Now available on Prime… colonoscopy appointments. Yesterday, Amazon announced it agreed to buy membership-based healthcare provider One Medical for nearly $4B. It’s the Zon’s third-largest deal ever, after Whole Foods ($14B) and MGM ($9B). One Med, whose stock rose 60%+ yesterday, is a key partner for Amazon as it expands into healthcare:
Dr. Alexa just finished med school… but Amazon’s been quietly pushing into healthcare for years. The ecomm giant bought the online pharmacy PillPack for $750M in 2018 and used it to launch its own online pharmacy in 2020 (Prime members get free shipping). In 2019, the Zon launched a telehealth service for employees called Amazon Care. Last year, Amazon Care opened its service to US employers.
Healthcare’s about to get Prime-ified… Amazon’s already disrupted shopping, groceries, and movie streaming. Now it plans to disrupt the convoluted healthcare biz, which it said needs “reinvention.” The Zon tried to launch a healthcare biz called Haven in 2018 with Berkshire Hathaway and JPMorgan, but it flopped because of a lack of healthcare experience, limited reach, and competing interests. This time around, Amazon may be more likely to succeed thanks to One Med’s know-how, streamlined strategy, and roster of 8K+ business clients.