Amazon to Offer Virtual Primary Healthcare to Prime Members

Amazon to Offer Virtual Primary Healthcare to Prime Members
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The Facts

  • For $9 per month, Amazon will now offer Prime members access to 24/7 virtual primary healthcare services through its One Medical platform. The services range from expedited care for common concerns such as cold symptoms and skin issues, and same- or next-day remote or in-person appointments at One Medical primary care offices.

  • While the membership does provide access to in-person visits to One Medical locations across the US, such appointments will require additional payments out-of-pocket or through insurance plans.

The Spin

Narrative A

Unlike digital services, which have low marginal costs, Amazon's attempted entrance into the healthcare industry requires lots of skilled labor, meaning the more customers it acquires, the more doctors it will have to hire. While Amazon has historically added additional services to its membership benefits, such as streaming, the health industry beings a much higher chance of operating losses than digital products do. This is a risky bet for the Amazon empire.

Narrative B

There are certainly road bumps for any company entering the health industry, but Amazon's One Medical endeavors seem to have more positive potential than negative. Beyond its virtual appointment services, its gradual expansion into the pharmaceutical industry will help grow its relationships with prescribing physicians. Though all costs aren't included yet, One Medical's more than 200 primary care clinics nationwide show Amazon is poised to take over the virtual and physical healthcare spaces.

Metaculus Prediction

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