The Amazon retail giant has agreed to purchase the smart doorbell startup company called Ring.
The startup designs and manufactures cameras and doorbells that allow for remote home monitoring.
A $1 Billion Purchase
Amazon’s purchase of Ring is reportedly an acquisition worth about $1 billion, according to a Bloomberg report quoting a source familiar with the matter. The startup’s purchase helps the massive online marketplace to broaden its reach into the consumer market. This will now include the ability to offer security for package deliveries. JPMorgan Chase was responsible for advising Ring on the acquisition, said Bloomberg’s source.
The e-commerce giant has been seeking a larger presence in homes. It has already launched a number of different types of connected devices. Most recently, that has included its Echo smart speaker, which functions with the company’s Alexa voice-activated assistant. By acquiring Ring,
Amazon’s New Opportunity
Amazon opens up a new door for itself in serving its customers, said Monness Crespi Hardt and Co. analyst, James Cakmak.
“For this specifically it A) builds connection for further strengthening trust between the brand and consumers, B) increases market for delivery, and in turn, frequency, C) moves company along path to same day/same hour efforts while everyone else is battling the two day war,” said Cakmak.
In 2017, Amazon unveiled Amazon Key. That service brought together the concept of a smart lock with a package drop off service. The idea was that the lock would make it possible for verified delivery services to deposit a package inside a shopper’s home.
That way, the company could help to overcome the growing problem of “porch pirates.” Package thefts have become a rising problem over the last few years as online shopping – and the resulting deliveries – have become increasingly commonplace.
Ring’s Smart Doorbells
Ring’s smart doorbells and video cameras link with a customer’s phone or computer. That way, they are able to see their entry and see anyone – or even speak to anyone – who arrives there, by way of the digital device.
Ring is based in Santa Monica, California. It also sells a number of other products related to home safety and security. Those include security systems and smoke detectors. That said, it’s the smart doorbell and video services and products that interested Amazon.