Amazon acquired Eero in the middle of February for an undisclosed sum. There could be a number of reasons why the retail giant did this, but it does help give Amazon another way into consumer’s homes instead of just relying on the Fire TV and Amazon Echo.
Eero was a start up that sold mesh WiFi networking systems through a variety of retailers, which included Best Buy and Amazon. These systems allow users to spread WiFi around the home, instead of just using a single router and boosters, in order to have coverage throughout the whole home. If there are areas in the home that weren’t getting good coverage, then a mesh WiFi system could help solve that problem. Eero systems were easy to set up, making them a popular choice. The competition in this type of WiFi is small. The other players in this game include Google and Netgear. Many believe that Amazon bought Eero in order to stay ahead of Google, since Google Nest and Home products are some of Amazon’s biggest competition. Linksys and Samsung also create this type of WiFi.
Now that Amazon acquired this WiFi technology, experts are debating the different approaches that can be taken. The easiest approach is to continue to operate a subsidiary under the brand and this will allow the team to introduce new products. Amazon purchased Ring in a similar manner and the company still uses the same name. Under Amazon, Ring now offers more than just a smart doorbell and is a full home security system, along with new gadgets that are being introduced. Eero could operate similarly to Ring. Amazon can also incorporate this tech into the Amazon Echo. A higher end Echo could then also be used as a WiFi hotspot that will give consumers better coverage in every room that has one. The technology can be used for more than just homes and can be used for event WiFi, since it helps expand the WiFi zone. Since Amazon has a number of home devices, it may want to use the technology to just focus on home, but that doesn’t mean it won’t extend offerings to become an even bigger force.
For Amazon to really expand its in-home strategy, reliable WiFi is important. A Fire TV won’t work if there isn’t a good connection and Ring products need strong and constant Internet access to operate correctly and provide security. If Amazon does introduce its idea for a home robot, that will also need to be connected. Amazon may utilize the company to learn about how people use the Internet connections in the home. This will allow the company to be more efficient at selling products through its website, which is still their biggest revenue source.