Amazon to purchase iRobot at a cost of $1.7 billion
Amazon, the online retail behemoth, announced on Friday it has struck a deal to acquire iRobot, a robotics company renowned for its automatic home vacuum cleaners, notably the Roomba, in a cash transaction worth $1.7 billion.
The acquisition by Amazon signifies an expansion of its reach into home technologies. Currently, Amazon owns several home-based devices, including the Alexa assistant and security devices under the brands Ring and Blink. The tech giant plans to leverage iRobot's specialization in cleaning, mapping, and navigation technologies to develop new ways to streamline customers' lives.
iRobot's innovative solutions include vacuums that adapt to customer needs, such as cleaning when and where required while circumventing common household obstacles. They also feature self-emptying functionality.
The merger could, however, raise privacy concerns among consumers due to Amazon's broad data collection capabilities. Neil Saunders, Managing Director at GlobalData, commented that while Amazon handles personal data responsibly, concerns about data privacy may arise due to the increasing number of smart devices in homes.
Amazon has faced criticism regarding its use of customer information but has stated that they have been good stewards of people's data across all their businesses. Nevertheless, the company emphasized that it has no plans to use iRobot's technology in its warehouses as part of the merger.
Amazon's focus on automation extends beyond the home, with efforts to bring autonomous innovation to fulfillment and delivery operations. This summer, it expanded its drone delivery service to Texas, and in June launched Proteus, its first fully autonomous mobile robot to assist with package transportation in warehouses.
Meanwhile, Walmart, another major retailer, is also investing heavily in drone delivery, announcing plans to expand its DroneUp delivery service to 34 new sites across six states by the end of 2022, with the potential to deliver over a million packages via drone annually.
In January 2024, Amazon and iRobot abandoned their acquisition plans, asserting that regulatory opposition in both Europe and the U.S. played a significant role in the decision. This development likely alleviated some privacy and data collection concerns related to the deal.
- The acquisition of iRobot by Amazon indicates an extension of their business into the smart-home-devices industry, culminating from their existing collection of home-based gadgets like Alexa and Ring.
- With this deal, Amazon plans to utilize iRobot's advanced technologies in cleaning, mapping, and navigation to streamline customers' lives further.
- iRobot, known for its Roomba vacuum cleaners, offers smart vacuums that adapt to customer needs and even self-empty, enhancing home automation.
- The merger could potentially stir privacy concerns due to Amazon's extensive data collection capabilities across various industries, as noted by Neil Saunders, Managing Director at GlobalData.
- Despite public criticism of its data handling practices, Amazon insists on its responsible management of people's data across all its businesses, and emphasizes no plans to use iRobot's technology in their warehouses.
- Amazon continues to invest in automation, as demonstrated by the expansion of its drone delivery service and the introduction of autonomous robots like Proteus in their fulfillment operations, while Walmart also invests in drone delivery for retail, hinting at a perceived future where AI and technology dominate various industry sectors, such as finance, space, and war.
