Amazon has announced that it’s buying mesh networking fim Eero. The company was founded in 2015 and is based in San Francisco. According to Crunchbase it employs between 51 and 100 people.
In January 2018, the company laid off 30 employees, around 20% of the company. It has raised around $90 million in four funding rounds so far.
The company’s product is selling simple, powerful networking hardware that’s easy to use. Eero says that you can take its product out of the box and have it up and running in 10 minutes.
It has two main products, a smaller repeater that plugs into a power outlet and a larger device that can cover 1,500 sq feet with Wi-Fi. The hardware scales so that larger houses can add more devices to provide comprehensive wireless coverage.
The acquisition makes sense from Amazon’s perspective. The company is increasingly releasing products that rely on good networking. From its doorbell company Ring through to its own range of Echo hardware that give customer access to its voice assistant Alexa.
Amazon also knows that Eero devices are well-reviewed by its customers. The announcement says that the Eero has a 4.6 rating on Amazon.com.
Of course existing customers might feel worried. Takeovers like this can either be good news if they save a company from vanishing entirely, or they can be bad news if the purchaser make radical changes.
However Amazon doesn’t have a bad track record with company purchases. Ring has been allowed to carry on with enhanced budgets and minimal corporate interference from the retail giant. There’s a potential concern about how Eero might share customer data once it’s folded into Amazon. And as always the consumption of smaller startups by larger businesses is always worrying from a competition perspective.
However Amazon can boost sales, reach a wider audience and fund the development of new products.
Dave Limp, SVP of Amazon Devices and Services said “We are incredibly impressed with the eero team and how quickly they invented a WiFi solution that makes connected devices just work. We have a shared vision that the smart home experience can get even easier, and we’re committed to continue innovating on behalf of customers”.