The Doctor Will See You… On Amazon: Tech Giant Expands Plans to Merge Medicine with Marketplace

Amazon is emerging as a key competitor to Walmart in the healthcare sector, leveraging its technological reach and consumer base.

With strategic partnerships, including those with Teladoc and mental health providers, Amazon is expanding its healthcare offerings such as virtual care and chronic condition management. By integrating these services into its larger ecosystem, including Amazon Web Services (AWS) and its Health Benefits Connector, Amazon seeks to redefine healthcare access and challenge Walmart’s established position in the industry.

Key Partnership With Teladoc Health

A key partnership is with Teladoc Health, which allows eligible Amazon customers to access chronic condition programs like those for diabetes, hypertension, and weight management. Teladoc’s services, including connected devices, data-driven personalization, and expert coaching, enhance access to care and promote more convenient health management.

In addition, AWS partnered with General Catalyst to develop artificial intelligence (AI)-driven healthcare solutions, focusing on personalized care, diagnostics and improving patient outcomes to make healthcare more accessible.

Amazon’s 2018 acquisition of PillPack marked its strategic move into disrupting traditional pharmacy services by offering personalized, tech-enabled care. The company has since launched Amazon Care and Amazon Pharmacy, positioning itself to integrate healthcare services into its retail and technology infrastructure.

Walmart Offers Same-Day Pharmacy Delivery in 49 States

In its own healthcare push, Walmart has launched same-day pharmacy delivery across 49 states, integrating pharmacy, general merchandise and grocery into a single online order. This tech-powered service combines AI, cloud technology and a geospatial platform to provide customers with medication delivery, led by over 15,000 pharmacists nationwide. Initially launched in six states, the service has expanded to millions of households, offering Walmart+ members free delivery and ensuring HIPAA compliance and privacy protection.

The service meets the demand for convenience, particularly for busy or homebound customers, such as those in rural areas. Walmart’s new technology helps pinpoint delivery areas more accurately, improving access to the service. This initiative supports Walmart’s focus on providing affordable, quality healthcare by making prescriptions easier to access and offering a smooth delivery experience that adapts to customers’ changing needs.

After it launched Walmart Health centers in 2019 to offer affordable healthcare, the company later closed these centers due to operational and financial challenges, while maintaining its commitment to affordable healthcare through its pharmacy services.

Meanwhile, the company introduced the Walmart Healthcare Research Institute (WHRI) to improve access to healthcare research, aiming to make healthcare safer, higher quality and more equitable. WHRI focuses on treatments and interventions for underrepresented communities such as older adults, rural residents, women, and minorities, with an emphasis on chronic conditions and inclusive clinical trials.

Walmart also added MyHealthJourney, a digital tool that gives patients access to their medical records, insurance information and reminders for care services, simplifying their healthcare and research participation. Walmart works with clinical research organizations, pharmaceutical companies and academic medical centers to support this effort.

Here’s a look at other notable developments from Amazon and Walmart:

Amazon Highlights

AWS Partners With Booz Allen Hamilton: Amazon Web Services and Booz Allen Hamilton announced an expanded partnership to enhance technology solutions for U.S. government agencies, aiming to improve efficiencies, accelerate decision-making and reduce costs. The collaboration will focus on delivering enterprise-level digital solutions in areas like cloud migration, cybersecurity and AI, combining AWS’s cloud infrastructure with Booz Allen’s expertise. This partnership will support federal missions across defense, intelligence and civil sectors.

Double-Digit Revenue Growth Projected for Amazon in Next 5 Years: Amazon is expected to achieve low double-digit revenue growth over the next five years, driven by its eCommerce business and cloud division, AWS, which now generates 60% to 65% of its operating profits. In Q3, Amazon reported $158.9 billion in revenue, up 11% year over year. Despite its strong position, some analysts believe AI stocks offer greater potential for higher returns in a shorter time frame. Amazon continues to rank first among the 30 most popular stocks held by hedge funds, with 286 hedge funds holding shares by the end of Q3, down slightly from 308 the previous quarter.

Walmart Highlights

Walmart to Launch Drone Delivery in Texas: Walmart is set to launch a groundbreaking drone delivery system at its Kaufman, Texas location. The renovation, slated to begin Feb. 10 and finish by April 12, will involve the installation of drone technology and infrastructure within a dedicated 5,000 square-foot area at the store. The $750,000 privately funded project, in partnership with Alphabet’s Wing, seeks to offer customers the convenience of having items delivered directly to their doorsteps via drones.

Walmart GoLocal Partners With IBM to Simplify Last-Mile Delivery for Retailers: Walmart GoLocal has partnered with IBM to integrate its last-mile delivery service into IBM Sterling Order Management, simplifying delivery logistics for retailers. This collaboration allows IBM retail clients to easily incorporate Walmart GoLocal’s delivery solutions, such as same-day, next-day, and scheduled deliveries, into their order management systems.

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