Amazon plans to acquire Ring for 1 billion US dollars

Amazon recently acquired Ring, a smart home device startup, with a price tag of about $ 1 billion, which is much lower than Whole Foods Market ’s $ 13.7 billion, but it is the second-largest acquisition in Amazon ’s history. Like all previous acquisitions of mobile, JeffBezos' vision for the future can also be glimpsed from it.

Bloomberg (Bloomberg) analysis pointed out that in the short term, Ring is like Amazon to piece together a complete ecosystem of Alexa, but also allows Amazon to compete in the smart home market with Google, Apple (Apple) an additional weapon.

Alexa now offers quite a lot of functions, but if users can use Alexa to control the security system by voice, open the locked door, or display visitors through the doorbell, there will be a considerable bonus in competitiveness. Google also understands that this market has considerable business opportunities, so it decided to sell the Nest doorbell for $ 229 in the spring, and it comes with a free home smart home mini.

Amazon plans to acquire Ring for 1 billion US dollars

Alexa currently cooperates with many third-party smart home products. With Ring's doorbells, monitors and other accessories, Amazon will have the opportunity to accelerate the development of these products and make them a part of Alexa. Amazon also bought Blink, a similar company, in 2017.

In the medium term, the acquisition of Ring will help Amazon fight rampant package thieves. In the United States, the problem of package theft is becoming more and more serious. Amazon ’s solution is to require delivery personnel to take photos of the packages left in front of the door and send the photos to customers. Despite this, Amazon's same-day delivery service is still suffocating in neighboring areas with high crime rates.

Amazon launched Amazon Key in 2017. The main door security system will authorize unlocking after confirming that the visitor is safe. The smart door lock system used by this product is provided by other companies. Ring products do not include door locks, but if Amazon has mastered all the components, it should also create the same products.

In the longer term, Ring will also be a good helper for Amazon to deliver fresh food to the house. Generally speaking, it is not a good way to ship fresh food with cartons filled with dry ice. Guests may be mad because they have to deal with huge cartons. If Amazon can master the security system, doorbell and door lock at the same time, the delivery staff can walk into the door and put the fresh food in the refrigerator for the guests.

With the increasing diversification of smart home services, Amazon will not only provide goods or fresh food delivery services in the future, the scope may extend to various home delivery services, so the security system will become increasingly important. In fact, to maintain the current pace of growth, not only selling goods, Amazon must also start selling services, and the acquisition of Ring is a step in this direction.

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