Amazon continues to spread its brand offerings to as many consumers as possible; this time the multi- billion dollar company is investing in the smart home technology market. Amazon has acquired smart doorbell company, Ring, for an estimated US$1 billion. In what seems to have become tradition among company acquisitions, Ring will remain an independent company following companies like Zappos, Twitch and Audible to maintain the Ring brand without altering company operations.
Ring makes doorbells that use Wifi and are equipped with cameras to make homeowners aware of who is at the door. The smart technology is connected to the owner’s smart devices through an app that provides the audio and video in order for owners to communicate to who is at the door. Ring’s mission is to reduce crime by creating technology based neighbourhood watch systems.
This is not the first attempt at landing high profile investments for Ring. James Siminoff, CEO and inventor for Ring, was a participant on the show Shark Tank in 2013. He was not successful in securing a deal from investors when he requested US$700,000 for a 10 per cent stake in the business, which was then called Doorbot.
Despite that setback, the company has made US$209 million; US$109 million from investments from entities like Qualcomm, Goldman Sachs, Richard Branson and Amazon. In the past they invested in Ring through its Alexa Fund, which helps other companies like Ring build skills and products for Amazon through voice innovation. Ring customers are able to interact with the smart doorbell through their Amazon Echo devices executing voice commands.
It seems the company is racing to compete with other companies in the smart home market such as Google and Nest. In December, Amazon also acquired Blink, which is another start up in the industry. Amazon is taking over; have you purchased the stock as yet?
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