If you thought it was weird when Amazon bought Whole Foods, then you’re probably going to be scratching your head over its latest acquisition. The e-commerce behemoth is now entering the field of health care, which is one of the last places we thought we’d find Bezos’ footprint. Last week, the company announced it was acquiring One Medical, which is a primary care provider in various US markets. The deal is worth $3.9 billion, and is Amazon’s initial foray into into the massive US health care market.
Amazon announced the news on its website, and its reasoning was simple: the health care system could use a fresh, technology-based approach. “We think health care is high on the list of experiences that need reinvention,” said Neil Lindsay, SVP of Amazon Health Services. “Booking an appointment, waiting weeks or even months to be seen, taking time off work, driving to a clinic, finding a parking spot, waiting in the waiting room then the exam room for what is too often a rushed few minutes with a doctor, then making another trip to a pharmacy – we see lots of opportunity to both improve the quality of the experience and give people back valuable time in their days.”
“Alexa, schedule my colonoscopy” could be coming in the near future.
One Medical was likely a tempting acquisition for Amazon due to its heavy use of technology currently. Its website boasts of 24/7 virtual care through your phone or computer. It also offers same-day or next day appointments, which can be booked with an app. It’s so futuristic you can even text with your provider. Amazon describes it as a “human-centered, technology-powered U.S. primary care organization.” One Medical boasts its care is so personal you will fall in love with your doctor’s office.
The company’s CEO is definitely onboard with the merger as well. “Amazon’s customer obsession, history of invention, and willingness to invest in the long-term is so exciting,” said Amir Dan Rubin, One Medical CEO. Together the two companies will seemingly combine their technological prowess in ways undetermined at this point. The goal is simple though: to get better care to more people.
This is the first health care company Amazon has purchased. However, it’s not the first time it’s strayed from its e-commerce roots. It’s long been eager to deploy its technological innovation in markets it sees as stagnant or in need of an overhaul. This year it launched its first brick and mortar apparel store in Los Angeles named Amazon Style. It allows you to order clothes online, then visit the store to try them on. You can also see the entire inventory for an item such as a shirt by scanning its QR code. It also operates the Amazon Go cashier-less grocery stores where you take what you want and leave.
Still, its previous acquisitions like Whole Foods and Zappos were at least somewhat adjacent to its core business. Its journey into health care is uncharted waters, at least as far as Amazon is concerned. That said, a lot of people would agree it’s an industry in dire need of a technological update. Amazon’s press release didn’t contain any details on how it seeks to disrupt the health care market. How long it will be until we’ll be getting a notification to schedule a Prime Physical?
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