Amazon Bought Ring In A Whooping $1 Billion Deal!

Business February 28, 2018

When we think about the eCommerce industry, the first thing that comes to our mind is the tech-giant company Amazon. Amazon has changed the way we live and shop and thanks to its services, we’re now able to enjoy shopping without a hassle and we can do it anytime and anywhere, whenever we’re free. What’s more, it also comes with a free delivery so we only have to wait for our orders to arrive on our doorstep and of course, we get excited unboxing them because it feels like receiving a present. Amazon seems unstoppable in changing our lives because recently, it announced its collaboration with two other giant companies to enter the healthcare insurance industry. If you think it’s all over, that’s where you’re dead wrong.

Amazon is also now entering the Smart applications industry after acquiring Ring for a whopping $1 billion deal!

According to GeekWire reports, Amazon had acquired Ring. The latter company specializes in creating smart home applications such as cameras, doorbells, and security system. The said acquisition deal was later on confirmed by Reuters which announced the news today. The said purpose of the acquisition was to expand Amazon’s home delivery services and infiltrate the home services market. It can be remembered that Amazon had debuted its home delivery service last October 2017 through the Key and Cloud Cam.

Amazon Bought Ring to Integrate Its Smart Home Products With Amazon Key

Its former owner, Assa Abloy, had acquired August Home and led the Amazon’s team before it launched its delivery trial. August Home first started its experiment and trial in 2015 to offer some home repair services to the customers. Aside from that, they’re also experimented with offering vacation rental services to their customers like Airbnb and HomeAway service. It was reported that Amazon first acquired the August Home for a $100 million deal in 2016. And two years after, it followed the acquisition of Ring.

With Amazon’s Widespread Influence Ring Can Reach More Smart Home Customers

Ring Specializes in Creating Smart Home and Security Products

The race for dominating the smart home industry is also set with Google collaborating with Nest to improve Google Assistant’s features and ability to integrate with smart home devices. Amazon acquires Ring to counter and compete with Google’s project. What’s great about this business deal is that even if Amazon had acquired Ring, it is still expected to run like an independent business. Which means that there are no major changes in the management team and Ring will still be able to pursue its project studies like before. It means that their pending smart home device projects are still ongoing and is expected to launch in the next few months.

Amazon only plays a vital role when it comes to the financial aspect.

Furthermore, this isn’t the first time that the tech-giant company partnered with the smart-home company like Ring. Amazon stated that they saw how their customers were beyond contented with Ring’s products and services since Day 1. When it comes to smart home products, most of their customers’ number 1 choice is Ring. That’s why they decided to pursue the partnership and they can’t wait to contribute and see what this talented team would bring out in the future.

According to Business Owners, Amazon is Destroying Small Businesses

However, most business owners doubt Amazon’s credibility on not controlling and competing with other companies. Some companies even said that Amazon is a ticking “nuclear power”. It may be helping your business boom for now, but once its energy accumulated, it threatens to explode which can break your business.

Despite all These Controversies, We Cannot Deny That People All Over the World Are Excited for This New Business Venture

Amazon Together with Two Other Tech Giant Creates a Company to Tackle Healthcare

Aside from Smart Home Products, Amazon Also Enters the Healthcare Industry

Whether or not Amazon is threatening every business that exists out there and competes with all of them, we cannot deny the fact that millions of customers all over the world are excited to this new business venture. They cannot wait for Amazon to bring a new wave of innovative smart home devices which makes their home feel more secure and comfortable to live in. Aside from that, they also can’t wait for Amazon to realize its healthcare insurance business. While the existing businesses are frustrated, the customers couldn’t wait to see how it’ll shape the industry and how these businesses are going to step up their game in order to gain a competitive edge against one another.