Once a Shark Tank reject product, news is swirling that smart doorbell maker Ring has been acquired by Amazon for $1 billion (a little more than the $7 million CEO and founder Jeff Siminoff valued the company at when he presented it to ABC’s celebrity panel of investors).
The move, on the surface, is just another drop in the bucket for Amazon—a company that is quickly creeping into the smart home products space with its Echo-related products and more. But there are a number of reasons why this acquisition makes perfect sense for the ecommerce giant.
First and foremost, the product will likely integrate into Amazon’s in-home delivery service announced last year. At the time of that announcement, Amazon unveiled a Cloud Cam product that essentially is an indoor security camera. Coupled with their Amazon Key delivery service, customers essentially give access to Amazon delivery personnel to come into their home and drop a package off inside rather than leaving it out on the front porch where it can be spotted and stolen.