One. Billion. Dollars!
Smart doorbell maker Ring just got acquired by Amazon for over $1 billion. This is after Shark Tank turned down the deal on their show in 2013.
“Why cry over spilled milk when you know there’s another great idea coming through the Shark Tank?”
Amazon’s new milk run
Amazon is doing everything it can to reduce the difficulty of buying online, and getting deliveries while you are not home is high on the list. Speculation is that Amazon’s purchase of Ring will facilitate services that it first introduced with Amazon Key.
Amazon Key integrates with smart locks to allow in-house delivery and even provide access to services like house cleaning or dog walkers.
This acquisition merges Amazon’s existing strengths of home delivery with a service that ensure that product can be safely placed into the home.
This is a good example of Principle 5- Merging (even though financially it’s an acquisition) as it links two separate companies to produce one stronger company.
It feeds on, and feeds, the growing trust consumers have for Amazon, and can create an entirely new ecosystem with Amazon at the centre. Plumber? Arranged through Amazon. Renovation? Arranged through Amazon.
This is my speculation, but could an AirBNB competitor be far behind? Amazon can now let you into a vacation home, handle payment, handle ranking information, intelligently assemble and present vacation options based on information about you as a customer, and even send you the sunscreen you need, timed for the day you arrive.
Alexa, who should be scared of Amazon?