While neither Amazon Care nor One Medical has a particularly large market share, it’s clear that Amazon is foregoing internal investment in the hopes that it can buy its way into the health space. All of those things take a long time and One Medical was available to purchase.”īoth Amazon Care and One Medical sign deals with employers to provide health care to employees, so they are competitors. Physician recruitment is really hard, building insurance contracts is really hard, building employer relationships is really hard. “It made sense for Amazon to acquire an existing network. “One Medical already has all these contracts, and does telemedicine,” Farr said. That takeover, if approved by regulators, would provide Amazon with much of the access to corporate employees it had been seeking with Amazon Care, said Christina Farr, health-tech investor at Omers Ventures, making the in-house platform redundant.Ĭompanies such as Google offer One Medical to employees. “It’s a strategic move.”Īmazon’s decision comes after its recent agreement to acquire One Medical, a large network of primary care providers, for $3.9bn - its largest deal in the healthcare space. “This is not a sign of failure by any means,” said Natalie Schibell at Forrester Research. Just a few weeks after buying One Medical, Amazon shut down its rival offering, Amazon Care.Īnalysts said Amazon Care’s closure, which will come at the end of the year, should not be seen as a retreat on its efforts to gain a foothold in the $4tn US healthcare sector. Of late it has purchased robot vacuum cleaner maker Roomba, and doctor clinic network One Medical, and is in the bidding for Signify Health, a home health care provider.Īs one would expect, these deals are likely to result in a more concentrated marketplace, and we can see that happening already. Amazon CEO Andy Jassy discusses antitrust law at a senior executive meeting.Īmazon is on a buying spree, which is not a surprise considering the history of the firm.
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