Amazon Ring Partners With Rapid Response For $10 Monitoring

By Brian Rhodes, Published Jul 10, 2018, 12:49pm EDT

Amazon's Ring alarm system is using Rapid Response for monitoring, IPVM has confirmed in our testing.

Amazon is arguably the most feared new entrant into the alarm monitoring market ever. With their huge size scale, with an $800 billion valuation, and hyper-aggressive expansion tactics, Amazon has disrupted various industries. Now, with $10 monthly monitoring, 1/3rd less than Simplisafe, and using Rapid Response, how much could Amazon hurt the traditional industry?

Inside this note, we examine the impact of Amazon / Ring using Rapid Response.

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Ring ******** ******

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*** **** *** ******* is *** ******** ** all ** ****** *** not *********** ****** ******** sales ** ***** ******, but **** ***** *********** do *** ******* ******** for ***** *** ******.  

Rapid ******** ********

***** ******** ** *** ** *** biggest *********, ******* ***** ********** for '**** ********** ******** ********* across ***** *******' **** '** *** ** certified *** ******** ** all ****** ********* *********'. Rapid ******** *** ***** monitoring ********, *** ** California *** ** ***** ************ in *** ****.

No *********** ** *******

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Comparable - **** **** ********** *** *******

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Vote / ****

Traditional ******** ****** ****** ***********

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Upcoming Ring ******* ****

**** ** ********* ********* results **** *** **** of ****'* ********* ********.

** ****** ****, **** for *** **** **** results *** *** ** stacks ** ******* ***** DIY ******, ******************* '*** ***' ********** 3 ******* ****** ***** ******

Comments (17)

This is no different than when the industry started doing takeovers of alarm systems from competitors. Go in and reprogram the account number and phone number for the customer. You know when monitoring started falling from $32 per month down to around $15 per month. 

The resell price of monthly residential alarm systems still is pegged at mid $30 range in some areas.  I got an ADT promo flyer in the mail today:

Basic monitoring (no cloud video or cell backup, POTS only) is $36.99/m for a minimum of 36 months:

Now this monthly price includes hardware and install (the flyer calls it an $850 value), but the ADT offer charges $99 up front as a 'customer installation charge'.

So, spreading $750 over 36 months equals ~$21 per month in hardware cost. This means ADT is collecting ~$16/month in monitoring costs for three years, or about 2X the $8.33 per month cost of annually billed Ring monitoring.

I've read many posts on Glassdoor regarding working for Rapid Response... and I can imagine that it is a tough job to begin with.

What added stress does this huge new customer (and their resi vs commercial customers) add to Rapid Response's 2 call centers in CA and NY?

Probably one of them if-you-can't-beat-em-join-em situations. There are only, what, 7 or 8 central stations large enough to handle an extra 100,000 subscribers in the next 12 months over and above whatever organic growth would be? If Rapid doesn't take Amazon's money, somebody else is going to. 

as a company not in this space my first reaction would be the 2500 dealers across North America should get together and set up a buyers group to get a better discount making from Rapid making them somewhat competitive. Heck they could even recruit the top dogs at Rapid and set up a new station. If they banded together they could compete ... maybe. 

One aspect of this surprises me.

In our poll in Amazon Ring Launches $10 Monthly Professional Alarm Monitoring released last month, over 65% of votes said this move was a net negative impact to alarm providers:

However, now that Rapid Response has been tied to this, ~65% of votes think that Rapid should do it:

So this means many of the same alarm dealers feeling negatively impacted by the move think Rapid should do it?

Rapid Response would be nuts not to do this deal, but let's not pretend this is a terrific development for dealers. 

The following was posted on CEPro Newsletter. It is focused on SimpliSafe and third-party monitoring, but also applies to Amazon/Ring and Rapid Response.

#1.. We believe SimpliSafe has a weak-link in their powerful chain…. their remote monitoring.  Hopefully they are now preparing to move all customers into their own next-gen monitoring facilities and technology.  Contracting with a traditional, licensed, third-party monitoring firm, like Lydia/C.O.P.S., was a good place to start, however way too much “baggage” for the SimpliSafe business model.  “Baggage” like credibility and liability.  For example, promote high security, but deliver lower level security. Recent statewide legislation (including FL,TX,GA) targeted licensed monitoring firms (like C.O.P.S, ADT, Moni, EM24, Rapid Response, etc), specifically prohibits a call to the police first for emergency response to private deterrent alarm systems. Must call customer first, serious downgrade from customer security expectations (aka Verified Response).  Local police response to private property alarms is going away or already gone (but customers are unaware).  Law enforcement will treat SimpliSafe (& Rapid Response) same as other firms under contract and dispatched from C.O.P.S. Tainted by association with traditional, private monitoring firms that have lots of nasty legacy liability.

#2… Verisure (another Hellman & Friedman investment) is a good example of a very large private security firm that delivers high end private security around the globe without the aid of public resources. Most countries do NOT offer public responders to private property alarm systems. Private response is the norm.  For example, the entire country of France and Israel formally practices VR-Verified response.  In parts of South Africa, TYCO responds in armored vehicles with a variety of weapons.  Maybe the next-gen model in the US will blend SimliSafe (& Ring) and Verisure with highly profitable private911.

“Baggage” like credibility and liability

How is Simplisafe and/or Ring looks credibility by using Cops or RapidResponse? Do you have concrete evidence to show this? 

In parts of South Africa, TYCO responds in armored vehicles with a variety of weapons. 

Thankfully for Americans, our crime situation is significantly better than South Africa.

In Canada- every home and business carries a burglar permit, in many jurisdiction police charge a fee $150 and up for a false alarm response and in many of these jurisdictions (Calgary) they charge the security company who then has to collect from customer. 

There are many  Canadian jurisdictions where a station is required to go over a checklist of the alarm and the site before police will dispatch, the permit number is required along with a time for a key-holder to arrive and open the door. 

Some these things are not available on DYI system I know in most western cities Police refuse to respond to a call from a non station without on site verification first.

 

Mark, thanks, that is informative!

To that end, I would assume Amazon and Simplisafe won't make any headway in Canada unless they fundamentally change their approach.

But, in the US, the legal structure provides no such barriers and, given that, their pricing structure and marketing abilities deliver a significant edge, yes/no?

I agree,  but I think that they will make a ton of headway in Canada - the police are under no obligation to respond. For me if I have a break in I rely on my ring this way I don't waste my time by first calling police I first voice down then I call a guard company that uses canines. Refuse to pay someone else for what I consider a useless service.

The other thing I noticed is that younger home owners are much more tech savvy and rely more on there cell phone they like the connectivity and control of a DIY system

In my opinion I would only recommend to my residential and small business customers a Ring type system. 

In the US you are lucky you can own a gun that you can defend yourself's and your property. In Canada owing a business or home only invites more gov. tax. and if we have an illegal gun we better have a shovel and a pre-dug hole.  

John…. You asked about my comment... “Baggage, like credibility and liability”.

This is the wrong venue to air the dirty linen of the remote monitoring segment of the alarm industry. However, for an overview, “credibility” can be measured by the very low priority, or no priority, for police response to on-demand calls for help by licensed monitoring firms. Not the same in all 10,000 municipalities, but the trends are toward VR-Verified Response, via ordinance or policy… following tradition around the globe. Most of the US population is within jurisdictions that now consider calls from private monitoring firms to be no priority nuisance calls, unless they can remote-witness a 911 type threat. All part of the decades old, broken, business model.

If you are a customer paying a high price for “security” monitoring, you may not be getting what you were sold, camouflaged by clever contract language…. thus the addition of “liability”.

This is the wrong venue to air the dirty linen of the remote monitoring segment of the alarm industry.

I am talking about the credibility of Ring and Simplisafe with buyers. I understand this industry does not like them but my rejoinder is that does not matter to end users buying their products.

If you are a customer paying a high price for “security” monitoring,

They are paying $10 per month, that's literally the lowest ever.

John… Thanks again for filtering my tirades.

I was referencing the credibility and legacy liability of the core infrastructure, traditional third party remote monitoring, that is outsourced by Amazon, SimpliSafe, and others. Could that credibility and liability attach to Amazon and SimpliSafe.??

Most of Canada is verification before dispatch, by policy Police will not respond unless it has been verified by video or by a private unarmed security guards first. 

Well, Rapid should either choose to be a monitoring provider to the independent dealers or to the company with the plan to hurt those same independent dealers with a $10/month offering.  The dealers are not naive and they will take notice of this!

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