Amazon Continues to Expand Its Services, but Where Will It Go Next?

In 2017, we saw how far Amazon was willing to push the boundaries of technology to make its customers’ lives more convenient with its Key service, which granted access for in-home deliveries through a compatible smart lock and the Amazon Cloud Cam. Then earlier this year, we saw Amazon push this service further with its acquisition of Ring, which allows the company to own the entire delivery experience, instead of having to rely on partnerships to enable the Key service. And now, we are seeing the company expand this service even further by bringing deliveries to the car.

The Dawn of in-Car Deliveries

On April 28, 2018, Amazon announced that it was partnering with General Motors and Volvo to grant couriers access to a person’s vehicle to deliver packages. Amazon has been testing the service in California and Washington for the past 6 months, and is now rolling it out in 37 US cities. The service is currently only available to Amazon Prime subscribers and those who own a model year 2015 or newer GM or Volvo vehicle. There have already been a series of automakers experimenting with in-car deliveries, including Audi, Volvo, and Volkswagen. The technology equipped in GM and Volvo vehicles, primarily OnStar and Volvo On Call, which are used for features like roadside assistance, make these manufacturers a good fit for Amazon’s service expansion.

More Companies Are Offering Security Services

Amazon’s tentacles seem to be extending in any direction touching direct to consumer services, which begs the question where Amazon might be expanding next. A move reported by many news publications at the end of April 2018 may provide a clue. Amazon is now selling home security services, including professional installations, with no monthly fee. The security package is available at five price tiers ranging from $240 to $840 and includes devices like an Echo Dot, lighting, Ring, a camera, and sensors, depending on the tier. Security is a value proposition in which many companies are increasingly engaging. Comcast is using security to generate new revenue as its existing cable TV business model is under threat from companies like Netflix. Nest, which started with its Learning Thermostat, recently expanded its product portfolio with six new security products. Amazon wants in.

Amazon Is Only Adding to Current Offerings so Far

However, this move isn’t quite as profound as it sounds. The package deal is largely just a collection of things that Amazon already sells or services it is already implementing. If Amazon were to actually move into home security through the acquisition of a security company like Vivint, it would place the company as a home management and service provider. The company would not only provide e-commerce services and a handy digital assistant, it would own nearly all pieces of the smart home value chain and become the only real smart home platform provider. This could have serious implications for the market’s development, especially in a space that is fragmented and is expected to see further consolidation.