Amazon gets into the smart home market with doorbell startup
Amazon has agreed to buy connected home doorbell maker Ring Inc. The acquisition will cost about $1 billion, according to a person close to the matter, who has asked to not be named. It’s a powerful way for Amazon to push further into the home of consumers everywhere. They already have Alexa and the Echo helping them make Prime orders, now they will have a contact point at the other area the company touches people’s lives: the front door.
Amazon’s share price has risen by 76% in the past 12 months
SOURCE: Yahoo Finance
James Cakmak, an analyst at Monness Crespi Hardt & Co., made the following comment over the acquisition: “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."
Ring makes video doorbells and security cameras that let owners see who’s at their front door – and speak to them – remotely. The possibilities for a company that relies on its top class delivery service are obvious. Amazon has already begun innovating this area with its Amazon Key service, introduced last year: a smart lock that opens doors for verified delivery drivers.
In a joint statement, Amazon said of the deal: “Ring’s home security products and services have delighted customers since day one. We’re excited to work with this talented team and help them in their mission to keep homes safe and secure.”
Dominion holds Amazon in its Global Trends Ecommerce Fund.
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