Amazon has scaled back its plans to build a delivery robot, but insists that the project is not done.

The company is shutting down tests of the machine and the Scout team is being dissolved, according to a report. The company is scaling the program back and still have a team dedicated to Scout, according to a spokeswoman.

The program wasn't meeting customers' needs.

"During our Scout limited field test, we worked to create a unique delivery experience, but learned through feedback that there were aspects of the program that weren't meeting customers' needs" We are ending the field tests and reorganizing the program. We are matching employees with open roles that fit their skills and experience.

Scout has been used in a number of states. The machine joined a growing number of semi-autonomous delivery robots that ranged from the size of a small car to the size of a cooler.

The idea is for the robots to take packages from the distribution centers to the front doors. It isn't certain that the economics of this technology make sense. When the robots run into unforeseen situations, they have to be monitored remotely. They are slow and have little advantage over traditional couriers.

As growth in its core retail sector slows, Amazon has decided to cut down on more speculative investments. The company recently killed off its interactive, family-friendly video device, Amazon Glow, and is winding down its services by the end of the year.

The fate of Amazon Prime Air will be interesting. There have been reports of mismanagement, unrealistic expectations, and high employee turnover since the project was announced. The scout lost its way. I wonder if Prime Air will crash down next.