The news: Amazon called it quits on its telehealth business, Amazon Care. The tech giant will no longer offer the service after December 31 since it isn’t “a complete enough offering for the large enterprise customers it has been targeting,” per an internal memo.
The writing was on the wall: Since rolling out its B2B telehealth business in 2019, Amazon struggled to gain traction among employer clients.
As of 2021, it only nabbed a handful of partners, including Silicon Labs, True Blue, Hilton, and Whole Foods Market (which Amazon already owns).
Amazon redirects its focus to One Medical: Amazon’s recent One Medical acquisition gives the tech giant far more B2B clients than it could ever score on its own.
One Medical’s services reach nearly 8,000 employers in 25 US markets. Plus, One Medical already offers its own virtual care services in addition to in-person clinics. That means operating both Amazon Care and One Medical would become redundant for Amazon.
Our take: We think that Amazon has its eyes set on carving deeper into the home healthcare and diagnostics space.
Amazon’s One Medical acquisition is only the beginning in Amazon’s healthcare playbook. In fact, last week, Bloomberg reported that both Amazon and UnitedHealth Group submitted bids to scoop up value-based care and home health company Signify Health.