Eero

Market position

eero describes itself as having pioneered home mesh Wi-Fi, and its first system was characterized in contemporaneous coverage as the world's first whole-home Wi-Fi system. Competition emerged quickly after the 2016 launch, with Luma and NETGEAR shipping similar products and Google launching Google Wifi in late 2016 at $299 against eero's $500 price, which former employees described as the company's biggest competitive challenge. eero's attempt to diversify into smart home security with Hive was abandoned after Google introduced Nest Secure. Since the Amazon acquisition, eero has operated as a distinct brand within Amazon alongside Ring and Blink.

Points of differentiation cited include ease of setup for non-technical users, automatic over-the-air updates that remove the need for users to apply security patches, network-level security that covers all connected devices, industrial design intended to be displayed in the open, and a highly rated mobile app for remote management. Post-acquisition integration with Amazon includes plans for Amazon's Wi-Fi Simple Setup, allowing new Amazon devices to connect automatically using stored encrypted credentials.

Technology

Whole-home mesh Wi-Fi: multiple identical nodes communicate with each other to extend coverage rather than relying on a single router, with the current generation supporting Wi-Fi 7. The system emphasizes advanced encryption and security protocols applied automatically, over-the-air automatic firmware updates to remediate bugs and vulnerabilities, and router-level protection covering every device on the network without per-device software installation. Cloud management enables remote administration through the eero app. According to eero's privacy disclosures, the system collects information about the types of devices connected and daily speed test results but does not collect browsing data; for eero Plus subscribers, DNS requests are routed without customer information to security partner Zscaler.

Go-to-market

Direct-to-consumer sales via eero.com and Amazon.com, plus brick-and-mortar retail — by September 2016 eero was sold in more than 600 Best Buy stores in the U.S. Promotional bundling of devices with prepaid eero Plus service is used on eero.com and Amazon. Separate go-to-market motions target ISPs, MSPs, professional installers and residential communities. Consumer-facing messaging emphasizes simple setup and design intended for visible placement, which the company says improves performance.

Residential consumers of varying home sizes seeking whole-home Wi-Fi coverage, small businesses such as retail and hospitality locations, and B2B channel partners including internet service providers, managed service providers, professional installers, and multi-tenant residential property operators.

Geography

Headquartered in San Francisco (eero LLC, PO Box 77880, San Francisco, CA 94107), with devices deployed in homes and businesses across more than 27 countries. Direct sales and promotions on eero.com cover the United States and Canada (with Quebec, and for some offers Newfoundland & Labrador, excluded), and products are also sold via Amazon.com and Amazon.ca. International support options are offered through eero's support site.

History

Founded in 2014 and operating initially from a co-founder's living room, eero moved into an office in August 2014, reached 11 employees by January 2015, announced its first product in February 2015, and began shipping the eero Wi-Fi system in 2016 to positive reviews. It scaled to 115 employees and broad Best Buy distribution by late 2016 and was valued at over $277 million shortly after launch. Competitive pressure from Google Wifi and others followed, the Hive smart home security effort was cancelled after Nest Secure was announced, and roughly 20 percent of staff was cut, followed by heavy attrition. On February 11 eero announced Amazon had acquired it; Amazon closed the deal about a month later without disclosing terms. Mashable, citing confidential documents, reported a $97 million sale price with common stock valued at $0.03 per share, below the $3.54 July 2017 high, leaving employee options underwater while executives received bonuses and salary increases; reported capital into the company ranged from $90 million (Crunchbase) to $138 million in venture funding (PitchBook) plus a $10 million debt line, totaling about $148 million.

Risks & controversies

The Amazon acquisition drew scrutiny over privacy, since a router provider has visibility into connected devices and network activity; Amazon's Dave Limp and eero's Nick Weaver stated the existing privacy policy would not change and that eero has never had the capability to collect browsing data, while outside commentators noted policies can be changed via software update. Mashable reported that the $97 million sale price was below the capital invested in the company, rendering employee common stock effectively worthless at $0.03 per share while executives received multi-million dollar bonuses and large salary increases, generating employee resentment; the company declined to comment on those figures. Earlier operational setbacks included intense competition from lower-priced Google Wifi, cancellation of the Hive product, a roughly 20 percent workforce reduction and subsequent attrition. eero Signal 5G currently lacks required FCC authorization for sale or lease.