[Edited] Amazon: What’s The Catch In Acquiring Eero?

What's in it for Amazon in acquiring Eero

Amazon announced on Monday evening that it had successfully acquired mesh-networking WI-FI company ‘Eero’ for an unrevealed sum.

Hence, Amazon has another way into consumers’ homes other than Amazon Echo, Fire TV, and Key in-home delivery service.

What is Eero?

Eero was a venture-backed startup that sold mesh WI-FI networking systems through a wide variety of retailers, including Amazon and Best Buy.

Unlike the familiar router-to-range extender network configuration, Eero is a WI-FI system that uses multiple access points to provide your home with fast and reliable coverage all on a single network, according to Eero help center.

So, if you have areas that are out of coverage or a signal black spot, a mesh WI-FI system can help solve that issue. Eero also allows you to spread WI-FI all around your home instead of relying on a single router.

Why did Amazon buy Eero in the first place?

Though the competition is very minimal, the only biggest competitors are Netgear and Google WI-FI. The main reason Amazon bought Eero was to get ahead of Google; where Google Home and Nest products provide Amazon’s the stiffest competition. Other companies like Samsung and Belkin subsidiary, Linksys have them too.

What will Amazon do with Eero?

The simple reason would be to continue to operate an independent subsidiary under Eero brand and allow the team to innovate new products. Around the same time last year, Amazon acquired Ring which is a company that offers more than just a doorbell. It is now selling home security system and another slew of new gadgets. Hence, just like Ring, Eero could turn into another Amazon sub-brand.

Moreover, it could also start to build the technology into its personal AI assistant, the Amazon Echo. A high-end Echo could double as a WI-FI hotspot, giving customers increased coverage in every room.

As for Amazon, the essential item to achieve is a reliable WI-FI for its in-home strategy. Your Fire TV will not work well with 4K HDR content if your connection is not stable. And if Amazon ever introduces something like a home robot, it would need a much more robust connection to support the device no matter where it roams.

Other uses of Eero that can benefit Amazon

Amazon could also use Eero to learn how people use internet connections in their homes.

If Amazon collects device type information (the way Google does,) it could understand all of the devices that connect to the internet in your home. In layman’s term, it would know if you have two iPhones, iPads and several Echos. Furthermore, as home appliances use the internet to make it more “smarter,” it would know if you possess a washer, a freezer, a dryer, or whatever device you have as long as its connected to the internet.

You see, Amazon knows and understands what people are already getting into. In a sense, it knows what to sell and what people might need in the future. And, with the addition of Eero, Amazon might have solidified its data acquisition to provide consumers more options or smarter e-commerce.

** Article Edited **


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