Amazon Delivers Healthcare

The World’s Largest Online Retailer Takes Aim at US Healthcare Consumers

Report by Lisa Phillips  | Jul 20, 2021
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Table of Contents
Executive Summary
Key Points
The Backstory
Amazon Pharmacy Is Primed and Ready
PillPack’s Progress
Amazon’s Telehealth Bid
Crossover Health Adds Physical Clinics
Alexa, Refill My Prescription
Insider Intelligence Interviews
Read Next
Sources
Media Gallery
About This Report
Amazon is maneuvering to become a dominant player in direct-to-consumer healthcare services, beginning with its online pharmacy and telehealth services for its employees. It may acquire more healthcare delivery outlets, such as primary care and urgent care clinics. Entrenched industry players are watching carefully.
Topics
Health
United States
Table of Contents
Executive Summary
Key Points
The Backstory
Amazon Pharmacy Is Primed and Ready
PillPack’s Progress
Amazon’s Telehealth Bid
Crossover Health Adds Physical Clinics
Alexa, Refill My Prescription
Insider Intelligence Interviews
Read Next
Sources
Media Gallery

Executive Summary

Amazon is maneuvering to become a dominant player in direct-to-consumer (D2C) healthcare services, beginning with its online pharmacy and telehealth services for its employees. It may acquire more healthcare delivery outlets, such as primary care and urgent care clinics. Entrenched industry players are watching carefully.

3 KEY QUESTIONS THIS REPORT WILL ANSWER

  1. What is Amazon's focus in the delivery of US healthcare services?
  2. What areas has the company built up to deliver healthcare services?
  3. How can/will the company disrupt healthcare delivery?

WHAT’S IN THIS REPORT? This report presents our first look at Amazon’s forays into the consumer side of the US healthcare space and examines its potential impact on healthcare delivery as well as consumer choices in the future.

Amazon US Retail Ecommerce Sales, 2018-2022 (billions and % change)
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KEY STAT: Amazon owns ecommerce in the US, with sales expected to hit $386.40 billion in 2021, according to our forecast. With a market capitalization of almost $1.9 trillion as of mid-July, the company must find new areas with huge growth potential that build on its core ecommerce capability. The $4.01 trillion US healthcare market is a likely target.

Here’s what’s in the full report

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10charts

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4expert perspectives

Insights from industry and company leaders.

    Table of Contents

    1. Executive Summary
    2. Key Points
    3. The Backstory
    4. Amazon Pharmacy Is Primed and Ready
    1. PillPack’s Progress
    2. Amazon’s Telehealth Bid
    3. Crossover Health Adds Physical Clinics
    4. Alexa, Refill My Prescription
    1. Insider Intelligence Interviews
    2. Read Next
    3. Sources
    4. Media Gallery

    Charts in This Report

    Amazon US Retail Ecommerce Sales, 2018-2022 (billions and % change)US Amazon Prime Users, 2021-2025 (millions and % population)
    Amazon US Health, Personal Care, and Beauty Retail Ecommerce Sales, 2020 & 2021 (billions, % change, and % of total category retail ecommerce sales)Sources Used by US Adults to Find Information on Prescription Drugs, Jan 2021 (% of respondents)
    Health Status/Risk Factors, Affordability of Care, and Access to Primary Care Among Low-Income* vs. High-Income** US Adults, May 2020 (% of respondents)Prescription Drug Insurance Coverage According to US Adults*, 2018 & 2020 (% of respondents)
    US Amazon Prime Members Who Would Sign Up for a Walmart Loyalty Program with Perks, Aug 2020 (% of respondents)Telehealth Services Received Most Recently Among US Telehealth Users, Feb 2021 (% of respondents)
    What Impact Has the Coronavirus Pandemic Had on How Frequently US Smart Speaker Owners Use Their Smart Speakers? (% of respondents, Jan 2021)US Amazon Echo Users, 2019-2025 (millions, % of voice-enabled speaker users, and % of population)

    Interviewed for This Report

    Doug Hirsch
    GoodRx, Inc.
    Co-Founder and Co-CEO
    Interviewed June 15, 2021
    TJ Parker
    Amazon.com, Inc.
    Vice President, Pharmacy
    Interviewed June 16, 2021
    John Ransom
    Raymond James
    Managing Director
    Interviewed June 8, 2021
    Brian Tanquilut
    Jefferies Group LLC
    Senior Vice President, Healthcare Services Equity Research
    Interviewed June 14, 2021

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    authors

    Lisa Phillips

    Contributors

    Jeane Han
    Senior Researcher
    Rayna Hollander
    Analyst

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