders, and I think some of our partners up here already do a good job of that. But, how do you start to connect, both, my intent to order, to my intent to be deliver. And for Google, it's really a lot about this natural conversation that you have. I think when you look at a lot of this [UNKNOWN] experiences right now. They're really based on really specific syntax that if you don't say it right then you're not gonna get the outcome you want. Now if you put that onto shopping, that's a really bad user experience. So I say I want toilet paper, but what you end up selling me is maybe one roll with the brand that I don't want and you send it the wrong day. So how do we start to take this [UNKNOWN] interface that we have to now. Say you want toilet paper. You want the toilet paper that you ordered three days ago, and you want actually two quantities of it, not one quantity of it. How do you have that conversational experience, because now I'm not sitting in front of the computer, just checking boxes. And we think there's a lot more work to actually be done in the conversational part of the ordering process that will help the actual delivery part of the process. I'd be happy to add a couple of points. I completely agree. I mean I think customers actually want is shopping for work a day items. The essentials around your home. They just want to not exist but best shopping experience for toilet paper does not exist for sure. You just never want to have it. So what you really want is just more toilet paper in my closet You wanna know the kind that I want. You wanna know exactly the quantity that I want to fill in. And so I think one of the things that we really bring to that experience at Amazon is the knowledge of your shopping history. We probably sent you toilet paper last time and so we can make it as simple as Alexa, send me toilet paper. We can also make it as simple as a dash button on the inside of your closet which is how toilet papers ordered in my own home. Anyone in the house can order it, you click it when you get down to a couple of rolls and you didn't need to worry about. Or I think the future of reordering for everyday items, honestly, is that machines will order for themselves. So, with our dash replenishment program we actually have made a recent announcement with even more partners here at CES. Things like toner for your printer or ink. These are terrible shopping experiences typically. Let the printer order it for you.>> So if I am a brand though and my product is perhaps loaded into someones automated purchase Another brand doesn't get the opportunity of an impulse buy. It seems like it makes conquesting a category pretty hard. Wouldn't I give you guys some resistance to putting my product up for this kind of delivery? I think, I'll jump in. Yeah, go ahead. Our experience at Walmart is Food and consumables, which is a regular, weekly, shopping experience. 80 percent of it is repeat. And so, customers are ordering the same things. They know what they want. They just want to get it in the easiest fashion possible. And it's really taking the things we were talking about, and search around the 20 percent that they actually wanna explore. And so it's making the 80% of what you're shopping for incredibly easy, where with smart home technology, you can actually predict. You can use our normal purchase patters as well as traffic in their home to actually know when they need it without them having to push a button. And then focus of delaying them on the 20 percent that they want to explore, and that is where the magic comes. You want to be part factory and easy, and part theater and fun. What happens if something goes wrong in the delivery. If the package shows up late, shows up next door, there is a problem with the lock hardware... I think I've ordered one thing via voice, something else happens, I don't wanna call four different people. I want to call one person to solve any of those problems. What do you guys think about that? Well we have a particular approach with Key, if that's part of the question at least. Which is called the happiness guarantee Where we will back that key delivery experience and knowing that every part of it is important to customers whether it's in or outside our control. We back it with the happiness guarantee. So it's as simple as a call to Amazon customer service and we'll make the situation right. And I think in the background is a hardware manufactuer. I mean we've got a very close relationship with the Amazon key team. We the warm up team, so that we were working in the background to make sure we were addressing those issues when they do come up. Yeah, I think in general it is my home, I think you have these issues where I'm talking to you in assistance from one company, maybe devices made by another company and they're controling like made by a campany that also has it's own entity. and in For a user the perspective of the failure could at any point so for us, and I think you guys probably see the same, it's important actually start to rethink your customer service from the ground up. And making sure that no matter which one they pick to call actually get to the same answer and to the same place. And I think that's a smart home problem in general. How do you sell delivery in apartment buildings? We know that Walmart has tried done a latch trial in New York City I believe. Yeah. We have a great partnership with Jet, with Latch. They have access to a 1000 apartment buildings in New York City and what it does is it allows people who cannot be home within a specified delivery window to have their package severely Securely kept. And I do think that there's multi family environments and there are a lot of homes that don't have doormen or in areas that are not secure. So some of the pilots that we've started back in September are really to try to work and understand different customer environments and requirements. And then build an experience that gives them the trust and a seamless experience regardless of how they want their package delivered. That would also seem to be a pretty significant hardware challenge. Yeah. And in apartments, multi-family housing just adds another layer of complexity to What we're trying to accomplish, especially if you're talking about in apartment delivery, because you have all different sorts of openings, and those different openings, from a gate to a elevator to the garage to the tenant door, they all have different types of locks. And those locks need the same technology. At least from a [UNKNOWN] perspective we're very well positioned because we've got Residential locks. We've got commercial locks that can fit all those holes in the doors, but it's still a very difficult challenge and it's much harder from a technical perspective to solve that problem versus a single family home where you've got basically one type of lock you've got to deal with. I think about the building I lived in in New York City for awhile. There was a co-op built in the 50s. Some of the original lock hardware throughout, some of the original residents on the co-op board. They will never add smart locks to that building right? That's just never going to happen. I imagine that building's not unique. So I wonder what is the solution for buildings like that? I think the reality is there's probably people who will not take advantage of in home delivery. I think this problem very similar. So I used to work on a product that was a universal remote control. And we always said the number one competition for that product was actually not other controllers, it was like a control caddy. >Right. That's actually the thing that you're fighting against. Cause i-it actually solves a problem as well. And, and in this instance, how many time have you walked into your office postal room and, actually, it's become the delivery place. That's right. Most of these have become post offices. I think, to, to your point, you're, you're not only gonna have to solve the problem, but you're gonna have to change behaviour. Because so many people at this point get a lot of boxes from both these companies actually at work. And it works for them. And they don't see the reason for another solution. One program I mentioned that we have at Amazon that we see working for apartment buildings on retro fit in particular, which you were talking about, new build, I think they're willing to put in plenty of Jason's locks up and down and will solve that problem that way. Retro fit apartment buildings are increasingly putting in an Amazon Locker. It's called in a secure location either in the lobby or just outside- Sure. Where it's not just for Amazon packages. That's actually something that's setup where anything can be delivered in there and then residence of that apartment can securely get access to that. And that really speeds delivery and miss deliveries go down. So We'd agree. At Walmart, we've been doing that in the UK in subway stations and other places which people wanna get the products but they can't be at home when they're gonna be delivered so they can pick it up on the last stop. Walk a couple of blocks and be home. And it really just allows people to have flexibility. You know, well Mark you can pick it up in a store if that's convenient, you can drive up and put it in your trunk if that's convenient, you can have it delivered to your daughter if that's convenient, you can have it delivered inside your house if that's convenient, and you can have it. Held for you. And so I think there's many different options and that one size fits all for every customer and every shopping occasion. Well eventually drones will just solve for all of this, right? You still have to have somebody receive it on the other end without breaking without breaking. So until we get to drones or package delivering robots of some kind, We've got people bringing packages inside of customer's houses and residence. What's the training for that like? What are the things that they need to be responsible for? How do you make sure that they behave in the way that the customer expects they're gonna behave? Well, we start with our standard training for deliveries, which includes all kinds of things around making sure that the driver is safe and secure, and the property stays secure that they're delivering to. I might also add, that's a really good point. How do you make sure the delivery person Themselves per say. There is all kind of things involved there, physical environment need to be safe and secure and so there is vigorous training for the Amazon personnel that are entered in the key program and there is also additional training. That's one is the human element and that's sort of where your question was focused. Then you have the systems that sort of support and check and authorize everything that goes on with that delivery experience. With Key, we've built that, again working backwards from that customer trust and customer control. Where it's a one time code that's issued to a driver. Where we know that person is in the location and has indicated they're prepared to make a delivery. The camera must be on, and functional and working to know that we can stream that delivery to the customer live if they want to observe the delivery and we can record it. So I think it's two angles there. One is the human element, because these are obviously very effective human beings doing this delivery and we're proud of the training that they go through. On the other side, you also need to build the technical systems to support them and make sure that we're getting the customers the experience they want. [BLANK_AUDIO] How about on the Walmart side on the last trial, we directing any kind of special instructions for the delivery? We work through third parties with deliveries, and so, with the August lacked work that we've been doing, Deliv is actually the delivery partner. Right. And so working with them to make sure that they have Exactly the same notification control that the customers have but also the training, the background check and just teaching them almost in the same way that the US Postal service gets trained around how to come up to a yard with pets and other obstacles. Now all of you have been involved in trialing in home delivery in various places. I wonder if you can Talks about something that customers love about it and something that they don't like something. What did you learn along the way in trialing? I think for us the thing that they didn't like to us we didn't have enough space in our pilot. We were over subscribe and I think that we knew that there would be interest when we send out the invitations in the bay area. But, we filled up the space in our program within a day. And, actually were over-subscribed to the point where we had to do a waiting list. So, I do think that the demand is there. And, part of it is just making sure that you can deliver on the promise. And so, learning and growing in way that you can deliver and have a great MPS. Which is what we've been focused on. In terms of issues we have not had any issues.>> No issues>> The smallest issue we had was that a customer complained that the delivery person tracked some water in when it was raining. We mitigated that and made sure that our drivers in rain time period had you know the right equipment to make sure that that didn't happen. That is the extent of the feedback that hasn't been positive. So what is that equipment?>>Absorbant towel. It is pretty basic. Really that is what it is?>>Just the basic things to let the customer know that you are being thoughtful and leaving the house exactly the way that they found it. It is as if The package appeared magically, that's what you want the experience to look like. How about Amazon? Well, I'll reiterate the fact that the reviews have been great so far. So 4.7 out of 5 stars, generally, so generally good. There's always some things that you're working on. [INAUDIBLE] 0.3 on the other side. That's right, exactly. So I think We've gotten feedback, customers wanna see more locks, I think, just more selection. That's not atypical at Amazon. We get asked to integrate withe everything. On the smart home side, we have 4,000 products you can connect to Alexa, so they expect all the locks, for example. We've gotten that kind of feedback. They want to be able to integrate into to the smart home set up that they already have so to speak so we want to find more ways to connect to more locks. But generally speaking from a delivery experience perspective it's been pretty effective in lights out. We've gotten the same kind of feedback where customers outside the 37 cities that we're in and all over now Customers anywhere want that, it's a prime benefit so I'm a prime customer when am I gonna get it? Tapping their feet basically, so we're looking forward to getting it to all prime customers soon. How about you guys? Yeah, and certainly I would echo the same sentiment working with Walmart and Amazon key But in some of the trials that we've done globally with [UNKNOWN], we've had very similar feedback from the folks that have been in the trials. For example, we did one in Scandinavia where we were doing grocery delivery inside the refrigerator. We had 70 folks in that trial. Afterwards, it wasn't 100%, but we had 80% of those that not only wanted to continue with the trial, but said that they were willing to pay for that service down the road. So, great experience and I think as more people get exposed to this, it's just gonna continue to snowball. [BLANK_AUDIO] Mark in your trials of Google, has Google learned anything? Yeah, yeah. So I think the other thing that we've learned is, one it seems like the repetition of buying these things we all believe it's gonna be the same thing, and to your point 80% That's assuming that I'm buying from a big box and the whole experience is kind of through one retailer. This is also that whole local piece that we end up seeing that a lot of users are interested in, right? There's a hardware store I go to. There's a specific butcher I go to as well. So, I think the feedback that we have gotten is that it's great, like yeah you have solved my problem with the button that I don't have to order. Paper towel anymore. But what about all the things that are actually special to me, living in New York you know this. I have a butcher. I have a place I get my cantaloupes. I have a place that I get all these specific things. I don't order everything from one place. So having this variety is really important as well. So that's the one thing that we also see. And actually one of the good things is that we get feedback from users saying when I say "order this thing." you gives me an option of ways to get it, and it is always about the same exact thing that I get all the time. Once again, it is maybe the twenty percent, but the twenty percent is where... where are you finding really unique things? I wanna ask a question about demographic uptake of in home delivery and voice shopping in general, and I think all the data that we've seen is that millennials are very eager to hop on board smart home. You all have done trials in different regions though, I wonder if there are regional variations or Perhaps older millinials with kids versus younger millinials that maybe live in an apartment sharing situation. What have you guys seen there?>> I think on the Walmart side, busy urban millinials, but that's part of the functoin of where we focused first and so the feedback that we are getting for customers across our... Entire network is that the demand is not just urban. The demand is really coming with people who are trying to save time. Single parents, dual income parents, people that are busy. And they're very stressed on time. And so anything you can do To give them back more time or more flexibility in their schedule is of huge value. So I do think that the urban millennials are the first trialers of this, but the interest is much broader than that. I'd echo that. I think it graphs onto what's happening with smart homes, so called smart homes in general. which is that, you know, it used to be very homogeneous. It used to be a few technical solutions, You used to have to use your phone all the time to interact with it, which was typically one member of the household versus ubiquity of access. So, I think, as these smart home experiences more broadly are becoming more broadly accessible, easier to understand and use and interface with through the power of voice or even experiences where you don't need your voice at all. You're seeing that it's becoming mass-market adopted. For us, when we look at the data, it maps on to Prime. Prime is a universal program. It used to be tech enthusiasts were the only ones that got things in two days. That's now, years and decades ago that that was true. Now it's pretty much anyone that wants things quickly and conveniently. I think that's how the data looks for us. Jason, you brought up a topic I think is really interesting given the amount of complexity with it. Delivering into the refrigerator. And to me that brings grocery shopping in general. But then smart kitchen, which I love to dive into and we will in a minute here. First thing I wanna ask though is Are there, aside from keeping things cool and making sure they get them on time, are there any particulars to the grocery shopping with your voice or with a home delivery service that don't necessarily apply to traditional package goods? Definitely Walmart has been building a very big business in online grocery. And as you think about it from a customer perspective there are two challenges that they face. One is price and do I really wanna pay more to avoid having to shop for that and Walmart takes that issue away in that the prices for our online groceries are the same as in our stores so providing that takes that issue away. Then it's around Can I trust somebody else to pick the food that I'm gonna serve my family? Right. And when it comes to fresh, are they gonna pick the bananas I would pick them? Are they gonna pick the avocados with the ripeness that I want, given when I wanna eat them? And for us, what we do is we have dedicated hiring For people who do our online grocery picking and dispensing to the customer. And what that allows us to do is really train those associates to understand the customer that they're serving and to understand the products. And so they can go into. To look at the assortment and pick the best assortment that's available for their customer. We don't use crowd-sourcing to do that, because you have too much turnover. So we hire fulltime associates that are only focused on that. We give them a lot of training. For every customer, we get feedback. We do an NPS survey, and anytime we do not get A nine or ten on the survey we follow up with the customer and follow up with the person who served the customer and learn from that experience. And our customer, our NPS score is above 85. And we're delivering this over 1100 store locations, and we have an NPS of 85. So there's ways to do it but it comes down to the picking and the service, and the costumer experience. The next step is really to create the technology that allows the costumer, not just to get it delivered to their home with a window that they want, but to allow The associate to go in, or a third party to go in, and put it right into the fridge and save them that much more time. And that's exactly what we're trialing with August with very good feedback. And you thought it was contraversial just putting a package inside the door. [LAUGH] Yeah. So the I like the smart home, the smart kitchen topic in particular. Because I think if any place in the home needs to really come together in a really unified way, it's in the kitchen. But also, it's such a personal space. We bring our tastes and our traditions to that space. It's a prime gathering space for the family. It's the heart of the house, right? I admit I have sort of this grand unified theory of the smart kitchen. Where you'd need to get your shopping lists, your delivery, if your gonna go down that route, your recipe building, your cooking assistants, really every part of that needs to be, if not on one platform then certainly among services that deeply work together, that understand each other. I almost think you need to Just to really do it you need to get rid of everything in your kitchen and start from scratch. And that's really the whole new way to really get it right. Could a person delivering products into your refrigerator have a role somewhere beyond just dropping products off? Say, Letting you know you're out of something, or saying, hey, you've got the stuff for really killer risotto here. Maybe, can I even make it for you? I realize that's probably crazy, and not what anybody is really thinking of, but it just seems like an opportunity for someone to make the smart kitchen concept work a little better. But Also now, you're getting someone in the home doing something else. There's an opportunity and certainly hazards around that. I'd love to hear from all of you on that idea. Yeah, I'll jump in. Over at the Google booth today, we had really two big demos that we did around noon. It was all about the smart kitchen. That was it. And it was in the end because it has to be an in the end experience, right. And so it's about what I have, what do I wanna cook, the time I have, but also what are the right instructions? What are the right devices to have? Because maybe having assistant speaker is not the right thing, maybe it's assistant display, right, to help me with my recipes. Then it's also having the right connected devices. So to your point, like Amazon, we work with thousand devices. So you have to make sure you have the spread in the ecosystem. But it has to be a full end-to-end experience, because what we've seen and the research that we've done around the cooking use case, right now it's all spot solutions. Yeah, I have a connected stove. Yes, I know where to get some recipes. But no one has actually put it together. And I think what these voice assistants in general have allowed is an interface to start to string the experience together for the user. And it can go as far and as deep as I think we want, but at first you've got to start with, I have a tombstone pizza, just make that really good, because we can't even do that today. Even through the voice assistance. Yeah I would echo a couple things that you said. I think you're wondering about whether we can solve through that person being in the kitchen all this heterogeneity. That there is and maybe the technical unsophistication of parts of your kitchen and the sophistication of other parts. So I think you're seeing smart parts of the kitchen emerge, but it's still very early days. So in my own view, what we've done recently through, for example we launched the cooking API, is extend voice assistant surface, in our case Alexa To every part of that smart kitchen so you can turn on your microwave and ask for, for example, defrost chicken instead of trying to think through how many pounds of chicken you have and what the algorithm is. You can look over at your show and ask for step wise instructions on cooking something. My daughter and I cooked veggie chili this weekend using our Echo show and Honestly, I didn't do most of the cooking which is super cool for a 9-year-old to feel in control of her own destiny just by turning the screen and following the directions and listening to Alexa. So I think you're still seeing use cases to your point that are relatively vertical. They're not highly integrated yet where it's hey, maybe it's risotto night and that'll Elegantly surprise you. But you're saying the building blocks of that kind of experience come together? I do doubt that customers want it to be the delivery person that pulls that all together for them. [LAUGH] So I think we'll just keep working hard on other options. [LAUGH] Yeah, I was gonna say the same thing. I think there are many things, TaskRabbit, and other Other companies that are enabling people to get things done in a home. I think part of it will come, really it will come down to the person that comes in to the home to do something is doing it because there's not a technology that can do it on its own. And so I think some of the things that you talked about, technology will enable, so Being able to see when you need to replenish things in your fridge. You don't need a person to do that. You can actually have technology do that. So I think there will be things that can only be enabled by person, that people will start to expand that suite of services but I think there's a lot more that technology can do and I do agree that right now, they are very siloed solutions. The voice platform are allowing them to be connected but they themselves are not connected yet. So there is a lot more evolution that we gonna see over the next three years. And personally I would love to be able to tell Google or [UNKNOWN] to order my dinner for the night so that all the ingredients are at home. >When I get there from work, I don't have to stop at the grocery store on the way home. Saves me twenty, thirty minutes. But when you start asking these delivery people to do more and different things in your home, the security becomes harder. Right? So with delivery inside your door, the lock and the camera that's focused there, very easy to see that they dropped the package and left. Is you now ask them to go in deeper in your home and do more things and go to different places. It's just more complex and harder to have the security from end to end. So that would be the one concern that we have in terms of expanding the use cases here. Did that come up when you did the fridge trial? Absolutely. It was a big concern. I want to get into close purchasing a little bit. Amazon look I think is, correcting me if I'm wrong, maybe the one product out here now that is actually a smart home device that will give you clothing recommendations. If you are not familiar, it's a little camera, you can put an outfit on and stand in front of it and it will You can do an AB test on whatever you might be wearing and an algorithm and then apparently a human will also tell you what to pick, but then from there Amazon starts making purchase recommendations and that kind of thing. That's another buying experience that is, again, very personal. We're used to going to the store, trying things on. We want to be very private. [BLANK_AUDIO] How do you solve that? Look seems like one piece of the puzzle. What else do you do there? Well, I think just to stretch out the vision of look a little bit for you, I think. You know, we backwards from customers at Amazon and it is really observing customer behavior that led to the concept for Look, because you have so many customers that view one part of fashion as a private exercise and curating their wardrobe and obviously Walking out of the shower and getting dressed, I consider that a private exercise. So I get that point that it's private, but on the other hand actually, customers love to collaborate on what they're wearing and curate their wardrobe with other people in their lives and send selfies, frankly. You can. From my own family, I've got plenty of selfies where, with the phone camera in the mirror, they're taking an image of what they would wear that day. So I think we're trying to make that whole end-to-end experience for customers. So there's a few things Look does. It helps you curate your wardrobe, so you have the images of what you've worn and when you wore it. It lets you simply and easily send a selfie to someone so you can even do a video one. I'm not the best dressed person in the room but you can imagine there are others here that would love to be able to do that every morning. You look great. [LAUGH] Thanks very much. And you can also use it as a full [UNKNOWN] send point. So you can talk to Alexa, you can get your weather. You can get your morning routine started, listen to music, so there's all kinds of things you can do with Echo and I think it's very early days, because it's a super interesting set of used cases. But feedback from customers has been really positive to date. << Mark, I'd love to hear from you on this topic given Google tends to be kind of good at helping people find things and make decisions about things. << Yeah, actually, I'll start with like a really basic philosophy, which is Automation is this really great Holy Grail but all the experiences that you see come from Google are usually more suggestive than they are automotive. You can look at all the services, look through email, look through like Google Photos, right. And it's always this option and I think Daniel said something very similar, it's like, it's about the Dwindle down the options for me so I don't have to think about everything. So once you start to understand your pattern about what you're wearing, you're like, okay. These are the things that you usually wear. Let me give you 4 or 5 combinations of this to the first 15 minutes, and I don't know about you guys but me, I go in the closet and I just look there for like 5 minutes. And I have no idea what I'm wearing today. But you know what, I end up putting on the same thing I put on the Tuesday before. Cuz it's like, that shirt's clean. The routine is based on how I wash my clothes, actually, it's not really what I wanna wear. And so, you start to think about using data, just to give suggestions. Just so show you really quickly, and I think the same thing for food, sometimes I don't even want you to do it for me, I just want you to cut the list down. And I think for shopping, that's a really good experience and I think it really falls into Google's wheelhouse. It's like, let us just cut that list down for you and make it a little bit easier. Laurie, can you image clothes shopping going on outside of a Walmart store? I can. You know it already happens today with Basics. Sure. So there's a huge amount of the apparel market which is Basics and it's repeat purchases. It's more consumable than what you would think. But the other, I think the thing around apparel I do think a lot more is gonna be purchased online as browsability And tools like AR and others allow you to get a feel, get a visual.of how.it will.look on you. But there, but shopping for clothes is an American pastime. Uh-huh. I know I did it when I was a teenager. It was how I wanted to spend my weekends, even though I didn't spend a.lot of money. Going out and looking at the fit and feeling the product was important, for the amount of money that I was spending on it. So I think there still is going to be a place in the physical world for apparel, but I do think that with more tools, people can get a visual. And as your ability and ease of return gets even greater, Gets even easier and it will also will go faster. Jason, I'm sorry go ahead. Cuz I totally agree with everything Laurie said. I think customers are gonna want effectively for apparel they don't want that shopping to disappear that's how I think about it. Toilet paper I'm sure they want it to disappear. Apparel Customers want to engage in that shopping. I agree that it's a pastime. You reminded me about a program, Prime Wardrobe, where we're shipping in beta to customers a whole box. You fill your box. You keep what you want. And as long as you put that box back out on your porch within a week for things that you don't want, Amazon takes it back, free of charge, in terms of shipping. So I think It's exactly true that customers are gonna want integrated experiences and they're still gonna want the tangible, tactile, curated shopping experience when it comes to apparel. Jason, what I wanted to ask you is since Assa Abloy acquired August and the August access service, it seems like you all of a sudden have become curators of Sort of special knowledge around in-home delivery and in provisioning access, because August access trial things like dog-walking and laundry pickup and getting more diverse beyond just dropping a package off inside. I wonder if you, and I realize it hasn't been that long since the August deal closed, but I wonder if you could talk about Perhaps in the things that august has learned in that program or you all have learned and how that might translate in the future. Yeah, and it's been closed fo about 40 days now so we're just kinda getting integrated there. And I'm really kinds dissappointed you didn't ask me about shopping and clothes as the [UNKNOWN] guy. [LAUGH] One thing that we have learned, and I think I've heard others talk about this, is that the core is the user experience. August is really, really good at delivering a user experience that's meaningful to the customer. And I think as we look at the evolution of not only delivery, but allowing people in your home, service providers, be it dog walkers or anything else, the user experience is actually going to expand beyond that particular service, right? We're still talking about home control and home automation And you know I think that's really what August is doing. Not only are they developing August access which is this great platform to enable delivery but they're also keeping in mind that people are gonna do so many other things with the locks and the cameras that we provide. So that's kind of the, that's probably the biggest thing that I've got now to the last 40 days and things that we're gonna carry forward within the August and the l team. All right, that's about all the time we have. I wanna thank you guys very much. This has been great. Again, we've got Daniel Rosch from Amazon, Laurie Fleece from Walmart, Jason Williams from [UNKNOWN], and Mark Space from Google. [MUSIC]

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