Amazon shuts down its online healthcare offering

The company is about to shut down Amazon Care, an online telehealth service. A decision to terminate the program is likely to affect the app exclusively, and it doesn't refer to other Amazon units.

The closure is scheduled after December 31. In the press-release, Neil Lindsay, senior vice-president of corporation, noted Amazon Care wasn’t a long-period settlement for its firm’s clients. 

“However, halt operations haven't come easily. For months, we have been focusing on the pros and cons,” the company’s management said. “Despite the positive feedback, we’ve reached an agreement that the service isn’t the best long-term solution, and Amazon Care won’t longer be available for customers.”

Although the service is expected to suspend, the retailer has gained valuable experience as well as a deep understanding of the healthcare system. 

The app was launched back in 2019 as a pilot project for retailer employees living in the Seattle area. Users were granted access to the following features: calling the ambulance, consulting with medical staff, ordering prescribed drugs, and getting tested and vaccinated, for an additional fee.

Amazon took several years to develop the software. As CNBC stated, Amazon even hosted a secret meeting in 2017, where key healthcare giants were present. The target was quite simple: to find out more about patient’s care. The company further hired several medical professionals to open their own pilot version of a private clinic.

In February 2022, Amazon made available its healthcare services for other employees and corporate clients. A move demonstrated the retailer's plan to gain a market foothold. 

However, the app’s popularity is still questionable. Last June, vice president of the company Babak Parviz noted that Amazon Care had attracted multiple firms for cooperating, including TrueBlue, Hilton and Silicon Labs. 

Thus, Amazon is planning to shut down the service, despite CEO Andy Jassi’s adherence to entering the healthcare industry. Last month, the company acquired One Medical for $3.9 billion. It is aimed at improving the quality of virtual medical diagnostics. The Wall Street Journal also announced Amazon to submit a request for buying Signify Health, the nation's leading healthcare provider.