Amazon Set To Enter The Home Security Market
Is Amazon adding yet another string to their bow with their latest acquisition?
When it comes to acquisitions, Amazon certainly know a thing or two, with their latest purchase, Whole Foods, paying off immediately in terms of increase share prices.
With Amazon Fashion recently unveiled as one of their next big projects, now it seems the U.S mega retailer is adding yet another string to their bow with the purchase of home security company, Ring, for $1 Billion.
Ring operates by offering a front doorbell camera based operation, which makes sense for Amazon who deal solely through a delivery based model, with the technology seemingly working seamlessly through Amazon Key, their new delivery system, where parcels can be left inside a home to avoid theft or in the case of groceries, them going off.
Talking of the move, Baird Equity Research analyst Colin Sebastian said: " As Amazon moves more aggressively into the grocery delivery space… we believe smart security devices will be an important factor in driving user adoption.” As Ring can currently be operated through Amazon Echo the merger looks from the outside to be seamless and with this huge investment of Amazon funds, opens the floodgates to develop the home security system even further.
While onlookers were optimistic to the kinds of developments this acquisition can bring, one company feeling the strain was U.S security giant ADT, whose stock prices fell more than two percent after the deal was announced. While Amazon have been long known to be working on the home security systems, such a coup will be hard for individual companies to now compete with.