What institution do you think is on the path to global dominance. Russia, China, or Amazon. The company, Amazon.com Inc. just bought the Santa Monica, California-based smart home equipment maker Ring, for an estimated $1 billion in cash.
With a series of high value acquisitions, just like the 13.4 billion dollar purchase of whole foods, Amazon is pursuing a clearly defined growth plan. And with growth figures of over 30% year on year growth, it is clearly working.
Right now, In the short term, Ring gives Amazon another piece in its Alexa puzzle and an advantage in its race against Google and Apple to control homes that will increasingly be filled with connected appliances. Alexa is great now, but it will be really useful when it's the hub that lets people use their voice to arm their security systems, open locked doors and flash video of the person who's ringing the doorbell out front.
Also, Alexa currently works with a host of third-party smart home products. But owning Ring's varied assortment of video doorbells, security cameras and accessories allows Amazon to accelerate their development and make them exclusive to Alexa. The deal would also help Amazon combat "Porch Pirates". These are cases of thefts from people houses after they have been delivered. Ring doesn't sell door locks just yet, but you can imagine a day when Amazon owns all the components to make such a service work.
Amazon wants to start selling us services, not just goods. They don't just want you to come to them, they want to be with you. Literally everywhere.