Best Buy Co., Inc. (NYSE: BBY) fell almost 7 percent on Monday after Recode reports that Amazon is planning to enter a new market that takes on Best Buy’s Geek Squad service.
According to Recode, Amazon “has quietly been hiring an army of in-house gadget experts to offer free Alexa consultations as well as product installations for a fee inside customer homes.” The new offering is aiming to help customers to set up their smart home products.
Amazon has already offered home services like TV mounting, house cleaning, assembly and plumbing. This moves show Amazon’s
The report said the new in-home services has already rolled out in seven markets, including Seattle, Portland, San Francisco, San Diego, Los Angeles, San Jose and Orange County, Calif.
Best buy has been offer Geek Squad service since 2002. Geek squad provides service like installing, setting up, protecting, supporting and repairing for customers electronics devices.
Best buy shares fell as much as 7 percent to $53.80 in the early trading in New York as investors are concerned that Amazon may take the market shares from Best buy.
Best Buy reported better-than-expected quarterly earnings in May, sending its shares to an all-time high. The company said the strong performance is due to robust customer demand and good product allocations for the new hardware.