In faddish China, even glorified vending machines raise billions
It’s a high-tech twist on the venerable vending machine, with the latest iterations hawking cooked food and strawberries
Chinese offices aren’t known for cushy perks. So imagine Ben Jiang’s surprise when he showed up one morning to find a bright pink kiosk in the lobby, laden with fruit, yogurt and steamed buns. The brainchild of Mr. Fresh – one of Beijing’s buzziest start-ups – its free-standing shelves don’t lock away or even tag its wares, just ask that shoppers scan smartphone codes to pay for whatever they grab.
Unsurprisingly, a mini free-for-all ensued.
“I know people in the office have taken away stuff worth 5 yuan but just pay 1 yuan,” said Jiang, who works in the Beijing technology hub of Zhongguancun. “They have these open shelves that have no way of monitoring what people are doing. It’s so unreliable to just base a business model on people’s good behaviour.”
Some of China’s most powerful corporations and investment houses disagree. Names from Alibaba Group Holding Ltd. and Tencent Holdings Ltd. to Walmart Inc. and Sequoia have poured more than $1.7 billion into start-ups such as Mr. Fresh and Xingbianli (Gorilla Convenience) that for now offer little more than tricked-out vending machines or kiosks.
It’s the latest example of Fear of Missing Out, a phenomenon that is more apparent in China than anywhere else. Snubbed by Silicon Valley, the kiosks are popping up across the world’s No. 2 economy.