Will Amazon Get Into The Construction Business?

Amazon seems to be everywhere, from groceries to books to clothes and shoes. Its two-day shipping means customers turn to Amazon for nearly everything they could ever need delivered straight to their homes. Additionally, Amazon now offers free in-home consulting on how to create a smart home. Many customers who have newer homes have created a smart home hub – where Amazon’s Alexa or Google’s Go are connected to the lights, music, front door lock, thermostat, video cameras, external security system and more. Customers are increasingly controlling their entire home with their voice through their smart home hub.Tech companies are competing to be the hub for that customer.

I pose the question, “would it make sense that Amazon take it to the next level and simply start a construction company to build smart homes?” I believe this would make sense for Amazon. Amazon takes bold risks – entering the most difficult markets such as grocery and retail (they recently acquired Whole Foods Market, and launched Prime Wardrobe this week)– with rumors they are entering healthcare, banking and more – wouldn’t they take on the challenge of entering the construction market? We know there is a housing shortage in America, so perhaps Amazon can innovate this housing challenge – and do so with the construction of smart homes.

Amazon is already investing in numerous areas of smart home development and is trying to do everything it can to make your home smarter.

With the Amazon Alexa virtual assistant, Amazon makes it possible to schedule appointments, check the weather, and even control eco-friendly lighting and appliances with only your voice. Amazon also recently spent more than $1 billion to buy Ring, a company that creates smart doorbells and cameras so homeowners can see who is at their door and what is happening around their homes. Amazon is building products that re-order your groceries before you know they are running low and is investing in smart appliance companies that make it possible to cook and control stoves, microwaves, and fridges from anywhere.

As I mentioned earlier Amazon offers consulting services in some parts of the country where an employee comes to customers’ homes to tell them how they can make their home  smarter. It also offers personalized online consultations of how to install and use many smart devices. Clearly, the company is incredibly invested in making people’s homes greener and smarter.

If Amazon wants to add value to its customers’ lives and continue its path to building smart homes that are not only incredibly popular but also more friendly for the environment, it would consider getting into the business of actually building the entire home.

It makes sense that the company would want to make sure its smart devices are literally built into the walls of its customers’ homes.

Instead of trusting its products to be put into other builders’ homes, Amazon could take control of the entire process.

It fits with Amazon’s business patterns. Amazon’s ideas are always clever, and its investments are strategic. The company has always been inventive in how it is part of its customers’ lives, and I wouldn’t put it past them to become a construction company that develops homes in both urban and suburban areas to help meet customers’ needs, expand its reach, and make more money.

Who knows—soon we might be going to Amazon for everything from groceries to houses.

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