SEATTLE – Amazon’s acquisition of Ring, a successful start-up in the home security arena, will likely open the door for package delivery inside consumers’ homes.
Ring’s security devices reportedly work well with Amazon Key, a smart lock and camera system that lets deliverers put packages inside a home to avoid theft or food spoilage. For example, users of Amazon’s Echo Show device can say, “Alexa, show my front door” to receive a live feed of activity around their home via Ring cameras.
Baird Equity Research analyst Colin Sebastian said in a note that, as Amazon moves into the grocery delivery space, “We believe smart security devices will be an important factor in driving user adoption.”
The deal creates potential for much more, analysts said.
“Amazon, more than Ring, can revolutionize home security,” says analyst Michael Pachter of Wedbush Securities. He adds that Ring’s camera technology is “far superior to physical security ... With Amazon having roughly 100 million Prime members, that’s a big addressable market for them to start selling this into.”
Amazon was reportedly working on a competing smart lock with camera before the deal. And late last year, Amazon acquired the maker of Blink home security cameras for about $90 million, Reuters reports.
Brittain Ladd, an independent global digital and blockchain consultant and former Amazon executive, says the deal will usher in a new era of retail.
"Customers will be able to provide instructions for Alexa to buy groceries or general merchandise and then allow Alexa to control the delivery of the product including allowing access to the customer's home," he said. "Growing their ecosystem means becoming more ingrained into the day-to-day existence of consumers. Within just a few years, smart speakers like Alexa will be as common as TVs inside the homes of millions of consumers."
Ladd said Amazon will build out its search algorithms, collecting massive amounts of data across its ecosystem to continuously improve and personalize the experience for voice and text.
eMarketer expects Amazon's Echo will account for 67.9% of U.S. voice-enabled speaker users this year.