New York, August 25: Amazon Hybrid is shutting down a virtual, in-home care service it spent years developing, a surprise move that underscores the challenges it faces as it moves into healthcare. Service, is called Amazon Carewill expire by December 31, according to an email sent to staff by Neil LindsaySenior Vice President of Amazon Health Services.
Amazon Care was launched in 2019 for Seattle-based Amazon’s Washington state employees, who served as trial users last year before the company made it available to its workers in all 50 states.
The service connects patients virtually with doctors and nurses who can provide round-the-clock treatment. It doesn’t have physical locations, but offers in-person services for things like vaccinations and flu testing in several cities, including Seattle and Washington, DC.
Amazon’s decision to pull the plug on Amazon Care is all the more surprising since the company said in February that it plans to expand the personal care service to include 20 additional cities. Last summer, Amazon also began serving private employers nationwide.
In an email to staff, Lindsey wrote that Amazon listened to employer feedback and worked to improve Amazon Care.
“However, despite these efforts, we have determined that Amazon Care is not an appropriate long-term solution for our enterprise customers,” Lindsay wrote.
He added that Amazon Care “isn’t a fully adequate offering for the large enterprise customers we’re targeting, and it won’t work in the long term.”
An Amazon spokeswoman declined to say how many people would lose their jobs due to the closure of Amazon Care.
Amazon Care is not the company’s first failed health effort. The tech and retail giant was also part of a short-term collaboration with JPMorgan and Berkshire Hathaway to improve health care costs. The three corporate giants formed an independent company called Haven to focus on improving care and managing costs, but dissolved last year.
Despite the setback, Amazon hasn’t focused on healthcare. Last month, it announced plans to spend USD 3.9 billion to buy primary care organization One Medical, a membership-based service that offers virtual care as well as in-person visits. As of March, One Medical had about 767,000 members and 188 medical offices in 25 markets.
Neil SaundersThe managing director of GlobalData Retail said that while Amazon is now investing in other areas of health, it is taking a more aggressive stance on exiting things that are not performing.
“The closure shows how difficult it is to break into the health market,” Saunders said. “It serves as a warning that even with acquisitions, Amazon’s bid to shake up the sector will be incredibly difficult and likely expensive.”
via AP
