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Y Combinator-backed Guac trains algorithms to predict grocery demand | TechCrunch

Dec 19, 2023 - techcrunch.com
Entrepreneurs Euro Wang and Jack Solomon have co-founded Guac, a platform that uses AI to predict daily grocery sales on a per-item basis at specific store locations. The platform, which recently raised $2.3 million in a seed round, uses custom algorithms that consider variables such as weather, sporting events, and Spotify listening data to anticipate order quantities. Guac's recommendations are integrated into existing inventory ordering software and workflows of grocery stores.

Guac is currently working with retailers including grocery delivery companies in North America, Europe, and the Middle East. The company is already generating revenue and plans to expand its engineering team in the coming year. Wang and Solomon believe that their platform can help tackle the problem of food waste caused by poor grocery demand forecasting, which leads to significant losses for retailers and contributes to carbon emissions.

Key takeaways:

  • Poor grocery demand forecasting leads to significant food waste and financial loss, with U.S. grocery stores discarding 10% of the country's annual food production, costing retailers up to 8% of revenues.
  • Entrepreneurs Euro Wang and Jack Solomon co-founded Guac, a platform that uses AI to predict daily grocery sales per item at specific store locations, in an attempt to tackle the problem.
  • Guac's algorithms consider various external variables such as weather, sporting events, and Spotify listening data to anticipate order quantities, and their recommendations are integrated into existing inventory ordering software and workflows.
  • Despite competition from other startups, Guac differentiates itself through its commitment to transparency and the fine-tuning of its forecasting models, and has already begun working with retailers in North America, Europe, and the Middle East.
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