Amazon to Buy Home Security Startup Ring for $1 Billion

Amazon.com has agreed to buy connected-doorbell startup Ring for about $1 billion, a person familiar with the matter said.

The move helps Amazon expand further into the consumer market, including providing security for package deliveries. J.P. Morgan Chase & Co. advised Ring on the sale, said the person, who asked not to be identified because the matter is private.

Amazon has been pushing for a bigger presence in homes through connected devices such as its Echo smart speaker with the voice-activated assistant named Alexa. Buying Ring gives the e-commerce giant another touch point with customers, said James Cakmak, an analyst at Monness Crespi Hardt & Co.

“For this specifically it A) builds connection for further strengthening trust between the brand and consumers, B) increases market for delivery, and in turn, frequency, C) moves company along path to same day/same hour efforts while everyone else is battling the two day war,” Cakmak said in an email.

Last year, Amazon introduced Amazon Key, a service that incorporates a smart lock that can open doors for verified delivery drivers to deposit packages directly into a shopper’s home. Package thefts from doorsteps have increased in recent years with the spread of online shopping and deliveries.

Ring makes video doorbells and security cameras that connect to users’ phones or computers, letting them see and speak to anyone on their property from afar. The company, based in Santa Monica, California also sells related products such as security systems and smoke detectors.

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SOURCE: Bloomberg, Alex Barinka