Biotech
Tuesday, October 24th, 2023 1:59 pm EDT
Key Points
- Amazon’s Potential Entry into Veterinary Telehealth: Amazon is considering expanding into the veterinary telehealth sector to compete with Walmart, which recently introduced this service to Walmart+ subscribers. While Amazon dominates the pet food and supplies market, it has not significantly invested in pet health, a sector projected to drive growth in the $137 billion pet industry. Veterinary telehealth enables pet owners to have virtual appointments with veterinarians and technicians, similar to human telemedicine.
- Pet Market Competition and Growth: The pet market has become increasingly competitive, with retailers like Chewy, Walmart, and Petco expanding into pet health to remain competitive and gain market share. Research suggests that the U.S. pet market is expected to grow to $200 billion by the end of the decade, with pet health care playing a significant role in driving this growth. Companies are focusing on services like pet prescription, insurance, and telehealth to enhance their offerings.
- Regulatory Challenges and Lobbying: Veterinary telehealth emerged as a convenient alternative to in-person visits during the pandemic, but regulatory challenges have hindered its expansion. A complex network of state and federal laws dictates pet telehealth, raising concerns about delayed treatment or misdiagnosis when product sales take precedence. Corporate giants, including Chewy and Mars Veterinary Health, have supported lobbying efforts to change regulations. Amazon has also been involved in lobbying efforts related to digital health oversight and telemedicine, spending approximately $430,000 on such efforts this year. However, it remains unclear whether these efforts are directed at pet or human health.
Amazon is reportedly considering entering the veterinary telehealth sector, a move aimed at competing with Walmart’s pet telehealth service for Walmart+ subscribers. While Amazon already dominates the pet food and supplies market, it has yet to significantly invest in pet health, a sector expected to drive growth in the $137 billion pet market. Veterinary telehealth would enable pet owners to have virtual appointments with veterinarians and technicians, similar to human telemedicine.
Walmart recently partnered with veterinary telehealth provider Pawp to offer Walmart+ subscribers free access to the service, a move set to expire in November. Amazon may collaborate with Pawp to launch its pet telehealth offering in time for the holiday season. Alternatively, the company could partner with other pet telehealth startups or establish its practice, much like Chewy did during the COVID-19 pandemic.
The pet market has become increasingly competitive, with companies like Chewy, Walmart, and Petco expanding into pet health to secure market share. The U.S. pet market is projected to grow to $200 billion by the end of the decade, with pet health care driving this growth. Amazon’s potential entry into pet telehealth aligns with its prioritization of the pet market, highlighted by its Super Bowl ad earlier this year.
If Amazon proceeds with a pet telehealth program, it could potentially offer it through its Amazon Prime subscription service, enhancing the value proposition of the subscription and making it more competitive in the market. However, veterinary telehealth has faced regulatory challenges due to a complex web of state and federal laws. Efforts to change these regulations are supported by industry players, including Amazon, which has spent around $430,000 on lobbying efforts related to digital health oversight and telemedicine this year.
For the full original article on CNBC, please click here: https://www.cnbc.com/2023/10/24/amazon-considers-offering-veterinary-telehealth-in-walmart-competition.html
