Amazon Sunsets Amazon Care as It Beefs Up Healthcare Services

Amazon sunset its Amazon Care service, as the eCommerce giant begins to reevaluate its healthcare assets and offerings following its $3.9 billion acquisition of One Medical in July, The Wall Street Journal wrote.

One Medical, a membership-based primary care practice, offers on-site offices in larger U.S. metro areas, along with numerous telehealth offerings, giving Amazon more than 180 clinics in roughly two dozen U.S. markets.

Amazon Care was rolled out in 2019, as an  employee-based telehealth service that also dispatched healthcare providers to patients’ homes. It grew from a service offered to Washington state employees into a broader telehealth service offered all over the country.

WSJ reported that the service struggled to gain adoption beyond Amazon’s own employee base.

In a memo to employees, Senior Vice President Neil Lindsay said the decision was a tough one and had been made after “many months of careful consideration.”

Healthcare has become even more of a priority for Amazon recently, according to CEO Andy Jassy, and Lindsay said healthcare was high on the list of institutions that needed to be reinvented.

The company is competing with big rivals like Walmart as many companies try and roll out health-related offerings.

The news also comes on the heels of its bid to acquire in home healthcare provider Signify Health. Signify’s services use analytics and tech to provide in-home care on behalf of employers, health plans, physician groups and health systems.

Read more: Amazon Doubles Down on Healthcare with Signify Bid

Signify currently has a $8 billion-plus price tag. Bids are due around Labor Day, but analysts say that a deal might happen before then.

Amazon’s name is in the mix along with drug store chain CVS Health, which is looking to expand its home-health services, as well as healthcare insure UnitedHealth.